Rockspring Property Investment Managers announces the completion of the refurbishment of its 35,000 m² Ostkreuz Center asset in Hamburg. The extensive refurbishment project was undertaken over a period of 18 months at a total cost of approximately 20 million, and has completely revitalized the centre, offering customers a modern, attractive shopping experience in a long established and successful retail destination.
The property is located to the east of Hamburg at the junction of the A1 and A24 motorways. Originally constructed between 1976 and 1984, Rockspring acquired the 10 hectare site with 35,000 m² lettable area from the Metro Group towards the end of 2010.
The property has been fully refurbished by Rockspring over the last 18 months and comprises a 13,000 m² Real hypermarket with 2,300 m² new Real drinks hall, 4,200 m² new Media Markt, 2,000 m² mall and 12,000 m² Sconto furniture store. Additionally there is a petrol station, Pit Stop and a total of 1,500 new car parking spaces. Rockspring worked closely with tenants to minimize disruption during the refurbishment works, and Real was able to trade successfully throughout the construction period.
Stuart Reid, Partner of Rockspring with responsibility for Germany stated that "The successful delivery of such a complicated refurbishment and extension to Real, Media Markt and our other retailers on schedule whilst offering attractive double digit returns to the Rockspring TransEuropean IV Fund, is a powerful demonstration of our team's asset management skills, and represents excellent execution against our strategy."
The store director of the Ostkreuz Real commented: "After over 12 months of joint effort from all sides, we are very pleased with the results of the refurbishment. Although trading throughout the refurbishment led to some stressful moments, the joint efforts of the owner and us have delivered a super product with excellent credentials for the next generation of shoppers.
"Our number of shoppers and turnovers are developing positively and we continue to receive positive feedback from both customers and staff. We look forward to working closely with Rockspring in the future."
The Ostkreuz Center forms part of Rockspring's 1.25 billion gross AUM invested in the German market with a strong focus on the retail warehouse market. Rockspring continues to seek further significant investments in the sector with a number of potential acquisitions under consideration.
Source: FTI Consulting