Listed German property investor WCM has acquired three retail centres totalling 88,000 m2 for a net purchase price of €98 mln.
The centres are located in the federal states of Baden-Wuertemberg and Saxony-Anhalt and are all anchored by a leading food retail chain.
The newly acquired portfolio has a vacancy rate of 7% and generates annual rental income of around €7.6 mln. The implied gross initial yield is 7.7%.
The acquisition is set to be financed via a combination of cash and debt, with the deal closing in the first quarter of 2017.
The transaction boosts the value of WCM’s portfolio to around €766 mln and the annualised rental income to €46 mln.
Frankfurt-based WCM focuses on office and retail properties in the major office locations in Germany. The company has been listed in the SDAX segment of the German stock exchange since 21 December 2015.
