- The retail properties acquired are earmarked for the “Redos Einzelhandel Deutschland” institutional fund with a target volume of 500m euros
- The company announced further investments in food retail properties and hyper-markets complemented by retail warehouses
27 February 2015 – redos institutional GmbH, a member company of redos real estate GmbH, transacted property acquisitions in a volume of 170 million euros over the past eight months, the assets being earmarked for an institutional fund the com-pany launched together with Union Investment under a third-party AIFM mandate. Eight properties in a combined value of approximately 105 million euros have already been added to the fund’s portfolio, while the transfer of rights, benefits and obligations for the remaining seven properties worth 65 million euros is scheduled for March. Among the assets is a hypermarket in a prominent location in Bonn. Supplemented by retail warehouses, the hypermarket extends over a total floor area of 7,200 square metres and is let to Edeka, one of Germany’s leading food multiples. In addition, the fund acquired another hypermarket in Ravensburg with a lettable area of 5,200 square metres. All of the fund properties are fully occupied.
The fund’s target volume is 500 million Euros, with a gearing ratio of 50 percent. Its intended clientele are institutional investors with a long-term investment horizon. “The acquisitions we transacted in recent months are testimony to our superior market access,” said Torsten C Wesch, Managing Director of redos institutional GmbH. He went on to say that redos is planning to move ahead with further investments in German retail real estate. According to Wesch, the fund investment targets include large-scale hypermarkets and superstores, as well as hyperstores supplemented by retail warehouses and situated in well-established locations of sustainably high purchasing power in Germany. “While having properties worth 130 million euros in our acquisition pipeline as it is, we are in the process of identifying additional investment opportunities in Germany,” Wesch added. He put the preferred price tag per asset between five and 25 million euros. According to Wesch, the company also takes an interest in retail portfolios.
Torsten C. Wesch, who became Managing Director of redos institutional GmbH at the start of this year, is in charge of setting up and managing the investment fund, which was launched in mid-2014. redos is responsible for the fund’s acquisitions and asset management. Union Investment acts as investment AIFM while also being in charge of the fundraising.