INTERNOS Global Investors has acquired two retail parks for a total of EUR15.9 million in Rottenburg and Moosburg (Bavaria), Germany.
The assets were sold by Luxembourg-based BGP Investment as part of its strategic shift to focus on German residential assets.
The purchases were the first acquisitions for the Novapierre Allemagne fund, a joint venture between INTERNOS and PAREF Gestion, which launched in February 2014. It is the first SCPI-structured fund to invest French capital exclusively into German retail parks.
The fund has a remit to invest in the west of Germany and in micro-locations with strong underlying catchment areas. Acquisitions will typically comprise retail parks with four to six units let to well-known national retailers. The fund is targeting a gross investment volume of over EUR200 million.
At the Moosburg asset, Kaufland is the anchor tenant secured on a long lease while at Rottenburg the income is secured to Rewe & Lidl, also on long leases.
Guillaume Masset, head of Benelux and Southern Europe, says: “We believe the relative strength of the German economy has created an opportunity for investors to generate attractive returns from retail parks located in strongly performing regions. Over the next four years, we will use our expertise and track record of investing in Germany’s complex and regionally diverse real estate market to select and manage retail parks fitting the profile of the fund.”
Lefèvre Pelletier & Associés advised Novapierre Allemagne and Reed Smith advised BGP Investment.