Open-ended funds have made a comeback in Germany by investing in the retail property sector, a new research report released by Jones Lang LaSalle, the Hahn Group and Dr. Lademann & Partner shows. The funds, which historically focused on shopping centres, are now expanding their activity in the country by investing in retail warehouse centres.
Open-ended funds have made a comeback in Germany by investing in the retail property sector, a new research report released by Jones Lang LaSalle, the Hahn Group and Dr. Lademann & Partner shows. The funds, which historically focused on shopping centres, are now expanding their activity in the country by investing in retail warehouse centres.
While not a single deal was carried out in this segment by the funds in 2007, open-ended investment vehicles have represented 40% of the retail warehouse transactions in Germany during the first six months of 2008. A total of 13 retail warehouse centres were sold in the country in the first half of 2008. Overall, the German retail sector reported a total of EUR4.5 bn of investment deals in the first six months of 2008, down 9% on the same period a year ago.
Retail warehouses and discounters also remain popular formats among developers, the report shows. Altogether the two managed to expand their market share in 2007 with a total of 1.5 million m2 of sales area being added in 2007. Retail warehouses and discounters currently represent 38.5% of the total retail space in the country.
