Delivering successful retail investment. We know how.
“We have the largest retail portfolio in our peer group, thanks to our robust investment remit for retail properties and strong expertise in implementing investments quickly and reliably together with our partners. We have the necessary skills and experience to handle everything from smaller retail parks to dominant European shopping centres.” Henrike Waldburg Head of Investment Management Retail / Union Investment
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Geographic distribution of shopping centre portfolio
Sweden Properties: 1 Sisjo Entré, Gothenburg
Poland Properties: 6 Riviera, Gdynia 3 Stawy, Kattowitz Manufaktura, Łódź Focus Park, Rybnik Sarni Stok, Bielsko-Biala Ferio Konin, Konin
Netherlands Properties: 2 Twentec, Enschede De Klanderij, Enschede Belgium Properties: 3 Les Grand Prés, Mons K in Kortrijk Feest en Cultuurpaleis, Ostend France Properties: 3 Saint Martial, Limoges Centre Commercial Géant, Bordeaux Issy 3 Moulins, Paris Issy-les-Moulineaux
Czech Republic Properties: 1 Palladium, Prague
Italy Properties: 4 Centro Commerciale Auchan di Monza, Monza Centro Commerciale Carrefour di Pavia, Pavia Casal Bertone, Rome Le Terrazze, La Spezia Spain Property: 1 Área Sur, Jerez de la Frontera
Austria Properties: 1 Bühl Center, Krems
Deutschland Properties: 21 Fördepark, Flensburg Quer Passage, Kiel Sophienhof, Kiel MERCADO, Hamburg Geschäftshaus Ottensen, Hamburg Karstadt Wandsbek, Hamburg Wandsbek Quarrée, Hamburg Bethanien-Center, Neubrandenburg ALEXA, Berlin Spandau Arcaden, Berlin Limbecker Platz, Essen Rheinpark-Center, Neuss Köln Arcaden, Cologne Chinon-Center, Hofheim a. Taunus Europa-Galerie, Saarbrücken RHEIN-GALERIE, Ludwigshafen Das ES!, Esslingen Breisgau-Center, Freiburg LAGO, Constance StadtQuartier Riem Arcaden, Munich CityQuartier Fünf Höfe, Munich
Turkey Properties: 4 Forum Kayseri, Kayseri Forum Mersin, Mersin Media Markt, Istanbul Media Markt, Izmir
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Retail property exposure to be extended further Stable cash flows make retail properties a popular investment target for investors. We have secured a strategic position in this growing market segment due to our long-standing involvement in the sector. We invest in a broad range of retail properties worldwide and aim to extend our exposure to this asset class in the future.
For decades now, retail properties have been among the most sought-after acquisition targets for our fund managers, who value their stable contribution to performance. We currently manage a shopping centre portfolio comprising 47 properties in 11 countries with a total value of some EUR 7.6 billion, a figure which equates to almost 28 % of our real estate assets. The total retail portfolio is worth EUR 8.4 billion and comprises 30.9 % of holdings. Our major funds, particularly UniImmo: Deutschland and UniImmo: Europa, are already heavily invested in retail products, with the share set to rise further. In addition, our institutional funds likewise have significant exposure to retail properties. Since 2011 institutional investors have also had the ability to invest specifically in this growth segment via our special UII Shopping Nr. 1 fund.
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Broad investment universe Our extensive range of funds translates into a correspondingly broad investment remit which we fulfil via an opportunistic acquisition strategy. We:
• invest in large, dominant shopping cen-
tres, such as Palladium in Prague and Manufaktura in Łódź.
• are also interested in joint ventures, in add
• invest right across Europe and intend to in-
crease the proportion of our retail properties in other European countries in the future. At the same time, global markets remain relevant, with North America being one focus of our investment strategy. We will also continue to monitor global opportunities.
• actively manage our portfolio of retail proper-
ties and take advantage of selling opportunities.
ition to sole investments.
• selectively diversify our portfolio by including smaller properties such as neighbourhood shopping centres, strong, established retail parks and European commercial buildings from EUR 15 million upwards.
• also use forward funding and forward purchase agreements for early involvement in development projects using forward funding or forward purchase.
