Frankfurt-listed Corestate Capital and Russian private equity firm, Sistema Capital Partners (SCP), have acquired two assets for 鈧�105 mln on behalf of their German high street property joint venture.
The properties were acquired from different vendors and are located in the cities of Flensburg (pictured) and L眉beck on Germany's Baltic coast. The investments will be 70% debt-financed and lift the JV's total volume of retail real estate deals in Germany on behalf of a Sistema-led club of investors to 鈧�350 mln.
The property in L眉beck is located in the city centre close to the main train station, while the property in Flensburg is based in the pedestrianised precinct. They provide a combined gross lettable area of 37,000 m2. The tenants include Saturn, TK Maxx, Mc Fit and Holmes Place.
'SCP and Corestate were early in spotting the opportunities offered by high street retail in mid-sized German cities and the latest investments are larger and more prime in character than those previously transacted by our joint venture,' Sistema Capital's CEO Marjorie Brabet-Friel said.
SCP was established by Russia's listed diversified holding company Sistema JSFC in 2015 to invest Sistema's own capital alongside other institutional and high net worth investors from around the world through a club deal structure that allows hands-on control of the assets.
Corestate is a fully integrated real estate investment manager based in Luxembourg and listed in Frankfurt. The company is co-investing in and co-managing the German assets acquired by the JV platform.
Sascha Wilhelm, CEO of Corestate, added, 'Retail in mid-sized German cities often serves a large catchment area as a magnet for an entire region and properties in pedestrian zones in these centres are particularly attractive investments.'
