Internos breaks new ground with French partner in German retail

Fund and asset manager Internos Global Investors bought two retail parks (“Fachmarktzentren”) for a total of nearly €16 million in the Bavarian towns of Rottenburg and Moosburg from the Luxembourg-based BGP Investment as part of BGP’s strategic shift into focusing on German residential assets.

The deal is significant in that the deals were the first acquisitions for the ‘Novapierre Allemagne’ fund, a joint venture between Internos and Paref Gestion, that launched in February 2014 and is the first SCPI-structured fund to invest French capital exclusively into German retail parks.

The fund has a mandate to invest in the western part of Germany and in micro-locations with strong underlying catchment areas. Acquisitions will typically comprise retail parks with 4-6 units let to well-known national retailers. The fund is targeting a gross investment volume of over €200 million.

At the Moosburg asset, Kaufland is the anchor tenant with 4,100 sqm secured on a long lease, while at Rottenburg (with 5,800 sqm lettable area) the main tenants are grocers Rewe & Lidl, also on long leases.

Commenting on the acquisitions, Guillaume Masset, Head of Benelux and Southern Europe at Internos, said: “We believe the relative strength of the German economy has created an opportunity for investors to generate attractive returns from retail parks located in strongly performing regions. Over the next four years, we will use our expertise and track record of investing in Germany’s complex and regionally diverse real estate market to select and manage retail parks fitting the profile of the fund.”