Deutsche Konsum REIT has acquired "Elster Center" retail centre in Elsterwerda, Germany.
Built in 1991, the centre has a total rental space of 36,000 m². It was most recently modernised in 2012. The tenant roster includes REWE, ALDI, DM, toom, Medimax, AWG Mode and a furnishing supplier. The centre is fully let, with the annual rent totalling €1.9m and a WALT of eight years plus extension options.
The total investment volume amounts to €23m which implies an initial yield of 8.3%. Transfer of ownership is expected to occur on 1 June 2018.
Including the latest acquisitions, the current (pro forma) property portfolio of Deutsche Konsum REIT comprises of 86 retail properties with an annualised rent of €33.9m. Due to a remaining strong acquisition pipeline, Deutsche Konsum expects further acquisitions in the short run.
Rolf Elgeti, CEO: "The initial yield of 8.3% is quite low by our acquisition standards. However, we believe there is significant potential for development and rental growth in the medium term future in order to make this a very accretive acquisition for our shareholders."
