Pirelli Real Estate and Morgan Stanley Real Estate Investing have sold the Mercado shopping centre in Hamburg for €164 million.
Union Investment Real Estate, the German manager of open ended real estate funds, is the buyer. According to Pirelli, Union has acquired the centre for its UniImmo: Deutschland vehicle.
The deal is the largest single asset transaction in Germany this year, it said, adding that Pirelli would continue to manage the centre for a further 5 years.
Dr. Frank Billand, member of the executive board of Union Investment Real Estate, said in the statement that the asset added to its portfolio of centrally located shopping centres with “very high degrees of occupation” and “crisis-proof yields”.
The Mercado was built as district centre in 1995 and 2003 in two construction phases and has since then been continually developed by Pirelli. It has more than 90 retail outlets including well-known chains such as H&M, C&A, Strauss Innovation, Douglas, Görtz, New Yorker, Edeka, Intersport Voswinkel, Buchhaus Weiland and MediMax.
Pirelli and Morgan Stanley have owned the centre since 2006 following a takeover. Pirelli and Deutsche Bank's RREEF took over German property company DGAG for €462 million. The pair kept the residential properties, but Pirelli simultaneously formed a 30,70 joint venture with Morgan Stanley to own DGAG's commercial real estate assets. The Mercado shopping centre was part of those properties.