Sistema Capital Partners/CORESTATE JV Secures Euro105 Million Retail Deals in Flensburg and Lübeck to take German High Street Acquisitions to Euro350 Million for Sistema-Led Club
The international private equity real estate investment joint venture of Sistema Capital Partners (SCP) and CORESTATE Capital Holding S.A. (CORESTATE) has acquired two high street properties for a total of Euro 105 m. The properties are located in Flensburg and Lübeck, two affluent and economically dynamic cities on Germany’s Baltic coast. The investments will be 70% debt-financed and lift the JV’s total volume of retail real estate deals in Germany on behalf of a Sistema-led club of investors to Euro 350m.
The two properties, acquired from different vendors, are located in prime locations of the mid-sized cities. The property in Lübeck is located in the city centre close to the main train station, while the property in Flensburg is based in the pedestrianised precincts. Occupying their combined total gross lettable area (GLA) of 37,000 sqmare tenants that include Saturn, TK Maxx, Mc Fit and Holmes Place.
Marjorie Brabet-Friel, SCP’s Chief Executive Officer, said: “SCP and CORESTATE were early to spot the opportunities in High Street retail in mid-sized German cities and the latest investments are larger and more prime in character than those previously transacted by our joint venture. These properties are located in the dominant retail destinations of their local markets and offer scope for active asset management, fitting squarely with our value-add strategy of targeting highly liquid assets in economically strong locations.”
SCP was established by Russia’s listed diversified holding company Sistema JSFC in 2015 to invest Sistema’s own capital alongside other like-minded institutional and high net-worth investors from around the world through a club deal structure that allows hands-on control of the assets. CORESTATE is a fully integrated real estate investment manager based in Luxembourg and is co-investing in and co-managing the German assets acquired by the JV platform.
Sascha Wilhelm, Chief Executive Officer of CORESTATE, said: “Retail in mid-sized German cities often serves a large catchment area as a magnet for an entire region and properties in pedestrian zones in these centres are particularly attractive investments. Our in-depth local knowledge of the German market, combined with Sistema’s expertise, have proved to be a successful combination in identifying and securing this type of investment opportunities.”
Sistem Capital Partners
Sistema Capital Partners is a dedicated private equity real estate platform owned by the Sistema Group, the largest publicly traded diversified holding company in Russia and the CIS with around $19 billion in total assets under management www.sistemacapitalpartners.com
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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