Despite the German and Austrian markets facing a consumer sales slowdown, the investment market remains relatively robust.
Leasinvest Real Estate has acquired two retail parks near the largest shopping complex in Austria, Shopping City Sud. The retail scheme comprises 330 shops spread over 235,000 sq m and has a footfall of approximately 20 million visitors a year.
Located in Vosendorf in the South of Vienna, the asset enjoys access by private and public transport as it serves about 1,080,000 inhabitants. These acquisitions represent an investment of €71.8m and are in line with the valuation of the independent real estate expert.
The acquired retail parks include: SCS Nordring 2-10, which totals 14,800 sq m and has 278 parking spaces; and Pittarello Nordring 16, with a surface area of 11,350 sq m and 202 parking spaces, fully leased and generating an annual rental income of circa €4m.
Michel Van Geyte, CEO, said:“Leasinvest is very happy to have realised this excellent investment in a challenging market with limited offer. With this acquisition, Leasinvest strengthens its position in Austria, and more specifically around Vienna, for years voted the best city to live in. Despite the growth of e-commerce, both the turnover and retail space per capita in Austria are among the highest in Europe, moreover sustained by the expected population and income growth over the next five years.”
RPA Perspective The German retail market is facing similar challenges. German retail sales took a bigger battering than expected in July, retreating from a gain recorded in June to reveal the biggest drop this year.
Seasonally adjusted sales in real terms fell 2.2% compared with June, the biggest decline since December’s 2.9% drop. The figure though was 4.4% higher than a year earlier, while for the first seven months of this year sales rose 2.8% in real terms, according to the German statistical office Destatis.
Since February, monthly retail sales figures have either declined or been flat, with the exception of a relatively robust 3% gain in June.
Separately, SCPI Novapierre Allemagne fund, advised by investment manager Principal Real Estate and managed by asset manager PAREF Gestion, has acquired a retail warehouse and local shopping centre in the town of Velbert, North Rhine-Westphalia.
The complex at Friedrichstrasse 303-311 includes an Aldi supermarket built in 2015, a Mediamarkt home electronics warehouse, a medical centre and other retail buildings. Standing on a 23,200 sq m site, it provides a total lettable area of 11,800 sq m. The purchase price was not disclosed.
The complex has a vacancy rate of only 5% and a weighted average unexpired lease term (WAULT) of seven years. The vendors are private investors. With a population over 84,000, Velbert is located at the interface between the Dusseldorf, Essen and Wuppertal economic conurbations.
The retail warehouse centre has a catchment population of around 50,000 living within five minutes' drive. There are 264 surface parking spaces, six disabled parking spaces and 16 spaces in an underground car park.
