German fund manager Warburg-HIH Invest Real Estate has acquired a neighbourhood retail precinct in the German city of Kassel.
Located at Wittrockstrasse 3/5, the property was purchased in an off-market deal on behalf of Warburg-HIH Perspektive Einzelhandel: Fokus Nahversorgung, an open-ended special alternative investment fund focused on local retail centres.
The asset has a gross lettable area of around 5,400 m2 and 117 car parking spots. It is almost fully occupied, anchored by a Rewe food market that occupies more than 50% of the leasable area. Other major tenants include an Aldi discount supermarket and a Rossmann drugstore. The average remaining lease term among the property’s tenants is currently around nine years.
'By acquiring the neighbourhood retail centre in Kassel we have brought the portfolio of our fund up to twelve properties or around €238 mln in real estate assets,' said Thomas Christ, senior fund manager at Warburg-HIH Invest.
Hans-Joachim Lehmann, Managing Director of Warburg-HIH Invest, added: 'The acquisition is helping us not only to boost the profitability of our local retail investment fund but are also helps further diversify the regional spread of its portfolio and its tenant structure.'
Originally built in 1972, the neighbourhood retail centre was redeveloped and topped up in 2003. In 2019, comprehensive upkeep works were carried out in the section occupied by Rewe and the forecourt parking outside Rewe.
