Retail asset acquisition

The international real estate investment company Savills Investment Management (formerly Cordea Savills) has acquired two retail assets in Germany for an investment mandate recently won from a southern German superannuation scheme.

The assets include a commercial building in Dortmund's high-street precinct and a retail warehouse park in Unterhaching near Munich. The combined purchase value is close to 60 million euros.

The commercial property in Dortmund is a prominent corner building with a floor area of around 1,200 square metres including a prime retail pitch on Westenhellweg, one of Germany's leading high streets. The building is fully occupied by a branch of Wormland, a men's clothing specialist. The property was purchased from a Danish closed-end real estate fund managed by Habro & Finansgruppen.

The retail warehouse park in Unterhaching covers around 13,700 square metres of lettable area occupied by around 20 retailers, including Adler (fashion), Fressnapf (pet supplies), Shoe4You, Deichmann (both footwear), Alnatura (organic food) and home furnishing outlets Dänisches Bettenlager and Das Depot. The retail warehouse park benefits from direct motorway access and a large catchment area in the affluent and fast-growing southern suburbs of Munich. The property was purchased from an institutional real estate fund managed by Deka Immobilien GmbH.

Gerhard Lehner, Head of Portfolio Management at Savills IM in Germany, commented:

“We are delighted that the southern German superannuation scheme appointed  us to manage the further expansion of its European office and retail real estate portfolio, and that we accomplished the first two acquisitions despite intense competition from other investors. Due to the high quality location and long-term leases of the properties, the two investments complement each other while their rental growth and capital appreciation prospects are excellent.”