In a deal worth €370m, Corestate acquired 35 retail properties in prime locations across Germany. The portfolio, totaling more than 170,000 sqm, covers a highly diversified mix of locations, assets and well-known tenants, including C&A, Deutsche Bank, Fielmann, Gerry Weber, H&M, Saturn and Rewe. The properties are situated mainly in pedestrian zones in mid-sized cities.
“Our local knowledge is the key factor for successfully finding these opportunities asset by asset. This type of approach needs a lot of detailed work on the ground, and Corestate benefits from its 16 subsidiaries across Germany which makes this possible,” said Tobias Gollnest, executive director for commercial real estate at Corestate Capital. “The appetite for higher risk adjusted returns in secondary cities is definitely growing. We notice that large players are currently looking into this segment. Higher returns based on top covenants are very rare in today’s market environment. We see high potential in this market and will continue to pursue this strategy.”
