In a joint venture, the Canada Pension Plan Investment Board and a value add fund managed by LaSalle Investment Management have acquired a regional shopping center in the city of Hürth in Germany for 157.3 million.
Located 10 kilometers south of Cologne, the shopping center has a leasable area of approximately 60,000 m² and an annual rental income of approximately 12.5 million. Anchor tenants include the fashion retailer Peek & Cloppenburg, Real, a hypermarket, and Saturn, a media store.
The joint venture has planned a comprehensive refurbishment as well as a new positioning of the center.
David Ironside, Managing Director LaSalle Germany and responsible for acquisitions in Continental Europe, said: "The German real estate market continues to be one of the key markets in Europe and is set to recover significantly with very good investment opportunities. To take advantage of these opportunities is the order of the day - particularly in the case of a shopping center with such manifold potential."
Wenzel Hoberg, Vice-President and Head of Real Estate Investments International, CPPIB, said: "We are pleased to partner alongside LaSalle to acquire Hürth Park, our first direct real estate investment in Germany. Hürth Park is a well leased and well situated regional shopping center. This investment is fully aligned with our international retail strategy to acquire prime retail shopping centers in key markets."
Jones Lang LaSalle advised Aberdeen on the transaction and conducted the sales process. ECE was involved in the due diligence process and will continue to be responsible for the management of Hürth Park.
Source: Citigate Dewe Rogerson