FOM Invest acquires real estate in Duisburg, Hannover, Hildesheim and Mönchengladbach
Portfolio of four properties comprises a total of around 55,000 square meters of leasable space on a total property size of around 170,000 square meters
Acquired for the first special fund "FOMREF I" launched by FOM Invest: Future-oriented conversion of partial areas for, among other things, apartments and local suppliers
ESG-compliant investment opportunity for institutional investors
Kaufland is a long-term tenant in Mönchengladbach
Heidelberg, April 27, 2021 – FOM Invest, the AIF capital management company in the FOM Real Estate Group, has carried out a transaction for its "FOMREF I" special fund, acquiring a value-add portfolio from the SCP investor group. The portfolio comprises four locations in Duisburg, Hanover, Hildesheim and Mönchengladbach with a total site area of around 170,000 square meters, which were previously mainly used by the food retailer Real. They are part of a conversion project in the context of which a future-oriented conversion of the sites will take place. With the planned conversion and partial repositioning of the properties, FOM aims to offer institutional investors attractive returns in the future and create ESG-compliant investment opportunities. Among the three institutional investors is FOM Invest's sister company, FOM Real Estate. The parties have agreed not to disclose the purchase price. After completion of all development measures, a volume of 300-400 million euros is planned for the special fund.
Prof. Reinhard Walter, managing partner of the FOM Real Estate Group, comments: "With the four purchases, we are enabling institutional investors to participate in a future-oriented and innovative fund concept with high property optimization potential. By exploiting construction and expansion opportunities, we can significantly increase cash flow and fund volume as well as resale value. We are pleased with the newly acquired portfolio, which consistently fits into our manage-to-core strategy. FOM Real Estate is itself involved as an investor and thus supports FOM Invest with both expertise and resources. This is also fully in line with our strategic positioning."
Roy Brümmer, Head of Real Estate Investment, adds: "With the purchase, we are gaining access to commercial properties in good locations, on some of which attractive residential construction in accordance with ESG criteria is also possible. We are currently drawing up concepts for the re-letting of retail space that is still available. However, creditworthy anchor tenants with long-term leases such as Kaufland in Mönchengladbach as well as numerous prospective tenants from the retail sector already confirm the attractiveness of the portfolio."
Modern neighborhoods with ESG-compliant housing are to be built at the Duisburg-Großenbaum (site size around 31,000 square meters) and Mönchengladbach, Reyerhütte (around 53,000 square meters) locations. In Mönchengladbach, Kaufland is also the new anchor tenant with a long-term lease. Kaufland recently took over the former Real location. In Hannover-Linden (around 48,000 square meters), another local retailer is to take over the Real premises, while in Hildesheim (around 38,000 square meters) there will be further commercial use alongside the existing DIY store.
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Contact FOM Invest GmbH
Dr. Bernd Wieberneit
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About FOM Real Estate
FOM Real Estate is an owner-managed company and has been successfully active as a project developer and asset manager for over 20 years. Since 1997, FOM has successfully completed projects with a total volume of over 3.5 billion euros. FOM's investment partners include well-known national and international institutional investors. In addition to the existing investment opportunities via individual mandates or club deals, FOM also plans to launch its own special real estate funds in the future. The company's investment activities are bundled in FOM Invest. FOM Invest is a fully licensed AIF capital management company (KVG) according to KAGB.