Financial details were not disclosed.

The property has a total lettable area of around 8,500 m2, and is almost fully occupied. It consists of five buildings that are grouped around a central parking lot with more than 300 spots.

Anchor tenants include a Lidl discounter on 1,820 m2, a Müller Drogeriemarkt drugstore on 1,440 m2 and a Woolworth covering 2,650 m2. The tenant mix is complemented by retailers of the textiles and footwear segments as well as by offices, doctors’ surgeries and service providers occupying smaller units.

The acquisition was transacted in the form of an asset deal on behalf of Warburg-HIH Perspektive Einzelhandel: Fokus Nahversorgung, an open-ended special AIF specialising in grocery retail property. Its focus is on real estate in economically stable German cities and on assets priced at €10-40 mln. The annual dividend yield is somewhere between 4.5-5.5%.

The retail park opened for business in 2007, and represents a key component of the high-street retail line-up of Espelkamp. It is located next to the central parking lot are other retail, service and leisure amenities, including an Aldi discount supermarket and the only cinema in town.

Jens Nagelsmeier, head of retail transaction at HIH Invest Real Estate, said: 'With its well-balanced tenant constituency and its blue-chip anchor tenants, the neighbourhood retail centre in Espelkamp is a particularly attractive asset for our institutional fund.

'The tenants are highly recognisable, and benefit from mutual synergy effects with retail and leisure options in the direct vicinity as well as from the surrounding residential areas.'

The legal and fiscal due diligence for the transaction was performed by Heuking Kühn Lüer Wojtek in Hamburg. C.P.H. Projekt- und Baumanagement were responsible for the technical due diligence and the ESG due diligence.