Generali and ECE close €500m+ Pep shopping centre deal in Munich

Generali Real Estate and ECE Real Estate Partners have completed their acquisition of the Pep Shopping Centre in Munich Neuperlach, as part of a 50/50 joint venture. 

Although financial details were not disclosed, market experts put the deal price at just on €500 mln.

The transaction was first agreed in late 2022 and it was initially expected to close by year-end 2022.

As part of the deal, Generali Real Estate has acquired a 50% stake on behalf of its ‘Generali Shopping Center Fund’ (GSCF) while ECE Real Estate Partners is making the purchase on behalf of the ‘ECE Progressive Income Growth Fund’. The vendor of the asset is Nuveen Real Estate (Nuveen), acting as Investment Advisor to the TIAA-CNP partnership, who owned the property in a joint venture.
With around 12 million visitors a year and generating over €250 mln a year in turnover, Pep Shopping Centre enjoys a dominant market position as one of the top 5 shopping destinations in Germany.

Located in the Neuperlach district of Munich, the centre encompasses 70,000 m2 of GLA with anchor tenants including Primark, Edeka, Kaufland, Müller Drugstore, H&M and Saturn. The shopping centre was extensively modernized and expanded between 2016 and 2018, and has been managed by ECE Marketplaces for over 30 years.
Aldo Mazzocco, CEO at Generali Real Estate, commented: 'A second important investment for our pan-European Shopping Centre Fund, the Pep acquisition is fully in line with the investment strategy we have set for the retail asset class 5 years ago: investing very selectively and with prudence in shopping centers which well represent the so-called Dominant, Destination, Diversified segment. Pep makes a strong central-European addition to our international portfolio, next to Puerto Venecia in Zaragoza and CityLife Shopping District in Milan.'
Volker Kraft, managing partner at ECE Real Estate Partners, added: 'We are delighted to make the investment in Pep shopping centre jointly with our partner Generali Real Estate. The asset stands out as a winner in the increasingly polarising shopping centre landscape. This makes it a great fit for our ECE Progressive Income Growth Fund that comprises a €2 bn portfolio of outstanding shopping centres in Europe.'
Myles White, head of Retail, Europe at Nuveen Real Estate, commented: 'Through active management and prudent investment, we believe we have curated a best in class asset in a strategic location in Munich and we believe this deal demonstrates the continued investor demand for high quality retail assets that can continue to meet evolving consumer demands and trends.'
Generali Real Estate has been advised by Axis Retail Partners.


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