Generali Real Estate and ECE Real Estate Partners have acquired the Pep Shopping Centre in Munich Neuperlach, as part of a 50/50 joint venture. The vendor of the asset is Nuveen Real Estate acting as Investment Advisor to the TIAA-CNP partnership, who owned the property in a joint venture.
With around 12 million visitors a year and generating over €250, a year in turnover, Pep Shopping Centre enjoys a dominant market position as one of the top 5 shopping destinations in Germany. Located in Neuperlach, a dynamic district in Munich, and extending on 70,000m² GLA, Pep stands out for its strong footfall, sales figures and full occupancy, driven by an excellent urban integration on a public transport hub and with densely populated surroundings. The excellent tenant line-up includes anchors such as Primark, Edeka, Kaufland, Muller Drugstore, H&M and Saturn, making the shopping center attractive for customers from a wide catchment area. The shopping centre was extensively modernized and expanded between 2016 and 2018, and has been managed by ECE Marketplaces for over 30 years.
Aldo Mazzocco, CEO at Generali Real Estate, commented: ”A second important investment for our pan-European Shopping Centre Fund, the Pep acquisition is fully in line with the investment strategy we have set for the retail asset class 5 years ago: investing very selectively and with prudence in shopping centers which well represent the so-called Dominant, Destination, Diversified segment. Pep makes a strong central-European addition to our international portfolio, next to Puerto Venecia in Zaragoza and CityLife Shopping District in Milan.”
Volker Kraft, Managing Partner at ECE Real Estate Partners, said: “We are delighted to make the investment in Pep shopping centre jointly with our partner Generali Real Estate. The asset stands out as a winner in the increasingly polarising shopping centre landscape. This makes it a great fit for our ECE Progressive Income Growth Fund that comprises a €2bn portfolio of outstanding shopping centres in Europe.”
Myles White, Head of Retail, Europe at Nuveen Real Estate, commented: “We are extremely proud of what we have accomplished with the Pep shopping centre. Through active management and prudent investment, we believe we have curated a best in class asset in a strategic location in Munich and we believe this deal demonstrates the continued investor demand for high quality retail assets that can continue to meet evolving consumer demands and trends. We are pleased to close on this transaction with Generali, Axis Retail Partners and ECE who we have no doubt will continue to drive the success of the asset.”
