CORESTATE Invests EUR370m in retail properties in Germany

ORESTATE, a specialised real estate investor based in Zug, Switzerland, has acquired 35 retail buildings in prime locations in pedestrian zones of German mid sized cities.

The portfolio comprises more than 170,000 square meters and contains a highly diversified mix of locations, assets and well known tenants. Major tenants are inter alia C&A, Deutsche Bank, Fielmann, Gerry Weber, H&M, Peek & Cloppenburg, REWE and Saturn.

Tobias Gollnest, Executive Director Commercial Real Estate of CORESTATE Capital, says: “Our local knowledge is the key factor for successfully finding these opportunities asset by asset. This type of approach needs a lot of detailed work on the ground and CORESTATE benefits from its 16 subsidiaries across Germany which makes this possible. The appetite for higher risk adjusted returns in secondary cities is definitely growing. We notice that large players are currently looking into this segment. Higher returns based on top covenants are very rare in today’s market environment. We see high potential in this market and will continue to pursue this strategy.”

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