Royal Bank of Scotland has finally sold a German shopping centre about seven years after taking control of the scheme from the original borrower.
Cordea Savills’ European Commercial Fund paid €41m for 10-year-old Nordmeile centre in Berlin’s Reinickendorf district.
Thomas Guetle, Cordea Savills’ Germany managing director, said the target for the fund’s 11 German investors “is a stable 5% distribution after all fees and taxes and with this asset we will achieve a higher distribution.
“German investors’ direct portfolios generally have a high office content and when we developed this fund in 2007/08 a retail element was important for diversification. We also wanted German asset allocation.”
The fund’s €560m portfolio consists of 16 assets in core western European countries. It has raised €350m of equity and “we think €400m is achieveable”, Guetle said. “We want to buy about 25 investments.”
Fund manager Daniel Hohenthanner said the asset will be geared at a loan-to-value ratio of around 50%.