Invesco Real Estate is acquiring a shopping centre in northern Germany on behalf of some of its clients.
Invesco Real Estate is acquiring a shopping centre in northern Germany on behalf of some of its clients.
Invesco is paying just under €48 mln for the Plaza Center in Lübeck, the second-largest city in the German state of Schleswig-Holstein. The investment volume is in line with the end-2013 valuation and represents a net initial yield of 6.5%.
The 29,100 m2 property is anchored by a Coop Hypermarket. It was sold by the German shopping centre joint venture between London-listed Capital & Regional and global alternative asset manager Ares Management (formerly Area Property Partners). Completion is expected to take place within the 10 days.
Capital & Regional said that part of the proceeds of the sale would be used to repay €35 mln of debt in the German joint venture. The sale reflects the company’s stated strategy of disposing off its German portfolio over time, in order to focus on its core business of owning and managing dominant, in-town UK community shopping centres.
Another seven German assets, with a total valuation of over €100 mln, are on the market and have 'attracted encouraging interest from a wide range of domestic and international investors,' Capital & Regional added.