Savills Investment Management (Savills IM), the international real estate investment manager, has sold a retail park in Leutkirch, Germany. The retail park was acquired by Redevco on behalf of its European Retail Parks Fund. The property, “Bahnhofsarkaden”, was part of the portfolio of the Savills IM European Commercial Fund (ECF), which was launched in 2008. The pan-European fund, which is diversified across the office, retail, and logistics sectors, now holds 18 properties in ten countries following the sale. Various German institutional investors are invested in the fund.
Source: CBRE
The property sold is a retail park located in the Baden-Württemberg region of the Allgäu, approximately 140 kilometers southwest of Munich. Five building components comprise a total rental area of around 13,000 sq m, with 347 outdoor parking spaces available. Anchor tenants include REWE (supermarket), Lidl (discount supermarket), dm-drogerie markt (chemist), and Woolworth. At the end of 2024, the non-food discounter Action was also secured as a new tenant.
Norbert Stangelmayer, Director Fund Management at Savills IM, says:
“Through active management of the retail park, we were able to achieve attractive performance and stable distribution yields throughout the entire holding period. Given the continued demand for retail parks, we have now successfully sold the property. The sale forms part of the strategic management of our ECF, within which the allocation to the logistics segment is intended to be further increased.”
Tim Ulrich, Head of Transaction Management Germany, Austria & Switzerland at Savills IM, adds:
“Even though the real estate investment market remains generally subdued, we are seeing individual compelling opportunities. For various funds and mandates, we are actively seeking additional properties in Germany and across Europe that benefit from positive economic and demographic trends and meet high sustainability standards. Our focus is clearly on the logistics, residential, grocery retail, and office sectors. We will also continue to take advantage of opportunities for strategic disposals as they arise.”
CBRE, Hogan Lovells, Real Estate Struccess and Multi Germany GmbH advised Savills IM on the transaction.
