Henderson Global Investors' 900 million pan-European retail property fund, Herald has acquired the Real Hypermarket & Gallery, a retail warehouse park in Giessen, Germany for approximately 30 million from the Metro Group, reflecting a yield of around 8%.
Herald's primary focus is on acquiring prime retail assets across France, Germany and Italy, and this acquisition follows the recent 64.4 million purchase of Centre Sud Shopping Centre, Le Mans, France in December 2009. The fund expects to acquire additional assets over 2010, with an emphasis on prime, dominant assets in its core markets.
Commenting on the transaction, David Turner, Herald's Fund Manager, said "Deals of this nature in Germany, where the income is secured on long leases to strong covenants, offer very attractive initial yields when compared to other core European markets. The attraction is further enhanced by the favorable finance terms available from German banks. Following on from this transaction and the recent acquisition in Le Mans, France we are continuing to look at a number of similar investment opportunities across Europe."