CORESTATE Capital, an investment manager and co-investor with approximately Euro 26 billion in assets under management, has divested a large mixed real estate portfolio in Germany on behalf of a client.
The portfolio comprises 27 commercial properties located all over Germany with total rentable space of approx. 121,000 m² and includes the asset classes micro living, retail park and high street retail.
The portfolio has an investment volume in the mid three-digit range and offers annual rental income of around EUR 17.4 million.
The mixed portfolio structured by CORESTATE comprises 24 high street commercial properties in top locations in B-cities across Germany, a specialty shopping center in northern Germany with long-term leases and renowned anchor tenants such as EDEKA, toom, Expert, dm and Deichmann, as well as two larger micro living properties in Berlin and Frankfurt.
Important features of the portfolio for the investor included a total occupancy rate of around 94% with long-term leases and very good return prospects in the mid-single-digit range over a 10-year period.
“The successful completion of this demanding transaction reflects the fact that our real estate platform enables us to offer our institutional clients sustainably profitable solutions across the entire real estate value chain. This applies to asset allocation, management and an exit strategy. In particular, we were able to place two micro living properties in top locations. We are continuously expanding our leading European market position in this growing asset class. Thanks to our high level of asset management expertise, we are providing the new institutional investor with an all-round healthy and optimally positioned portfolio,” said Lars Schnidrig, CEO of CORESTATE.
