Captiva Capital Partners III ELP has acquired an additional shopping centre in Germany from Metro AG.
The Halle Center in Peißen is fully let with a rental area of approximately 60,000 square metres. It is anchored by a Real hypermarket and offers a range of over 50 stores such as Aldi, Media Markt, Tchibo and Adler Modemarkt.
Stephan Fritsch, managing director at Captiva says: “We think that there is real value to be found in Germany’s secondary retail real estate markets. In today’s low growth and low interest rate environment this acquisition perfectly fits our defensive high yield investment strategy.”
The transaction completed on 30 September has been the eighth retail real estate transaction in Germany for Captiva since March 2010.
The recent acquisition of the Halle Center is part of a sale and leaseback transaction dating back to March 2010 when Captiva acquired two shopping centres from Metro AG: Förde Park in Flensburg and Saarbasar in Saarbrücken. As part of the transaction, Captiva had entered into option agreements with Metro AG to acquire three additional centres with a total rental space of 140,000 sqm over the next three years. Following the acquisition of a shopping centre in Neu-Brandenburg and now the Halle Center, Captiva intends to exercise its third call option by November 30 and expects to announce more German retail acquisitions prior to the year end.
“Our team is extremely well positioned to capitalise on the opportunity that German retail real estate presents for our client base,” says Fritsch.