The properties are located in Flensburg and Lübeck, two affluent and economically dynamic cities on Germany’s Baltic coast. The investments will be 70% debt-financed and lift the JV’s total volume of retail real estate deals in Germany on behalf of a Sistema-led club of investors to €350m.
The two properties, acquired from different vendors, are located in prime locations of the mid-sized cities. The property in Lübeck is located in the city centre close to the main train station, while the property in Flensburg is based in the pedestrianised precincts. Occupying their combined total gross lettable area of 37,000m² are tenants that include Saturn, TK Maxx, Mc Fit and Holmes Place.
Sascha Wilhelm, Chief Executive Officer of Corestate, said: "Retail in mid-sized German cities often serves a large catchment area as a magnet for an entire region and properties in pedestrian zones in these centres are particularly attractive investments."