International real estate advisor Savills, on behalf of Prime Commercial Properties (PCP), has brought to the market a freehold portfolio of four shopping centers in Germany for a guide price of circa 400 million. The four centers, Allee-Center Leipzig, Billstedt-Center Hamburg, City-Center Chorweiler, Cologne; Haven Höövt Vegesack, Bremen, comprise 139,355 m² of retail, storage, office and partially residential units.
The Billstedt-Center in Hamburg.
The assets, managed by ECE and CBRE, are let to strong international and national retailers to include H&M, C&A, TK Maxx, Real, Marktkauf, Kaiser food market, Mediamarkt/Saturn and Promarkt and generate a gross annual rental income of 29.06 million.
The assets are all freehold with good rental growth prospects and have numerous asset management and development opportunities to further drive the revenue stream.
Nick Hart, National Director and Head of Retail Investment, Savills London, says: "Each of these assets offer the dominant shopping within their catchment and still have substantial potential for further improvement by asset management."
"Retail properties in 2009 have proved to be the most attractive asset-class for property investors in Germany. More than a third of total investment into commercial properties were allocated to retail properties. Especially multi-tenant retail properties in prime locations produce a very stable return on investment," adds Karsten Nemecek, Managing Director Corporate Finance Valuation, Savills Germany.
PCP is an experienced British shopping center investor and operator with centers in Germany, UK, Japan and USA. They entered into the German market in 2005 and are now realigning their strategy, focussing back on in their home market of the UK.
PCP currently controls assets valued at approximately 550 million.