Rockspring Property Investment Managers (“Rockspring”), has acquired Helvetia Parc, a 30,000 m² retail park in Groß-Gerau, 30 kilometres outside of Frankfurt, Germany, on behalf of TransEuropean Property V LP (“TransEuropean V” or the “Fund”) for €41.65 million.
Rockspring was able to complete the transaction within three months of first meeting the vendor, a major global real estate company.
The retail park, which was built in 2008 and has parking for 900 cars, is anchored by a Toom DIY store. Other tenants include German supermarket chain, Rewe, Aldi, Medimax electronics, Deichmann, Takko, and dm-drogerie.
Ulf Christiansen, head of acquisitions for Rockspring in Germany said: “This core-plus property offers us an excellent, secure cash flow opportunity, as well as attractive asset management potential to grow rents through the letting of vacant units and the improvement of the tenant mix. We are confident that, with our experience and expertise, we will be able to exceed the financial targets we have set and can maximize the potential of Helvetia Parc.”
Stuart Reid, Rockspring partner overseeing the German market said: “The combination of a market leading, in-house asset management team with a decade long track record of out-performing the market, together with the historically low financing costs that are available today, puts us in a strong position to generate excellent risk-adjusted returns for our investors through this acquisition.”
The addition of Helvetia Parc brings TransEuropean V’s portfolio in Germany to six properties, with a total value of approx. €135 million. Further investment in Germany and across Europe is expected in the coming months and the Fund is on target to achieve full investment by the end of 2014, with a total gross value of approx. €700 million.