LOOM Bielefeld Image: ECE / Heiko Meyer

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

Disney magic comes back to Queensgate shopping centre

Lendlease and Invesco Real Estate, the global real estate investment manager, have today announced the launch of a new 4,000 sq ft pop-up Disney Store at Queensgate shopping centre.

Placewise Digital and Boostcom Announce Strategic Merger

PlaceWise Digital and Boostcom announced, the merger of the two companies, bringing together the world’s most comprehensive suite of digital services and solutions available to the global shopping center industry. The strategic focus for both companies has been, and will remain - uniting the physical and digital shopping experiences to the benefit of consumers and shopping centers alike.

Capital & Regional steps up guest experience with the first Ofsted-approved Tinies Creche in a UK shopping centre

Capital & Regional (C&R), the UK’s leading owner and manager of community retail centres, is stepping up its work on community shopping initiatives by announcing an innovative collaboration with a crèche operator in The Marlowes shopping centre in Hemel Hempstead. The partnership is with renowned Ofsted-approved childcare and creche provider Tinies Childcare – with the new facility opening later this month.

#LoveNotLandfill Presents the Most Beautiful Pre-Loved Fashion in Seven Dials, London

Fashionistas take note: 14-17th November 2019, eco-fashion campaign #LoveNotLandfill will be championing pre-loved fashion at a unique Seven Dials, London pop-up store featuring collections from charity shops curated by some of fashion’s most style-savvy influencers.

Constantin Wiesmann is new Director of Leasing at Unibail-Rodamco-Westfield Germany

On November 1, 2019 Constantin Wiesmann (35) will take over responsibility for the leasing department of Unibail-Rodamco-Westfield Germany.

wagamama to double its footprint at London Designer Outlet

Located within Wembley Park, the £3bn, 85-acre urban transformation being delivered by Quintain.