PATRIZIA acquires supermarket portfolio for €286 million (DE)

PATRIZIA Immobilien AG has acquired a supermarket portfolio with 107 retail properties. The portfolio chiefly consists of supermarkets, discounters and retail centers throughout Germany, most of which are leased to well-known food retailers. The purchase price is €286 million.
“This acquisition increases the value of the real estate assets managed by PATRIZIA in the retail sector to approximately €1.6 billion, making us one of the biggest lessors in this segment in Germany,” comments Wolfgang Egger, CEO of PATRIZIA Immobilien AG. The purchase was made for a co-investment of PATRIZIA Immobilien AG. The seller is Eurocastle Investment Limited, a listed, closed-end fund domiciled in Guernsey.
The retail properties in the portfolio are located in regions with strong economies throughout Germany, with a focus on Western German federal states, and comprise total rental space of around 229,000 m². The occupancy rate is around 95%.
PATRIZIA will promptly invest in the real estate portfolio together with the portfolio’s main tenants and will upgrade, modernize and expand a large number of locations. Right from the purchase phase on, we had a very positive contact with many of the key chain operators. “We are delighted that we have once again succeeded in turning a complex portfolio into a stable investment product for our institutional co-investors,” says Egger.
Source: PATRIZIA