The Sierra European Retail Real Estate Asset Fund (Sierra Fund) sold its 100% interest in the shopping center Münster Arkaden (Münster, Germany) to Aachener Grundvermögen-Kapitalanlagegesellschaft mbH.
Through this sale the Sierra Fund, a pan-European retail fund where Sonae Sierra has a stake of 50.1%, allows the Fund investors to capitalize on the high demand that investors have for high quality shopping centres in Germany. Following the sale Sonae Sierra will continue to be responsible for the center management of Münster Arkaden.
"This successful transaction reflects Sonae Sierra ability to provide investors with capital appreciation through investment in actively managed, high-quality shopping centers. This transaction also marks another step in the implementation of our Company capital recycling strategy, allowing us to continue our expansion in the markets where we are currently active and also into new emerging markets ensuring the company's sustainable growth.
At the same time, Sonae Sierra continues to maintain a solid presence in Germany, with five shopping centers under management, three of them for third-parties, and two new projects in different phases of development. This commitment is enhanced by the fact that Sonae Sierra will remain responsible for the center management of Münster Arkaden", said Fernando Guedes Oliveira, CEO of Sonae Sierra.
Future owner of MÜNSTER ARKADEN is AACHENER GRUNDVERMÖGEN. The asset management company based in Cologne, has specialized for 40 years in inner-city retail properties, with Investment model in the urban area.
"The MÜNSTER ARKADEN follows in its architecture and high-quality appearance the sensitive and sophisticated heritage of the city of Münster. Like almost no other shopping center in Germany, it is integrated within the city center retail location and appears as its complementary offer. As so, MUNSTER ARKADEN provides a positive contribution to the further development of a strong retail landscape in Munster. Here, both the urban and the functional integration succeeded", said Dr. Frank Wenzel, CEO of AACHENER GRUNDVERMÖGEN. "We are therefore delighted to have made this input for our investors." The MÜNSTER ARKADEN acquired by AACHENER GRUNDVERMÖGEN for a long term treasury stock for an institutional, not ecclesiastical investor.
The three-storey MÜNSTER ARKADEN is situated in the city center's prime location Ludgeristrasse in Munster. The inner-city shopping center has got 37 shop and several gastronomy retailers. The 38.800 m² GLA (gross lettable area) shopping center is fully let on long-term leases to successful retailers and anchor tenants such as Saturn, Zara, Peek & Cloppenburg, Esprit, Olymp & Hades, Intersport Voswinkel, SuperBiomarkt and dm.
Furthermore the bank Sparkasse Münsterland-Ost operates a major store here. Münster Arkaden opened in May 2005 and was acquired in May 2007 by the Sierra Fund. The purchase contract between the Sierra Fund and AACHENER GRUNDVERMÖGEN was signed on November 15, 2012. Confidentiality was agreed regarding the sales price. The seller was counselled by Cushman & Wakefield, Frankfurt (Germany).
Source: Sonae Sierra