Rockspring announces €87m in new commitments for its German Retail Box Fund LP (GRBF). The new equity, which exceeds the Fund’s initial target for this fundraise, has been secured from four existing investors within a 3 month period. The capital, together with available bank financing, will be invested in the Fund’s substantial re-development programme over the next 3-5 years.
The Fund, which was launched in 2005 in partnership with Düsseldorf-based Prime Management, is underpinned by a long term income and growth strategy focused exclusively on large floor plate, grocery-anchored German retail assets. GRBF currently has a gross asset value of almost €1bn1 and, having maintained high average portfolio occupancy rates of between 94-98% since the launch, the Partnership has been able to distribute just under 7%2, on average, to its investors since inception.
Martin Trodden, European Director at Rockspring and Fund Manager of GRBF commented: “To have received significant support from our existing investors is a clear endorsement of how resilient the sector and chosen strategy have proven since the global financial crisis. We have a strong belief in the sub-sector, which we expect to continue to deliver strong returns going forward.”
Oliver Krämer Head of Asset Management at Prime Management added: “Over a number of years, we have worked exceptionally hard to develop strong tenant relationships and this capital enables us to continue to invest into our standing portfolio. Through the refurbishment and modernisation of some of the more dated buildings – many of which we have already secured pre-lets on ahead of redevelopment – we will be able to strengthen the portfolio’s overall credentials in terms of its income security, tenant diversity and, ultimately, net operating income.”
1 including co-investments
2 net of all fees, costs and taxes, unaudited as at 31 March 2017