The German commercial property market is easily the largest EU commercial property market. It is characterised by the purchase and resale of large portfolios made up by a combination of shopping centres, office portfolio’s and retail warehouses.

Properties let to German Discount retailers, an asset class previously overlooked by the many International Investors. With German retailers having such a stranglehold over the German Grocery market, the purchase of properties let to these tenants represents a safe and viable investment in the current climate.



Why Discount Retailers?

Due to the polycentric and suburbanized nature of retail models in Germany, our strategically located sites, provide optimum footfall to the tenant’s stores.

More than 80% of Germans believe the quality of discount products are as good as or better than similar branded items.

Of the 400 new retail leases signed in Germany in July 2009, 72% were signed by discount retailers.

The properties are tenanted by many of Europe’s largest retailers

These leases are 10 – 15 years in length with extension options and are signed by the parent company.

Investors can expect the properties to provide large income surpluses annually thus providing a well above average return on Investment.

The German Commercial Lending Environment
Germany’s banking system is populated by large multinational Banks and many smaller regional banks that are usually part state or mutually owned banks. Many of these banks have been less affected by the Global credit squeeze and therefore are still lending. Indeed, one such bank Berlin Hyp managed to increase their profits in 2008 by 5.1% from the preceding year purely based around prudent lending. German banks favour this asset class and offer attractive long term fixed interest rates at historically low levels

Non-Recourse Lending
Most commercial lenders judge each property on its merits with their lending based solely on the property’s ability to repay. This is because their lending is Non-Recourse (eg the bank only takes security against that property and not on any other asset belonging to the buyer). This provides the buyer with a safety net should a doomsday scenario occur.

Further Information
For Further Information, please contact RealReturns by filling out the enquiry form below