FRANKFURT, 12 June 2014 – CBRE Global Investors has acquired, on behalf of one of its separate account clients, a shopping centre in Hamburg, Germany for €44.4 million. The vendor was Verwaltung Norddeutsche Grundvermögen Bau- und Entwicklungsgesellschaft, who also developed the centre.
The 13,260 sq m “Lurup Center” is located in the heart of the Lurup district of Hamburg and was constructed in 2011 and 2012 in two phases. The centre is 98% let and is anchored by the supermarket Kaufland with a further 20 tenants, including Rossmann, Ernsting’s Family, Xenos and Reno. The property offers 428 car parking spaces.
Jeroen de Grunt, Portfolio Manager, Separate Accounts Continental Europe, CBRE Global Investors, said:
“Our client is in the process of repositioning its real estate portfolio and diversifying across Europe, in which we have a strong focus on the German market. In February we acquired a logistics platform in Falkensee, and this acquisition of the Lurup Center is our second German acquisition in a short period of time. We also have a number of other German assets in the process of due diligence and we expect them to complete in the second and third quarter of this year.”
Christian Müller, Strategy & Research Manager , CBRE Global Investors Germany, said:
“The grocery anchored shopping centre provides a risk averse income return in an established neighbourhood with future population growth potential in the catchment area.
Income secure investment opportunities in the Big 5 German cities and in prosperous cities beyond are highly sought after, but prime yields have already compressed to levels approaching previous peaks and product availability is very tight. As a result secondary retail locations outside the prime pitches have gained momentum in the German Big 5 cities as they still provide higher income yields at a market adequate risk-return.”
About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $90.2 billion in assets under management* as of March 31, 2014. 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 approximately 44,000 employees in approximately 350 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to 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 properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. 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.