"This partnership with Rahlfs enables us to participate in German retail development with a group that has local-market expertise as well as decades of success with this real estate product type," says Michael Cohen, SVP of Behringer Harvard and head of international investments.
The JV won't stop with the initial six buys. It's formulating plans to make additional purchases to create a large retail portfolio for the program's five-year holding period, according to Behringer Harvard officials.
"The investors in this portfolio are interested in achieving geographic and industry diversification for their real estate investments through exposure to the discount retail market in Europe's largest economy," Cohen says.
Three of the assets are complete developments, while the remaining three are due to come online within the next years. Jason Mattox, chief administration officer for Behringer Harvard, tells GlobeSt.com, the properties are as yet unnamed and are located in the cities of Bovenden, Halberstadt, Bad Nenndorf, Duingen, Lindwedel and Holle.
"This venture also allows us to leverage our local partner's established relationships with the top retailers in Germany," Cohen says.
Tenants in the portfolio include grocers like Leigh Richmond's Netto, Edeka's NP and the REWE Group's Penny Market. Additionally, Rossman, a health and beauty product supplier, and discount apparel retailers Ernsting's family and KiK are located in the properties.
Behringer Harvard is both the mezzanine lender and equity partner on the portfolio.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.