Two North America heavyweight investors, LaSalle Investment Management and the Canada Pension Plan Investment Board (CPPIB), have teamed up to buy a shopping centre from a German open-ended fund in liquidation for €157.3 million.
Chicago-based LaSalle has paired up with CPPIB to buy regional mall, Hürth Park, in Hürth from Degi Europe, which is managed by Aberdeen Immobilien Kapitalanlagegesellschaft.
The two investors have structured the deal so that CPPIB owns 80 percent of the asset and LaSalle 20 percent.
A comprehensive refurbishment as well as a repositioning of the centre is planned, they said.
David Ironside, managing director of LaSalle in Germany, said the German real estate market was set to recover significantly, and held “very good investment opportunities”.
Wenzel Hoberg, vice-president and head of real estate international investments at CPPIB, added this was the pension’s first direct real estate deal in Germany.
“This investment is fully aligned with our international retail strategy to acquire prime retail shopping centres in key markets,” he said.
Aberdeen’s Degi fund is one of three German open-ended funds to liquidate this year.