RREEF Real Estate, the property fund management arm of Deutsch Bank, has confirmed the sale of the PEP shopping centre in Munich to US institutional investor TIAA-CREF.
RREEF Real Estate, the property fund management arm of Deutsch Bank, has confirmed the sale of the PEP shopping centre in Munich to US institutional investor TIAA-CREF.
The asset was divested by REEF's open-ended grundbesitz europa fund.
The investment volume of EUR 408 mln reflects a net initial yield of just over 4.6%, a record low for prime shopping centres traded so far this year in Germany.
The scheme comprises 60,000 m2 of retail space over 125 stores. It was bought by RREEF back in 1984 for as little as EUR 54 mln.
The German fund manager subsequently invested EUR 170 mln to restructure and reposition the asset, which today boasts one of the highest visitor numbers in Germany. It is fully let to strong tenants including electronics store Saturn and clothing companies P&C and H&M.
'Well-leased retail properties in Germany can achieve high sales prices as a result of strong investor demand. Therefore it was natural for us to take advantage of this market opportunity,' said Georg Allendorf, CEO of RREEF Real Estate Germany.
With the sale, grundbesitz europa's retail exposure decreases by about 7% to 25%, RREEF said. The fund, with a volume of EUR 3.2 bn, owns 41 properties spread across the UK (27%), France (21%), Germany (16%), Spain (13%) and in the Netherlands (10%).
RREEF Real Estate is planning further acquisitions in the coming months.
