Aerium, the pan-European real estate fund manager, has acquired a portfolio of regional German retail assets and a Berlin office building for a combined fee of €110 million.
The retail portfolio, which comprises four shopping center assets totaling 365,000 square feet, were purchased from a joint venture between Ares Management and London-based real estate firm PMB Holdings. All of the properties in the portfolio are located in the affluent Baden-Württemberg and Hessen regions, in western Germany. The centers are 98 percent let and have a strong tenant mix, while offering attractive asset management potential to further enhance their value.
The Berlin office asset was the first value-add transaction completed by Aerium in the German capital. The firm also confirmed it had already leased 62 percent of the property to Laureate International Universities for 10 years.
The firm did not disclose the individual price of the assets, which were acquired in November.
In a separate transaction last month, Aerium also acquired a 90,000-square-foot, five-story office asset in Fenchurch Street, just yards from the City of London’s Walkie-Talkie building, for €93 million. The Ares/PMB joint venture was also the seller on that deal.
Steven Broch, Aerium’s co-chief investment officer and head of investments for Germany and Southern Europe, said the acquisition of the German portfolio was the latest in a number of deals, both sales and purchases, over the last few months.
“It has been encouraging to experience such a breadth of transactional activities in the market across Europe. This has been both on the sell side, where we have drawn wide interest from prospective buyers as we undertook divestments from our matured funds, and on the acquisition front, with so many exciting investment opportunities coming to market,” said Broch.