PATRIZIA Immobilien AG has acquired a top-value portfolio with more than ten spacious retail properties for over €200m. The properties are all situated in well-established retail locations in the old German Länder. "Alter 10 is a top-quality speciality retailer portfolio dominated by the grocery retail trade that only very rarely comes onto the market in this form. That is why we are very pleased to have been able to take advantage of this opportunity," comments Daniel Hermann, Head of Fund Management Retail at PATRIZIA. The purchase was performed for the real estate fund "PATRIZIA Handels-Invest Deutschland II", which had already purchased two comparably large portfolios back at the end of 2015 and has now swelled to a total volume of around €750m through the addition of Alster 10. The fund has thus been fully invested. The seller is Newport Holding, headquartered in Hamburg. The sale procedure was managed by Wrangel Real Estate.
Looking at the portfolio in more detail, it consists of five dominant special retail centres, three large consumer markets and two smaller locations with system restaurants. The anchor tenants in the portfolio are all highly reputed retailers with high credit ratings such as real, REWE, Kaufland and Edeka. In sum total, the portfolio as lettable space comprising approximately 110,000m². The real estate is situated in well-established retail locations with long-standing customer ties and strategically important dominance. About 85 of the portfolio was completely refurbished, expanded and switched over by tenants to align with their newest sales strategies before being sold to PATRIZIA - or is in the process of doing so now.
The portfolio is concentrated in North Rhine-Westphalia. Additional properties are located in Schleswig-Holstein, Lower Saxony, Bavaria, Baden-Württemberg and Mecklenburg-Western Pomerania. The average remaining lease term is roughly twelve years. About 75% of the lease agreements are generated by highly reputed retail companies like real, Edeka, Kaufland and REWE. Other tenants of importance include big-name retail chains from the drugstore and fashion branches.
PATRIZIA has heavily expanded its commitment in the area of retail real estate in the past, with this being the fourth major transaction within the last twelve months. PATRIZIA now manages a volume of around €3.2bn in retail real estate properties throughout Europe. In Germany alone, PATRIZIA is one of the biggest lessors in the field of retail properties.
