PATRIZIA AG, a leading partner for global real assets, has sold a retail portfolio comprising 50 stores across Germany on behalf of its clients. The portfolio has been sold to GPEP, a German based investment manager focused on food retail.
The portfolio has a GLA of 144,000 sq m and comprises 50 grocery stores let to strong covenants across Germany. Eight of Germany’s ten largest grocers by market share are represented in the portfolio. The stores are located in 11 different German states, mostly in small to middle sized towns in West Germany. Edeka, Germany’s largest grocery store chain, operates 23 stores within the portfolio, accounting for around 52% of the rental income. The other tenants include REWE, Lidl and Aldi.
The portfolio was acquired by PATRIZIA in 2015 as part of the Company’s ongoing strategy of investing in food-anchored retail. Since then, PATRIZIA has engaged in extensive asset management activities, notably optimising the portfolio through the extension of lease agreements and value accretive capex measures. As a result, the portfolio now generates over EUR 15 million per year in rental income, has a 98% occupancy rate and a WALT of over 8 years.
PATRIZIA manages more than EUR 6.5 billion in the retail sector throughout Europe with EUR 3.5 billion invested in the German food retail sector.
Source : PATRIZIA