Sonae Sierra’s recently launched German Food Retail Fund acquires 5 supermarkets

• Sonae Sierra’s recently launched Alternative Investment Fund (AIF) will invest primarily in the food retail real estate sector in Germany and targets institutional investors.
• The 5 supermarkets acquired are operated by leading operators Aldi, Rewe and Netto.
• This milestone is an integral part of Sonae Sierra’s strategy of growing its European investment management business.

Düsseldorf, 26. October 2021

Sonae Sierra has announced the launch of a new open-ended AIF in Germany with the creation of the Sierra German Food Retail Income Fund I. This AIF invests primarily in the food retail sector in Germany and targets institutional investors.

With a focus on discounters and supermarkets as well as on hypermarkets across Germany, preferably stable stand-alone properties, characterised by long-term leases with recognised and high-quality operators, the fund has a target investment volume of at least EUR 200 million.

The vehicle’s creation furthers Sonae Sierra’s focus on expanding its investment fund management business, a fundamental part of the company’s strategic ambition, where Sonae Sierra combines its extensive asset value creation know how with a strong track record of partnerships with leading blue chip institutional investors.

The new Sierra German Food Retail Income Fund I kicks-off with 5 food retail properties, covering a total area of approximately 6,500 sqm GLA, operated by renowned German brands such as Aldi, Rewe and Netto.

Christoph Billwiller, who leads Sonae Sierra’s investment management team in Germany, says: “The creation of this new open AIF represents a new landmark for Sonae Sierra in Germany and offers a solution for professional and institutional investors, looking for stable long-term income, managed by an experienced team with combined asset management and investment management know-how. It is part of Sonae Sierra’s strategy to increase our exposure to new real estate investment vehicles, capitalizing on our international experience and on the track record we have built with multiple institutional investors over the last 30 years.”

Grocery retail has consistently proved stable and resilient throughout the pandemic, and its future forecasts continue to exceed recovery projections for the retail sector as a whole.

Sonae Sierra currently manages more than €5 billion across 12 different investment vehicles with a portfolio of real estate funds and operating assets across Europe.