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Generali and ECE complete €500m Munich shopping centre purchase

By May 9, 2023 No Comments

Joint venture had entered exclusive talks with Nuveen last September.

  • What: Generali Real Estate and ECE Real Estate Partners have bought the Pep shopping centre in Munich
  • Why: It is one of the top five shopping destinations in Germany
  • What next: The partners will continue to raise the sustainability level of the property

Generali Real Estate and ECE Real Estate Partners have completed their purchase of the Pep shopping centre in Neuperlach, Munich as part of a 50/50 joint venture from Nuveen Real Estate, for a price reported to be around €500m.

React News first revealed that the deal had been signed in February, and that the joint venture had entered exclusive talks last September, beating underbidders Union Investment and Deka.

Generali has acquired 50% of the shares for the pan-European Generali Shopping Centre Fund, which is reserved for institutional investors. ECE has taken the remaining 50% for its ECE Progressive Income Growth Fund.

Nuveen was investment adviser to the TIAA-CNP partnership, which held the property as part of a joint venture.

The centre is one of the top five shopping destinations in Germany. It has a lettable area of around 70,000 sq m (753,400 sq ft), an annual turnover of more than €250m, and attracts around 12m shoppers each year. Current tenants include Primark, Edeka, Kaufland, Müller Drogerie, H&M and Saturn, and the site was modernised and expanded between 2016 and 2018. ECE Marketplaces has managed the centre for more than 30 years.

Aldo Mazzocco, chief executive of Generali Real Estate, said: “The acquisition of Pep is the second important investment for our pan-European Shopping Centre Fund and fully follows the investment strategy we established five years ago for the retail asset class: to invest very selectively and carefully in shopping centres that optimally represent the so-called dominant, destination, diversified
segment. The Pep is a strong addition in central Europe to our international portfolio, alongside Puerto Venecia in Zaragoza and CityLife Shopping District in Milan.”

Volker Kraft, managing partner at ECE Real Estate Partners, added: “The Pep shopping centre stands out as a winner in the increasingly polarising shopping centre landscape. As such, it is an excellent fit with our ECE Progressive Income Growth Fund, which comprises a €2bn portfolio of outstanding shopping centres in Europe.”

The shopping centre has been awarded a BREEAM rating of Excellent for operations and an overall BREEAM rating of Very Good. The new owners intend to further improve on the sustainability standing of the property.

Axis Retail Partners, part of Generali Investments’ group of asset management companies, advised Generali Real Estate on the deal.
CBRE and local broker Ambas advised Nuveen on the sale of Pep.

30 Mar 2023 | by Stuart Clelland (React News)