Barings acquires new convenience-focused retail park in Germany for cEUR13m
Baringsn has acquired, on behalf of a separate account mandate for SIS, a newly built retail park in Bad Kreuznach, Germany, from local developer, REBA Residenz Bauträger, for cEUR13 million.
The c3,900 sq m property is 100 per cent let on long leases to two tenants, REWE, the established supermarket chain and Germany’s second largest retailer, and dm Drogeriemarkt, the leading German drugstore retailer which is active in 13 European countries.
Situated 45 minutes from Frankfurt, the town of Bad Kreuznach, which has a population of approximately 50,000, acts as a retail hub for the region. The park is within walking distance of the north-western residential areas of Rüdesheimer Straße and Agnesienberg and is also well connected to public transport and the road network.
Christoph Wittkop, Managing Director, Real Estate Country Head - Germany at Barings, says: “This acquisition aligns perfectly to the strategy for this mandate, which targets stabilised income producing Grade A retail and office assets in strategic locations in Germany. Newly built, this high quality and modern retail park is let to two dominant retailers, which have complementary product offerings, adding to the attraction of this asset for the local community.”
Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe at Barings, adds: “Due to our local network of experts on the ground across Europe, Barings has remained active in the investment market in recent months enabling us to identify compelling opportunities for our various strategies, such as this. At Barings, our confidence in the long term outlook for essential and food retail remains positive. E-commerce penetration in the supermarket sector is still at low levels, largely due to the cost implications for cheap delivery, and we believe spending in this category could increase in the near term due to the impact of Covid-19.”