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Patrizia buys German retail portfolio for €200m

The Augsburg, Germany-based real estate investment manager has concluded deals worth a total of €600m and secured a €400m residential mandate from German pension giant BVK in just the last 10 days. 

Patrizia Immobilien, the Augsburg, Germany-based real estate investment manager, has acquired a portfolio of 10 German retail properties for around €200 million.

The 1.3 million square foot portfolio, called Alter 10, comprises five specialist retail centers, three large supermarkets and two smaller supermarkets. Approximately 75 percent of the lease agreements are held by anchor tenants including REWE, Kaufland and Edeka.

The majority of the sites are in North Rhine-Westphalia, which is the most populous German state with a population of 18 million. Four of the country’s 10 biggest cities, Cologne (pictured), Dusseldorf, Dortmund and Essen, are located in the region.

The purchase was made on behalf of Patrizia’s real estate fund Patrizia Handels-Invest Deutschland II, which purchased two large German portfolios last year. The fund, which has now been fully invested, now has a total investment volume of €750 million including the Alter 10 portfolio. The seller was Hamburg-based property investment firm Newport Holding.

“Alter 10 is a top-quality speciality retailer portfolio dominated by the grocery retail trade that only very rarely comes onto the market in this form. That is why we are very pleased to have been able to take advantage of this opportunity,” said Daniel Hermann, head of fund management retail at Patrizia.

July has been a busy month for Patrizia. Just last week, the firm announced a €400 million deal for a 1.1 million square foot portfolio of nine office and commercial properties in prime German cities. The seller was Allianz Real Estate, the property arm of the Munich-based financial services company.

Meanwhile, this week the German investment manager was handed a €400 million mandate by Berlin-based BVK, Germany’s largest public pension fund, to create a pan-European residential property portfolio, which will initially focus on the Netherlands and the Nordics.

Patrizia was advised on the Alter 10 deal by German property services firm Wrangel Real Estate.