Capital & Regional has spent €214m (£148m) on a German retail portfolio comprising 22 properties, reflecting a net initial yield of 6.3%
The acquisition brings the value of the property asset manager’s German assets to around €450m (£312m).
The properties comprise 1.4m sq ft (130,063 sq m) of out-of-town retail, as well as a 560,000 sq ft (52,025 sq m) retail distribution facility and 40 acres (16 ha) of development land.
Almost half (44%) of the portfolio is let to the Metro Group, which is one of the largest retailers in Europe.
On completion, Capital & Regional plans to put most of the properties into the Hahn joint venture, in which Hahn holds a 10% stake. The remainder will be redeveloped and sold in the medium term.
ABN Amro provided the senior debt for the acquisition.
Capital & Regional deputy chief executive Xavier Pullen said of the joint venture: ‘Our first investment was made last year and we continue to look at further opportunities to add to our platform.’