PATRIZIA acquires €400m off-market retail portfolio
PATRIZIA Immobilien AG has acquired a German retail portfolio comprising 85 properties for around €400 million ($472 million) in what is one of the largest retail real estate transactions in Germany in recent years.
The seller is a joint venture between the Third Swedish National Pension Fund and PGIM Real Estate. Closing is planned for the end of the year.
“While the properties are already at a high quality, we have been able to identify numerous optimization measures which will further increase the value of the asset for our clients,” said Daniel Herrmann, head of fund management retail at PATRIZIA.
The portfolio boasts 236,000 square meters spread across mainly Southern and Western Germany, with a regional focus on Bavaria, Hessen and Rhineland-Palatinate. The principal tenants include German commercial entities such as Lidl, Aldi, EDEKA and REWE. The remaining average lease term for the portfolio is around six years.
The acquisition increases PA