The shopping center investor Deutsche EuroShop has acquired the 50% stake in the Allee-Center in Magdeburg, which was previously held by Unibail-Rodamco.
The completion of the transaction is subject to approval by the German antitrust authorities. Jones Lang LaSalle acted as intermediary in this transaction.
The investment volume amounts to roughly 118 million, the net initial yield - based on an expected proportional revenue in 2012 of 7.8 million - is just under 6%. The financing of the purchase price is done by utilizing a credit line. With this investment the portfolio of Deutsche EuroShop comprises of 19 shopping centers with a market value of 3.6 billion.
"The Allee-Center Magdeburg as event and shopping mall at the heart of the state capital of Saxony-Anhalt fits very well into our shopping center portfolio," commented Claus-Matthias Böge, CEO of Deutsche EuroShop.
Originally the center was opened in 1998 with over 110 shops and 25,000 m² selling space. Since March 2006, after the mall was expanded from two levels to three, the 'Marketplace of Magdeburg' now offers 150 specialty stores over 35,000 m². A specialist consumer electronics retailer (Saturn), two fashion houses (SinnLeffers, H&M), a sports market (SportScheck) and a food supermarket (REWE) are the center's anchor tenants. The complex also comprises approx. 1,800 m² residential and 7,300 m² office space as well as parking for 1,300 cars.
The Allee-Center is located in the city center and is ideally accessible by public transport (tram and bus stops are located next to the center) and by car. Approx. 720,000 people are living in the catchment area of the shopping center, which is managed by ECE Projektmanagement. Approx. 25,000 shoppers visit the Allee-Center on average per day.
Source: Deutsche EuroShop