Greenman OPEN has entered into a €95.5m framework agreement with Schoofs Immobilien, a leading German developer. Among the items agreed, the framework provides the fund the right to acquire three new food anchored retail assets in Germany. This is the first framework agreement of its type that Greenman OPEN has entered into and it highlights the trust and commitment of each party in working together to develop and build a long term relationship.
The new centres will comprise a combination of Fackmarktzentrums (FMZs) and Hybrid Centres anchored by major German supermarket chains REWE, Aldi and Lidl. The new centres will be located in Baden-Wurttemberg and Rhineland-Palatinate, all in strong regional cities with excellent catchment areas and purchasing power. Once complete, the centres will have total lettable area of 29,691m² and a combined weighted average remaining lease term of 14.60 years.
Commenting on the agreement, James McEvoy, Head of Acquisitions at Greenman, said: “This deal is part of our strategy to innovate and create new ways of working with our partners to unlock opportunities in the German food retail sector. As well as highlighting our continued confidence in the food and necessity retail sector, which has proved extremely resilient during the current crisis, it also provides us with an opportunity to benefit from the significant dislocation between demand and availability of suitable food retail property across Germany. “
“By partnering with Schoofs, we will get better access to development opportunities in excellent locations, allowing us to continue to expand the portfolio and reach our target AUM of €1bn by 2021.” Managing Director of Schoofs, Mohamed Younis commented: “This deal shows that despite the Covid-19 lockdown, construction works are continuing as normal in Germany. It is also a great opportunity for us to partner with a reputable and reliable international buyer as we push forward our plans to develop these three assets.”