AEW Europe announces that it has completed the acquisition of an eight asset German retail portfolio. The transaction forms part of a series of acquisitions totalling €56.3 mln which AEW Europe has undertaken this year as part of a €150 mln opportunistic investment programme on behalf of a US institutional investor. AEW Europe is working with its local partner, Kintyre to source and structure investments in Germany and both parties have co-invested in this transaction.
The portfolio primarily comprises six multi-let retail parks, located at Magdeburg in Saxony Anhalt, Bad Staffeistein and Muhldorf Am Inn in Bavaria as well as Schwalmstadt Treysa and Herborn in Hesse. The 55,000 m² portfolio also includes a standalone retail unit at Bischoffen in Hesse, a DIY store in Herten and a community shopping centre in Schwelm, both in Nord Rhine Westphalia.
The portfolio produces an annual rental income of €5.1 mln and is anchored by strong retail tenants such as Edeka, Rewe, DM, C&A, Lidl and Aldi.
As part of this investment mandate AEW Europe and Kintyre Investments are seeking to build an initial portfolio of up to €150 mln, through single asset investments of between €5 to €25 mln or larger portfolio investments, where the composite individual assets do not exceed €25 mln. It will target assets which are located in regional cities and towns in Germany with populations of between 20,000 and 200,000 inhabitants and have existing cash flow.
Source: AEW Europe
