Rutley European Property has announced that it has exchanged contracts for the acquisition of a portfolio of 17 retail assets in 16 German towns valued at around EUR 108 mln. The deal is scheduled to complete on 1 October and the properties reflect a gross initial yield of about 7.5%. The total lettable area of the portfolio is around 80,000 m2, and Rutley says most of the assets are supermarkets in established retail locations. They are almost fully let on leases with an average of five years or more to run to tenants such as Rewe, Edeka and Kaufland.
Rutley European Property has announced that it has exchanged contracts for the acquisition of a portfolio of 17 retail assets in 16 German towns valued at around EUR 108 mln. The deal is scheduled to complete on 1 October and the properties reflect a gross initial yield of about 7.5%. The total lettable area of the portfolio is around 80,000 m2, and Rutley says most of the assets are supermarkets in established retail locations. They are almost fully let on leases with an average of five years or more to run to tenants such as Rewe, Edeka and Kaufland.
The acquisition builds on other additions to Rutley’s German commercial real estate portfolio announced earlier this year follows other provides the company with increased exposure to the retail sector in Germany. Rutley's Nick Burnell commented that the acquisition was a further demonstration of the company's ability to source product off-market, adding that the portfolio would provide both a strong income component and enable capital values to be increased through active asset management initiatives.