Corestate closes latest German high street retail fund at €250m

Corestate closes latest German high street retail fund at €250m

Corestate Capital Holding has fully raised all equity for the club deal fund “Highstreet VIII,” invested in the last three properties and successfully closed the fund. The portfolio with a target volume of €250m now comprises five retail properties. Following the first two investments in Rostock and Sindelfingen last year, the company has now also acquired three properties in Garbsen, Nordhorn and Schwenningen. The five properties in the Highstreet VIII portfolio comprise around 112,000m².

 

The anchor tenants include DeichmannEdekaMullerRewe and New Yorker. The average lease term of this portfolio is more than 8 years, with an occupancy rate of c. 98%.

 

“With Highstreet VIII, we have closed our ninth high street club deal within 5 years. This demonstrates the significant investor demand for attractive alternatives to the usual concepts focused on big cities. The figures speak for themselves, with a total of 150 retail properties in outstanding locations in German mid-sized cities, with a total investment volume of more than €2bn, have been successfully acquired across the whole series,” said Tobias Gollnest, Managing Director of Investments at Corestate.

 

Lars Schnidrig, CEO of the Corestate Group, added: “The annual payout of the portfolio is over 6% and the target total return is in the double-digit range. The portfolio thus offers our clients an excellent investment opportunity in the fast-growing medium-sized German cities. At the same time, this underscores our market access in this product group.”

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