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Credit: REWE

Sonae Sierra´s recently launched German Food Retail Fund acquires 5 supermarkets

The acquisition of 5 supermarkets operated by leading operators Aldi, Rewe and Netto is part of Sonae Sierra’s strategy of growing its European investment management business.

The company has announced the launch of a new open-ended Alternative Investment Fund (AIF) in Germany with the creation of the Sierra German Food Retail Income Fund I. This AIF invests primarily in the food retail sector in Germany and targets institutional investors.

With a focus on discounters and supermarkets as well as on hypermarkets across Germany, preferably stable stand-alone properties, characterized by long-term leases with recognized and high-quality operators, the fund has a target investment volume of at least EUR 200 million. The five food retail properties cover a total area of approximately 6,500 sqm GLA.

Christoph Billwiller, who leads Sonae Sierra’s investment management team in Germany, says: “The creation of this new open AIF represents a new landmark for Sonae Sierra in Germany and offers a solution for professional and institutional investors, looking for stable long-term income, managed by an experienced team with combined asset management and investment management know-how.”

Grocery retail has consistently proved stable and resilient throughout the pandemic, and its future forecasts continue to exceed recovery projections for the retail sector as a whole. Sonae Sierra currently manages more than €5 billion across 12 different investment vehicles with a portfolio of real estate funds and operating assets across Europe.