Deutsche Investment just acquired a retail warehouse portfolio, consisting of four standalone discount grocers or full-line grocers and one neighbourhood retail centre, on behalf of its “Deutsche Investment – Food Retail I” separate asset pool. The retail warehouses are located in the German states of Lower Saxony, Saxony-Anhalt, Saxony and Baden-Wurttemberg, and have a combined lettable area of around 7,400m². The properties were sold by a family office based in Lower Saxony; the transfer of benefits and burdens already took place. The two parties agreed not to disclose the selling price.
Built between 1986 and 2006, the retail warehouses were modernised and expanded in recent years, and are therefore well-positioned for the future. The markets are fully occupied, with grocery chains Edeka, Penny, Lidl and Rewe acting as anchor tenants. Due to their location on the periphery of major conurbations or middle-order centres, the markets benefit from strong footfall.
“The blue-chip anchored tenants with their long-term lease agreements make this portfolio a very stable investment of intrinsic value for our fund. All of the retail warehouses occupy established retail sites of high attractive pull within their regions, some of them having evolved into the dominant grocery retailers within their immediate surroundings,” said Susanne Klaussner, Managing Partner of DIR Deutsche Investment Retail GmbH whose specialised team handles the transaction, asset and property management for the separate asset pool.
“The regional spread of the retail sites clear across Germany contributes moreover to the diversification of our retail warehouse portfolio as a whole,” added Matthias Kreil, the Head of Transaction Management at DIR Deutsche Investment Retail GmbH.