Cornerstone Real Estate Advisers Europe, announces that it has completed the sale of a retail property on the Alter Markt, Elmshorn, Germany to Real I.S. following an extensive asset management to reposition the property. The property, which comprises 8,179 m² net lettable area, is located in a prime location on the main retail street in Elmshorn.
Cornerstone managed the asset on behalf of the Cornerstone German Retail Fund. Cornerstone Europe acquired the then vacant former Hertie department store for €7.7 million in 2012. Cornerstone has subsequently completed a €12 million refurbishment, dividing the building into five retail units on the basement, ground and first floors, and providing office space on the second floor. Following completion of the works in 2013, Cornerstone finalized a number of high profile long-term lettings, including H&M, C&A, and Deichmann and Kik, along with other small office tenants. The asset is 98% let with all retail units fully occupied.
Cornerstone Europe took over the management of the closed-end German Retail Fund on behalf of a client in 2008. During this time, Cornerstone has acquired six assets and disposed of three which, combined with extensive asset management, has enabled it to grow the Fund’s gross asset value from €35 million to €90 million. The Fund, which is now fully invested, targets opportunistic and value add retail assets in Germany between €10 million and €30 million.
Calum Barclay, Director - Fund Management said: “This is an excellent example of our ability to acquire a distressed asset and use our considerable asset management expertise to transform it into an attractive investment opportunity. In just two years we have completed extensive refurbishment works and have fully let the retail units to high quality tenants on long leases. Cash generated from the disposal will be used in a number of other high capital expenditure activities which the Fund is currently undertaking.”
Nick Pink, Chief Investment Officer - Europe added: “This transaction follows our disposal of the Wuppertal hypermarket and our acquisition of the Brückencenter shopping center in Arnsberg, announced in December 2013. Together these three transactions form a key part of our strategy to deliver value for investors as we continue to look for opportunities across all of our territories.”