CBRE Global Investors has acquired a retail warehouse scheme in Erding, near Munich, for its Pan European Core Fund (PEC) – the fund’s ninth asset and its third in Germany.
The vendor was LHI, an operator of closed end funds in Germany.
The 16,665 sq m retail park, on Anton Huber Straße, Erding, is newly constructed and comprises a terrace of single floor retail units and a separate detached garden centre. The majority interest was purchased via the acquisition of shares in a SPV.
The scheme is fully let on long term leases to retailers including Dehner, TK Maxx, C&A, Rossmann and Siemes Schuhcentre. The total market value is in the region of EUR38m.
Richard Everett, fund manager for the PEC Fund, says: “Germany is one of the most liquid investment markets in Europe and is a key target for the fund. Bavaria, in particular, is a safe haven within Europe and this acquisition is low risk, is fully-leased and has a very strong fashion led tenant list.”
Ulrich Oppermann, head of transactions, Germany, says: “This acquisition is in a prime location: Erding is a commuter town situated to the north-east of Munich and close to the airport. With a strong initial yield and an attractive lease expiry profile, we’re confident this will be a sound investment for the PEC fund.”