AEW announces that it has acquired a prime retail asset in the historic centre of Ghent on behalf of the City Retail Fund. The transaction is the first Belgian acquisition for the Fund, which was launched in November 2015 and has since raised €215m from several institutional investors. It is the seventh acquisition for the City Retail Fund, which now has invested €200m across four major European cities including Copenhagen, Madrid, Rome and now Ghent.
The asset, which is a former post office building dating back to 1909, has been acquired from MG Real Estate and comprises 3,630m² of retail space in the Korenmarkt area of the City, one of the most high profile locations in Ghent. The property is currently 100% let to fashion retailers Sissy Boy and Men at Work, Skins Cosmetics, Le Pain Quotidien and supermarket Albert Heijn.
In the heart of the city, the Korenmarkt is considered a major retail destination, connecting Ghent's two busiest shopping streets, Veldstraat and Langemunt.
Christina Ofschonka, City Retail Fund Executive at AEW Europe commented: "We believe that the asset in Ghent, which has a strong tenant base, is an attractive addition to the City Retail Fund. The Fund intends to further invest in assets in locations which we believe will strengthen over the short to medium term. Over the coming months, we will continue to expand our core high street retail portfolio in Europe’s leading city centres and we have a number of potential opportunities in the pipeline which will support the diversification of the Fund in terms of both size and location."
Patrick Meutermans, Head of Belgium & The Netherlands at AEW Europe added: "In line with the Fund’s strategy, Ghent is one of Belgium’s major cities and the Gent Post Store offers through its mix and type of retailers a dynamic touch to well-established retail destination."
AEW was advised by K-Law, SECO and KPMG. MG Real Estate was advised by CBRE and DLA Piper.
