AEW Europe is to focus more effort on German retail assets after signing an agreement with a US investor.
As part of its opportunistic strategies, AEW plans to build up a €150m (£107m) portfolio in smaller lot sizes in Germany. The fund will use local partner Kintyre as the primary source of assets in lot sizes of €5m-€15m each.
Paul Shiels of Kintyre said most of the investments would be away from the major German cities. “Retailers continue to trade strongly in these areas and this creates attractive asset management opportunities,” he added.
Kintyre and AEW will have a total investment capacity of €300m and are already under offer on eight properties, with another asset already acquired.
To date AEW has concluded more than €1bn in value-add and opportunistic transactions in Europe.
