Rockspring Property Investment Managers has acquired a German shopping center for €117 million in an off-market deal on behalf of its sixth pan-European real estate investment vehicle.
The 660,000 square foot retail center, Flora Park, is located in Magdeburg, which is around 150 kilometers west of Berlin. Rockspring has already started a full-scale, €25 million renovation of the site, due to be completed in 2017.
Flora Park, originally constructed in 1992, is one of the largest shopping centers in the state of Saxony-Anhalt and has 90 units and 2,700 parking spaces. It is anchored by a 120,500 square foot Real hypermarket with major tenants including TK Maxx, C&A, Deichman and Aldi.
The deal was made on behalf of Rockspring’s Trans-European Partners (TEP) VI real estate fund. The firm held a final close for TEP VI in July after corralling €430 million of equity as well as leverage of up to 55 percent, giving a total investment capacity of €1 billion. To date, Rockspring has invested more than €680 million across nine projects across Europe. The Flora Park deal takes the firm’s total expenditure in the east of Germany past €430 million.
Via the fund, Rockspring has been acquiring a wide variety of value-add assets including office, retail, residential and logistics in large European cities as it attempts to stay on course to achieve its targeted return of 15 percent.
“Over the last five years, as a result of our strong expertise on the ground in Germany, we have had the opportunity to acquire assets in the better performing locations in cities which are now benefitting from this economic and population growth,” said Stuart Reid, Rockspring Partner in charge of Germany.
In July, the firm held a final close for TEP VI after garnering €430 million from around seven international institutional investors. The firm had originally targeted €400 million for the fund, which had a hard cap of €500 million. The also firm confirmed the fundraise for TEP VI was a company record.
Rockspring now has over €2 billion of assets under management across Germany and Switzerland, including approximately 100 retail properties.