ESSEN, GERMANY-To clear its burdensome debt load, the locally based retailer KarstadtQuelle AG is selling 85 properties to its joint venture with Goldman Sachs International. The deal, which includes department stores, office buildings and parking garages, values the portfolio at $5.39 billion (euro 4.5 billion).

The JV is called the Whitehall Fund. Goldman Sachs owns a 51% stake in the JV and KarstadtQuelle owns the remainder. When the deal closes, KarstadtQuelle says it will receive an immediate cash payment of $4.43 million (euro 3.7 billion), and expects to get an additional $960 million (euro 800 million) from additional appreciation of the assets.

“The complete removal of debt for the company immediately opens new development and growth potential on the basis of a considerably less capital intensive business model,” the company said. KarstadtQuelle’s debt stood at around 4 billion euros at the end of September.

The portfolio includes 49 department stores, 29 parking garages and 15 office buildings. KarstadtQuelle is leasing back the properties in a long-term basis. Two of the department stores in the deal are Alsterhaus in Hamburg and KaDeWe in Berlin. The transaction is subject to approval of KarstadtQuelle’s supervisory board.

In addition to this deal, KarstadtQuelle says it expects to generate another $718 million (euro 600 million) in revenue from property sales in the coming months. The for-sale properties include office buildings, land and other assets.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.