Retail specialist ILG on target for €250m investment

The privately-owned Munich-based property investor and manager ILG Gruppe has bought a further nine retail properties for €153m for two of its institutional clients. The initial yield on the assets is 5.6%, with an average WALT of 11 years.

The 30 year-old company, which invests exclusively in German retail assets (Fachmarktzentren) and healthcare properties, said it was on target to invest €250m this year. ILG also manages its own centres and those of third parties.

For about €100m the company bought 7 assets, including a portfolio of four assets in Baden-Württemberg and North Rhine-Westphalia for €70m and three further assets in Bavaria, Hesse and North Rhine-Westphalia for an individual fund. The fund was set up at end-2017 for an individual investor, and apart from this first deal, is still looking for suitable investment opportunities for a further €250m of suitable retail assets.

For a separate mandate, its “ILG Einkaufen Deutschland I” Spezialfonds, it bought a Fachmarktzentrum in Plettenberg in the Sauerland region east of Cologne, and the retail park Neutraubling West near Regensburg. With a further acquisition in the pipeline, the €400m fund is now fully invested.

Both funds are administered on the INTREAL investment platform, as are the further €1.4bn of ILG retail funds managing more than 38 assets with 800,000 sqm, with a 99% occupancy rate, according to CEO Dr. Maximilian Lauerbach. The company has 11,000 individual investors.