German asset manager Hahn Group has purchased a retail park in Hamburg from international investor Schroder Real Estate for around €17.5 mln.
The asset, which was built in 2001, was acquired for the institutional fund Hahn German Retail II.
The seller of the property is a real estate special fund managed by Schroder Real Estate, which acquired the asset in 2005 and achieved a significant increase in value after inking a long-term lease deal with supermarket chain Edeka.
The retail park is currently fully let, with a weighted average unexpired lease-term exceeding ten years.
Comprising two principal buildings, the rental space amounts to a total of around 4,200 m2, while the total area offers around 11,100 m2 of space including facilities for 134 cars.
The leased rental space of anchor tenant Edeka is to be extended to over 2,000 m2 this year, through occupying and modernising an immediately adjacent, former discounter unit of around 1,200 m2.
The Hahn German Retail Fund II is contributing around €1.6 mln for the extension.
The acquisition brings the Hahn German Retail Fund II to nine large individual retail properties with a value of €185 mln. In total, the fund is aiming for a target volume of up to €500 mln, investing in large-scale German retail properties such as retail parks, hypermarkets, hypermarkets and DIY stores.
The core-plus fund has a target equity volume of €250 mln, a target return of 6%, and is still open to subscriptions.
Colliers International advised Hahn Group, while GSK Stockmann provided legal counsel.