Corestate closes latest German high street retail fund at €250m

Luxembourg-based investment manager Corestate Capital has successfully closed its eighth German high-street retail fund at €250 mln, unveiling further purchases that bring the fund to five properties.

Three further high street retail assets have been acquired for the club deal fund Highstreet VIII, located in Garbsen, Nordhorn and Schwenningen. Last year, the first deals were struck in Rostock and Sindelfingen.

The portfolio totals an area of around 112,000 m2, with an average lease term of more than eight years and a 98% occupancy rate. Tenants include retailers Deichmann, the supermarket Edeka, Müller, Rewe and New Yorker.

Hailing the end of Corestate's buying spree, Tobias Gollnest, managing director of investments, said: ‘With Highstreet VIII, we have closed our ninth high street club deal within five years. This demonstrates the significant investor demand for attractive alternatives to the usual concepts focused on big cities. The figures speak for themselves, with a total of 150 retail properties in outstanding locations in German mid-sized cities, with a total investment volume of more than € 2 bn, have been successfully acquired across the whole series.’

Corestate CEO Lars Schnidrig said: ‘The annual payout of the portfolio is over 6% and the target total return is in the double-digit range. The portfolio thus offers our clients an excellent investment opportunity in fast-growing medium-sized German cities. At the same time, this underscores our market access in this product group.’

Schnidrig was confirmed as Corestate CEO for the next four years in March, after taking the role on an interim basis over Christmas. His appointment follows the unexpected exit of previous incumbent Michael Butter.



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