Patrizia acquires EUR400m off-market retail portfolio

Patrizia Immobilien AG announces that it has acquired a German retail portfolio comprising 85 properties for around EUR400 million in what is one of the largest retail real estate transactions in Germany in recent years.

The portfolio was acquired for an individual mandate of a large German insurance company, one of a number of such acquisitions for this client which has been pursuing a strategy to further expand its retail portfolio with Patrizia. The seller is a Joint Venture between the Third Swedish National Pension Fund (“AP3”) and PGIM Real Estate. PGIM Real Estate is the real estate investment business of PGIM, the global investment management businesses of Prudential Financial, Inc (PRU). Closing is planned for the end of the year.
“Based on our market knowledge and on-the-ground presence, we were able to secure this promising portfolio in an off-market transaction,” says Daniel Herrmann, Head of Fund Management Retail at Patrizia. “While the properties are already at a high quality, we have been able to identify numerous optimisation measures which will further increase the value of the asset for our clients. The transaction is also further evidence of major institutions turning to us to help pursue their investment strategies, often at scale.”
The portfolio boasts 236,000 sq m of lettable area spread across mainly Southern and Western Germany, with a regional focus on Bavaria, Hessen and Rhineland-Palatinate. The principal tenants include well-known German commercial entities such as Lidl, Aldi, EDEKA and REWE. The remaining average lease term for the portfolio is around six years.