Bruton Capital announces the sale of the Kaufland-anchored Schorfheide-Finowfurt retail centre

Funds advised by Bruton Capital, the German real estate investment and asset management firm, have sold a grocery-anchored retail centre in the Brandenburg district in Schorfheide-Finowfurt, which comprises an area of 29’268 sq.m. Upon its acquisition in 2018 from the retailer Metro, Bruton Capital identified strong growth opportunities to increase the property’s value and tenant success in the forthcoming years, and yield maximum value upon exit.

As part of its development initiatives Bruton Capital oversaw several important investments and upgrades to the centre, including replacing the retailer REAL with the anchor tenant Kaufland on a 15-year lease. The Kaufland space, which has an area of 7209sq.m., was built out and modernized creating a high-quality retail environment to support Kaufland’s long-term retail and ESG requirements.

Bruton also directed the strategic expansion of the retail centre through the development of two newly constructed buildings—one for the tenant Aldi and the other for the tenant Würth, each secured through long-term leases. Bruton also implemented value-enhancing asset management upgrades to the Obi and Roller locations on site.

As part of its development plan, Bruton Capital facilitated the development and construction of a new access road across the platforms to improve accessibility to the Center. Bruton also coordinated several environmental improvements relating to the natural local water resources and nearby forest which benefitted the local wildlife and improved the exterior attractiveness of the centre. These improvements and initiatives collectively led to a significant increase in the rental income and a sale at an improved gross income multiplier, delivering an excellent return for its investors upon disposal.

Jairaj Amin, a Bruton Director stated, “the Schorfheide retail center had achieved peak operating performance after several years of construction and upgrades, so this was an ideal time for the investors to exit the investment and realise value.”

NOTES FOR EDITORS:

Bruton Capital is a partnership based in Frankfurt and London providing the full spectrum of real estate investment and asset management capabilities to investors in Germany. Bruton Capital advises a number of private investment vehicles, each having a different strategy, with a principal focus on retail investment.