Burberger has successfully completed a transaction in the local supply property segment. An EDEKA market in Felde, near Kiel, was sold to an institutional investor. The brokering took place within the framework of a sole mandate that a family office had granted to Burberger.
The property in question is located at Hasselrader Weg 2-6 and comprises a plot of land of approximately 10,000 square metres. The total usable area of the property amounts to around 3,100 square metres. EDEKA acts as the long-term anchor tenant at this location, which secures the stability of the returns.
The property generates an annual net rent of over half a million Euro. A key characteristic of this property is the long-term tenant security, which is reflected in a weighted average remaining lease term of approximately nine years. These conditions underscore the attractiveness of the investment for institutional capital providers.
Transaction Details
The purchase price for the property was 7.75 million Euro. The successful bringing together of the interests of the seller and investor in a market environment currently considered challenging was made possible by the specific characteristics of the property.
Michael Schikora, authorised signatory at Burberger, commented on the transaction by noting that local supply properties can be successfully brokered even under challenging market conditions, provided that the seller, property, and investor exhibit complementary requirements and offerings. In Felde, it was possible to effectively connect these elements and thus realise the transaction.
The transaction illustrates the continued demand for robust and high-yielding properties in the local supply segment, especially when these are characterised by long-term leases with creditworthy anchor tenants.
