Bayerische Versorgungskammer (BVK) has bought a German retail outlet through its mandate with Real Estate.
Germanyβs β¬62bn pension fund group bought the Designer Outlet Centre in Wolfsburg (DOW) through the mandate with Invesco from .
Invesco will redevelop the asset for the BVK, with around 4,500sqm added to take the site to 100 units.
Fabian Manegold, senior transactions director in Germany at Invesco, said outlet centres were βkey distribution channels for todayβs brandsβ.
βCoupled with robust consumer spending in Germany and the unique location of this particular centre, this proven concept and sub-sector of the German retail market will provide strong income growth and total returns for our clientβs portfolio,β Manegold said.
Europa Capital held the asset since 2012 in its Europa Fund III vehicle with partner Hans Dobke, principal of Outlet Centres International, which will continue to manage the centre.
Nic Fox, head of Middle Europe at Europa Capital, said the sale was further evidence the outlet centre retail sector was becoming of greater interest to institutional real estate investors.
βThe successful purchaser led a group of other leading institutions in the bidding process, alongside specialist funds, fund managers and established retail operators,β he said.
Having bought out original equity backer Lehman Brothers Europe RE, Europa Capital funded the development of a second phase in 2013, adding a further 19 units.
Hans Dobke is keeping a minority interest in the 17,500sqm asset.
Tenants include Polo Ralph Lauren, Tommy Hilfiger, Michael Kors and Abercrombie & Fitch.
