Rowan Asset Management is significantly growing its German portfolio with the acquisition of two newly developed retail properties and a third undergoing construction which is expected to complete in January 2008. The three properties have been acquired from Alpha Plan for a total purchase price of circa €20 million, which reflects a Gross Initial Yields of 6.9%.
Rowan, the property company and fund manager, recently acquired this three-asset portfolio, located in and around Bonn, totaling 10,000 m² and let to national and multinational retailers for terms of 10 to 15 years. This acquisition was secured on an off-market basis during December 2006 as a forward purchase and is expected to end up in one of the German funds managed by Rowan.
Commenting on the transaction Nick Jacobs, Rowan's Managing Director, said, "This has been a great purchase for the fund and has already seen an 11% uplift in value, which demonstrates the potential and appeal of the current German market, where well bought assets can realise rapid capital growth."
Rowan has actively been in the German market for two years now and currently has over €350 million under management in Germany. Rowan has confidence in the long-term prosperity of the German market and is keen to acquire further properties.
Source: FD Tamesis