Cushman & Wakefield Investors (CWI) and Scottish Widows Investment Partnership (SWIP) have acquired Haus Hugendubel in Stuttgart, Germany for EUR11.95m at a net initial yield of approximately five per cent.
This is the seventh asset purchased by the PURetail Fund which is managed through a joint venture between CWI and SWIP and which has assets located in the three target markets of France, Germany and Sweden.
Located on the corner of Breite Strasse and Hirschstrasse in the prime pedestrianised retail area of Stuttgart, the asset comprises 3,575 sq m of retail, office and residential space, with retail currently accounting for 65 per cent of overall income. Tenants include a mixture of top quality domestic and international retail brands including Dolzer, Gruene Erde, Rosso Trenta and Titus.
Stuttgart – a popular tourist destination – is the seventh largest retail market in Germany, with access to four million people within a 50km radius. The corner asset is ideally located, parallel to Koenigstrasse, the main mass market retail pitch of the city, and close to City Hall and the main Market Square.
Jens Göttler, the asset manager for the PURetail Fund, says: “The asset purchased is of high quality with a good tenant mix and strong retail income stream, a perfect complement to the other six assets in the fund. Stuttgart and the specific location will improve further, given the recent developments and lettings in the vicinity, and its strong retail fundamentals should allow for good performance for investors in the PURetail Fund.”
Robert Matthews, the PURetail Fund director, says: “We are delighted to continue the investment programme for the PURetail Fund, a testament to our ability to source attractive opportunities on the high street despite stiff competition. The PURetail vehicle allows our institutional investors access to a defensive asset sector in three mature European markets. The success of the fund demonstrates investor appetite in this sector and belief in our management team to execute the strategy and deliver superior returns to our investors.”