Savills Investment Management (Savills IM), the international real estate investment manager, has acquired the “Bos en Lommerplein” neighbourood scheme in Amsterdam for EUR 51 million on behalf of its European Food Retail Fund (EFRF) from Lone Star.
The asset is located within the inner ring-road, just a couple of kilometres from Amsterdam’s central station, in a dense urban area going through significant demographic improvement. It comprises approximately 12,000 square metres GLA, with 534 parking spaces. The complex was completed in 2004 and has recently been renovated to create a new central plaza. It is anchored by three supermarkets as well as a number of newly-arrived national retailers.
The food retail-focused German special fund EFRF was launched in December 2020 with capital commitments of EUR109 million from six German institutional investors at first closing. The first investment was a Danish supermarket portfolio of 38 urban assets with a total volume of cEUR140 million. The assets are let to the food discounter Rema 1000 Denmark on a 15 year fixed-term.
While the main fund strategy is to acquire further supermarket portfolios with lot sizes usually starting at cEUR50 million, the fund may also acquire neighbourhood centres, mixed-use urban properties and retail parks under certain parameters. At least 85 per cent of the rental income at portfolio level will come from supermarket/food tenants.
The Fund’s German allocation is relatively low at a maximum of 15 per cent, because the fund is primarily aimed at German institutional investors who are often already invested in comparable German-focused products and are seeking diversification into other European countries.
The defensive food and discount retail segments have shown resilience to disruption. Long-term and inflation-linked leases, tenants with strong credit ratings, extensive immunity to recession and a relatively low susceptibility to e-commerce trends make supermarkets and convenience retail an attractive investment for investors focused on stable, secure, long-term distributions.
Source: savillsim.com on the 14th October