Prime Pitch Asset Management has completed the purchase of a mixed-use real estate complex in the center of the German city of Rostock. The property was completed in 2011 and has a size of approximately 17,000 m², comprising retail, a nursing home, offices and a parking garage with 400 spaces. Seller is developer Delta Development Group. Prime Pitch realized this purchase on behalf of a small group of professional investors, including some wealthy families.
The property is let to leading tenants on longer term leases. The retail accommodates a full range supermarket of Edeka, discounter Lidl, drugstore chain Rossmann, a pharmacy and several smaller shops. The office space is fully leased to Telefonica, Randstad and A-rosa Flussschiff. The nursing home with 133 rooms is let for a 20 years term to Renafan, an experienced operator of nursing homes in Berlin, managing more than 4,500 rooms in Germany. The car park is leased to the city of Rostock. The property was developed by Delta Development Group and built by Kondor Wessels Bau Berlin.
The investment is in line with investor demand for stable, predictable cash flows. This investment is characterized by longer-term leases (10 -, 15 - and 20-years), a strategic location in a developing area and a conservative capital structure. An investment loan was provided by HypoVereins Bank. The investment horizon is basically 10 years.
Prime Pitch accounted for the acquisition and structuring of this private placement and will also be responsible for the asset management. PWC has advised on the fiscal restructuring. Van Gool Elburg Vastgoedspecialisten has effectuated the transaction on behalf of seller Delta Development.
Source: Prime Pitch
