Rankvale spends EUR 142m on Geman shopping centres

Rankvale European Property Partners (REPP), the real estate investment arm of London-based Rankvale Holdings, has acquired the Seidnitz Centre in Dresden through the acquisition of shares in a limited partnership for EUR 95 mln. The acquisition, representing an initial yield of 6.8% per annum, is the third and largest REPP investment in the last month, following the acquisition of two newly-built shopping centres in Bamberg and Berlin for EUR 47 mln.

The Seidnitz Centre comprises 27,000 m² of retail and leisure space at lower-ground and ground-floor level, 7,400 m² of office accommodation in four separate units above the centre, and an adjoining four-storey car park with 750 spaces.

All of the retail space and office accommodation is leased to Centre Entwickleungs-und Verwaltungs, a wholly-owned subsidiary of the Ava/Edeka Group which controls 183 Marktkauf self-service department stores, 148 DIY stores and 90 Krane optical stores across Germany. CEV’s 20-year lease expires in June 2014, with two extension terms of five additional years. The centre is anchored by CEV brands MarktKauf Self Service Department Store and MarktKauf Beverage market.

REPP said that the two-storey shopping centre on the outskirts of Bamberg comprises 21,000 m². It was acquired for almost EUR 35 mln, reflecting an initial yield of 7.5%. The average unexpired lease length held by the 39 tenants at the centre is 9.5 years. The 5,000 m² Berlin centre, located in the Friedrichsfelde residential area, was acquired for almost EUR 11 mln, reflecting a yield of 8%. In the last three years, REPP has completed transactions in France, Germany, Switzerland and Austria totalling in excess of EUR 800 mln.