PATRIZIA Immobilien AG, the global partner for pan-European real estate investment, has acquired a portfolio of 27 retail properties across Germany from Marathon Asset Management for around €100 million on behalf of PATRIZIA Retail Opportunity SCS fund.
The deal increases the portfolio of retail assets PATRIZIA manages across Europe to around €8.3bn.
The portfolio, which comprises around 55,600 sq m of total lettable space is made up of retail parks and grocery stores and has a 98% focus on properties with food anchor tenants.
Current occupancy is high at 99%, with a weighted average lease term (WALT) of 9.2 years with future potential for rental growth. The tenant structure of the portfolio is dominated by the four largest German food retailer chains – Rewe Group, Edeka-Verbund, Schwarz-Gruppe and Aldi – which provide three quarters of the rental income.
PATRIZIA Retail Opportunity SCS SICAV-FIS, a Luxembourg special fund launched in 2016, targets core and core-plus retail properties with stable income distribution yields. PATRIZIA is an experienced manager of retail assets in Germany and, with a national portfolio of EUR 5.1bn assets under management, is one of the largest and most active retail investors and one of the most important landlords on the German market.
Daniel Herrmann, head of fund management retail at PATRIZIA, commented: “The acquisition of this portfolio, with its potential for sustained income growth, will significantly optimise the risk-return profile of the Fund for the benefit of our clients. At the same time, we are acquiring modern, well-located properties with excellent tenants from the food retail sector and which occupy a dominant position in their respective catchment areas.”
RPA Perspective PATRIZIA Immobilien AG has been active as an investment manager in the real estate market across Europe for more than 35 years. PATRIZIA’s activities include the acquisition, management, repositioning and sale of residential and commercial real estate through its own licensed investment platforms. As a global partner for pan-European real estate investment, PATRIZIA operates as a respected business partner of large institutional investors and retail investors in all major European countries. PATRIZIA manages more than €40 billion of real estate assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks and as co-investor.
Speaking at its results last month, Karim Bohn, CFO of PATRIZIA Immobilien AG, said: “Operationally, 2018 was an extremely active year for PATRIZIA and this has delivered strong results that are in line with our Group strategy. The proportion of the income we are now generating is increasingly from management fees, which offer a more stable, sustainable and higher quality source of revenue.”
“In the year ahead, PATRIZIA will build on its 2018 achievements by focusing on further strengthening the foundation of the business through its client relationships, deepening its on the ground transaction expertise, diversifying its income streams and international client base. In January, for example, the company announced the acquisition of the business of Tokyo-based KENZO, significantly expanding PATRIZIA’s fundraising ability in Asia while also offering clients the opportunity to invest in Japanese residential real estate.”
