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AT/Cairn tie up for Europe retail drive

By Paul Norman - Thursday, September 08, 2016 14:16

Private Asian investment firm AT Capital Group has joined forces with asset and investment manager Cairn Real Estate, the Dutch subsidiary of German asset and investment manager MPC Capital AG, to create a European retail investment business.

AT Capital will provide the new joint venture company with investment capital, while Cairn Real Estate will deliver operational expertise and local market knowledge.

The investment strategy will initially focus on “basic need” real estate in the Netherlands and Europe, such as supermarkets and drugstores.

Through their joint venture company, Retail Assets Investments B.V., AT Capital and Cairn Real Estate have completed the acquisition of a portfolio of 10 grocery-anchored retail assets for local supply in the Netherlands for €60m.

The portfolio, with an occupancy rate of 98%, has a gross retail space of circa 27,500 sq m and tenants that include supermarket chains such as Albert Heijn, Jumbo and Aldi. In addition to the acquisition, AT Capital Group and Cairn Real Estate have launched new joint venture company, Dutch REAM B.V., which will operate as the asset manager for the property portfolio.

Deepak Mawandia, Chief Investment Officer and Director of the AT Capital Group, said: “We are pleased to be working with Cairn Real Estate in this new retail investment venture. The retail property market in the Netherlands offers great potential. Since 2008, supermarket revenues in the Netherlands have grown by around 2.5 % per annum which we expect to continue. Our joint venture with Cairn Real Estate fits very well with our overall investment strategy, enabling us to partner with an existing player with a clear vision and in-depth knowledge of the local market. Our recent portfolio acquisition is a great start for our latest investment venture.”

Maarten Briët, managing director at Cairn Real Estate, said: “We are very pleased to be partnering with AT Capital, one of Asia’s leading private investment firms, and the launch of our joint investment structure and asset management company. The joint venture is an excellent example of our strong position as full service multi-asset and investment manager.” “It is illustrative of the way we initiate, structure and manage investment projects in commercial real estate for institutional investors and family offices globally,” adds Pieter Akkerman Managing Director at Cairn.

Relationship banks ABN Amro and ING provided finance for the acquisition. AT Capital and Cairn Real Estate were advised by Osborne Clarke, PWC and Search. CBRE advised the seller.

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