CBRE Global Investors has acquired, on behalf of one of its separate account clients, a shopping center in Hamburg, Germany for €44.4 million. The vendor was Verwaltung Norddeutsche Grundvermögen Bau- und Entwicklungsgesellschaft, who also developed the center.
The 13,260 m² “Lurup Center” is located in the heart of the Lurup district of Hamburg and was constructed in 2011 and 2012 in two phases. The center is 98% let and is anchored by the supermarket Kaufland with a further 20 tenants, including Rossmann, Ernsting’s Family, Xenos and Reno. The property offers 428 car parking spaces.
Jeroen de Grunt, Portfolio Manager, Separate Accounts Continental Europe, CBRE Global Investors, said:
“Our client is in the process of repositioning its real estate portfolio and diversifying across Europe, in which we have a strong focus on the German market. In February we acquired a logistics platform in Falkensee, and this acquisition of the Lurup Center is our second German acquisition in a short period of time. We also have a number of other German assets in the process of due diligence and we expect them to complete in the second and third quarter of this year.
These acquisitions will allow us to reinvest the net proceeds of our sale of Westend Duo, Frankfurt which completed in December 2013, while increasing our portfolio’s direct return, and simultaneously obtaining asset and tenant diversification.”
Christian Müller, Strategy & Research Manager , CBRE Global Investors Germany, said:
“The grocery anchored shopping center provides a risk averse income return in an established neighborhood with future population growth potential in the catchment area.
Income secure investment opportunities in the Big 5 German cities and in prosperous cities beyond are highly sought after, but prime yields have already compressed to levels approaching previous peaks and product availability is very tight. As a result secondary retail locations outside the prime pitches have gained momentum in the German Big 5 cities as they still provide higher income yields at a market adequate risk-return.”
Source: CBRE Global Investors