Patrizia Immobilien AG has acquired a premium portfolio with retail real estate. The portfolio includes the complete real estate portfolio of Savills Investment Management’s German Retail Fund CSGRF with 25 mainly big-box retail properties in the old German Länder let to retailers with high credit ratings such as, for example, Edeka, Rewe, Media Markt, Wöhrl, DM, Deichmann or Toom. The purchase price is €320m. With the acquisition of this portfolio in an off-market transaction, Patrizia has once more demonstrated its aptitude and expertise in the area of major real-estate investments,” says Wolfgang Egger, CEO of Patrizia Immobilien AG.
The 25 real estate properties are scattered among 23 locations solely in the old German Länder. Around 75% of the portfolio’s value is accounted for by properties in Bavaria, Baden-Württemberg and Hamburg. With a lettable space of 183,000m², most of the properties have been built in the period since 2005 or have been comprehensively modernised. “The shopping centres and retail parks are located in regions with strong economies and are usually the dominant retail trade destinations in their respective catchment areas,” explains Daniel Herrmann, head of Fund Management Retail at Patrizia. “The portfolio has a very attractive return-risk ratio already now. In spite of the usually above-average quality of the real estate and locations, however, we see additional opportunities to add value by means of an active management approach,” adds Herrmann.
The portfolio is being acquired on behalf of a separate account which has been set up for this transaction. The investor is a German occupational pension scheme. Patrizia significantly expanded its commitment in the retail real estate sector in the past. As recently as January, PATRIZIA announced that it was acquiring a portfolio with 21 properties. In addition to this, Patrizia had already acquired a package with 18 retail properties back in December as well. Patrizia now manages retail properties throughout Europe with a volume of €3bn. In Germany, Patrizia is one of the biggest lessors in the area of retail properties.
