AEW and Kintyre acquire German retail asset for opportunistic investment partnership
AEW announces that it has acquired a 9,988sqm mixed use asset in Haldensleben, in the German state of Saxony-Anhalt. The acquisition is the latest transaction on behalf of AEW’s opportunistic investment partnership with a US investor, which was launched in May 2015 and targets German retail assets valued between €5 and €15mn.
The asset, of which 70% of the surface area relates to retail, is 85% let with a WALT of 3.4 years to tenants including Edeka, Kik and Bundesagentur für Arbeit and produces an annual rental income of €1.2mn. Well located on the high street of Haldensleben’s city centre, it offers a range of opportunities to drive value through an active asset management programme, including the letting of void space and the re-gearing of existing leases.
AEW has partnered with local operator and asset manager Kintyre, which specialises in the German retail market, to support the implementation of this strategy, with 10 assets acquired to date for the programme. Russell Jewell, Head of Private Equity Funds for AEW in Europe commented: “We first established this opportunistic partnership to utilise our European platform to identify relative value for our clients in what are increasingly competitive investment markets, and this most recent acquisition is an endorsement of this strategy. We continue to see good value in this size of transaction, as well as in this sector away from the major German cities. Paired with the potential upside through asset management and Kintyre’s local expertise, we believe we can continue to access a range of compelling investment opportunities.”
Paul Shiels, Partner at Kintyre added: “This acquisition provides all the attributes we are seeking with this venture, being the dominant value shopping destination in Haldensleben with a diverse tenant lineup. Importantly, the acquisition provides the ability to add value through active asset management.” AEW has completed over 65 value add and opportunistic transactions over the past 6 years with a total value of €3bn.