PATRIZIA Immobilien AG has acquired a portfolio of 27 retail properties across Germany from Marathon Asset Management for around EUR 100 million on behalf of PATRIZIA Retail Opportunity SCS fund (the ‘Fund’), increasing the portfolio of retail assets PATRIZIA manages across Europe to around EUR 8.3bn.
The portfolio, which comprises around 55,600 sq m of total lettable space is made up of retail parks and grocery stores and has a 98% focus on properties with food anchor tenants. Current occupancy is high at 99%, with a weighted average lease term (WALT) of 9.2 years with future potential for rental growth. The tenant structure of the portfolio is dominated by the four largest German food retailer chains – Rewe Group, Edeka-Verbund, Schwarz-Gruppe and Aldi – which provide three quarters of the rental income.
PATRIZIA Retail Opportunity SCS SICAV-FIS, a Luxembourg special fund launched in 2016, targets core and core-plus retail properties with stable income distribution yields. PATRIZIA is an experienced manager of retail assets in Germany and, with a national portfolio of EUR 5.1bn assets under management, is one of the largest and most active retail investors and one of the most important landlords on the German market. PATRIZIA is also Europe’s largest investor in supermarkets, having invested EUR 638m in the 24 months up to the end of 2018.
Daniel Herrmann, Head of Fund Management Retail at PATRIZIA, commented: “The acquisition of this portfolio, with its potential for sustained income growth, will significantly optimise the risk-return profile of the Fund for the benefit of our clients. At the same time, we are acquiring modern, well-located properties with excellent tenants from the food retail sector and which occupy a dominant position in their respective catchment areas.”