HIH Invest buys retail asset in Germany

HIH Invest buys retail asset in Germany

HIH Invest Real Estate has bought a retail park in Küps in northern Bavaria via an asset deal with a private investor.

HIH Invest said it is the twenty-first property in the portfolio of the “Perspektive Einzelhandel: Fokus Nahversorgung” institutional fund for local retail real estate, and has a total lettable area of 4,224 square metres.

The supermarket at Lessingstrasse 13-15 has been located in the same site for over 20 years, and acts as an important neighbourhood retail centre. Its anchor tenant is REWE, the only fullline grocer in town.

The property was thoroughly modernised in 2021. In conjunction with the upgrade, REWE renewed its lease to secure the site for another 15 years.

Among the other tenants are the KiK discount fashion retailer, which has also been on the premises for 20 years, and another two retailers: a kitchen studio and an interior decorating store. The units of the latter, are let on open-ended leases, and these have been here for a long time as well.The property is fully occupied.

Jens Nagelsmeier, Head of Transaction Management Retail & Healthcare, said: “The cash flow is secured by the fast-selling blue-chip anchor tenant REWE with its long-term lease of 15 years plus renewal option. Grocery retailing, being an essential business, generates 90 percent
of the neighbourhood retail centre’s annual rent revenues. Both the rent analysis and sales analysis return sustainable and market-consistent values when compared to relevant benchmarks, and thus suggest a positive, profitable performance of this property. Convenience centres and supermarkets benefit from their resilience. Sales revenues in German food retailing increased by 18 percent between 2016 and 2020, according to the GfK consumer research society. Especially full-line grocers benefit from the ongoing trend toward one-stop shopping.”

The acquisition of the convenience centre in Küps brings the total amount invested in the “Perspektive Einzelhandel: Fokus Nahversorgung” fund up to more than €400 million.