GARBE acquires GRR Real Estate. The transaction creates a market-leading position in supermarkets and other essential retail real estate, especially food-anchored retail parks. GARBE Institutional Capital is taking over GRR Real Estate Management with more than 80 team members and a portfolio of approx. 500 managed assets. Through this transaction, the GARBE platform will grow the assets under management (AuM) for institutional funds and mandates by c. €2b. The 52 on-balance-sheet properties held by GRR will be acquired by GARBE Institutional Capital on behalf of an institutional fund. The business will continue to operate as an independent company within GARBE under the established GRR brand. The transaction agreement was formally signed yesterday. The parties have agreed not to disclose the purchase price.
Christopher Garbe, Managing Partner of GARBE, said: “With the acquisition of GRR, we are taking another key strategic step towards establishing our leading and vertically integrated platform based upon a 360-degree management approach. As an active real estate manager, we are expanding our organisation’s resources and expertise into the retail real estate segment, spanning the entire value chain all the way to the end customer. By doing this, we will create significant added value not only for our investors but also for our tenants. The food retail sector fulfils a systemically important role in Germany and throughout Europe. It is highly attractive due to its stable tenant structure, which is why it has already been a strategic focus for GARBE in recent years. GRR is a recognised leader in this market segment, where it has built an excellent reputation. In addition, GRR’s fully integrated organisation with capabilities and service offerings ranging from portfolio level to property and project management fits perfectly with GARBE’s entrepreneurial philosophy. GRR’s proven expertise in implementing ESG measures and in renovating existing properties make it an ideal partner. The management and the entire team at GRR have delivered superb performance in the past years and we look forward to shaping the future together with our new colleagues.”
Andreas Freier and Martin Fuhrlein, members of the Executive Board of GRR AG, added: “By bringing GRR Real Estate Management into the GARBE family of companies, we are setting the course for strong future growth. As an owner-managed company, GARBE fits ideally with our own business philosophy. In recent years, we have steadily expanded our market position as one of the leading players in the food-anchored retail segment and successfully launched five of our own open-ended AIFs for institutional investors. With our sustainability strategy, we have successfully begun the ESG transition. At the same time, we are driving forward the sustainable development of our portfolio. By combining our operational business with GARBE, we are now taking the next step with the shared goal of market and innovation leadership within the German retail property segment.”
The transaction, which is subject to approval by antitrust authorities, is expected to close shortly. GARBE was advised by Greenberg Traurig (legal), Gleeds Deutschland (technical) and HLB Stückmann (financial and tax). The seller was advised by Rodl & Partner.
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