Savills Investment Management has acquired the Bos en Lommerplein neighbourood scheme in Amsterdam for €51 mln in the second acquisition for its European Food Retail Fund (EFRF). The vendor was Lone Star.
The asset is located within the inner ring-road, just a couple of kilometers from Amsterdam’s central station. It comprises 12,000 m2 of GLA, with 534 parking spaces. The complex was completed in 2004 and has recently been renovated to create a new central plaza. It is anchored by three supermarkets as well as a number of newly-arrived national retailers.
Kathrin Michalzik, portfolio manager at Savills Investment Management, said: 'The stability and long-term income stream offered make this an ideal addition to the Fund’s portfolio.'
Ian Jones, director of Investment at Savills Investment Management, added: 'Our ability to source this opportunity for the fund ahead of marketing is testament to the advantages of our European network. This acquisition offers immediate high distribution in a leading European capital with upside from ongoing asset management, and sits well alongside our first acquisition of 38 Danish supermarkets last year. We have additional deals under offer in Ireland, Spain and Germany to invest the already committed capital promptly. We are looking forward to a successful first year of operation for EFRF.'
The food retail-focused German special fund EFRF was launched in December 2020 with capital commitments of €109 mln from six German institutional investors at first closing. The first investment was a Danish supermarket portfolio of 38 urban assets with a total volume of €140 mln. The assets are let to the food discounter Rema 1000 Denmark on a 15 year fixed-term. The fund currently has €230 mln in capital commitments from German institutional investors and is planning further acquisitions in Ireland, Spain and Germany.
While the main fund strategy is to acquire further supermarket portfolios with lot sizes usually starting at €50 mln, the fund may also acquire neighbourhood centres, mixed-use urban properties and retail parks under certain parameters. At least 85% of the rental income at portfolio level will come from supermarket/food tenants.
The Fund’s German allocation is relatively low at a maximum of 15%, because the fund is primarily aimed at German institutional investors who are often already invested in comparable German-focused products and are seeking diversification into other European countries.
Savills IM was advised by Savills (commercial), McDevitt (leasing), Drees & Sommer (technical), CMS (legal) and KPMG (tax).
