The Irish investment company Greenman Investments was founded in 2005. The goal: to build a real estate fund with a focus on Germany. While the initial focus was on residential properties, the “Greenman Retail” fund was launched in 2013. The first acquisitions were two food stores in Berlin. In 2015, 29 stores of EDEKA (with a portfolio value of 95 million euros) were acquired through a joint venture. Today the Greenman Open Fund – with a volume of 594 million euros – is the largest food real estate fund in Germany. We introduce you to the rather unknown but important real estate investor Greenman. Greenman is also part of our exclusive list of the largest German real estate investors.
Focus on German retail real estate, with emphasis on food markets
Greenman’s strategy is clearly formulated: only German retail properties are bought, most of which have food tenants. The centers are mostly located in the surrounding area of German cities (suburbs/outskirts). These can be specialist market centers as well as supermarkets. When it comes to its tenants, Greenman relies on retailers with strong credit ratings such as EDEKA or REWE. Greenman focuses on long-term income by encouraging tenants to extend their contracts early and for long periods. Long-term oriented WARLT management (Weighted Average Rental Lease Time) is the keyword.
Greenman OPEN Portfolio: Acquisition of retail properties throughout Germany, €747M market value
The Irish investor is actively buying for his latest and largest fund – Greenman OPEN. The properties in question must be located in areas with demographic and socio-economic potential. Specialty shopping centers as well as hybrid centres or stand-alone supermarkets are considered. The only important thing is that the centers must have a long-term lease with a leading food retailer. 65% of the rental income in the OPEN Fund portfolio is generated by food retailers. The flagship properties in the portfolio include the Biesdorf Center, acquired in 2018 with a value of €97M, and a retail park in Hohen Neudorf with REWE as the anchor tenant and a market value of €37M.
Picture source: Franki Chamaki
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Originally posted on April 22, 2020 @ 1:14 pm