Rockspring Property Investment Managers ('Rockspring') announces the completion of German transactions valued at over 160 million since the start of 2012.
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The Iller Center in Senden is one of the core-plus retail warehouse centers purchased by Rockspring.
Acquisitions
Rockspring has acquired four value-add and core-plus properties across Germany on behalf of three separate Rockspring funds for a total consideration of 125 million. The four acquisitions include:
- Two core-plus retail warehouse centers in Bavaria and Berlin comprising The Iller Center, Senden, and a retail warehouse center 3.5 km to the east of Alexander Platz respectively. Together, they comprise 49,500 m² of lettable space with an average purchase price of 1,440 per m². The centers are anchored by Edeka/Marktkauf, Saturn, Toom and Sconto.
- The 41,500 m² Löwen Center (a value-add opportunity), anchored by Real, Roller, Medi Max and Deichmann in Leipzig acquired for a price of 825 per m², Rockspring intends to re-gear all the leases in the 20 year old center and undertake a refurbishment in 2013 with a further investment estimated at 6 million. Within days of purchase Obi signed a new 10-year lease on the 8,500 m² DIY unit.
- A single-let logistics center in Werl, North Rhein-Westphalia, close to the important Kamener Kreuz logistics hub. The 42,750 m² logistics property is fully let to the Europart Group, Europe's leading distributor of spare parts and workshop equipment for commercial vehicles. The purchase was closed based on a price of 410 per m².
Stuart Reid, Partner of Rockspring with responsibility for Germany, stated that "All four acquisitions have been sales by foreign owners, three of which entered into the German market at its height and were looking for a clean exit to an equity purchaser. This trend is likely to continue as foreign banks and owners prepare further sales of non-core assets at attractive pricing over the next 24 months."
He added that "In effect, these assets are the right properties in the hands of the wrong owners offering great opportunity going forward for Rockspring with their strong German investment and asset management platform which has over 1.25 billion gross AUM."
Disposals
At the same time, Rockspring has responded to the strong market interest in core properties by taking the opportunity to sell two core long leased retail warehouse properties on behalf of the 700 million Rockspring German Retail Box Fund (RGRBF). The properties in Jever and Krefeld have been sold to two German institutional purchasers for a total price of just over 30 million reflecting a price of 1,740 per m².
Jever is fully leased for almost 10 years to the Famila Group and Krefeld has been recently fully refurbished by Rockspring and the RGRBF asset manager, Prime Management, and let on a new 15 year lease to Rewe. A further three sales of non-core holdings comprising 6 million in North Rhein-Westphalia have been undertaken to local German purchasers.
Ulf Christiansen, responsible for purchases and sales at Rockspring in Germ
