GRR Real Estate Management GmbH (GRR REM) has acquired the newly-constructed Büchenbach-West local shopping center in Erlangen, for GRR German Retail Fund No.1. The property has a lettable area of over 5,000 m².
The local shopping center, which fills a gap in the shopping facilities in the Büchenbach district, is part of an urban planning scheme that also provides for further residential development, the construction of a community center and a district library.
The property comprises two buildings: one is a latest-generation Rewe supermarket, the other a services center with tenants including Rossmann, Frisör Klier, a pharmacy, a driving school and several surgeries (dentist, orthodontist, physiotherapist etc.).
Further acquisitions are about to be completed. Confirming the status of acquisitions, Susanne Klaussner stated "We are confident that we will be able to announce the acquisition of 10 or 12 additional properties for GRR German Retail Fund No.1 in the next few weeks".
GRR REM has recently gained an additional subscriber for GRR German Retail Fund No.1. The new subscriber, also a German institutional investor, has taken a 30 million stake. In the course of the first closing, GRR REM had already amassed 50 million from the German insurance industry, so that the fund now has total equity capital of 80 million.
Susanne Klaussner, Chairperson of the Management Board of GRR REM, commented on the acquisition: "With the projected 50% external financing, the Fund's equity capital, which has now risen to 80 million, will allow us to acquire retail property for more than a further 100 million this year."
GRR German Retail Fund No.1, concentrating on retail property in the "basic retail" segment, should grow to almost 300 million during the investment period of two to three years. In terms of rental income, food retailers will account for around 70%.
Properties to be considered will have lot sizes ranging from 3 million to 15 million, anchored by long-term leases to German retail food multiples with good covenants. The real estate fund is set up as a special investment trust under the German investment act and is therefore mainly aimed at German institutional investors.