The asset was sold by Art Invest Real Estate, which developed the property for chain retailer Primark. The modern retail asset, which features just under 6,900 sq m of sales space in a central downtown location and was completed in 2019, celebrated its grand opening in November. Situated in a prime location between Holstenstraße and Andreas-Gayk-Straße, the building adds a fresh, unique touch to Kiel’s shopping street with its classic facade. In recent years, Primark has established itself as one of the most successful fashion chains worldwide. The parties involved have agreed not to disclose the purchase price.
“Kiel’s reputation has grown over the past few years”, explains Isabella Chacón Troidl, Chief Investment Officer of BNP Paribas REIM Germany, and continues, “The property is situated in what is going to be the heart of Kiel’s shopping street. The location will particularly benefit from the restoration of the historic waterway connection between the Kleiner Kiel canal and the Bootshafen and Schwedenkai harbours and the creation of new recreational areas along the water. We can also expect to see an increase in the popularity of German cities as travel destinations due to the current travel restrictions”.
The Primark Kleiner Kiel Canal retail asset was built by Art-Invest Real Estate between 2017 and 2019 on a site encompassing roughly 2,100 sq m. It boasts a total rental area of over 8,800 sq m and net usable area of almost 6,900 sqm. The building features four storeys above ground and one basement level. It was designed by Wegener Architects, who won the urban planning competition. Fashion chain Primark is the anchor tenant at the property under a ten-year lease.
The BNP Paribas Diversipierre fund, an OPCI, was launched in 2014 and is structured for private investors in France. Unlike German open-ended real estate funds, this special fund not only acquires assets directly but is also able to participate in other types of real estate investment such as stock and acquiring shares in companies. As of late March 2020, the fund had 27 properties of different usage types in its portfolio with a fund volume of over 2.1 billion euros.
This latest transaction was an off-market deal with Hogan Lovells acting as legal advisor to the buyer.