Germany

VIB Vermögen strengthens portfolio with further investments

VIB Vermögen, a company specialising in commercial real estate portfolio management, continues to add growth-sector investments to its real estate portfolio.

The company has deployed some of the proceeds from the mandatory convertible bond issue to buy a logistics property in Uffenheim, in Germany's Middle Franconia region. The EUR 22.1m, 26,854 sq m property, is located directly on Germany's autobahn 7 highway.
 
The rental agreement that runs until June 2025 represents a rental yield of 7.9 per cent. The portfolio is further strengthened by a tenant with a high credit rating in the shape of Distriparts Deutschland, which, as a subsidiary of Simon Hegele, Karlsruhe, provides pan-European replacement parts supplies for Sweden's Electrolux Group.
 
In addition, VIB Vermögen has acquired a specialty shopping centre with a rentable space of 3,495 sq m in Kulmbach, in Upper Franconia. This retail property also generates an attractive 7.5 per cent rental return on an approximately EUR5.2m investment volume. The rental agreements - including with Europe's leading specialist electronics retailer Media Markt - extend up to October 2022 and September 2024 respectively, with subsequent extension options.
 
Peter Schropp, VIB Vermögen AG managing board member responsible for the real estate segment, says: "As announced, we have already directly invested some of the proceeds from our recent mandatory convertible bond issue into high-yielding properties in the promising future sectors of logistics and retail. The very attractive rental returns on the properties that we have acquired show that we are able to realise interesting purchases, also in today's environment of contracting purchase yields."

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