International real estate investment manager Savills Investment Management (Savills IM) has sold a hypermarket in Berlin-Spandau on behalf of the European Retail Fund (ERF).
The buyer of the property is Gutenberg Capital, the investment company of the LEOFF Group. The parties have agreed not to disclose the purchase price.
The retail property in Berlin-Spandau (former Britannia Center) was built in 1991 and acquired for ERF in 2013 after complete modernisation and expansion. It comprises more than 9,000 sqm of rental space and 480 parking spaces. The space is fully let on a long-term basis to a hypermarket operator and a pharmacy. The property has a BREEAM in-use rating of “good”.
Tim Ulrich MRICS, Head of Transaction Management Germany at Savills IM, said: “The general economic environment has deteriorated significantly – but food retail focused properties remain an attractive segment. The appetite for such centrally located properties in economically attractive regions with long-term leases to leading grocers is still there among equity-rich investors – after all, they have proven their resilience even in difficult times, such as during the Covid pandemic.”
Helmut Jahn, Portfolio Manager, Investment at Savills IM, adds: “The property has seen strong value growth in recent years due to immense market demand for core properties with anchor tenants in the food retail sector. We have taken advantage of the continued robust demand as well as the long remaining lease term to dispose and realise the appreciation that has taken place over the years for our investors.”