Irish private equity firm Signature Capital has acquired one of Cologne's major landmarks, the Neumarkt Galerie mixed-use complex, from administrator Markus Heider of Goerg for around EUR 130-135 mln, well-informed market sources told PropertyEU. The price represents a nearly 25% discount to the amount paid by the former owner, Irish investor Quinlan Private, back in September 2006. According to sources, the yield is between 6 and 6.5%.
Irish private equity firm Signature Capital has acquired one of Cologne's major landmarks, the Neumarkt Galerie mixed-use complex, from administrator Markus Heider of Goerg for around EUR 130-135 mln, well-informed market sources told PropertyEU. The price represents a nearly 25% discount to the amount paid by the former owner, Irish investor Quinlan Private, back in September 2006. According to sources, the yield is between 6 and 6.5%.
The prime office and retail complex was sold through a narrowly-marketed sales process managed by CB Richard Ellis.
Insolvency firm Goerg was appointed to sell the centre after the vehicle holding the asset, Neumarkt Galerie Immobilien GmbH & Co. KG, filed for bankruptcy in February 2011. The 32,441-m2 scheme was bought by Irish investor Quinlan Private at the peak of the market for as much as EUR 170 mln.
The curator said that it worked alongside Capita Asset Services (previously known as Barclays Capital Mortgage Servicing Limited) in the sales process to a Luxembourg-based fund managed by Signature Capital. Capita Asset Services managed a EUR 140 mln loan secured against the shopping centre which was originated by Barclays Bank to finance Quinlan's purchase five years ago. While senior debt holders could recover most of their investment, it is understood that holders of the junior tranches have taken hefty losses on the deal.
The transaction is the first large-scale acquisition made by Signature Capital in Germany since 2006.
Neumarkt Galerie is anchored by Karstadt Sports and is famous for its striking architecture. The shopping centre covers three levels and contains 65 shops, which include a range of international brands, restaurants and cafes. It also includes 10,000 m2 of office space and a clinic. The scheme generates EUR 8.5 mln in annual rental income.
Market insiders say the buyer plans a significant capital expenditure programme to revamp the asset. Signature Capital was advised by Jones Day. Wellensiek Rechtsanwälte acted for Capita.
Signature Capital, with over 30 employees and offices in Dublin, Berlin and Hamburg, was founded in 2004 by managing partners Ciaran McNamara and Enda Woods. The company focuses primarily on value-add opportunities in the retail sector.
