German investor HIH Invest Real Estate has acquired Warnow Park, a neighbourhood retail centre in Rostock, from an investment fund managed by Corestate.
Financial details were not disclosed.
The scheme, which has a total lettable area of over 40,000 m2, of which 26,000 m2 is retail, is divided into 50 units.
The master tenant is food retailer Edeka Nord with a weighted unexpired lease term of about 18 years plus a renewal option.
Edeka operates an E-Center hypermarket on 8,224 m2 while subletting and managing the roughly 50 other lock-up retail units as well as the flats and offices.
Situated at Rigaer Strasse 5 in the Lütten Klein district, it was previously held by Corestate's Highstreet VIII retail property fund.
Jens Nagelsmeier, head of transaction management retail at HIH Invest said: 'Master tenant Edeka Nord has a blue-chip credit rating.
'At the same time, Warnow Park has proven resilient during the coronavirus crisis with its strong focus on local amenities and its need-based sector diversification.
'Out of the total of about 50 retail units, around 30 remained open for business throughout the pandemic.'
The property opened for business in 1995 and was significantly modernised in 2010. It includes 1,000 parking spaces and basement plant rooms and storage areas.
In addition, there are about 30 split-level apartments with a combined floor area of about 2,300 m2 on the second and third floor, as well as 1,125 m2 of office space.
The primary sub-tenants include the retail chains KIK and Takko (both discount fashion), dm Drogeriemarkt (drugs) and Jysk (home furnishings, formerly Dänisches Bettenlager). Ten units are currently occupied by gastronomic venues.
Fully occupied except for a single lock-up retail unit, Warnow Park attracts 14,000 visitors a day in a direct catchment of around 60,500 residents.
HIH Invest received legal and tax advisory from Baker Tilly Rechtsanwaltsgesellschaft in Frankfurt am Main. The technical due diligence, which includes ESG aspects, was undertaken by C.P.H. Projekt- und Baumanagement from Hamburg.
The market and location analysis was compiled by bulwiengesa AG. Bechtolsheim Real Estate brokered the deal as estate agent.