We make the difference All this is made possible by a team of highly specialised retail experts who know their markets and work closely with all relevant players. They are supported by proven asset management skills and an excellent investment process that allows maximum agility and reliability. So let’s talk!
Knowing how retail works Shopping centres are operator-managed properties that have their own very specific challenges. Accordingly, we ensure that all of our retail property investments are handled by dedicated specialists – experienced industry experts with excellent contacts who manage every transaction from beginning to end. Worldwide.
Insights that matter We have a detailed understanding of the challenges associated with special-purpose properties. Our team combines long-term experience of the retail industry with strong real estate and financial market expertise. We are aware of the critical issues and take steps early on to ascertain the efficiency and profitability of a shopping centre. This preliminary analysis speeds up the subsequent processes and gives our partners a high degree of transaction reliability. We have built up an extensive network of Euro pean transaction partners over the years as a result of our strong focus on key account management and wide range of successful projects. From large portfolio holders to institutional shopping centre developers and operators, we are in touch with major players and engage in regular dialogue with them. This involves not only operating out of our Hamburg office, but also regularly visiting local markets and analysing the
situation on the ground. Our team’s clearly defined regional responsibilities guarantee a high level of expertise along with continuity and reliability, thereby providing a solid basis for longterm partnership. Recognised for excellence
(Essen) and ALEXA (Berlin) shopping centres the best in Europe in the category “Established Centres”. More recently, the LAGO Center (Constance) received the German Brand Award 2016.
ALEXA, Berlin, Germany
Modern shopping centres need to be much more than just a collection of shops if they want to remain attractive over the long term. A high-quality user experience, an innovative mix of tenants and upmarket eateries are essential components. To ensure ongoing relevance, we also monitor social trends and developments very closely. The outcome is that our shopping centres are vibrant marketplaces – featuring restaurants, cinemas and many other leisure facilities that enhance the diverse range of shopping opportunities. The outstanding quality of our portfolio is regularly recognised within the industry. In 2014, for example, the ICSC named our Limbecker Platz 5
Our investment criteria Applying our demanding retail property standards and relevant expertise has allowed us to build a portfolio over the past decades that is both high quality and strongly profitable. We aim to strategically develop this segment further in the future. Clear criteria dictate the direction.
General investment criteria
Specific investment criteria
• Volume of investment:
Shopping centres: from EUR 30 million Commercial buildings: from EUR 15 million Retail parks: from EUR 15 million
• Type of transaction: asset deals and share deals
Shopping centres Shopping malls (projects and existing developments) Shopping centres with financially sound tenants and predominantly retail use, rental space usually > 25,000 sqm, in catchment areas of approx. 250,000 people Investments from EUR 30 million
• No properties with limited suitability for
third-party use due to structural constraints / property age (specialist properties)
• Acquisition of early-stage development pro-
jects also possible; acceptance of letting risk in some cases
Commercial buildings Urban retail properties (e.g. department stores, properties on main shopping streets, commercial / retail buildings, shopping arcades) in premium locations and pedestrian zones in areas with a population of 100,000 plus in Europe (excl. Germany) and worldwide Investments from EUR 15 million Retail parks Very well positioned retail parks with a minimum size of 10,000 sqm Investments from EUR 15 million
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Our shopping centre portfolio – a snapshot Key figures for our shopping centre portfolio
Sophienhof, Kiel, Germany
Le Terrazze, La Spezia, Italy
Manufaktura, Łódź, Poland
RHEIN-GALERIE, Ludwigshafen, Germany
• 47 existing shopping centres • Current valuation: approx. EUR 7.6 bn • Number of shops: approx. 3,900 • Number of restaurants / food outlets: 500 • Net sales in 2015: EUR 3.8 bn • Total rental space (existing shopping centres): approx. 1.61 million sqm
Limbecker Platz, Essen, Germany
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Applied expertise Das ES!, Esslingen, Germany
De Klanderij, Enschede, Netherlands
Feest en Cultuurpaleis, Ostend, Belgium
In 2015, we acquired our first shopping centre in the Netherlands for special fund UII Shopping Nr. 1. Completed in 2004 and located on Van Heekplein, the main square in the heart of Enschede, the property comprises approximately 20,000 sqm of retail space and 54 stores. But De Klanderij also boasts other credentials: It is one of the Netherlands’ most sustainable shopping centres, and in 2014 became the first mall to be awarded a BREEAM NL rating of Very Good.
