Rockspring Property Investment Managers has acquired a shopping centre in the German city of Magdeburg for €117 mln.
The asset, purchased on behalf of TransEuropean Property Limited Partnership VI fund (TEP VI), was bought from Chenavari in an off-market transaction.
'Following detailed research into the former East Germany a number of years ago, we identified the cities that were most likely to benefit from socio-economic growth and the retail schemes with the most potential within these cities,' commented Stuart Reid, Rockspring partner in charge of Germany.
'Over the last five years, as a result of our strong expertise on the ground in Germany, we have had the opportunity to acquire assets in the better performing locations in cities which are now benefitting from this economic and population growth. We are pleased to have added Flora Park to our portfolio and to have the opportunity to complete the repositioning,' Reid added.
One of the largest shopping centres in the state of Saxony-Anhalt, Flora Park comprises 66,500 m2 of retail space across 90 units and has 2,700 car parking spaces. It is anchored by a 12,000 m2 Real hypermarket, a 16,000 m2 Roller furniture store and a 2,400 m2 TK Maxx, while other tenants include Medimax, C&A, Deichmann and Aldi.
The centre, which was originally constructed in 1992, is currently undergoing a full refurbishment which was commenced by the vendor and will be completed by Rockspring in 2017.
Estama acted as sales agent on behalf of the vendors.
'Flora Park is a dominant shopping centre in the local market of Magdeburg. Interest in the property was expectedly high given the current market situation with record demand for this type of product,' said Christian Bodtke, investment executive at Estama. 'With Rockspring we found a partner that understood the value of this asset and had the competence to take over an ongoing refurbishment programme commenced by our client.'
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What to find out about the latest news and trends in the German real estate market? Don't miss PropertyEU's annual
Outlook 2017: Europe & Germany investment briefing
Date: 6 December 2016
Time: 09:00 - 11:30
Location: King & Spalding LLP
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With the kind support of the Economic Development Department of the City of Frankfurt
What is the outlook for the German market in 2017? Will it continue to benefit from its safe-haven status and from the fall-out of Brexit, or will upcoming elections cause jitters among investors?
Germany has come second only to the UK in foreign investors' European shopping list over the last few years. Will the strong economy keep interest in the office and residential sectors at high levels? Will strong demand continue to outstrip supply? Will lack of product push investors up the risk curve into secondary markets and alternative sectors? Where are opportunities likely to be found? Is the strong growth seen recently in the student housing and microliving sectors going to continue? How fast will smaller university cities and new 'brain hub' grow? These questions and many others will be answered by our panel of market experts. Join the discussion and ask your own questions.
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