Greenman Double Assets Under Management Following Edeka Sale & Leaseback Deal

As part of Greenman’s continued expansion in the asset management sector in Germany, Greenman have concluded negotiations with number one food retailer, Edeka , in a sale and lease back deal totaling €95 million. The portfolio comprises of Edeka on all 29 units as either a sole or anchor tenant. This brings Greenman’s AUM to over €250 million.

Greenman Investments acquires EDEKA portfolio with 29 supermarkets

  • Purchase price approximately €95m.
  • Joint investment with WCM Beteiligungs- und Grundbesitz AG planned
  • EDEKA is the anchor tenant or sole tenant in all 29 supermarkets
  • Properties predominantly located in Lower Saxony, Saxony-Anhalt and Berlin
  • Greenman doubles its assets under management to €250m.

Greenman Investments (“Greenman”) has acquired a major portfolio from food retailer EDEKA containing 29 properties. The purchase price for the portfolio stands at €95m. EDEKA is the sole or majority tenant in all shopping centres and supermarket properties. All rental agreements were either renegotiated or extended and have an average remaining term of 15 years. The store space of all properties totals roughly 77,500 sqm. The vast majority of the properties are located in Saxony-Anhalt (14 properties) and Lower Saxony (ten properties). Five properties are spread across North Rhine-Westphalia and Berlin.

This transaction sees Greenman double its assets under management to €250m: “We are delighted to have secured such a large portfolio of such great quality,” said John Wilkinson, CEO of Greenman, after wrapping up the transaction. “This transaction is the result of twelve months of intensive negotiations between Greenman and EDEKA Minden-Hannover. Greenman has formed a new compartment within its Luxembourg-registered special fund, through which the portfolio is being acquired before being housed under the newly created “Income ONE” fund. WCM Beteiligungs- und Grundbesitz-AG (“WCM”) has an option to acquire a majority share of the portfolio.

“We have been able to join forces with an experienced investor in the shape of WCM,” added Wilkinson. “We are very optimistic that this will become a successful, long-term partnership.” Both Greenman and WCM are true believers in the attractiveness and positive outlook for Fachmarktzentren (retail parks) as an asset class. The companies’ both gear their business strategies towards long-term, stable cash flows and moderate borrowing. WCM and Greenman are currently reviewing potential for more joint investments.

“We are delighted to have wrapped up this attractive real estate transaction together with Greenman,” said Stavros Efremidis, CEO of WCM AG. “WCM AG finds itself on course to generate significant growth and plans to expand its real estate portfolio moving forward. The solid positions held by Greenman and WCM in their respective segments give us firm foundations from which to successfully extend our partnership.”

“We opted for Greenman because we want to work together with a professional investor with a wealth of experience in managing retail real estate in Germany,” added Volker Stracke, CEO of EDEKA-MIHA Immobilien-Service GmbH. “As we will remain tenants in all of the properties, professional asset management is extremely important to us.”

The portfolio’s 29 properties include three large Fachmarktzentren with store space of 9,000 sqm or more. These three properties account for approximately 41% of the portfolio’s annual rental yields and are rented exclusively to EDEKA. EDEKA will take responsibility for paying the entire rent, and sublet store space to other tenants. Greenman is planning to carry out extensive refurbishments and expand existing store space in five smaller centres with a total store space of between 1,000 and 3,000 sqm.

Law firm Botterman Khorrami LLP, RBS RoeverBroennerSusat and Epsilon Capital all provided Greenman with assistance and expertise in this transaction.