Henderson Global Investors, on behalf of its German Retail Income Fund (HGRIF), has acquired a 27,500 m² retail warehouse located in Karlsruhe, Germany from the Metro Group. The purchase price has not been disclosed.
The asset is fully let to ca. 30 tenants.
The asset is fully let to ca. 30 tenants, with strong anchor tenants including hypermarket Real and consumer electronics retailer Saturn. These are complemented by a diverse range of retailers including baby-outfitter Babyone, shoe retailer Deichmann, optician Apollo Optik and McDonald's.
The acquisition is the fifth for the Fund, following acquisitions in Forcheim, Köln-Hürth and Nersingen. The Fund focuses exclusively on German retail warehouses, anchored by a supermarket operator. It has a significant pipeline of further assets which fit the investment criteria for core to core plus property, dominant in its catchment area, having been recently developed or newly renovated and let to high caliber tenants.
Its target income return on investment is a minimum of 6% per annum with an end portfolio consisting of around 12 to 15 assets.
Thilo Wagner, Fund Manager of HGRIF, said: "German retail warehouses continue to offer attractive initial yields compared both to those in other countries and to other commercial sectors in Germany. Karlsruhe, in particular, represented an excellent opportunity, due to its optimal location in an affluent area with a prosperous surrounding catchment."
Source: Henderson Global Investors