MGPA, the independent private equity real estate investment advisory company, is pleased to announce the acquisition of a portfolio of 11 retail properties on behalf of a North American institutional investor. The properties will be managed by MGPA.
The portfolio consists of 11 properties which include three community centers, one retail park, one hypermarket and six retail warehouses. The portfolio is mainly located in western Germany and provides a combined total net lettable area (NLA) of circa 75,000 m² on a total site area of circa 190,000 m². The majority of the portfolio's income is secured by strong covenant tenants, with 55% of the income being derived by leading German food retailers such as Edeka, Rewe, Penny and Aldi.
The portfolio provides active management opportunities, notably through re-letting and repositioning. The largest asset in the portfolio is the retail park Bamlerstrasse located in the city of Essen. This retail park - an older but established format - provides the potential for significant upside once redeveloped.
This transaction will build on MGPA's strategy to become one of the leading investment managers for retail warehouses in Germany.
Marius Schöner, MGPA's Head of Germany, commented: "Over the last two years we have been one of the most active investors in retail warehouse investments in Germany, completing three transactions for different international investors. We now have 175 retail properties with a total NLA of circa 340,000 m² under management.
"Contrary to many of the traditional investors in retail warehouses, we are focusing on management intensive portfolios where we see the opportunity to add value. We have built up a specialized management team with the knowledge and skills to acquire and manage large complex retail warehouse portfolios across Germany.
"As part of this strategy to manufacture a stabilized value retail portfolio, we also continue to dispose of non-strategic assets. We have successfully sold 15 non-strategic properties in 2011. We also continue to buy portfolios where we see the opportunity to add value."
Source: Citigate Dewe Rogerson