The developer of the individual properties, with a combined rental space of some 37,500 sq.m., is EDEKA Rhein-Ruhr. The portfolio has been acquired at a total price of approx. EUR 110 million. The acquired properties include locations used solely by supermarket giant EDEKA as well as multi-tenant retail parks with EDEKA as the largest tenant. The last of the three properties currently under construction is expected to be completed by the end of 2021. All six of the properties are already fully leased out, with a portfolio weighted average lease term (WALT) of 14.5 years.
“With this acquisition transaction, we are once again adding prime retail property assets to our fund portfolio,” says Frank Eckervogt, Managing Director and Head of Acquisition at redos. “Each of the individual properties offers an excellent location with a modern concept, thus providing the foundations for sustained long-term value growth based upon dependable retail traffic and reliable cash flows.”
redos was assisted on the transaction by MC Dermott as legal advisor and by NIPM GmbH, a retail property brokerage based on Dorsten.The Redos Einzelhandel Deutschland II institutional fund was launched in September 2017 by retail property investment specialist redos in partnership with Union Investment as service-providing investment management company (KVG). redos manages three such institutional AIFs with Union Investment as well as the 90 individual properties held in these funds with a combined value of EUR 1.76 billion. Additional EUR 1.1 billion property value is allocated to other funds arranged by Madison and Morgan Stanley respectively and managed by redos, amounting to a total AuM of EUR 2.86 billion.