AEW Europe has signed an investment programme focused on German retail assets as part of the expansion of its opportunistic platform. AEW Europe has a long and recognized track record of managing value add and opportunistic investments and the new programme will leverage its European platform.
Since 2010, AEW Europe has completed over €1 bln of value add and opportunistic transactions and it anticipates significant growth in this segment over the next few years. AEW Europe is working with its local partner, Kintyre to source and structure investments in Germany and will initially look to build a €150 mln portfolio of assets in lot sizes of €5-15 mln.
Kintyre, which specializes in the German retail market, will take primary responsibility for developing the pipeline of potential investments and, depending on the availability of suitable investment opportunities, the investment capacity of the partnership is expected to be in the region of €300 mln. Contracts have been signed for the first acquisition and a further eight assets are currently under offer.
Paul Shiels of Kintyre said, “We see considerable value at the moment in smaller transactions, located away from the large German cities. Retailers continue to trade strongly in these areas and this creates attractive asset management opportunities.”
Russell Jewell, Head of Private Equity Funds for AEW Europe commented, “AEW Europe has a strong track record as a value investor across the European markets and this strategy is part of identifying relative value for our clients in highly competitive investment markets. This sector represents good value at present with potential upside through asset management and a demonstrable pipeline of deals. Kintyre’s local expertise gives us great market coverage in the sector and strong execution capabilities.”