Deutsche Fachmarkt AG (DEFAMA) has signed a purchase agreement for a specialist retail center in Hof (Bavaria). The purchase price is € 6.7 million. The rentable area is around 6,700 square meters. The annual net rent will be around 570 T € after full occupancy. In the property, Dänisches Bettenlager, Fressnapf and Detlev Louis Motorrad are represented as well-known retailers. Other tenants are the fitness chain jumpers, the arcade operator Admiral and a tanning salon.
The location is in a highly frequented retail area with Kaufland, LIDL, OBI, dm, KiK, denn’s organic market, subway and various car dealers not far from the main train station. The property was revitalized in 2018 and is therefore modern. The purchase price includes an undeveloped additional property of over 2,000 square meters, for which DEFAMA has already signaled great interest from several potential tenants for an additional building.
As a result of the acquisition, DEFAMA’s annualized annual net rent increases to around € 15.6 million. The portfolio now includes 45 locations with over 200,000 sqm of usable space, 94% of which are let. The largest tenants include ALDI, EDEKA, Kaufland, LIDL, Netto, NORMA, Penny, REWE, Getränke Hoffmann, Dänisches Bettenlager, Deichmann, KiK, Takko and toom. Based on the current portfolio, the annualized FFO is € 7.8 million, corresponding to € 1.76 per share.