PATRIZIA AG has acquired retail assets in northern Germany on behalf of one of its pan-European funds from a private Irish vendor.
The portfolio, includes 19 food anchored retail assets, comprises c. 54,100 sqm of high-quality retail space with 2,300 car parking spaces. Most of the supermarket properties are in northern Germany with many in and around the cities of Kiel and Lübeck.
The assets are anchored by Rewe Group and Edeka Group, Germany’s largest supermarket chains, which represent 75% of the total rental income. The current occupancy is 100% and the weighted average lease term is 5.5 years. 12 of the properties are occupied by the Rewe Group which has recently completed a major refit of the stores showing their long-term commitment to the locations.
Daniel Herrmann, Head of Fund Management Retail at PATRIZIA, commented: “This transaction provides our investors with access to a high-quality retail portfolio anchored by established German supermarket operators. The strong covenants offered by the portfolio’s occupiers underpin an attractive income return which we aim to improve through actively managing these assets. We are confident in the continued strength of the food retail market in Germany, especially assets such as these which are dominant for their locations with high footfall and are defensive against E-commerce retail.”
PATRIZIA was advised by K&L Gates and TA Europe. Dentons Europe and Savills Germany acted for the vendor.