CBRE Global Investors announces the acquisition of the Karstadt department store and the Karstadt sports store in Düsseldorf, Germany. The assets were acquired on behalf of a German separate account client.
The department store is situated in a central city location, with 33,600 sq m of retail space over five floors, including one basement. The building was originally constructed in 1954 and refurbished in 2012.
The Karstadt sports store is situated on a neighbouring street to the department store and was built in 1993. It has approximately 4,000 sq m of space, across five floors. Both properties are fully occupied and are linked via a walkway in the basement.
Düsseldorf is one of the largest retail markets in Germany with a consumer base expected to grow by approximately 5 per cent by 2025. Karstadt and the stores are also expected to benefit from the planned expansion of the pedestrian zone in the city.
Harald Floer, Fund Manager, CBRE Global Investors said: “Both the Karstadt department store and its sports store are in prime locations in one of the most affluent markets in Germany. With the department store being recently renovated and both stores in a highly accessible location, we have acquired two assets that we believe will meet our clients’ objectives and will perform strongly.”
Ulrich Oppermann, Head of Transactions in Germany, CBRE Global Investors commented: “Rental growth of retail units in Düsseldorf has been strong over the last decade and our research suggests this will continue to be solid as demand for German retail property remains high. An increase in consumer consumption presents an attractive basis for retail investment and an increasingly affluent consumer base will bring further benefits to Düsseldorf’s retail space.”
John Mulqueen, Head of Transactions EMEA, CBRE Global Investors added: “We have a number of clients who are actively targeting Germany and we anticipate investing €1 billion over the next 12 month.”
The seller was advised by Colliers International and PricewaterhouseCoopers Legal AG.
CBRE Global Investors was advised by CBRE and BLP.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $88.6 billion in assets under management* as of June 30, 2016. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 70,000 employees in more than 400 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com
*Assets under management (AUM) refers to the fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of investments in real estate; equity in funds and joint ventures; securities portfolios; operating companies and real estate-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.
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