The portfolio, 92% of which is located in western Germany, is the largest of its type to be transacted in Germany over the last five years. It consists of 23 large, out of town, food-anchored big box retail parks, delivering a total lettable area of 275,000 sqm and an annual rent of c. €28 million. Metro Group, which owns the real,- hypermarket brand, is one of the portfolio’s major tenants, as well as REWE, Kaufland, Edeka and Globus. The portfolio is 98% occupied with a weighted average unexpired lease term of 6.9 years.
The acquisition has been undertaken by Rockspring on behalf of the Dutch pension fund manager PGGM, AG Real Estate on behalf of the Belgian Insurance Company AG Insurance and the Rockspring German Retail Box Fund (“RGRBF”) marking the first time that Rockspring has brought multiple investors together for such a transaction. The initial Loan to Value is 40%.
The transaction extends Rockspring’s relationship with real,-, Germany’s biggest out of town food retailer, which operates across 7 of the 23 assets, and together with existing ownerships makes Rockspring one of its principal partners and store owners. The properties will be managed by Prime Management Düsseldorf, which, together with Rockspring, has a successful track record in implementing redevelopment projects and lease regearing with real,-.
Paul Hampton, Partner at Rockspring said: “This is a significant transaction for Rockspring, both in terms of its size and our success in bringing two of Europe’s largest and most experienced investors in a club deal together alongside RGRBF. We believe this reflects our successful 10 year track record in the German retail market and the reputation of Prime Management Düsseldorf, our best in class asset management platform partner.
Stuart Reid, Partner at Rockspring in charge of Germany commented: “The relationship that we were able to form with the sellers of this off market portfolio in such a competitive market place combined with the quality of equity supporting our offer was instrumental in securing this acquisition. The transaction brings Rockspring’s AUM in German and Swiss retail warehousing today to in excess of €1.5 billion.”
Thijs van Gelder, Senior Investment Manager at PGGM said: “2015 marks the tenth year of PGGM investing in German, out of town retail with Rockspring, which has been a successful partnership for us. This is an attractive, value add portfolio with longevity, a stable cash flow and, importantly, with defined actions to improve the portfolio’s sustainability performance. This partnership is in line with our ambition to have a high degree of control over the investments we make on behalf of our clients”
Serge Fautré, CEO of AG Real Estate said: “We are pleased to be part of this partnership of first class investors, with shared goals and aligned interests. This is a portfolio of well-located properties with significant latent value that will provide the opportunity to deliver strong risk-adjusted returns. This first retail real estate investment in Germany comes in addition of our current activities in car park management (Interparking via Contipark) in Germany and is in line with our ambition to engage ourselves into new markets in a highly selective way.”
Rockspring Property Investment Managers LLP is a professional investment fiduciary specialising in the acquisition and management of commercial property throughout the UK and continental Europe on behalf of major institutional clients - either directly for single-client accounts or through the Group’s series of tax-efficient, co-mingled investment funds. Rockspring is authorised and regulated by the FCA.
Fully independent and 100% owned by its Senior Executives and employees, Rockspring is headquartered in London and has a network of offices in Amsterdam, Berlin, Brussels, Budapest, Madrid and Paris as well as Client Service offices in Seoul, Sydney and Washington, D.C. Its Executive Committee includes Robert Gilchrist (Chief Executive), Edmund Craston (Managing Director) and Ian Baker (Partner - Finance).
2014 marked the 30th anniversary of Rockspring’s establishment by founder and Non - Executive Chairman, Richard Plummer.
As of September 2014 Rockspring had gross assets of €7.2 billion in funds under management and undrawn commitments. It represents a diverse client base including Rockspring Hanover Property Unit Trust, Rockspring PanEuropean Property Limited Partnership, Rockspring TransEuropean III, IV, & V, and soon VI, The Rockspring German Retail Box Fund, Rockspring UK Value 1 & 2 and single client mandates. Rockspring’s property assets are currently located in the UK and 14 other European countries.
PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On December 1, 2014 PGGM has EUR 179.5 billion in assets under management. The PGGM cooperative has approximately 678,000 members and is helping them to realize a valuable future. Either alone or together with strategic partners, PGGM develops innovative future provisions by linking together pension, care, housing and work.www.pggm.nl
About AG REAL ESTATE
AG Real Estate, a wholly owned subsidiary of AG Insurance, is active in multiple key real estate-related areas: asset and property management, development and construction management, PPP & real estate finance and car park management via its subsidiary Interparking. AG Real Estate also manages an investment portfolio, both for itself and for external clients, currently valued at €5,3 billion.
The company employs a staff of over 200 with a wide range of skills and profiles, with another 2,300 employed in car park management across nine different European countries.
In addition to its many completed projects and references, these in-house competencies are AG Real Estate’s greatest asset and the key to its continued success.