Henderson buys German retail shed for €30m

Nathan Cross 10/03/2010 11:12

Henderson Global Investors’ €900m pan-European retail property fund, Herald, has bought the Real Hypermarket & Gallery, a retail warehouse park in Giessen, Germany, for €30m.

The fund bought the property from the Metro Group, with the transaction reflecting a yield of around 8%.

Henderson said the 193,700 sq ft property is fully let to 16 tenants and is anchored by a Real Hypermarket and Saturn, a major German specialist electrical retailer.

The recently refurbished asset is situated close to major highways near Frankfurt, the largest city in the state of Hesse and Germany’s financial capital.

David Turner, Herald’s fund manager, said: "Deals of this nature in Germany, where the income is secured on long leases to strong covenants, offer very attractive initial yields when compared to other core European markets.

“The attraction is further enhanced by the favourable finance terms available from German banks.”

nathan.cross@estatesgazette.com

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