Patrizia Immobilien has acquired a German retail portfolio comprising 85 properties for around €400 mln from a joint venture between the Third Swedish National Pension Fund (AP3) and PGIM Real Estate, a subsidiary of Prudential Financial.
The portfolio was acquired for an individual mandate of a large German insurance company, for which Patrizia has recently secured a number of retail deals. Closing is planned for the end of the year.
'Based on our market knowledge and on-the-ground presence, we were able to secure this promising portfolio in an off-market transaction,' commented Daniel Herrmann, head of fund management retail at Patrizia.
-While the properties are already at a high quality, we have been able to identify numerous optimisation measures which will further increase the value of the asset for our clients. The transaction is also further evidence of major institutions turning to us to help pursue their investment strategies, often at scale,' he added.
The portfolio comprises 236,000 m2 of lettable area spread across mainly Southern and Western Germany, with a regional focus on Bavaria, Hessen and Rhineland-Palatinate. The principal tenants include well-known German commercial entities such as Lidl, Aldi, EDEKA and REWE. The remaining average lease term for the portfolio is around six years.
The acquisition increases Patrizia’s retail assets under management to more than 500 properties with a value of almost E€4 bn, over half of which are specialist retail assets.
