- Acquisition for Redos Einzelhandel Deutschland II institutional fund
- Purchase price approx. EUR 110 million – total rental space 37,500 sq.m.
- redos managed assets rise to EUR 2.86 billion
Hamburg, 21 April 2020 – redos Group has acquired a portfolio consisting of six retail properties from EDEKA Handelsgesellschaft Rhein-Ruhr mbH, which is part of EDEKA Group, one of Europe’s largest food retailers. All of the properties are located in the northwest German state of North Rhine-Westphalia and are earmarked for the Redos Einzelhandel Deutschland II institutional fund, managed in partnership with Union Investment. The developer of the individual properties, with a combined rental space of some 37,500 sq.m., is EDEKA Rhein-Ruhr. The portfolio has been acquired at a total price of approx. EUR 110 million.
The acquired properties include locations used solely by supermarket giant EDEKA as well as multi-tenant retail parks with EDEKA as the largest tenant. The last of the three properties currently under construction is expected to be completed by the end of 2021. All six of the properties are already fully leased out, with a portfolio weighted average lease term (WALT) of 14.5 years.
“With this acquisition transaction, we are once again adding prime retail property assets to our fund portfolio,” says Frank Eckervogt, Managing Director and Head of Acquisition at redos. “Each of the individual properties offers an excellent location with a modern concept, thus providing the foundations for sustained long-term value growth based upon dependable retail traffic and reliable cash flows.”
redos was assisted on the transaction by MC Dermott as legal advisor and by NIPM GmbH, a retail property brokerage based on Dorsten.
The Redos Einzelhandel Deutschland II institutional fund was launched in September 2017 by retail property investment specialist redos in partnership with Union Investment as service-providing investment management company (KVG). redos manages three such institutional AIFs with Union Investment as well as the 90 individual properties held in these funds with a combined value of EUR 1.76 billion. Additional EUR 1.1 billion property value is allocated to other funds arranged by Madison and Morgan Stanley respectively and managed by redos, amounting to a total AuM of EUR 2.86 billion.
The redos Group, headquartered in Hamburg, is one of the leading independent retail property specialists, focussing on the areas of investment, asset management, fund management, redevelopment, leasing and advisory business. As an investor and active asset manager, the company covers the entire value chain for large-scale retail properties – for hybrid and conventional shopping centres, retail parks and hypermarkets. redos serves all risk classes and offers every type of investment vehicle for institutional investors. In addition to acting as a co- investor, the company has excellent tenant access and extensive revitalisation expertise. redos can look back on a long track record in the field of restructuring and value optimisation. The retail property specialist currently manages a retail real estate portfolio worth around €3.6 billion at 109 locations throughout Germany. redos manages a total of more than 1.5 million m2 of rental area. With its property database ROB, the company has access to detailed information on around 18,000 retail locations throughout Germany.