- Disposal of c. 180,000 sq m portfolio assembled across Western Germany
- Assets acquired between 2005 and 2012
- PATRIZIA retains AUM of EUR 3.5 billion in German food retail and continues to actively seek further acquisitions
Augsburg, 9 September 2021. PATRIZIA AG, a leading partner for global real assets, has disposed of a portfolio of retail parks located across Western Germany. The portfolio, which has been sold on behalf of clients, comprises 12 established retail assets totalling c. 180,000 sq m. The buyer is MEAG, the asset manager for Munich Re and Ergo.
The portfolio was assembled by PATRIZIA between 2005 and 2012 as part of the Company’s ongoing strategy to invest in food-anchored retail in attractive catchment areas across Europe. Following the implementation of an active asset management strategy, PATRIZIA has regularly invested to ensure these assets are fit for purpose in a dynamic retail market. PATRIZIA has increased the occupancy rate to 97% during holding period with a WALT of 10 years.
Strong tenant covenants anchor the portfolio which has a 45% food retail component and contribute around two thirds of the total rental income, including supermarket chains Kaufland and Edeka, Germany’s largest supermarket group. The properties span seven of Germany’s Western states and an average catchment of over 220,000 residents and have a high average centrality index.
Martin Trodden, Fund Management at PATRIZIA, commented: “Having enhanced the income profile of these assets over many years, this sale presented us with an opportunity to crystalise our investment and deliver strong returns to our clients. German retail, especially food anchored, has been an attractive sector to invest in, due largely to its ability to deliver sustainable income, while our programme of active asset management of this portfolio has further bolstered returns.”
“Retail parks, and particularly those that are food-anchored, have proven resilient to the pandemic. We still see the potential for sizeable value growth in selective physical retail assets, and we continue to search for new opportunities to build our European retail portfolio.”
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.
PATRIZIA was advised by JLL and Gleiss Lutz.
PATRIZIA: A leading partner for global real assets
As a company with operations around the world, PATRIZIA has been offering investment opportunities in real estate and infrastructure assets for institutional, semi-professional and private investors for 37 years. PATRIZIA manages more than EUR 48 billion in assets and employs over 800 professionals at 24 locations worldwide. Through its PATRIZIA Foundation, the company is committed to social responsibility. The Foundation has helped over 230,000 children in need worldwide gain access to education and thus, has given them the chance of a better life over the last 21 years. You can find further information at www.patrizia.ag
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