Patrizia has acquired a portfolio of 27 retail properties across Germany from Marathon Asset Management for around €100m (£86m).
The deal, carried out on behalf of the Patrizia Retail Opportunity SCS fund, increases the portfolio of retail assets Patrizia manages across Europe to around €8.3bn.
The portfolio comprises 598,473 sq ft of lettable space. It is made up of retail parks and grocery stores and has a 98% focus on properties with food anchor tenants.
Current occupancy is high at 99%, with a weighted average lease term of 9.2 years and potential for future rental growth.
The tenant structure of the portfolio is dominated by the four largest German food retailers – Rewe Group, Edeka-Verbund, Schwarz-Gruppe and Aldi – which provide three-quarters of the rental income.
Daniel Herrmann, head of fund management retail at Patrizia, said: “The acquisition of this portfolio, with its potential for sustained income growth, will significantly optimise the risk-return profile of the fund for the benefit of our clients. At the same time, we are acquiring modern, well-located properties with excellent tenants from the food retail sector and which occupy a dominant position in their respective catchment areas.”
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