Mainz-based ambas Real Estate GmbH is reporting a significant increase in its transaction turnover in the retail property sector in the current financial year. Four large-volume deals have already been concluded, surpassing the previous year's full-year result. These transactions include three core-plus properties in the shopping centre and outlet mall segments, as well as a value-add transaction involving neighbourhood retail parks. The cumulative rental space of these properties amounts to 105,000 square metres. For the full year 2025, an area of 110,000 square metres is forecast.
The company also has further retail spaces totalling over 200,000 square metres on the market, including shopping centres, retail parks and inner-city high street properties. The transactions concluded to date are located in Germany and Southwestern Europe. The average transaction volume stands at approximately EUR 80 million, with the properties demonstrating an average occupancy rate of 98 per cent.
Market conditions and investor behaviour
A current example of ambas' successful activity is the sale of FORUM ALGARVE in Faro, Portugal, which had a volume of approximately EUR 130 million. Ambas acted as exclusive sales advisor for Commerz Real. Klaus Mennickheim, Managing Partner at ambas Real Estate, commented on the current market conditions, highlighting the challenging market environment. However, he emphasised an increasing number of investors actively considering acquisitions. He noted that market liquidity was growing, and successful transactions emerged when the property profile, asking price and buyer group aligned.
According to ambas, demand is not exclusively focused on a single retail segment; rather, the retail property asset class, across its various sub-segments, is once again attracting investor interest. However, products differentiate themselves: income-stable neighbourhood retail properties differ significantly from department stores requiring restructuring in terms of buyer base, yield expectations, and financing conditions. Shopping centres and outlet malls, meanwhile, exhibit similar financing profiles.
Buyer profiles and future prospects
For large-volume transactions in Germany, ambas is currently encountering primarily international buyer groups from Europe and North America. They prefer resilient cash flow properties with moderate rental growth potential, as well as price-corrected property portfolios at attractive entry prices compared to the previous market cycle. Günter Kaufmann, also a Managing Partner at ambas, observes the greatest activity in the ticket range of EUR 25 million to EUR 100 million. Opportunistic investor groups with newly launched fund vehicles are also engaged in larger retail transactions in this segment, for both individual properties and portfolios. He pointed out that achievable market prices in the coming twelve months must reflect the uncertain macroeconomic environment and increased interest rates.
Ambas anticipates significant interest in discussions at the upcoming EXPO REAL. Interest rate development, financeability, and price discovery remain central themes. Simultaneously, specific acquisition profiles and properties are increasingly being discussed. Steffen Hofmann, founder of ambas, stated that this year's EXPO would see significantly more discussion about concrete transactions. The debate about when the property transaction market as a whole would rebound has evolved. While this does not mean that all processes will be straightforward, the willingness to seriously engage with interesting opportunities and to execute transactions is once again more pronounced.
