PineBridge Benson Elliot exits Celle retail park

PineBridge Benson Elliot, a UK-based private equity real estate fund manager, has sold a convenience retail asset in Germany, to an open-ended AIF vehicle managed by Hahn Group on behalf of a number of German pension funds and insurance companies.

The property is a well-established daily shopping destination in Celle, close to Hanover. It was originally purchased in May 2019 as part of a EUR175 million portfolio acquisition of three retail parks, and comprises 23,000 sq m of lettable space and a 760-space car park. 

The property is substantially fully let to retailers with a high resilience to e-commerce penetration, including an EDEKA hypermarket, a DIY store operated by OBI and a number of smaller needs-based convenience retailers.
Since acquisition PineBridge Benson Elliot has undertaken a targeted asset management programme, improving the property’s income profile and ultimately delivering a stabilised product with institutional appeal. This included initiatives to optimise leases, extending the weighted-average unexpired lease term (WAULT) by more than 60% to 8.7 years.
Joseph De Leo, PineBridge Benson Elliot Managing Partner, says: “Having completed our business plan for this property in under two years, we’re pleased to deliver an institutional quality retail investment, with a secure income, to its next owner, whilst at the same time delivering an attractive return to our investors. Our team deserves real credit for completing this transaction against a challenging Covid-19 backdrop, at a price that was undisturbed by the impact of the pandemic.”

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