London & Capital said Monday that it has acquired a portfolio of 38 retail properties in Germany worth EUR 225m for its German Real Estate Fund in the largest transaction in the company's history. The fund now has assets valued in excess of EUR 650 mln.

London & Capital said Monday that it has acquired a portfolio of 38 retail properties in Germany worth EUR 225m for its German Real Estate Fund in the largest transaction in the company's history. The fund now has assets valued in excess of EUR 650 mln.

The new and high-quality retail assets are a -balanced combination of supermarkets, shopping centres, out-of-town retail parks and local convenience schemes' spread throughout the former West Germany, the international investment company said in a press release. 'The geographical spread complements the current fund as there is a low correlation to the existing total weighting'. The ongoing sector diversification enhanced the fund's risk spread, London & Capital said. The average lot size was EUR 5.9 mln.

Ralph Weichelt, country fund manager at London & Capital said: 'This is a momentous win for London & Capital that drives assets in the Fund up by 50%. The acquisition of thirty-eight assets within this one portfolio will further strengthen the Fund both in terms of risk and asset class exposure. We are looking at a projected gross contractual rental income of EUR14.6 million per annum with plenty of capital growth opportunities.'

Iain Keys, director of real estate at London & Capital, added: 'We are seriously committed to the opportunities in German commercial real estate and will continue to source first-class covenants with high-quality tenants. This acquisition will contribute to the strong performance of the German Real Estate Fund to date, generating strong returns from mid and long term rental growth prospects.'