Warburg-HIH Invest has acquired a portfolio of five local convenience centers with a gross lettable area of approximately 463,000 square feet for its “Perspektive Einzelhandel: Fokus Nahversorgung” investment fund.
“With the transaction, we managed to secure a sound portfolio of highly profitable properties in German growth regions,” said Hans-Joachim Lehmann, managing director of Warburg-HIH Invest and in charge of the transaction management Germany unit. “We continue to pursue our retail strategy and are bolstering the position of Warburg-HIH Invest as leading provider or investments in Germany retail warehouse parks.”
The properties were sold by Rockspring Property Investment Managers, a PATRIZIA company, on behalf of their PanEuropean open-ended vehicle.
The purchaser is an open-ended special AIF, set up pursuant to the German Capital Investment Act (KAGB), investing in local convenience centers in West German growth regions, targeting single asset values of €10 million to €40 million ($11.6 million to $46.7 million). The intended investment volume will total between €400 million and €450 million ($467.3 million and $525.7 million). Approximately €250 million ($292 million) thereof represents equity capital.
“The acquisition of this portfolio is helping us consolidate the fund’s performance in the best interest of our investors,” said Alexander Eggert, managing director at Warburg-HIH Invest and in charge of the fund management and product management units.
“With the number of properties now already up to ten and the investment total at approximately €200 million [$233.6 million], we have cleared the halfway mark well ahead of schedule and ensured an amazingly fast capital drawdown for our investors in addition to stable returns. We continue to see the food retailing segment as the main anchor of local convenience centers because it is essentially impossible for online retailers to match its assortments.”
The portfolio sold by Rockspring achieved a price in excess of €100 million ($116.8 million)
The properties, located in Herten (in the state of North Rhine-Westphalia), Bürstadt (Hesse) Sinzheim (Baden-Württemberg), Reppenstedt and Lehrte (both in Lower Saxony), are fully occupied. The 10 most important tenants, among them EDEKA, Kaufland, REWE, ALDI, OBI, dm and Penny, account for nearly 75 percent of the annual rental income. With weighted average lease terms of around eight years, they ensure a safe and stable cash flow and supplement the existing fund portfolio, which includes another five local convenience centers in cities in North Rhine-Westphalia (Aachen, Halvern and Bielefeld), Hesse (Usingen) and Hamburg.
