LOOM Bielefeld Image: ECE / Heiko Meyer
Ticker

ECE Real Estate Partners launches first open-ended European shopping centre fund

Retail real estate specialist ECE Real Estate Partners has set up an open-ended pan-European shopping centre fund. The new "ECE Progressive Income Growth Fund" (EPIG Fund) has secured equity commitments of more than EUR 700 million from a leading global institutional investor base and has acquired a seed portfolio consisting of dominant shopping centres in Germany, Austria, Denmark, Poland and Italy with a market value in excess of EUR 1.6 billion. For the upcoming years, further acquisitions of dominant European shopping centres are planned.

The EPIG fund is aimed at long-term investors striving for stable regular distribution yields of around 6-7% p.a. in the current low interest-rate environment. Strong alignment of interest has been secured by the Otto family acting as an anchor investor. The EPIG Fund will exclusively invest in market-leading shopping centres benefiting from prime locations in select European cities with attractive economic fundamentals and growth forecasts.

Investment opportunities arising from structural changes in the retail sector

In a retail environment characterised by continuous dynamism and rapid change, ECE Real Estate Partners intends to take advantage of attractive investment opportunities arising from the ongoing structural changes. With net initial yields ranging from 4.0% (Germany) to 6.0% (Italy), the European market for shopping centres is currently valued at historical lows when compared to government bonds and other forms of real estate such as logistics, office and residential.

In addition, market-leading shopping centres in easily accessible central locations with a high quality of stay, an attractive gastronomy and strong service offering are increasingly gaining market share in a polarising retail market.

High-quality seed portfolio of six superregional shopping centres in growth regions

Including Stern-Center Potsdam, LOOM Bielefeld, Megalò Chieti, G3 Gerasdorf/Vienna, Galeria Kaskada Szczecin and Rosengårdcentret Odense, the seed portfolio comprises six superregional shopping centres with a total leasable area of 350.000sqm and 750 shop units, attracting more than 45 million visitors annually. The assets were owned by the ECE European Prime Shopping Centre Fund, a closed ended value-add fund that in the course of the past years invested extensively in the modernization, expansion and value creation of the centres.

“With our high-quality seed portfolio consisting of dominant shopping centres situated in prime locations within European growth cities, we are in an excellent position to generate attractive sustainable dividend yields for our investors long-term. In addition, we see future attractive opportunities arising from our continued development and positioning of our centres into omni-channel trading platforms“, says Dr. Volker Kraft, Managing Director of ECE Real Estate Partners.

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Ticker MORE

HMSHost will be part of the new Manchester Airport Terminal

Winning tender includes five new stores, of 5 to 7-year contracts, with a total contract value of 84 million euro, set to open in 2020.

Honfleur Normandy Outlet is pursuing its strategy to attract French and overseas tourists

With the arrival of summer, the outlet centre has increased its momentum.

MEC operates new center in Munich-Allach

EVER.S opens on July 18, 2019.

Capitol Park Kutina opens in October

After the successful operation of seven retail parks and neighbourhood centers in Croatia, Poseidon Group continues to expand its Capitol Park network throughout the country.

A new ambition for Better Places 2030, Unibail-Rodamco-Westfield’s CSR strategy

Better Places 2030 was launched in 2016 and its main objective was to reduce the Group’s carbon emissions by -50% by 2030.

CACI research reveals brands need physical stores to drive online sales

Whilst debate continues about the future of the High Street, research by CACI has revealed the negative impact of closing stores on brands’ online businesses.