Capital & Regional plc, the co-investing property asset manager, has announced the acquisition of a €214 million retail property portfolio, bringing the gross value of its German assets to c. €450 million.
The portfolio, which is being acquired from a private individual, comprises 22 mainly out of town big box retail properties (totalling 134,000 m²) and a substantial retail distribution facility (52,000 m²). The portfolio also includes 16 hectares (40 acres) of retail and commercial development land. 44% of the portfolio is let to the Metro Group, one of the largest retailers in Europe. The net income is estimated at €13.6 million giving a net initial yield on the portfolio of 6.3%. Excluding the non income producing land the net initial yield is 6.8%.
Following completion later this year, it is intended that the majority of the properties will be included within the Hahn joint venture (90% C&R / 10% Hahn) and the remainder will be redeveloped and sold over the medium term. The portfolio will enhance the earnings of the C&R group during the first full year after completion.
ABN Amro's London branch is providing the senior debt on this new acquisition.
Xavier Pullen, Deputy Chief Executive of Capital & Regional plc, said: "Over the past two years we have established a very good working relationship with our partners, the Hahn Group. Our first investment was made last year and we continue to look at further opportunities to add to our platform".
Source: Capital & Regional