- Fourth retail portfolio acquired by MSREF and redos
- Portfolio consists of three properties in the Berlin metro area and one property in Dresden
A joint venture between a real estate fund managed by Morgan Stanley Real Estate Investing (“MSREI”) and the Hamburg-based asset manager redos real estate has acquired the “Christie” retail real estate portfolio. The portfolio is the fourth retail portfolio jointly acquired by MSREI and redos. “This portfolio fits our strategy of buying established assets with good cash flow and opportunities to add value through investment and repositioning,” said Patrick Lindemann, Executive Director of Morgan Stanley Real Estate Investing. MSREI and ´redos teamed up with Muenster-based project developer HLG to reposition some of the assets. HLG has 25 years of expertise as an investor and developer in the retail sector with notable developments in the Berlin region including the A10 Center and Tempelhofer Hafen.
Attractive Appreciation Potential
The four hybrid shopping centres blend the concepts of retail warehouse park and shopping centre and are the dominant retail hubs at their respective locations in the greater Berlin area and Dresden. “The portfolio offers attractive opportunities to raise appreciation potential,” explained OIiver Herrmann, Managing Director of redos real estate, who will act as asset manager at all of the locations. The plans call for extensive refurbishment investments, especially at the locations of Dresden as well as Dallgow and Eiche near Berlin. “The properties are getting on in years, and need to be modernised accordingly,” said Herrmann.
The portfolio totals 214,000 square metres of gross lettable area with the majority of income on long-term leases. With a rented floor area of around 15,000 to 20,000 square metres, Kaufland serves as anchor tenant at all four of the properties. Additional anchor tenants include C&A, H&M, TK Maxx, Mueller Drogerie, Media Markt, and toom. mfi will continue its role as centre manager at all four sites. It was agreed to keep the purchase price confidential.
The principal advisors to the Christie Group were Talbot Hughes McKillop LLP, Hogan Lovells LLP, Bingham McCutchen LLP and CBRE GmbH. The buyer took on legal advise by Latham & Watkins.
About Morgan Stanley Real Estate Investing
Morgan Stanley Real Estate Investing (MSREI) is the global real estate investment management arm of Morgan Stanley. Established in the early 1990s, MSREI has been one of the most active real estate investors for more than two decades, acquiring over $187 billion of assets in 36 countries. MSREI leverages the expertise, relationships and franchise of Morgan Stanley with dedicated real estate investing professionals located in 15 offices around the world providing acquisition, finance and asset management services. MSREI manages opportunistic and core investment strategies on behalf of its clients, including some of the largest pension funds, sovereign wealth funds and high net worth investors worldwide. For more information about Morgan Stanley Real Estate Investing, please visit www.morganstanley.com.
About Morgan Stanley
Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,200 offices in 43 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.
HLG develops commercial real estate with a focus on retail since 25 years. The company is active all around Germany and developed more than 100.000 square metres retail only in Berlin / Brandenburg. Its headquarter is based in Münster and conducted by Christian Diesen, Dirk Brockmann and Patricia Lohmann.