The Cordea Savills European Retail Fund, which launched in late 2012, has acquired its first three assets in Paris, Glasgow and Berlin for circa EUR50m.
“We are delighted to have acquired three properties of such high quality in a highly competitive market on behalf of our investors,” says Thomas Gütle, director of institutional business. “The portfolio reflects our aim of diversification in terms of regional spread and across retail segments.”
The acquisition of two retail units located at 6 Rue de la Paix, in Paris, which completed in December 2012 are in a prime location directly between the Place Vendôme and the Place de l’Opéra. The units are let on long leases to Tiffany & Co. and the jeweller and luxury watch brand Harry Winston.
The second property is a recently refurbished retail unit located in the centre of Glasgow. The property is located at the corner of Buchanan Street and Argyle Street and extends over 1,225 square metres.
“Buchanan Street is one of the most popular shopping streets in the UK, second only to Oxford Street in London,” says Ian Jones, director of investment at Cordea Savills.
The property is let to HSBC until June 2025 with upwards only rent reviews in 2015 and 2020.
The fund has also acquired a recently completed, fully-occupied retail park in the “Niederschönhausen” district in Pankow, Berlin. The property, which has a gross area of nearly 6,000 square metres, is let to eleven retail tenants on long-term leases. Approximately half of all rental income is generated by the three strong anchor tenants Kaiser’s (food), Rossmann (pharmacy), and Denn’s (organic food).