A joint venture between Morgan Stanley Real Estate Investing (MSREI) and Hamburg-based asset manager Redos Real Estate has acquired the 'Christie' retail real estate portfolio in Germany.
A joint venture between Morgan Stanley Real Estate Investing (MSREI) and Hamburg-based asset manager Redos Real Estate has acquired the 'Christie' retail real estate portfolio in Germany.
The financial details of the acquisition from the Christie Group were not disclosed. But HSH Nordbank said it provided Morgan Stanley Real Estate Fund Global VII, a closed-end real estate fund managed by investment bank Morgan Stanley, with finance of €270 mln for the purchase of the four shopping malls in the Berlin and Dresden regions. The Bank is the sole underwriter and bookrunner for the transaction and intends to syndicate the loan to a further two banks in the near future.
The portfolio is the fourth retail portfolio to be jointly acquired by MSREI and Redos. 'This portfolio fits our strategy of buying established assets with good cash flow and opportunities to add value through investment and repositioning,' said Patrick Lindemann, executive director of MSREI.
MSREI and Redos teamed up with Muenster-based project developer HLG to reposition some of the assets. HLG has 25 years of expertise as an investor and developer in the retail sector with notable developments in the Berlin region including the A10 Center and Tempelhofer Hafen.
The portfolio consists of four hybrid shopping centres that blend the concepts of retail warehouse park and shopping centre and are the dominant retail hubs at their respective locations in the greater Berlin area and Dresden. 'The portfolio offers attractive opportunities to raise appreciation potential,' said Oliver Herrmann, managing director of Redos Real Estate, who will act as asset manager at all of the locations.
The plans call for extensive refurbishment, especially at the locations of Dresden as well as Dallgow and Eiche near Berlin. 'The properties are getting on in years, and need to be modernised accordingly,' said Herrmann.
The portfolio totals 214,000 m2 of gross lettable area with the majority of the income on long-term leases. With a rented floor area of around 15,000 to 20,000 m2, German hypermarket Kaufland serves as anchor tenant at all four of the properties. Additional anchor tenants include C&A, H&M, TK Maxx, Mueller Drogerie, Media Markt, and toom.
Shopping centre specialist Mfi will continue its role as centre manager at all four sites. The principal advisers to the Christie Group were Talbot Hughes McKillop, Hogan Lovells, Bingham McCutchen and CBRE. Latham & Watkins advised the buyer on the legal side.