Redevco, a European real estate manager with approximately 10.5 billion Euros in assets under management, has expanded the portfolio of its Redevco European Retail Parks (RERP) fund. With the acquisition of Elisen Park Greifswald in Mecklenburg-Vorpommern, the company has secured its third German property for this fund. The transaction was completed with PATRIZIA SE.
Since its opening in 1993, Elisen Park has established itself as a central retail location in Greifswald, serving a wide catchment area in the Vorpommern region. The property, located on the south-eastern outskirts of Greifswald, benefits from excellent transport links to the B109 and the A20. Approximately four million visitors frequent Elisen Park annually. Spanning a retail area of over 39,000 square metres, the centre currently houses more than 40 tenants from various sectors, with an occupancy rate of around 90 per cent.
Long-term anchor tenants include renowned companies such as DIY chain OBI, food retailer Kaufland, electronics store MediaMarkt, and drugstore chain Rossmann. Markus Haimerl, Director Transactions at Redevco, emphasised that Germany represents a core market for RERP and the retail park strategy. This acquisition not only increases the weighted average unexpired lease term (WAULT) in the fund portfolio but also strengthens its commitment to the German market. He highlighted the importance and potential of the property, describing it as a valuable addition to the portfolio.
Strategic Optimisation and Value Creation
Israel Casanova, Investment Director of the Redevco European Retail Parks Fund, added that the asset benefits from a strong presence of local suppliers and convenience offerings, ensuring continuous footfall. This results in a resilient and defensive yield profile. Daniel Dreyer, Head of Investment Management DACH at PATRIZIA SE, explained that the sale represents the successful conclusion of a long-term investment strategy. PATRIZIA's asset management successfully transitioned the leasing structure from a master lease model to individual lease agreements with a diversified tenant mix, thereby sustainably optimising the cash flow profile. This has led to value creation for investors and an attractive exit result.
Sustainability and Outlook
The core-plus/value-add property underwent extensive modernisation in 2024. Redevco plans to further optimise the value and ESG performance of the property and aims for a BREEAM Excellent certification. Measures envisaged include the complete modernisation of the roof, the installation of photovoltaic systems, and the equipping of parking areas with charging points for electric vehicles. With this transaction, the Redevco European Retail Parks fund has invested approximately 80 per cent of its available capital into 14 properties across five countries. Further acquisitions are in preparation to fully invest the fund. As a leading investor in retail parks in Europe, Redevco is continuously expanding its portfolio in this segment, which currently comprises around 5.5 billion Euros in AuM.
- —On the seller's side, PATRIZIA SE mandated CBRE (broker), K&L Gates (legal advice), and TA Europe (technical due diligence).
- —Redevco was advised on the transaction by REIUS (legal advice), Goldbeck and SVB Schaub (technical due diligence), Terraplan (environmental due diligence), JLL (valuation), BNP Paribas RE (commercial due diligence), and PwC (tax and structuring).
