September 11, 2019HENDERSON PARK AND HBB COMPLETE ACQUISITION OF RATHAUS GALERIE SHOPPING CENTRE IN ESSEN, GERMANY
London, 11 September 2019 – Henderson Park (the ‘Company’), the pan-European private equity real estate platform, announces that it has acquired Rathaus Galerie, a shopping centre located in the city centre of Essen, Germany. The transaction is being undertaken in joint venture with HBB, a leading German real estate developer and operator who will manage the asset, with Henderson Park as the majority partner.
Rathaus Galerie is a 31,000 sqm freehold shopping centre in a prime location in the centre of Essen. The asset acts as the main entry point for Essen’s city hall and sits directly above Rathaus Essen Station, the city’s central transport hub, providing access to six metro and tram lines, as well as 13 bus lines, with 40,000 passengers passing through on a daily basis. The prominent building, which forms a bridge across the eastern city ring road, also has generous parking provisions to complement the centre’s strong connectivity.
The shopping centre has been acquired c. 80% let, with anchor tenants including national hypermarket Real and global sports retailer Decathlon. With a 40 year track record of trading and footfall of over 10 million visitors per annum, the Rathaus Galerie presents exceptional repositioning potential following a targeted investment programme to maximise its value, resilience and consumer appeal. The joint venture’s turnaround strategy includes a comprehensive refurbishment, improving the tenant mix to concentrate on convenience retail which best caters to the asset’s high number of local workers and commuters, as well as an enhanced F&B and leisure component.
Essen is Germany’s ninth largest city and home to many of its largest corporations. The city has strong demographic fundamentals and is a thriving student destination, with a growing population projected to increase by 3.4% by 2030. The Rathaus Galerie is located in a densely populated catchment area of North Rhine-Westphalia, with 11 million people within one hour’s drive.
This transaction represents the second investment by Henderson Park in Germany and its first shopping centre acquisition, facilitated through the establishment of its new joint venture with HBB. The platform established by this joint venture creates a framework with the potential to expand further into the German real estate market, which continues to attract some of Europe’s strongest investment flows.
Nick Weber, Founding Partner of Henderson Park, commented: “This transaction increases our exposure to the highly attractive German market through the acquisition of a proven retail asset at a competitive price point alongside our experienced local partner, HBB. The decision to make our first shopping centre acquisition was driven by the Rathaus Galerie’s dominant status and the latent value we believe can be captured; we intend to implement an asset management strategy that focuses on the introduction of retail and leisure amenities that are most appropriate for the local demographic and which capitalise on the centre’s strong location and surrounding infrastructure. We look forward to building on our new partnership with HBB and exploring further attractive opportunities in Germany that best leverage both parties’ expertise.”
Harald Ortner, Managing Director of HBB, commented: "Rathaus Galerie Essen offers a unique location in one of Essen’s busiest hubs. This "natural" footfall presents a great opportunity to create sustainable value for our new joint venture with Henderson Park and to capitalize on our strengths as a developer. We look forward to this promising collaboration with the entire Henderson Park team and to further joint investment in Germany.”
The joint venture was advised on this transaction by ZENK Rechtsanwälte, Drees & Sommer, Eversheds and Ashurst.
FTI Consulting, for Henderson Park
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About Henderson Park
Henderson Park is a pan-European private equity real estate manager based in London. It has invested circa $6 billion in building a portfolio of real estate assets across Europe, primarily targeting Europe’s gateway and capital cities. It seeks high-quality assets in prime locations where it can identify potential to unlock or create value through asset management, or by taking on and working through complex situations. Henderson Park strives to work with and create long-term strategic relationships with best in class local operating partners. Henderson Park is led by Nick Weber, its Founding Partner and CEO.
The Hamburg-based HBB Group has been active as an investor and developer in the German real estate industry for almost 50 years. Retail, office, hotel, senior and residential properties have been developed and managed by HBB throughout Germany. HBB sees itself as a specialized investor with the goal of creating long-term sustainable values. HBB is an owner-managed company with a well-trained team of around 80 employees, covering all aspects from development to center management.