redos Group has acquired a portfolio consisting of six retail properties from EDEKA Handelsgesellschaft Rhein-Ruhr mbH, which is part of EDEKA Group, one of Europe’s largest food retailers. All of the properties are located in the northwest German state of North Rhine-Westphalia and are earmarked for the Redos Einzelhandel Deutschland II institutional fund, managed in partnership with Union Investment. The developer of the individual properties, with a combined rental space of some 37,500m², is EDEKA Rhein-Ruhr. The portfolio has been acquired at a total price of approx. €110m.
The acquired properties include locations used solely by supermarket giant EDEKA as well as multi-tenant retail parks with EDEKA as the largest tenant. The last of the three properties currently under construction is expected to be completed by the end of 2021. All six of the properties are already fully leased out, with a portfolio weighted average lease term (WALT) of 14.5 years.
“With this acquisition transaction, we are once again adding prime retail property assets to our fund portfolio,” said Frank Eckervogt, Managing Director and Head of Acquisition at redos. “Each of the individual properties offers an excellent location with a modern concept, thus providing the foundations for sustained long-term value growth based upon dependable retail traffic and reliable cash flows.”