Schroder Real Estate announces €51 million retail portfolio purchase in Germany

Schroder Real Estate has announced the completion of a further acquisition in Germany on behalf of Immobilien Europa Direkt, an investment group of Zurich Investment Foundation.

Immobilien Europa Direkt has committed to acquire a portfolio of three freehold retail properties in Hamburg and Berlin. The €51 million portfolio is dominated by the Tondo Retail Centre anchored by grocery retailer REWE in Hamburg, a 13,000sqm multi-let commercial centre with an average unexpired lease term of 8.5 years and reversionary potential.

The Berlin properties are well-established, fully let retail centres in strong locations in outer Berlin, mainly let to Kaisers, the successful grocery retailer. The assets provide a rental area of 8,500 sqm and are let to a total of 16 tenants with a combined average unexpired lease term of 5.5 years.

Tony Smedley, Head of Continental European Investment at Schroder Real Estate Investment Management, commented:
“We are delighted to announce the purchase of this retail portfolio in Hamburg and Berlin, two strong cities in Germany and a core part of our tactical allocation strategy. Diversifying into relatively defensive, grocery anchored retail assets is entirely consistent with our house view and, like other recent acquisitions, further improves the income performance of Immobilien Europa Direkt.”

Immobilien Europa Direkt, an open ended Euro denominated fund, was launched by
Zurich Investment Foundation and has been designed specifically for Swiss pension
schemes. Its investment strategy is focused on providing investors with a diversified
portfolio of commercial real estate in the main western European markets.

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