The first German asset for RERP was built in 2007 and comprises a total rental area of 13,025 square meters, offering more than 300 parking spaces. With strong fundamentals, the property is currently 94% occupied, with long-term leases in place. The diverse tenant mix includes 14 companies, among them REWE, Lidl, AWG, dm, Woolworth, Action, and Viva Fitness.
Markus Haimerl, Director Transactions DACH, at Redevco, commented:
“With this successful acquisition, the RERP fund secures its first asset in Germany. The German market plays a key role in the strategic regional diversification of the fund’s portfolio. The property perfectly aligns with the Fund’s acquisition profile, targeting established locations with creditworthy tenants and solid building structures, which we can further enhance through active asset management.”
The property currently meets the sustainability requirements for a BREEAM “Good” certification, with plans to upgrade to “Very Good.” Measures underway include connection to the local district heating network, a full transition to LED lighting, and a feasibility study as a first step toward installing rooftop or carport photovoltaic systems.
Leutkirch’s macro location in the Allgäu region is attractive due to its position between Memmingen and Lindau, directly on the A96 motorway. The region, with a catchment area of around 140,000 people, boasts above-average purchasing power and positive demographic trends. The micro location is also highly favorable, with excellent accessibility both by foot from the city center and via direct connections to the train station and federal road B465.
On the buyer side, McDermott Will & Schulte (legal), Drees & Sommer (technical due diligence and ESG), PwC (tax & structuring), BNPREC (commercial due diligence), and Cushman & Wakefield (valuation) were mandated. CBRE acted as intermediary for the seller.
(dp)
