FIM sees further scope in €86m grocery-based assets

FIM Group’s €86.4 million purchase of a portfolio of substantially food-anchored retail properties in Germany underlines the current popularity of the retail type which has been badged “essential” during Covid lockdowns.

The portfolio was acquired from M7 Real Estate in an off-market deal on behalf of a fund, M7 Islay. The 72,594 sq m portfolio comprises 27 properties and is 92% let to occupiers including Lidl, Netto, Edeka, Rewe, Dänisches Bettenlager and SIEMES Schuhcenter. The largest single asset is on Hildesheimer-Strasse in Hannover and comprises 10,710 sq m of space.

Enhancement in prospect

FIM says that it sees further opportunities to enhance the portfolio: “We want to continue the path already taken by M7 by optimising individual properties,” said FIM Group managing director Jan Lerke. “The retail package is particularly interesting for us because of the individual locations in major cities such as Hanover or Saarbrücken,” Lerke added.

M7 built the portfolio between 2015 to 2016 and has increased its occupancy level from 80% to 92%.

Asset in Kassel which FIM acquired as part of the purchase from M7.

Alyssa Huse, managing director, of M7 Real Estate in Germany, said the sale, “is in line with our business plan and has delivered attractive returns for our investors.”

Writing recently in Living Retail, Johnnie Wilkinson, CEO of investment fund manager Greenman, gave his views on the changing role of grocery-based retail investments, particularly in Germany, and explained how “non-essential” uses can be redeployed during the current pandemic.

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