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Rockspring club in €350m German deal

The London-based real estate manager has teamed up with PGGM and the real estate arm of Belgian insurer, AG Insurance, to acquire a portfolio of 23 out of town retail warehouse assets in Germany.

Rockspring Property Investment Managers, the London-based real estate manager, Dutch pension giant PGGM and the real estate arm of Belgian insurer AG Insurance, AG Real Estate, have invested €350 million in a German retail warehouse portfolio.

The three acquired the portfolio from a joint venture between London-based property manager Capital & Regional and a real estate fund managed by Los Angeles-based alternative asset manager Ares Management.

The portfolio consists of 23 large, out of town, food-anchored big box retail parks, with an area of 2,960,000 square feet and which generates an annual rent of about €28 million. Major tenants of the portfolio include: Metro Group, which owns the Real hypermarket brand, retail and tourism group REWE as well as hypermarket chain and Lidl brand owner, Kaufland. The portfolio is 98 percent occupied with a weighted average unexpired lease term of 6.9 years.

The acquisition was undertaken by Rockspring on behalf of PGGM, AG Real Estate and the €620 million, 2005-vintage Rockspring German Retail Box Fund. It is the first time that Rockspring has brought multiple investors together for such a transaction.

“This is a significant transaction for Rockspring, both in terms of its size and our success in bringing two of Europe’s largest and most experienced investors in a club deal together alongside GRBF,” commented Paul Hampton, partner at Rockspring.

The deal comes just weeks after another logistics buy in the region, from Rockspring. The firm acquired a logistics development land in close vicinity to the new Berlin airport, investing more than €85 million in equity. The property was bought in partnership with the European logistics and industrial developer, Verdion. The land was acquired for €13.5 million with the proposed development of 999,967 square feet of space for tenant Verdion Airpark logistics.