GRR adds NRW superstore to planned €300m fund

The Erlangen-based GRR Real Estate Management GmbH boosted its first retail fund to more than two dozen properties when it bought a Marktkauf superstore in Büren in North Rhine-Westphalia for its GRR German Retail Fund No.1, paying €5.55m. The seller is a fund managed by TIAA Henderson Real Estate. It also bought a local supply centre in the city of Lengede, Lower Saxony, for the fund from SB Markt Lengede GmbH & Co. KG, for which it paid €5.9m.

The Marktkauf superstore has total leasable space of approximately 3,800 sqm, all of which is used by Marktkauf. The lease has a remaining term of just under ten years. The property, with 210 car parking spaces, stands on around 10,100 sqm of land. Originally constructed in 1977, it was rebuilt in 2002 after a fire, and was subsequently extensively modernised by Marktkauf in 2012.

The total retail space of the neighbourhood mall in Lengede, which was built in 2004, is about 4,200 sq m of which 2,200 sqm are leased by anchor tenant Rewe. Additional tenants in the property are Lidl and KiK. The remaining rental terms are approximately 9.4 years. The centre offers 211 parking spaces.

The GRR German Retail Fund No.1, launched in 2012, focuses on retail properties in the basic retail segment, and plans to grow to €300 million over the next two to three years, with food retailers to represent around 70% of rental income. Eligible assets are properties worth between €3 million and €15 million, which have long-term leases with creditworthy store chains in the German food retail sector as anchor tenants. The Fund targets primarily German institutional investors.

GRR Real Estate Management GmbH specialises in retail properties in Germany, with a focus on investment and asset management. The company is headquartered in Erlangen in Bavaria and employs 39 people. Currently, GRR REM has around 300 properties under management for various investors, with a gross lettable area of 670,000 sqm and now valued at around €1 billion.