Irish real estate investment company Greenman Investments has announced the acquisition of the Biesdorf Centre retail property in Berlin for €79 mln.
The 32,200 m2 asset was sold by a Cerberus affiliate.
Kaufland is the main tenant, occupying a total of 12,500 m2 and accounting for over 40% of the centre’s annual rental obligations.
‘We’re delighted to add the Biesdorf Centre to Greenman Open’s portfolio and thus increase Greenman’s assets under management to circa €610 mln. It will contribute significant income to Greenman Open for the long term,’ commented John Wilkinson, CEO of Greenman Investments.
‘It’s a perfect fit to our strategic policy of investing in food-dominated retail centres and hybrid centres. This property will be a pillar from which will drive further expansion plans both in Berlin and across Germany,’ Wilkinson added.
Cerberus bought the asset in 2013 and subsequently spent €9 mln on the asset. It recently succeeded in renegotiating Kaufland’s lease with an extension to 2028 and an investment by Kaufland of €8 mln to €10 mln in store upgrades.
Cerberus also added tenants TK Maxx and Fit X in 2018, increasing the annual rental income by €570,000.
Wilkinson concluded: ‘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 circa €140 mln.’
Greenman was represented by Bottermann Khorrami, Mazars and Duff & Phelps, while Cerberus was represented by JLL and Goodwin.