Germany's Hamborner REIT has bought a 6,000 m2 retail development and sold a smaller shop in Berlin as part of its strategy of buying larger properties and selling smaller assets.

Germany's Hamborner REIT has bought a 6,000 m2 retail development and sold a smaller shop in Berlin as part of its strategy of buying larger properties and selling smaller assets.

The company has signed an agreement to acquire T-Damm Center at Tempelhofer Damm 198/200. After being let in full, the property will generate an annual rental income of €1.2 mln. It is currently 70% pre-let to retailers Kaiser's, Rossmann and Aldi. Completion is planned for the second half of 2015.

With a purchase price after full letting of around €19 mln, the deal reflects a gross initial yield of 6.3%.

The property is being sold by A&F Grundbesitz Tempelhofer Damm, a property company owned by the Dr. Aldinger & Fischer project development firm. The transaction was brokered by Wrangel Real Estate Consulting & Investment.

In addition, Hamborner has sold a smaller shop building at Schlossstrasse 23 for €4.9 mln. The property, which has a rental area of around 540 m2, generates an annual rental income of around €230,000.

The buyer is Brenog Berlin Ijzendoorn Einzelhandelsimmobilien II & Co. KG. The deal was brokered by Comfort Berlin-Leipzig.