· 12-year fixed-term plus four-time 4-year
renewal options· Tenant's strong commitment to the location
· Tenants and landlords are jointly investing in modernisation
· Monthly net rent rises by almost 15%
The owner-managed Dr. Peters Group reports a great letting success in the portfolio of the local supply fund "Immobilienportfolio Deutschland II" (IPD2). In partnership talks with the anchor tenant REWE, it has been possible to conclude an early extension of the lease for the fund property in Beckum, North Rhine-Westphalia, by at least 12 years plus four options for 4 years each. The agreed package also includes a joint concept for market modernisation. This is expected to be implemented at the beginning of 2027. The rent increase agreed for after the modernization strengthens the income side of IPD2 and opens up further potential in the long term.
Fabian Schultheis, KVG Managing Director and Managing Director of the Real Estate Division at the Dr. Peters Group, is pleased: "The early and long-term extension of the lease with REWE is a great result in these times and a strong commitment by the tenant to the location of our local shopping centre in Beckum. We see this success as confirmation of our philosophy of operating and developing real estate successfully in the long term through forward-looking, active asset management and cooperative partnership with our tenants. We will continue to do so in the future."
Potential for an increasing number of customers and further revenue growth
REWE has been represented at the location in Beckum since 2007 and already accounts for 45% of the annual net rental income there. The agreements that have now been concluded provide, among other things, for the modernisation of the 2,445 m^2 rental space by the tenant. In the course of the partnership-based and long-term cooperation, IPD2 is granting an earmarked construction cost subsidy of €700,000. This subsidy was already taken into account in the purchase calculation of the property and pays off for the investors through the indexed monthly net rent, which subsequently rises by almost 15%.
REWE is constantly investing in the modernisation of its stores and sees potential for an increasing number of customers and further sales growth at the local shopping centre in Beckum. REWE is therefore investing in a coordinated concept for market modernisation together with the investment company in order to offer customers an appealing shopping experience in the long term. Both parties are convinced of the location on Cheruskerstraße and are very pleased about the long-term partnership.
Loyal tenants and strong locations as success factors
The entire local shopping centre has a good 7,500 m^2 of rental space, which is almost entirely used by the three main tenants REWE, ALDI Nord and tedox. REWE and ALDI North have been firmly established at the location for many years and have already exercised contractually agreed extension options in the past or extended their leases outright. ALDI Nord was last extended for another ten years in 2022. At the same time, tedox was won over for the location and tied to a lease until at least 2032.
In addition to the property in Beckum, the IPD2 portfolio also includes a local shopping centre in Rathenow (Brandenburg). With Kaufland and OBI, this has two well-known and creditworthy anchor tenants to offer, which together provide 94% of the annual net cold rent. The leases of Kaufland and OBI run until 2032, although OBI recently extended its lease by five years.
"With the two acquisitions in Beckum and Rathenow, IPD2 has achieved its regulatory risk mix. In the course of the second acquisition, we significantly increased both our annual payout forecast and the forecast for the total return of funds. This means that the local supply portfolio that has been connected to date is already so attractive that a third acquisition would only be an option for the fund if the parameters for our investors could be improved even further," Schultheis concludes.
