Capital & Regional plc, the co-investing property asset manager, has announced further acquisitions in its joint venture with the German property group Hahn, a specialist in this sector.
A portfolio of four 'big box' out of town retail stores has been acquired for 50 million, consisting of 35,460 m² producing 3.46 million per annum with a net initial yield of approximately 6.6% after non-recoverable costs. Tenants include Real (Metro), Edeka and Globus DIY in Leverkusen, Tier, Hoesbach and Sobernheim.
These properties are managed by Hahn Group which has a 10% share in the venture.
The C&R portfolio now comprises 30 principal properties with a total floor area of 360,000 m².
Xavier Pullen, Deputy Chief Executive of Capital & Regional plc, says: "We set up the joint venture with Hahn Group in July 2005, having researched the out of town big box retail market in some detail. This acquisition includes an existing Hahn closed end fund and 3 open market acquisitions. We have been operating in Germany for some time and have a pipeline of further acquisitions to add to this joint venture".
Bernhard Schoofs, Chief Executive of the Hahn Group, says: "We are pleased to announce an expansion of our joint venture with Capital & Regional, having recently successfully completed our IPO, raising new equity. We continue to look for opportunities to invest together in our joint venture".
Source: Capital & Regional