GRR Real Estate Management GmbH (GRR REM) has acquired a bundle consisting of three retail properties for the GRR German Retail Fund No.1. The properties are a self-service multi store in Bramsche (North Rhine-Westphalia) as well as two local retail centers, one in Nordenham (Lower Saxony) and another in Riegelsberg (Saarland). The combined purchase price was €22.5 million.
The GRR German Retail Fund No.1, which focuses on retail properties in the basic retail segment, is to grow to almost €300 million in the course of the investment period of two to three years, with food retailers representing around 70% of rental income. Eligible assets are properties worth between €3 million and €15 million, which have long-term leases with highly creditworthy store chains in the German food retail sector as anchor tenants. The real estate fund has been designed as a special fund under the German Investment Act and therefore targets primarily German institutional investors.
The three properties acquired for the fund are let on the basis of long-term leases. They come from the portfolio of the German Retail Partnership Fund 1, which is managed by Internos Global Investors Group. Launched in 2007, this fund now comprises 57 specialist store and local retail centers throughout Germany valued at a total of around €125 million.
With 6,250 m² (67,274 ft²) of leasable space and parking for 200 cars, the self-service multi store in Bramsche is the largest of the three properties acquired by GRR REM. The anchor tenant is famila. The property in Riegelsberg has around 5,250 m² (56,510 ft²) and 210 car parking spaces. Its main tenants are Wasgau and Lidl. The Nordenham local retail center has leasable space measuring about 3,200 m² (34,444 ft²) and provides parking for approximately 150 cars. Penny and Rewe are the largest tenants.
Source: GRR REM