For the private placement fund announced last year, DERECO from Cologne has now successfully acquired the second retail property on behalf of an affiliated Dutch family office. The seller of the property in the pedestrian zone of Detmold was a project company of the joint venture – HLG Gesellschaft zur Entwicklung von Handelsimmobilien mbH & Co. KG, Münster and Amandla International GmbH & Co. KG, Unna.

Certified as a green building, the property will be completed in autumn 2014. The re- development of a former Hertie location on a site area of approx. 6,300sqm will have a leasable area of approx. 10,300sqm in addition with a parking garage. On two storeys, approx. 8,500sqm user-oriented retail areas will include a modern fitness centre on approx.1,800sqm and, on the top two floors, a parking garage with a total of approx. 200 parking spaces.

The retail space, which constitutes a rental space of approx. 80% of the investment, is already pre-let to the two anchor tenants C&A and a Müller drugstore. The transaction implemented as an asset deal encompasses a volume of approx. EUR 40 million.

The purchaser was given legal counsel by the law firm Taylor Wessing, Berlin. Drees & Sommer, Düsseldorf has executed the technical due diligence. The seller was given legal counsel by the law firm Jebens Mensching LLP, Hamburg.

An investment volume of over EUR 70 million is the goal for the property fund structured as a blind pool. Currently, DERECO is continuing to focus on the acquisition of high-quality, fully rented real estate (project developments as a forward deal or 2–3-years-old inventory properties) with a high-quality standard in the top 10 cities of the Federal Republic of Germany. Smaller and attractive cities with correspondingly high purchasing power and a central location in the commuter belt of the top 10 cities are also being taken into account.

The crucial factor for all locations is that this exclusively involves well-established, inner-
city 1A and 1B locations which are appealing due to their micro-location. For the property fund, DERECO also intends to take properties exclusively into consideration which contribute to the development of a well-balanced portfolio with a respective volume of EUR 10 to max. 25 million and the usage types retail, residential and office space. In addition to strictly single usage properties, investments with a mixture of usages and average remaining lease terms of more than five years will also be appealing. Single tenant investments are completely excluded in the investment strategy.

Currently, DERECO is involved with the specific acquisition review of another investment.
The next acquisition is already planned for April 2013.