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CBRE Global Investors has acquired the StadtCenter Düren Shopping Centre in North Rhine-Westphalia, Germany on behalf of its European Shopping Centre Fund (ESCF).

The price totalled €57 mln, reflecting a net initial yield just above 6%. The vendor is Schroder Property on behalf of the listed European Real Estate Investment Trust Limited (EREIT).

The bidding process was initiated in March this year and the transaction is due to be closed by the end of the year.

The centre has a GLA of 18,000 m2 with 54 retail units let to a range of retailers and anchors including H&M, Olymp & Hades, Drogerie Markt, Deichmann and New Yorker. There are also 314 car parking spaces on the roof of the property which provide direct access to the retail concourse. The mall is located in the city centre and has good access by car, public transport and from a nearby pedestrian area. The catchment area comprises some 250,000 consumers.

The deal is CBRE GI's second in Germany this year. Earlier its ESCF and the Teacher Retirement System of Texas (TRS) jointly acquired the Leine-Center near Hanover in Germany for €117 mln. That deal likewise reflected a net initial yield of 6%.

Commenting on the German market, Florencio Beccar, director of retail investments for EMEA, said ‘nice spreads’ were still possible in Germany. ‘We are very specific on what we want in Germany. We are interested in core locations where there is a rental upside story. For example, short leases with upside potential.’

Beccar said CBRE Global Investors would not shy away from trophy assets, but noted that they are limited in number and often very expensive. ‘We take a long-term view. There are many centres that we don’t touch. But there’s a lot of value in the segment just under the top tier. We’re trying to buy in Poland now and we’re moving out into the secondary cities. Very nice returns are possible for dominant centres in sizeable catchment areas.’