Investment: Our clear advantages in making acquisitions
When it comes to investing in large-scale retail real estate throughout Germany – such as shopping centres, retail parks, local convenience shopping centres, supermarkets and hypermarkets, and DIY stores – redos is the right partner for institutional and semi-institutional investors. This asset class has been our investing focus for more than 20 years. Because of this, we have a deep base of market knowledge along with excellent contacts among virtually all of the major retailers in Germany, providing us with a distinctive advantage in making retail property acquisitions. We offer attractive investment opportunties with balanced risk-return profiles to insurance companies, pension funds, occupational retirement schemes and family offices. We cover the full range of risk classes, from core and core-plus properties all the way through to value-add and opportunistic, along with the choice of investment vehicle most suitable to the investor’s particular needs.
Within the core and core-plus areas, we invest, in particular, in retail parks, department stores and DIY stores throughout Germany. We hold and manage these properties in our two institutional funds – Redos Einzelhandel Deutschland and Redos Einzelhandel Deutschland II – through our partnership with Union Investment, one of Germany’s largest and best known investment management groups. Under this arrangement, redos is responsible for fund management, asset management and transaction management, serving as the first point of contact for tenants as well as potential sellers. Our partner Union Investment raises the equity capital and handles all fund administration activities in its capacity as fund management company (KVG).
Since 2010, we have been successfully carrying out value-add and opportunistic investments through our joint venture with Morgan Stanley Real Estate Investing. To date we have completed individual and portfolio transactions totalling EUR 2.5 billion in value. One of the most recent of these acquisitions was the high-profile Rhein-Ruhr Zentrum shopping centre project. We also acquired the Christie property portfolio together with Morgan Stanley, consisting of four large-scale hybrid shopping centers in the Berlin and Dresden metropolitan areas. Since the end of 2016, the Christie portfolio has been held in a joint venture with New York-based investment firm Madison International Realty, with redos continuing to act as co‑investor with responsibility for portfolio and asset management as well as management of all leases.
Asset management: Expertise in seeking out value-creating opportunities
redos takes an integrated approach to asset management, following our retail-sector properties through the entire investment life cycle. We have the experience and capabities from beginning to end – from deal sourcing and due diligence to transaction process support, lobbying for approvals and permits, optimal selection of retailer types and tenants, as well as the complexities of leasing and financial management, including ultimately the identification of potential buyers and arrangement of purchase financing. In our asset management mandates, we work hard to seek out every value-creating opportunity in the complex large-scale properties such as shopping centres and retail parks which are our specialty. Through our extraordinary knowledge of the German retail property market, our comprehensive range of services and capabilities, and our superbly networked team of interdisciplinary specialists, we are able to bring this to fruition, thereby maximising asset values.
Through our flexibility and many years of experience, we are able to take optimal advantage of changing market and price conditions at any time, while at the same time expertly managing complex risks and adapting to changing client requirements. We develop creative concepts tailored to the specific circumstances of each property to protect value and maximise appreciation potential. The driving aim of our asset management team – as well as the source of its success – is to identifiy and realise every opportunity to boost value, from the very start of each investment. We work hard to ensure seamless communication, efficient interaction and the highest reporting standards with our German and international investing clients. This, too, has played no small role in the long track record of success of which we are justifiably proud.
Fund management: institutional AIFs with a strong partner
Together with Union Investment, one of Germany’s largest and best known investment management groups, we currently manage two retail property investment funds, Redos Einzelhandel Deutschland and Redos Einzelhandel Deutschland II. Through these two AIFs, restricted to institutional investors, we invest in core and core-plus large-format retail properties throughout Germany, particularly department stores, retail parks and DIY stores, assuming responsibility not only for fund management but also down to the level of asset management and transaction management. We are the first point of contact for the market, including both tenants and sellers of potential investment properties, while Union Investment raises the equity capital and handles all fund administration activities in its capacity as fund management company (KVG).
Redevelopment: Taking active advantage of the transformation in retailing
Retailing is undergoing the most dramatic transformation in its history, and it’s happening now, at a dizzying pace. This presents daunting challenges but also great opportunities. Digitalisation is making it possible to get closer and closer to the consumer. Against this dynamic backdrop, our proven expertise in developing, revitalising and repositioning large-scale retail properties is in high demand. The idea is to transform traditional shopping venues into social meeting places, attracting shoppers with a variety of original shopping, dining and leisure options. In order to take best advantage of changing and even locally specific consumer behaviour patterns, we carefully individualise our revitalisation concept for each property, with the general objectives of expanding offerings, optimising the services that today’s consumers want, and making locations more attractive and inviting. For retail properties to appreciate in today’s environment, our view is that a holistic approach is essential, with a sincere focus on visitor comfort and the shopping experience.
From decisions on optimal space usage, on the mix of retailer types and on specific tenants down to optimisation of visitor traffic through well-conceived reconstruction and renovation measures – the decisions taken now will play a decisive role in the investment returns of a retail property long into the future. By building our redevelopment concepts upon this idea, we not only protect the capital of our investing clients but also build a foundation for long-term value appreciation. The best proof of what this approach can actually achieve is the track record of our many successful projects together with our long-standing partners.
Advisory: Optimal solutions through integrated cooperation
At redos, we manage large-scale retail properties over their entire investment life cycle, taking a manage-to-core approach to maximise potential returns. In order to put this strategy to best possible effect, our business lines work closely together, whatever the property type or location. In this, our advisory business plays a particularly important role, offering its expertise (including but not limited to investment management, asset management, transaction management, market and tenant analysis, and feasibility studies) not only to external clients but also “internal clients”. Our advisory team can thus play a pivotal role in the successful structuring, repositioning and optimisation of both portfolios and individual properties.