redos buys six retail properties from EDEKA for €110m

redos buys six retail properties from EDEKA for €110m

Hamburg-based retail real estate investment firm redos Group has acquired six retail properties from EDEKA Handelsgesellschaft Rhein-Ruhr mbH, which is part of EDEKA Group, for € 110 million.

All of the properties, with a combined rental space of some 37,500 sq.m., are located in the northwest German state of North Rhine-Westphalia and are earmarked for the Redos Einzelhandel Deutschland II institutional fund, managed in partnership with Union Investment.

The Redos Einzelhandel Deutschland II institutional fund was launched in September 2017 by retail property investment specialist redos in partnership with Union Investment as service-providing investment management company (KVG).

The acquired properties include locations used solely by supermarket giant EDEKA as well as multi-tenant retail parks with EDEKA as the largest tenant. The last of the three properties currently under construction is expected to be completed by the end of 2021. All six of the properties are already fully leased out, with a portfolio weighted average lease term (WALT) of 14.5 years.

“With this acquisition transaction, we are once again adding prime retail property assets to our fund portfolio,” says Frank Eckervogt, Managing Director and Head of Acquisition at redos. “Each of the individual properties offers an excellent location with a modern concept, thus providing the foundations for sustained long-term value growth based upon dependable retail traffic and reliable cash flows.”

redos was assisted on the transaction by MC Dermott as legal advisor and by NIPM GmbH, a retail property brokerage based on Dorsten.