Das ES!, Esslingen, Germany The Das ES! retail complex was opened in 2002. It enjoys an attractive inner-city location in Esslingen and attracts some 6.5 million visitors a year. In January 2015, we were able to secure the successful shopping centre for our Unilmmo: Deutschland fund. With 23 shops across more than 23,000 sqm of retail space and a tenant mix comprising local and international brands, the property is ideally aligned with local demand and offers the prospect of stable income. Das ES! also has a catchment area with a diverse and growing economy.
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De Klanderij, Enschede, Netherlands
Feest en Cultuurpaleis, Ostend, Belgium In spring 2015, we acquired the Feest en Cultuurpaleis centre in Ostend, likewise for the UII Shopping Nr. 1 fund. The vendor was IVG Institutional Funds and the acquisition was structured as a share deal. Fully refurbished in 2007, the shopping centre comprises over 5,633 sqm of retail space and 17 stores, including major chains such as H&M, Esprit and Vero Moda. The property is situated in the heart of the north Belgian coastal town. It benefits from excellent visibility and a sought-after, central location on Wapenplein Square and Kapellestraat.
SALE
Palladium, Prague, Czech Republic
Äppelallee-Center, Wiesbaden, Germany German retail properties are sought-after investment targets. We are currently exploiting favourable market conditions to proactively realise selling opportunities and further develop our portfolio. The most recent example of this activity is the Äppelallee-Center in Wiesbaden. The retail park features approximately 26,000 sqm of rental space and is located in one of the strongest locations in the Wiesbaden / Mainz region, benefiting from outstanding transport links. The fully let property was sold in 2015 after a holding period of just five years.
Palladium, Prague, Czech Republic By acquiring a property company we secured the Palladium shopping centre in Prague at the end of 2014 / beginning of 2015, thereby concluding a deal that was significant not just because of its size. Completed in 2007 and offering total rental space of 58,473 sqm, of which some 39,000 sqm is dedicated to retail and 18,000 sqm to office use, the complex is the largest shopping centre in Prague’s retail district. Located in the heart of Prague’s historic city centre, Palladium offers a unique retail and service proposition that draws customers from across the region and beyond. It has developed into a real retail magnet, with its broad mix of tenants attracting some 15.6 million visitors to the centre in 2013 alone.
Ferio Konin, Konin, Poland
Ferio Konin, Konin, Poland Ferio Konin is the dominant shopping centre in the central Polish city of Konin, which has a catchment area of around 360,000 people. Opened in 2008 and expanded in 2013, we acquired the shopping centre in spring 2016 for our fund UII Shopping Nr. 1. The centre comprises 74 retail units with a selection of specialist retailers as well as a broad range of well-established national and international fashion brands across a floor area of almost 35,600 sqm. Anchor tenants include H&M, C&A, Deichmann and Mediamarkt. The mall also features a supermarket and a hardware store. Ferio Konin has excellent transport links and over 1,000 parking spaces.
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Your contacts Henrike Waldburg Head of Investment Management Retail Phone: + 49 40 349194154
[email protected]
Dirk Hoenig-Ohnsorg
Klaus Mennickheim
Senior Investment Manager
Senior Investment Manager
Germany, Belgium, France, Netherlands, Portugal, Turkey
Germany, Austria, Italy, Scandinavia, Spain
Phone: + 49 40 349194195
Phone: + 49 40 349194042
[email protected]
[email protected]
Jens Nagelsmeier Carolin Hogrefe Senior Investment Manager Germany, Central and Eastern Europe, Ireland, UK
Junior Investment Manager
Phone: + 49 40 349194215
Phone: + 49 40 349194039
[email protected]
[email protected]
All information current at 30 June 2016.
Union Investment Real Estate GmbH Valentinskamp 70 / EMPORIO 20355 Hamburg, Germany www.union-investment.de/realestate
