Gutenberg Capital acquires retail property in Berlin

Savills sells a hypermarket in Berlin-Spandau to Gutenberg Capital, the investment company of the LEOFF Group.

The Kaufland-Center in Berlin-Spandau (formerly the Britannia Center) was built in 1991 and acquired for the ERF in 2013 following complete modernisation and expansion. It comprises more than 9,000 square metres of rental space and 480 parking spaces. The space is fully let on a long-term lease to a hypermarket operator and a pharmacy. The property has a BREEAM in-use rating of “good”.

Spandau is the westernmost district of Berlin with around 230,000 inhabitants. The local population, which has grown significantly in recent years, will continue to develop positively, partly due to the remodelling of the old Siemensstadt industrial site, giving the location an extensive and growing catchment area.

Tim Ulrich MRICS, Head of Transaction Management Germany at Savills IM, says: “Although the general economic environment has deteriorated significantly, properties focussing on food retail are still an attractive segment. The appetite for such centrally located properties in economically attractive regions with long-term leases to leading food retailers is still there among investors with a strong equity base – after all, they have proven their resilience even in difficult times, such as during the Covid pandemic.”

Helmut Jahn, Portfolio Manager, Investment at Savills IM, adds: “The property has seen strong growth in value in recent years due to the immense market demand for core properties with anchor tenants from the food retail sector. We have taken advantage of the continued robust demand and the long remaining lease term to sell the property and thus realise the value appreciation that has taken place over the years for our investors.”