Union Investment has acquired off-market a local retail park in Ludwigsburg, about 12 km north of Stuttgart in Germany on behalf of its UII Germany institutional fund.
The asset was bought at an attractive entry yield, the buyer said, although financial details were not disclosed. The scheme was sold by a subsidiary of the Dutch real estate company Brack Capital Properties.
With 14,000 m2 of leasable area, the scheme benefits from an attractive mix of tenants and uses comprising essential retail, F&B, medical practices, rehab, fitness studio and apartments. The established retail location is characterized by a high tenant loyalty: the anchor tenant Kaufland has been present for over 20 years.
‘As part of an off-market approach, we have succeeded in acquiring a mixed-use property in a prosperous location in the greater Stuttgart area at an attractive entry yield. The property with its essential local supply function fits perfectly into our acquisition strategy: It provides cash flow security and stability due to its high online resilience and long-term income streams,’ said Laura Roll, investment manager retail at Union Investment.
