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TH Real Estate buys retail warehouse park in Germany from Ten Brinke

Frankenberg pic

TH Real Estate has acquired a retail warehouse park in Frankenberg/Hesse, Germany on behalf of its Core German Retail Fund (CGRF), from Dutch property developer Ten Brinke. Frankenberger Tor, which opened for business in February 2015, features a lettable area of approximately 11,000 sq m (c.118,000 sq ft) and c.300 parking spots. Anchor tenants include the food retailer Edeka, electronics goods store Herkules, and fashion retailer H&M. Other tenants of the fully-occupied scheme include Rossmann, Deichmann, mister*lady, Jeans Fritz and Ernsting's Family. The purchase price was not disclosed.

The high-end, architecturally-inspiring new scheme is the dominant retail centre in Frankenberg. Many of the town’s existing retailers chose to relocate to the new park, and the anchor tenant H&M, selected the scheme for its entry into the local market. 
The Core German Retail Fund was launched in June 2014 and invests in retail assets such as retail warehouse parks, superstores, hybrid malls, and inner-city shopping centres in Germany, focusing on the segments core and core+. The target volume of the open-ended real estate special AIF is c.€400m, while the Fund term is 10 years. The property bought in Frankenberg marks the third acquisition on behalf of the Fund.

Since Fund launch, further capital has been raised from both existing and new investors. The Fund is on target to complete its €250m target by year end.

The CGRF is managed via the platform of the IntReal third-party AIFM (“Service-KVG”).

Thilo Wagner, Head of Investment, Germany at TH Real Estate, and Fund Manager of the CGRF, comments:
With three transactions completed on behalf of the CGRF in recent months, we have placed the portfolio on a solid foundation. The Frankenberger Tor scheme is modern, centrally located and let to well-known retail tenants. It therefore perfectly matches the requirements profile of the Fund.

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority.
TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services.
The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.
* All figures as at 31 March 2015

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