Redos adds five further Kaufland assets in 200m spending spree
The institutional fund unit of German retail specialist Redos has added 13 German retail assets worth €200m to its Redos Einzelhandel Deutschland fund across several low-key transactions over the last five months. The fund is targetting a total volume of €700m, with a 50% equity share.
The assets include retail parks, food retailers and DIY stores in North Rhine-Westphalia, Bavaria, Baden-Württemberg, Schleswig-Holstein, Saxony and Saarland, according to Redos Institutional.
The fund also paid more than €100m to buy the Coral portfolio, which consist of five Kaufland-anchored stores in Saarland, Rhineland-Palatinate and Saxony-Anhalt with 66,000 sqm of total GLA, from funds managed by US private-equity firm Blackstone. The price represents a multiple of about 16 times annual rent. Apart from Kaufland, tenants included Rewe, Edeka, Aldi, Obi and Hornbach, among others.
The Redos Einzelhandel Deutschland fund was launched in 2014 by Redos and German cooperative manager Union Investment, which provides capital management services. The vehicle invests in large-scale core and core-plus retail assets with a volume of between €5m and €25m across Germany, and has a current investment volume of €520m.
According to Torsten Wesch, Redos Institutional's new CEO since the beginning of the year, about €50m of new deals are expected to close imminently. “With our dynamic acquisitions in this highly competitive market environment we are among the leading investors in this asset class and have continued to successfully expand the fund for our clients. We're continuing to acquire individual properties or portfolios with a volume between €5m and €25m in the core and core-plus segment.”
Last year saw a total market investment of €9.3bn into German retail last year, below the record figure of 2015 but well above the ten-year average, according to a January report from Colliers International. Colliers expects an investment volume of €9bn to €10bn this year.
Redos Institutional is part of the Hamburg-based Redos Group, which specialises in investment, asset and fund management, redevelopment and advisory in the retail sector. The firm currently manages a portfolio worth over €1.1bn in 38 locations across Germany.