A joint venture between a real estate fund managed by Morgan Stanley Real Estate Investing (“MSREI”) and the Hamburg-based asset manager REDOS Real Estate has acquired the “Christie” retail real estate portfolio. The portfolio is the fourth retail portfolio jointly acquired by MSREI and REDOS.
“This portfolio fits our strategy of buying established assets with good cash flow and opportunities to add value through investment and repositioning,” said Patrick Lindemann, Executive Director of Morgan Stanley Real Estate Investing. MSREI and REDOS teamed up with Muenster-based project developer HLG to reposition some of the assets. HLG has 25 years of expertise as an investor and developer in the retail sector with notable developments in the Berlin region including the A10 Center and Tempelhofer Hafen.
The four hybrid shopping centers blend the concepts of retail warehouse park and shopping center and are the dominant retail hubs at their respective locations in the greater Berlin area and Dresden. “The portfolio offers attractive opportunities to raise appreciation potential,” explained OIiver Herrmann, Managing Director of REDOS Real Estate, who will act as asset manager at all of the locations. The plans call for extensive refurbishment investments, especially at the locations of Dresden as well as Dallgow and Eiche near Berlin. “The properties are getting on in years, and need to be modernized accordingly,” said Herrmann.
The portfolio totals 214,000 m² of gross lettable area with the majority of income on long-term leases. With a rented floor area of around 15,000 to 20,000 m², Kaufland serves as anchor tenant at all four of the properties. Additional anchor tenants include C&A, H&M, TK Maxx, Mueller Drogerie, Media Markt, and toom. mfi will continue its role as center manager at all four sites. It was agreed to keep the purchase price confidential. The principal advisors to the Christie Group were Talbot Hughes McKillop LLP, Hogan Lovells LLP, Bingham McCutchen LLP and CBRE GmbH. The buyer took on legal advice by Latham & Watkins.