Sonae Sierra announced this week the launch of a new alternative investment fund in Germany, the Sierra German Food Retail Income Fund I, a vehicle that will focus mainly on the food retail sector in this country, aimed at institutional investors.
The fund is created at a time when the food retail sector has been strong and resilient during the pandemic. Future prospects "continue to exceed recovery projections for the retail sector as a whole," according to the company.
Supermarkets, hypermarkets and discounters in Germany will be the main focus, namely stable stand-alone properties with long-term lease agreements with leading market operators.
The fund starts with 5 food retail assets, with a total area of around 6,500 sqm, operated by key brands in the German market, such as Aldi, Rewe and Netto.
In a statement, Sonae Sierra shares that the creation of this vehicle «reinforces Sonae Sierra's focus on expanding the investment fund management business, a key part of the Company's strategic ambition, in which it combines its vast creative know-how. value, with long-standing partnerships with leading institutional investors».
Christoph Billwiller, leader of Sonae Sierra's Investment Management team in Germany, says in the same statement that «the creation of this new open fund represents a new milestone for Sonae Sierra in Germany. It offers a solution for professional and institutional investors looking to secure long-term stable returns, managed by a team with extensive experience and combined know-how in asset management and investment management. It is part of Sonae Sierra's strategy to increase exposure to new real estate investment vehicles, capitalizing on our international experience and the partnership relationships we have built over the last 30 years with multiple institutional investors».
It should be recalled that Sonae Sierra currently manages 5 billion euros in 12 different investment vehicles, with a portfolio of real estate funds and operating assets across Europe.