LaSalle jv acquires Degi mall in Germany for EUR 157m

A joint venture of the Canada Pension Plan Investment Board (CPPIB) and LaSalle Investment Management has acquired a regional shopping centre in the city of Hürth, Germany for EUR 157.3 mln. The centre, known as Hürth Park, previously belonged to the open-ended property fund Degi Europe, which is managed by Aberdeen Immobilien Kapitalanlagegesellschaft, and is now in liquidation. Under the deal, CPPIB now owns 80% of the centre, while a value-add fund managed LaSalle fund holds 20%.

Located 10 kms south of Cologne, the shopping centre has a leasable area of approximately 60,000 m² and an annual rental income of approximately EUR 12.5 mln. Anchor tenants include fashion retailer Peek & Cloppenburg, Real, a hypermarket, and media store Saturn.

The joint venture plans a comprehensive refurbishment as well as a new positioning of the centre.

David Ironside, managing director LaSalle Germany and responsible for acquisitions in Continental Europe, said: 'The German real estate market continues to be one of the key markets in Europe and is set to recover significantly with very good investment opportunities. To take advantage of these opportunities is the order of the day - particularly in the case of a shopping centre with such manifold potential.'

Wenzel Hoberg, vice-president and head of Real Estate Investments - International, CPPIB, said: 'We are pleased to partner alongside LaSalle to acquire H?rth Park, our first direct real estate investment in Germany. H?rth Park is a well-leased and well-situated regional shopping centre. This investment is fully aligned with our international retail strategy to acquire prime retail shopping centres in key markets.'

Jones Lang LaSalle advised Aberdeen on the transaction and conducted the sales process. ECE was involved in the due-diligence process and will continue to be responsible for the management of Hürth Park.