Institutional investors LHI Group has bought Eidelstedt Retail Park, Hamburg from Union Investment in an off-market deal.
The retail park at Hörgensweg 5 in north-west Hamburg has 14,672 square meters of rental space and is 100% let. The anchor tenant is food retailer EDEKA.
Eidelstedt retail park was built in 1967 and extensively restructured in 2005.
It was added to the portfolio of institutional open-ended real estate fund UniInstitutional European Real Estate in 2007. That made it one of its oldest holdings.
Carsten Thiel, Head of open-ended real estate funds at Union Investment, says, “Eidelstedt retail park has generated stable rental income for the fund for around 17 years. The profitable sale demonstrates the resilience of grocery-anchored retail real estate as an asset class and attests to the quality of our commercial property portfolio. This sale is another example of our commitment to active management of the fund. We have further reduced the age of the portfolio and proactively created additional liquidity buffers in a highly dynamic investment environment.”
Laura Roll, Senior Investment Manager Retail at Union Investment, says, “Demand for grocery-anchored retail real estate, which represents a liquid asset class even in the current market environment, is stable. We see this as an opportunity to realise further strategic disposals and diversify our portfolio through selected acquisitions in Europe.”
LHI Group received legal advice from Noerr Partnergesellschaft mbB.
Union Investment received legal advice from Möhrle Happ Luther and tax advice Heuking.
The technical due diligence was provided by WITTE Projektmanagement GmbH. The transaction was brokered off-market by JLL.
