Retail was the most popular real estate segment with investors in Germany last year, accounting for seven of the 10 largest deals in 2011. All told, retail made up almost half of the aggregate German volume of more than EUR 23 bn last year.
Retail was the most popular real estate segment with investors in Germany last year, accounting for seven of the 10 largest deals in 2011. All told, retail made up almost half of the aggregate German volume of more than EUR 23 bn last year.
Property adviser Savills recorded EUR 11 bn of retail transactions in 2011, an increase of 60% on the previous year. Matthias Pink, head of research Germany at Savills: 'The popularity of retail investment is partly due to the higher rental stability of retail properties. Another reason is the stable and currently very good consumer sentiment in Germany.'
Unlike the office sector which was dominated by domestic buyers, foreign investors were prominent at the upper end of shopping centre transactions. Four of the top five retail deals recorded by PropertyEU involved cross-border investors. Cerberus Capital Management carried out the largest retail deal by acquiring 45 Metro cash and carry stores for about EUR 700 mln.
The second largest saw Signa, Austria's largest privately held real estate company founded by René Benko, acquire Karstadt stores in Hamburg and Munich for EUR 500 mln. US pension fund asset manager TIAA-CREF swooped on the PEP mall in Munich for EUR 415 mln, reflecting a record low yield of 4.6%.
Canada's national pension fund CPPIB carried out the only large single-asset deal outside the seven largest cities by acquiring 50% of Centro Oberhausen for EUR 270 mln.
PropertyEU's first Investment Briefing event examines whether Germany is really a safe haven for real estate investors or a new bubble in the making. The event takes place in Amsterdam on 23 February. Attendance is free. Click on the link below for more information.
