Greenman Investments has acquired the Biesdorf Centre in Biesdorf, Berlin for circa €79m. Built in 2003 the Biesdorf Centre compromises around 32,200 sq m GLA with Kaufland occupying an anchor store of 12,500 sq m and meeting just over 40% of the centre’s annual rental obligations.
Cerberus purchased the property as part of a portfolio in 2013 and since then have worked to improve the centre’s tenant mix.
A key development was the renegotiation of Kaufland’s lease with an extension to 2028 and an investment by Kaufland of €8m to €10m in store upgrades. Cerberus also added TK Maxx and Fit X in 2018, increasing the annual rental income by approximately €570,000. In total Cerberus’ CAPEX approximated €9m.
John Wilkinson, CEO of Greenman Investments, said: “We’re delighted to add the Biesdorf Centre to Greenman OPEN’s portfolio and thus increase Greenman’s Assets under Management to c. €610m. Now it’s refurbished, it will contribute significant income to Greenman OPEN for the long term. It’s a perfect fit for our strategic policy of investing in food dominated retail centres and Hybrid centres and will be a pillar from which will drive further expansion plans both in Berlin and across Germany. Currently, there are more promising retail properties in our pipeline. For the third quarter of 2018, we anticipate further additions to Greenman OPEN with a volume of about €140m.”
Greenman OPEN was represented by Bottermann Khorrami LLP, Mazars and Duff & Phelps, while Cerberus was represented by JLL and Goodwin LLP.
RPA Perspective Despite the strong performance of Berlin and Germany, German retail sales showed the biggest drop in seven years in May, falling well below expected levels and fuelling concerns about growth in Europe's biggest economy amid growing trade and political concerns.
Germany's central bank slashed its growth forecast for this year to 2.0% earlier this month, from 2.5% it forecast in December.
Retail sales, a volatile indicator that is often subject to revision, dropped by 2.1% on the month in May in real terms, the Federal Statistics Office said.
On the year, retail sales dropped 1.6%, a wide swing from the 1.8% growth in the most recent Reuters consensus forecast.