Patrizia AG has sold a retail portfolio of 50 stores in Germany to GPEP, a German investment manager focused on food retail. Financial terms were not disclosed.
The portfolio has a gross leasable area of 144,000 square meters (1.5 million square feet) located in 11 different German states, mostly in small to middle-sized towns in West Germany.
Eight of Germany’s 10 largest grocers by market share are represented in the portfolio, according to Patrizia. Edeka, Germany’s largest grocery store chain, operates 23 stores within the portfolio, accounting for around 52 percent of the rental income. The other tenants include REWE, Lidl and Aldi.
Patrizia acquired the portfolio in 2015 and has since executed extensive asset management activities, such as extending lease agreements and value accretive capex measures. As a result, the portfolio now generates more than €15 million ($18 million) per year in rental income and has a 98 percent occupancy rate.
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