AIF Capital acquires two grocery stores for closed-end retail fund

Stuttgart, August 9th, 2022 – The real estate manager and specialist for regulated alternative investment funds AIF Capital has acquired two projected retail stores in Neuss and Ebhausen. Both properties already have long-term leases with well-known tenants with strong credit ratings. For several of its funds, the Stuttgart-based company invests primarily in commercial properties in the food retail and drugstore sectors and, together with the two acquisitions, currently manages more than EUR 200 million in real estate assets in this segment.

The project development in Neuss involves the realization of a full-range grocery retailer with a total leasable area of around 2,500 m2. The project development site with heritable building rights is located at Gielenstrasse 71 on the border of the city center district and has a total area of around 4,200 m2 . The seller is a private owners’ association.

The retail space, including an attached bakery outlet and a florist’s store, extends over the second floor, while parking areas with an expected 12 outdoor car parking spaces, 71 open parking garage spaces and 34 bicycle parking spaces will be created on the first floor. The building takes into account the aspect of sustainability with a comprehensive greening of the facade. Construction completion is scheduled for the third quarter of 2023. There is a long-term lease agreement with an additional extension option with the Edeka Group. Neuss is located west of Dusseldorf in North Rhine-Westphalia and has a population of 153,000.

In Ebhausen in Baden-Wuerttemberg, AIF Capital Group has acquired a projected discount grocery store with a total leasable area of approximately 1,500 m2. The seller is a project company of the Ten Brinke Group. The property also includes a separate bakery store and is leased on a long-term basis to the discount grocer Netto. The property with a plot size of around 5,600 m2 is located in Nagolder Straße / Untere Au. A total of 69 above-ground parking spaces are also being created on the project site. The property was successfully completed in June of this year.

Ebhausen is located in the district of Calw in the northern Black Forest and has around 4,800 inhabitants. Nagolder Straße represents the main street of the community and the essential connection to the neighboring communities.

AIF Capital Group was advised by GSK Stockmann on the tax and legal aspects of the purchases. The technical due diligence for the property in Neuss was carried out by alea real, while CBRE was commissioned with the technical due diligence in Ebhausen. Both properties are being realized by the project developer Ten Brinke. The entire transaction process was supported by PIER Investment Partner. The Frankfurt-based asset manager will manage the two properties after completion.

Tim Lerner, Head of Portfolio Management at AIF Partner-KVG, says: “The two acquisitions in Neuss and Ebhausen meet all criteria for AIF Capital’s investment strategy. We look for high-growth and sustainably frequented locations in our investments because they represent future viability of the assets through long-term stable and crisis-resistant cash flows. Retail parks, grocery stores, drugstores, and discount stores are part of people’s basic daily needs and are an important part of the local infrastructure. Thus, we also fulfill the claim to contribute with the investments to the supply situation for all people in the respective catchment area.”

In addition to its investments in basic retail, AIF Capital Group is also active in the promising areas of healthcare and social real estate, mixed-use living quarters with a focus on residential, parking garages and underground garages, and daycare centers. With the recently established AIF Infrastructure, the Group has also expanded its investment and product range to include sustainable and digital infrastructure assets, such as onshore wind farms.