TH Real Estate, on behalf of a German retail mandate, has purchased a portfolio from Rockspring Property Investment Managers LLP for an undisclosed sum. The transaction comprises five assets in well-established retail locations across Germany, occupying roughly 1.4 million ft² (c.132,000 m²) of retail space.
The assets originate from the TransEuropean IV and TransEuropean V Funds managed by Rockspring, comprising three retail parks located in Groß-Gerau, Leipzig and Oststeinbek near Hamburg, and two hypermarket stores situated in strong city centre locations in Frankfurt an der Oder and Weimar. All five assets are located in large urban catchments, with good visibility and excellent transport links. The properties are food anchored, with four out of five assets let to the supermarket chain ‘real’ on a long-term lease. The parks boast an average occupancy rate of 98%.
Marcus Mack, Fund Manager, at TH Real Estate, says: “The acquisition of this portfolio represents one of the most important transactions of retail warehouse assets completed by the team in Germany in recent years. The portfolio is one of the most attractive investments we have seen in the German market in 2017 and we believe the investment will offer long-term stable income returns for our clients.”
Stuart Reid, Partner at Rockspring, comments: “We have been buying these ‘manage-to-core’ retail parks from different sellers since 2010. After successfully completing our business plans, including modernisation, branding, repositioning, signing new leases and extending existing leases, we are really pleased to have disposed of the portfolio to TH Real Estate. Our investors have benefited from our highly experienced asset management team, who have delivered exceptional returns for the funds which have held these assets.”
MEC Metro-ECE Centermanagement GmbH & Co. KG has been instructed to take on the technical and infrastructural property management mandate. CBRE Germany acted on behalf of Rockspring. The commercial law firm Graf von Westphalen served as legal advisors to TH Real Estate and the seller was advised by K&L Gates LLP.
