German listed property company Patrizia Immobilien has emerged as the buyer for a portfolio of 86 retail properties from insolvent Cologne-based supermarket investor Deikon.
German listed property company Patrizia Immobilien has emerged as the buyer for a portfolio of 86 retail properties from insolvent Cologne-based supermarket investor Deikon.
In a statement, Patrizia said it has teamed up with a number of unnamed institutional investors to acquire the assets in a structured bidding process. The investment volume of €178 mln reflects an initial yield of 8.9%.
The 133,000 m2 retail portfolio comprises 86 specialist outlets and supermarkets in established locations and generates an annual net rent of €16 mln.
Most of the properties are located in the federal states of Baden-Württemberg, Bavaria, Hesse, Lower Saxony and North Rhine-Westphalia.
The portfolio's vacancy rate is less than 1% with the five largest tenants being Netto, Rewe, Edeka, Penny and Lidl. The rental agreements have an average residual term of 7.4 years.
'This acquisition underlines the strategic development of Patrizia,' said CEO Wolfgang Egger. 'Rather than being limited to the residential property sector, our business model of co-investments incorporates all other property sectors. In addition, we can apply different investment styles and handle different scales of investment volume.'
Patrizia, which was previously mainly interested in core retail real estate, has recently broadened its business in the value-add retail sector with the purchase in December 2012 of Tamar Capital Group.
'Having already set up a co-investment in Great Britain in this asset class in May this year, we are now also stepping up our business in this sector in Germany,' Egger added.
