Patrizia acquires retail portfolio for €320m

Augsburg-based real estate investment management firm, Patrizia Immobilien, has acquired a portfolio of German shopping centers and retail parks for €320 million.

The portfolio, with assets located in Bavaria, Baden-Württemberg and Hamburg, consists of 25 properties totalling 1.96 million square feet. The majority of the properties were built after 2005 although the portfolio did include older properties that have been modernized.

Patrizia, which has ramped up its retail real estate acquisitions in recent months, said the assets were acquired on behalf of a separate account. The investor behind the account is understood to be a German occupational pension scheme.

The seller was London-based Savills Investment Management (IM) which sold the portfolio from its Savills IM German Retail Fund, a core-plus fund launched in 2007 to buy shopping centers and retail warehouses.

The properties have low vacancy rates and are occupied by a number of well-known German retail brands including Edeka, Rewe, Media Markt, Wöhrl, DM, Deichmann and Toom.

Daniel Herrmann, head of fund management at Patrizia, said: “The shopping centres and retail parks are located in regions with strong economies and are usually the dominant retail trade destinations in their respective catchment areas. The portfolio has a very attractive return-risk ratio already now. In spite of the above-average quality of the real estate and locations, however, we see additional opportunities to add value by means of an active management approach.”

Thomas Gütle, managing director of Savills IM in Germany, said: “We have closed the fund and repaid investors in the promised timeframe. Selling the entire portfolio to a reputable investor such as Patrizia highlights how attractive the German retail market remains to investors.”

Following the deal, Savills IM said it would be launching a new German retail fund in the near future.

Earlier this month, Patrizia acquired a large residential portfolio in the Netherlands for €152.5 million, the largest of its kind in the Dutch market for 18 months.

Elsewhere, in one of its most recent deals, Patrizia acquired the 189,000 square foot Oval building, a central Dublin office property for €145 million, on behalf of an institutional client in March this year. While in November last year, the firm sold a portfolio of more than 13,500 German residential units for €1.1 billion, just six months after acquiring the assets for €900 million.