Resolution acquires 50% of Bremen mall in EUR 130m jv

European opportunity fund manager Resolution Property has acquired a 50% stake in the Waterfront shopping centre in the German city of Bremen as part of a EUR 130 mln joint venture with LNC Property Group. The 70,000-m² Waterfront development is a covered shopping and leisure centre within Bremen's harbour district, a major regeneration location on the edge of the city centre.

Developed by Irish private property company LNC and opened in September 2008, its key tenants include H&M, C&A, Primark, Esprit, New Yorker, Hilfiger and Mothercare. There is development potential for a second phase with a further 14,000 m² of retail area.

Resolution will become a partner in the Waterfront and will be responsible for future lettingsat the centre. The completed phase of the project has around 10% availability and terms have been agreed with new retailers for a number of vacant units. LNC will manage the development of the second phase of the project, which is expected to commence within the next 12 to 24 months.

Bremen is one of the most important maritime locations in Europe but boasts a broadly diversified economy, which has shown resilience to the economic downturn, the company said. Major employers include Beck’s Beer, Daimler, EADS, Rheinmetall, Deutsche Bahn, Kellogg’s and Kraft Foods.

Peter Todd, Director at Resolution Property, said: 'Waterfront Bremen is a significant addition to our established German portfolio, presenting strong asset management and future development opportunities in line with our strategy. Bremen offers a good catchment to support the centre’s current and future retail offer and, with limited competition, Waterfront has the potential to become the city's dominant centre.'

Waterfront Bremen is the third purchase for Resolution Real Estate Fund III in mainland Europe in 2010, following its acquisition of McArthurGlen Troyes outlet centre in France for EUR 85.5 mln and Galeria Pomorska in Bydgoszcz, Poland for EUR 50.75 mln. The fund is currently 40% invested and has more than €1bn of spending power to invest across mainland Europe and the UK. Resolution is currently in discussion over further acquisitions in France, the UK and Central Europe.

LNC was advised by CB Richard Ellis, while Cushman & Wakefield represented Resolution.