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MGPA acquires 26 retail properties from Develica Deutschland Ltd

MGPA, the independent private equity real estate investment advisory company, has successfully completed on the acquisition from Develica Deutschland Limited of a portfolio of 26 retail properties. The properties will be managed by MGPA Europe Fund III and will add further to MGPA’s current German retail portfolio.

The properties, mainly located in western Germany, concentrated in the Hesse, Baden-Wuertemberg and Bavaria districts provide a combined total net lettable area (NLA) of 41,200 sqm on a total site area of 127,700 sqm. The site comprises 21 food retail properties, of which 11 are supermarkets including the leading German retailers Edeka and Rewe and 10 are discounter units with typical unit sizes of 1,000 – 2,000 sqm. The remaining five units are occupied by DIY retailer, automotive retailer and textiles retailers. The portfolio is 97% occupied.

The portfolio provides active management opportunities, notably through re-letting, while three assets offer upside potential through repositioning and extension.
This transaction will build on MGPA’s existing retail portfolio of 135 Aldi stores in Germany acquired in September 2010 and offers synergies from an asset management and development perspective. MGPA also won the PERE Europe deal of the year for the acquisition of the Aldi portfolio.

Laurent Luccioni (pictured), MGPA’s Chief Executive Officer for Europe, says: “This is our second retail transaction in Germany involving MGPA Europe Fund III and emphasises the investment opportunity we see in Germany for good quality, well tenanted retail portfolios that allow us to develop our strategy to build portfolios that combine properties on long term leasing contracts with property or real estate that have upside potential. We are very focussed on developing our strong asset management credentials and we see excellent potential for this portfolio given its location, demand and quality of tenants and will capitalise on the opportunities to develop the portfolio further in the future alongside our other retail portfolio in Germany.”
 
MGPA was advised by CMS Hasche Sigle, Frankfurt.

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