Portugal-based real estate company Sonae Sierra has acquired seven supermarkets in Germany for its Sierra German Food Retail Income Fund I for an undisclosed sum.
This brings the total portfolio of its fund to 12 assets across nine different states, including North Rhine-Westphalia, Hesse, Bavaria, Saxony, and Rhineland-Palatinate.
Launched in October 2021, the Sierra German Food Retail Income Fund I focuses on pure-play food retailers across Germany, in particular stable stand-alone properties (discounters, supermarkets and hypermarkets), characterised by long-term leases with renowned German brands such as Aldi, Rewe and Netto.
The alternative investment fund is targeting an investment volume of around €200 mln to expand its European portfolio.
Christoph Billwiller, investment management director at Sierra, stated: ‘This stable long-term income fund offers an exposure to a resilient real estate sector, capitalising on Sierra’s experience and track record, built with multiple blue-chip partners for over three decades. We are very pleased with the acquisitions made in little over a year, and the fact that we can offer our investors an above-par yield, proving our credentials as a first-class Investment Management partner in Europe. This growth is the result of our commitment to the Investment Management business and our ability to identify and deliver attractive investment opportunities for different pools of investors.’
Luis Mota Duarte, CFO and executive director of investment management at Sierra, added: ‘We are very pleased with the progress made so far with the German Food Retail Income Fund I. The German market is of strategic importance to Sonae Sierra and one where we believe we can bring to bear our long-standing distinctive investment and asset management capabilities. The progress in Germany is consistent with Sierra’s Investment Management performance across Europe in 2022. We recorded a very good year, having doubled our non-Shopping Center AuM and developed an attractive pipeline of future off-market opportunities.’
Sonae Sierra now manages over €6.3 bn of assets in sectors as diverse as offices, logistics and mixed use.
