25 Feb OPEN Acquires 1st Asset from Schoofs FWA
Greenman OPEN, Germany’s largest food-retail focused investment fund, has acquired a mixed-use hybrid centre in Tuttlingen, Baden- Württemberg for c. €31.7m, marking the first acquisition from the framework agreement it signed with Schoofs Immobilien, a leading German developer, earlier this year.
The mixed-use asset which will be completed by summer 2021 will be anchored by food retailers, REWE and ALDI, on long-term 15-year leases and contains 70 apartments. This asset is a strong fit for the Greenman OPEN fund, complementing the existing fund portfolio and being well suited to the rapidly changing face of retail. A mixed-use asset, the balance between residential and retail provides the retail tenants with a ready-made customer base in a building which can be adapted to accommodate the latest trends in retail, such as click and collect.
The framework agreement signed between Greenman OPEN and Schoofs in June this year underlines the fund’s successful commitment to developing key relationships with leading players in the food retail market.
Commenting on the acquisition, James McEvoy, Head of Acquisitions at Greenman, said: “We are delighted to complete the acquisition of this exceptionally high-quality retail centre, the first of three assets locked in as part of our framework agreement with Schoofs.
“Our strong relationship with Schoofs has enabled us to continue to do deals and expand the fund’s footprint in challenging times. Our strong acquisition pipeline for the year-end means we continue to be very optimistic in achieving a €1bn AUM for Greenman OPEN by end of Q1 2021.”
“The centre is an exciting opportunity for Greenman OPEN, it provides us with the opportunity to be innovators in the food retail space and develop a model which enables food retail properties to adapt and thrive to changing market conditions. The marriage of food retail and mixed-use is the perfect combination of asset classes that provide long-term income stability, especially in these difficult time.”
Mohamed Younis, CEO of Schoofs Frankfurt comments: “We are pleased to have successfully completed the 2nd deal with Greenman within a year. We find the Greenman to be a very pleasant and reliable business partner.”
The framework agreement includes the acquisition by Greenman OPEN of three newly constructed food retail anchored assets with a total lettable area of 29.651 sqm for €95.5m. We are looking forward to completing the remaining two deals with Schoofs in the first half of 2021.
Greenman OPEN was represented by Berlin-based legal advisors BK-Law.