AEW, a global real estate investment and asset manager, has announced the acquisition of a supermarket in Frankfurt am Main. The property is fully leased long-term to the food retailer REWE. This acquisition was made as part of an individual mandate for a German municipal utility company, which focuses on core properties within Germany.
The retail property in question was completed in 2017 and has a rental area of approximately 3,100 square metres. Additionally, 90 car parking spaces are available. A remaining lease term of approximately eleven years provides high income security for the investor. REWE, as one of Germany's leading food retailers with a network of over 3,800 branches nationwide, has been using the property since its completion and offers a comprehensive product range there.
Location and Market Significance
The location, originally established as a retail site in 1972, is situated in the western part of Frankfurt's Eckenheim district. This location is approximately five kilometres north-east of the city centre. The property is positioned between Jean-Monnet-Strasse and Karl-von-Drais-Strasse and benefits from its strategic connection to an access road to the A661 motorway. In the relevant catchment area with approximately 45,500 inhabitants, this supermarket is the only full-range provider.
AEW manages a total real estate portfolio of 2.3 million square metres in Germany, encompassing the asset classes of retail, logistics and office. Within the retail segment, the company possesses proven expertise, evident in the management of over 110,000 square metres in Germany and a total of 1.8 million square metres in Europe.
Tobias Schnurer, Executive Director Investments Germany at AEW, noted that the acquisition of this supermarket secures a retail property with proven performance, high income security, and stable returns, supported by a tenant with investment-grade creditworthiness. He highlighted that the transaction underpins AEW's market presence, execution capabilities, and long-standing, research-based conviction regarding high-quality retail properties. The company continues to actively pursue a pipeline of further investment opportunities across various asset classes and locations.
During the transaction process, AEW was advised by the consulting firms Rotthege, Luther, TA Europe and Blank Real Estate.
