Schroder Real Estate acquries convenience retail centre in Frankfurt
Schroder European Real Estate Investment Trust (SEREIT) has acquired a multi-let convenience retail property located in Frankfurt, Germany for €11 million, reflecting a net initial yield of close to 6%.
The property is a multi-let retail scheme comprising 4,525 square metres. The asset was built in 2004, refurbished in 2015 and is located in the growing inner urban region of Frankfurt am Main. The investment is anchored by a 1,600 square metre Lidl supermarket and the combined weighted average unexpired lease term of all tenants is approximately 8 years. Long term asset management opportunities exist to change the retail mix and improve footfall.
Tony Smedley, Head of Continental European Investment, Schroder Real Estate said:
“This is the fifth investment for the Schroder European Real Estate Investment Trust since it listed in December 2015. Convenience retail in growth cities is a key target of SEREIT given its relative resilience in a rapidly changing retail environment. The acquisition is fully in line with the strategy of investing in income producing assets in major cities with the potential for long term growth.”