Redos buys six-property retail portfolio from Edeka for €110m

Hamburg-based independent retail specialist Redos Group has paid €110m for a portfolio of six retail properties from German grocery group Edeka, along with a number of pipeline developments.

All the properties are located in Germany’s most populous state of North Rhine-Westphalia, and will be allocated to Redos’s second retail fund, the Redos Einzelhandel Deutschland II institutional fund, managed in partnership with Union Investment.

The developer of the properties, which comprise a combined rental space of about 37,500 sqm, is Edeka Rhein-Ruhr.  The portfolio includes locations used solely by Edeka as well as multi-tenant retail parks with Edeka as the largest tenant. 

The last of the three properties currently under construction is expected to be completed by the end of 2021. All six of the properties are already fully leased out, with a portfolio weighted average lease term (WALT) of 14.5 years.

According to Frank Eckervogt, managing director and head of acquisitions at Redos, “With this transaction, we are once again adding prime retail property assets to our fund portfolio. Each of the individual properties offers an excellent location with a modern concept, thus providing the foundations for sustained long-term value growth based upon dependable retail traffic and reliable cash flows.”

The Redos Einzelhandel Deutschland II institutional fund was launched in September 2017. Redos manages a total of three institutional alternative investment funds with Union Investment as well as the 90 individual properties held in these funds with a combined value of €1.76 bn.

Redos also manages another €1.1 bn of property across funds arranged by Madison and Morgan Stanley respectively, bringing its total assets under management to €2.86 bn across 94 locations across Germany, with more than 1.3 million sqm of rental space.