New acquisition for GMO: Targeting €1 billion in AUM
Greenman OPEN has recently completed a deal to acquire a new, turnkey retail center in Wittenberge, Brandenburg. The deal, which has been acquired directly from German developer Harms Consulting GmbH & Co. KG has a total volume of c. €10.6 million, bringing the fund closer to reaching its target of €1bn AUM. Greenman OPEN was represented by Frankfurt-based legal advisors White & Case.
The retail center is anchored by one of Germany’s leading full assortment food retailers REWE, which will comprise of their latest Green Building design and will generate 65.7% of the center’s rental income on a long-term lease of 15 years. REWE is a pioneer in Germany for sustainable construction and operation of supermarkets. Its Green Buildings are unique sustainable building concepts of carbon neutral supermarkets.
The design also considers the customer experience, increasing daylight in the store while also reducing glare and protecting sensitive goods from sunlight, providing barrier-free sales areas as well as toilets and parking spaces accessible for families and people with disabilities. To ensure the highest standards in sustainable building design, all REWE Group stores are constructed as green buildings according to the criteria of the German Sustainable Building Council (DGNB e.V.).
James McEvoy, Head of Acquisitions at Greenman, comments on the acquisition: “This is another excellent centre that will complement the existing GMO Portfolio. Aside from this, we have a very strong relationship with the REWE Group. With a total let area of 31,400 m², 12% of our assets in the Greenman OPEN portfolio are anchored by the grocer. Over 45% of this let area is in line with the REWE Green Building concept and we believe the new acquisition in Wittenberge is a great addition to this. At Greenman, we understand the importance of working towards sustainable goals both with existing assets under management but also for new acquisitions going forward.”
The ESG agenda is becoming an increasingly important driver to investors’ decision-making. Although Greenman OPEN does not aim to invest sustainably, environmental and social characteristics are promoted so that ESG factors are an integral part of the investment and development process. They have the potential to add value to our investment portfolio, reduce risk and play an important role in ‘future-proofing’ investments.