Real estate investment boutique 777 Capital Partners has acquired a retail park development project in Sulzbach-Rosenberg, Bavaria, and inked a forward sale with Germany's Captiva Investment Management for the completed asset.
Financial details were not disclosed.
The Oberpfalz-Arkaden scheme, a three-storey project covering around 10,000 m2 will comprise retail, F&B and services when it opens in spring 2022. It is currently 85% leased.
Long-term rental contracts have already been concluded for the property with anchor tenants Edeka, Netto, Müller and NKD, while the likes of Fressnapf and medical suppliers Reha Team Nordbayern have also signed up for the scheme. For the remaining small units, 777 said that advanced contract negotiations were already underway.
777 will continue to be fully responsible for project development until the retail park opens. The progress of the construction project, which is taking shape on the site of the former Liliencenter, is proceeding according to plan.
The scheme stands on the main thoroughfare of Sulzbach-Rosenberg, a town with a population of 20,000 which is located in the metropolitan region of Nuremberg. Hamburg-based Captiva Investment Management will take over the property after completion for a special fund it manages.
Thomas Landschreiber, partner and co-founder of 777, said: 'We are seeing strong investor demand for specialist market and local supply centers in economically stable locations - this is also the case with this project in the Nuremberg metropolitan region.
'Its attractiveness is also reflected in the high pre-letting rate and the long-term rental agreements in a still-early project development stage. In Captiva, we found a contractual partner early on who recognised and appreciates the future potential of the property.'
Stephan Fritsch, founder and managing partner at Captiva added: 'We are delighted to have found a very attractive addition to our portfolio with the Oberpfalz Arkaden, which currently has more than 150 local supply locations, thus taking into account investor interests for long-term, stable, valuable distributions. We are still examining ways to further develop and expand our portfolio in this segment.'