Redevco purchases retail park in southern Germany

European real estate investment manager Redevco has acquired the 13,000 m2 Bahnhofsarkaden Leutkirch in southern Germany from Savills IM. 

Retail park in Leutkirch, Germany - CBRE

This acquisition is a strategic step in building the portfolio for Redevco's recently launched European Retail Parks (RERP) Fund.
The Bahnhofsarkaden Leutkirch, constructed in 2007, is the RERP Fund's first German asset. It features a total rental area of 13,025 m2 and over 300 parking spaces. The property has a 94% occupancy rate, secured by long-term leases from a diverse mix of 14 high-quality, nationally recognised tenants, including Rewe, Lidl, AWG, dm, Woolworth, Action, and Viva Fitness.
Currently holding a BREEAM "Good" sustainability certification, there are plans to upgrade the property to "Very Good." Ongoing initiatives include connecting to the local district heating network, converting all lighting to LED, and a feasibility study for installing rooftop or carport photovoltaic systems.
The retail park benefits from an attractive macro location in the Allgäu region, situated between Memmingen and Lindau, directly on the A96 motorway. This area boasts a catchment of approximately 140,000 people with above-average purchasing power and positive demographic trends. The location offers excellent accessibility from the city centre on foot and direct connections to the train station and federal road B465.
Markus Haimerl, director transactions DACH, at Redevco, commented: "The German market plays a key role in the strategic regional diversification of the fund’s portfolio. The property perfectly aligns with the Fund’s acquisition profile, targeting established locations with creditworthy tenants and solid building structures, which we can further enhance through active asset management."
McDermott Will & Schulte, Drees & Sommer, PwC, BNPREC, and Cushman & Wakefield advised the buyer, while CBRE acted as intermediary for the seller.