German investment manager Patrizia Immobilien has expanded further in Germany with the acquisition of a supermarket portfolio of 107 retail properties for €286 mln.

German investment manager Patrizia Immobilien has expanded further in Germany with the acquisition of a supermarket portfolio of 107 retail properties for €286 mln.

The vendor of the package is Eurocastle, a German listed property owner externally managed and advised by US-based Fortress. The firm said on Thursday it was spending €200 mln on the acquisition of Italian bank Unicredit's bad loan platform and a €2.4 bn non-performing loan package.

In Germany, the company is selling as part of its strategy to accelerate recoveries from its legacy assets. The disposal is expected to generate €24.4 mln of net proceeds, Eurocastle said in a statement.

The assets being sold include three of Eurocastle's five retail portfolios - Superstella, Tannenberg and Turret. They comprise supermarkets, discounters and retail centres mostly in West Germany, offering 229,000 m2 of space with an occupancy rate of 95%.

'This acquisition increases the value of the real estate assets managed by Patrizia in the retail sector to €1.6 bn, making us one of the biggest lessors in this segment in Germany,' commented CEO Wolfgang Egger.

Patrizia said it plans to invest in the portfolio together with the main tenants to upgrade and expand most of the locations.

The deal, due to close in the first quarter of 2015, follows Patrizia's acquisition 18 months ago of the Deikon portfolio of 85 retail properties for €178 mln. Ausburg-based Patrizia typically invests alongside its clients, taking a minority stake of up to 10% depending on the deal size.

The company, which has around €350 mln available for new co-Investments, increased its assets under management by €2.6 bn in 2014, down from the massive €4.9 bn increase reported in 2013.