Cornerstone Real Estate Advisers, Europe (formerly Protego Real Estate Investors) completed its first acquisition in Germany since it took over the management of the Cornerstone German Retail Fund in 2008.
The property is an 8,500-m² supermarket in Wuppertal let to Real, a subsidiary of the Metro Group, until 2026. Cornerstone acquired the asset from GWB Vermögens- und Grundbesitzverwaltungsgesellschaft mbH, a subsidiary of GWB Immobilien AG, a German listed company. The purchase price reflects a net initial yield of circa 8%.
The fund’s investment manager, Calum Barclay, described the deal as, “a significant step forward for the fund,” adding, “this deal epitomizes the funds’ strategy which we are pursuing after a period of relative inactivity in the market. It demonstrates our ability to add value for our investors, achieving higher returns with limited risk.”
Cornerstone acquired the property simultaneously to agreeing a refurbishment plan with the tenant in exchange for a new 15 year lease.
The Cornerstone German Retail Fund is a euro denominated fund domiciled in the Netherlands, which targets German retail property with value enhancement opportunities. The fund’s target return on equity is 16% per annum, net of all costs.