Capital & Regional, the co-investing property asset manager, has bought a portfolio of ‘big-box’ retail properties for €50m (£33.8m).
The portfolio, which comprises around 381,500 sq ft (35,460 sq m) of space, has been acquired in joint venture with German property group Hahn.
The properties produce annual rent of E3.46m and the purchase price reflects a net initial yield of approximately 6.6%. Tenants include Real (Metro), Edeka and Globus DIY in Leverkusen, Tier, Hoesbach and Sobernheim. The Capital & Regional portfolio now comprises 30 properties with a total floor area of 3.87m sq ft (360,000 sq m).
Xavier Pullen, deputy chief executive of Capital & Regional, said: ‘We set up the joint venture with Hahn Group in July 2005, having researched the out of town big box retail market in some detail. This acquisition includes an existing Hahn closed end fund and 3 open market acquisitions. We have been operating in Germany for some time and have a pipeline of further acquisitions to add to this joint venture.’
Bernhard Schoofs, chief executive of the Hahn Group, said: ‘We are pleased toannounce an expansion of our joint venture with Capital & Regional, having recently successfully completed our IPO, raising new equity. We continue to look for opportunities to invest together in our joint venture.’