Henderson snaps up Austrian retail warehouse

Henderson Global Investors has acquired a retail warehouse in Austria on behalf of its German business Warburg - Henderson KAG's Österreich Fonds Nr. 2.

The purchase price was not disclosed. The vendor is Bank Austria Real Invest Immobilien Kapitalanlage.

The asset, called M-City, is a fully let retail warehouse located in the lower Austrian city of Mistelbach, around 60 kilometres north of Vienna. It comprises 10,800 m2 of retail space and 370 parking spaces with main tenants including sports retailer Intersport XL and electronics group Red Zac.

'With good rental growth prospects and slight inward yield compression, we favour Austrian retail parks,' said Stefan Wundrak, director of Research, Property at Henderson. 'Whilst many institutional investors will focus on prime high streets and shopping centres, we continue to believe the yield spread for retail warehouse is attractive and will outperform.'

The Warburg - Henderson Österreich Fonds Nr. 2 was launched in March 2011 and invests in retail properties in all of Austria and office properties in Vienna with a risk/return profile of core to core plus. The fund is aimed at German and Austrian investors and targets a yearly total return (IRR) of 7 % on equity invested.

The portfolio now comprises five retail warehouses in Vienna, Fürstenfeld, Linz and Mistelbach, one shopping centre in Spittal and an office and retail asset also located in Vienna. Further acquisitions are currently being prepared, Henderson said.