PATRIZIA AG has sold a retail portfolio totalling 68 properties in Germany to a fund managed by GPEP, a management platform specialised in supermarkets and retail parks across Germany. The parties have agreed to keep the purchase price confidential.
The retail portfolio in Germany consists of 68 well-established properties with a rentable space of approximately 122,000 m2. 90 per cent of the properties are spread across the federal states of Bavaria, Hesse, Lower Saxony and North Rhine-Westphalia. Over 85 per cent of the rental space is currently being leased to food retailers, two thirds of which count among the market leaders in this sector. The occupancy rate stands at approximately 98 per cent.
“As one of the first institutional movers into the food retail sector, we are well placed to capitalise on the growing investor focus on the German market. This transaction is our first large scale disposal in the segment of supermarkets and discounters. We are pleased that growing numbers of German and international institutions see grocery assets as a key element in their investment strategy,” said Daniel Herrmann, Head of Fund Management Retail at PATRIZIA.
“PATRIZIA is still an active buyer in the German food retail market. Even with this sale we will have grown our AUM in the sub-sector over the last 18 months. We continue to look for future investments, although we do so selectively and only where we see the opportunity to deliver strong returns.”
PATRIZIA was advised by Colliers International and K+L Gates Berlin.