PATRIZIA acquires EUR 400m off-market retail portfolio
PATRIZIA Immobilien AG announces that it has acquired a German retail portfolio comprising 85 properties for around EUR 400 million in what is one of the largest retail real estate transactions in Germany in recent years.
- 85-property portfolio, one of Germany’s largest retail real estate transactions in recent years
- Provides some 236,000 sq m of lettable area
- Principal tenants include well-known entities such as Lidl, Aldi, EDEKA and REWE
- Food retail accounts for more than half of PATRIZIA’s retail real estate assets
The portfolio was acquired for an individual mandate of a large German insurance company, one of a number of such acquisitions for this client which has been pursuing a strategy to further expand its retail portfolio with PATRIZIA. The seller is a Joint Venture between the Third Swedish National Pension Fund (“AP3”) and PGIM Real Estate. PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc. (NYSE:PRU). Closing is planned for the end of the year.
“Based on our market knowledge and on-the-ground presence, we were able to secure this promising portfolio in an off-market transaction,” says Daniel Herrmann, Head of Fund Management Retail at PATRIZIA. “While the properties are already at a high quality, we have been able to identify numerous optimisation measures which will further increase the value of the asset for our clients. The transaction is also further evidence of major institutions turning to us to help pursue their investment strategies, often at scale,” adds Herrmann.
The portfolio boasts 236,000 sq m of lettable area spread across mainly Southern and Western Germany, with a regional focus on Bavaria, Hessen and Rhineland-Palatinate. The principal tenants include well-known 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 PATRIZIA’s retail assets under management to more than 500 properties with a value of almost EUR 4 billion, more than half of which are specialist retail assets. By securing such large, targeted portfolios, PATRIZIA has succeeded in considerably expanding its position in the retail market in recent years and, in Germany alone, is one of the largest landlords of retail real estate.
PATRIZIA Immobilien AG:
PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across 15 European countries for more than 30 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global provider of real estate investments in Europe, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. Currently, the Company manages real estate assets worth almost EUR 20 billion, primarily as a portfolio manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor. For further information, please visit: www.patrizia.ag.