Patrizia AG has acquired a portfolio of 19 food anchored retail assets in northern Germany on behalf of one of its pan-European funds from a private Irish vendor. The assets comprise c. 54,100m² of high-quality retail space including parking for 2,300 vehicles, and are anchored by Rewe Group and Edeka Group, Germany’s largest supermarket chains, which represent 75% of the total rental income. The properties are currently fully let with the weighted average lease term totalling 5.5 years. The purchase price was not disclosed.
Daniel Herrmann, Head of Fund Management Retail at Patrizia, commented: “This transaction provides our investors with access to a high-quality retail portfolio anchored by established German supermarket operators. The strong covenants offered by the portfolio’s occupiers underpin an attractive income return which we aim to improve through actively managing these assets. We are confident in the continued strength of the food retail market in Germany, especially assets such as these which are dominant for their locations with high footfall and are defensive against E-commerce retail.”