A fund managed by CBRE Global Investors has acquired Leine Centre, Laatzen a leading shopping center in Germany for €117 million at a net initial yield of ca. 6.0%.
The purchaser is a joint venture between a fund managed by CBRE Global Investors and the Teacher Retirement System of Texas (TRS). The sellers were a collaboration of owners: LaSalle Investment Management, ADLER Immobilien Investment Gruppe, Fay Projects GmbH and THI Holding GmbH & Co. KG. Jones Lang LaSalle acted for both sellers on the transaction.
The shopping center is located in Laatzen, a suburb of Hanover, Germany, and was originally opened in 1973 and then recently extended in 2011. It comprises 28,161 m², and is let to high quality retailers that include H&M, Deichmann, Expert, DM, Adler and Douglas. It has 101 units of which its occupancy is currently and historically close to 100%.
The acquisition of the Leine Center, in Hanover, brings the number of investments in the fund to four and is the first acquisition for the fund in Germany.
Florencio Beccar, Fund Manager, CBRE Global Investors, said: “Germany is among the most stable and strongest economies in Europe. This acquisition provides exposure to a country where we anticipate that economic growth will continue to be above trend. Germany is the largest retail market in Europe in terms of sales, but it is under retailed in terms of shopping center gross lettable area (GLA) which contributes to high occupancy and rent sustainability.”
“The asset meets the investment strategy of the fund; providing a high income yield with rental growth potential as lease renewals are implemented within the hold period.”