Pressmaster on Envato
In a notable move in the German retail real estate market, Greenman OPEN has acquired a portfolio of 10 EDEKA supermarkets for around €60 million. The deal highlights Greenman’s strategic expansion and commitment to sustainable investment practices in the grocery-anchored retail sector, and was won following a hard-fought structured sales process managed by strategy and structuring consultancy JenAcon.
This acquisition is significant for several reasons. It’s Greenman OPEN's seventh sale-and-leaseback agreement with EDEKA, Germany's retail giant, showcasing a solid and long-lasting partnership. The deal boosts Greenman OPEN’s portfolio, increasing its total investment volume to €1.21 billion. It also extends the weighted average remaining lease term (WARLT) by 8% and fixed rent by about 13.5%. This aligns with Greenman’s strategy to secure long-term, stable income streams for its investors while advancing its well-publicised sustainability goals.
Greenman OPEN, steered by Greenman Investments, stands tall as one of Germany's heavyweight funds in the food-anchored retail real estate arena. It's also Europe’s largest Article 9 real estate fund under the EU Sustainable Finance Disclosure Regulation. Founded by Irishman John Wilkinson, Greenman Investments operates from offices in Berlin, Frankfurt, Dublin, Paris, and Warsaw, managing over €1 billion in assets. The fund’s strategy revolves around acquiring and managing grocery-anchored retail properties, providing investors with regular and secure income through long-term leases.
Alignment with Greenman's long-term goals
With this latest acquisition, Greenman OPEN is bolstering its portfolio with top-notch, sustainable properties. The move supports Greenman’s goal of building a climate-neutral portfolio by 2050. The deal features green leases and plans to install rooftop solar panels and fast-charging stations for electric vehicles on the properties, enhancing their sustainability credentials.
Greenman’s subsidiary, GFORM, will take the reins in managing these newly acquired assets. Their role includes maintaining the long-term relationship with EDEKA and ensuring the properties meet high operational and sustainability standards. This includes installing photovoltaic systems on the rooftops of the seven remaining supermarkets not already equipped with the PV systems, furthering Greenman’s green energy ambitions.
Dubbed the "Chase" portfolio, the collection features 10 standalone EDEKA supermarkets, covering a sprawling 22,500 square meters across Saxony, Bavaria, and Thuringia. These modern properties, built between 2012 and 2019, meet the latest technical and sustainability standards.
Sale-and-Leaseback agreement
This deal is a classic sale-and-leaseback agreement, guaranteeing long-term stability for both Greenman OPEN and EDEKA. The retailer will continue operating the supermarkets while freeing up capital to invest in other strategic projects. For Greenman OPEN, this means a steady and predictable income stream through long-term leases.
James McEvoy, CEO of GFORM and representative of Greenman OPEN, expressed his enthusiasm for the deal: “We are delighted to be now entering into our second sale-and-lease-back agreement with EDEKA Nordbayern-Sachsen-Thüringen, (following the acquisition of the "Primus" portfolio in 2023) and the seventh time with the broader EDEKA Group as Germany's largest food retailer. This demonstrates our long-standing partnership with EDEKA, which we continue to strengthen through a trusted collaboration.”
Stephan Köhler, Head of Strategic Real Estate and Portfolio Management at EDEKA Nordbayern-Sachsen-Thüringen, emphasized the strategic importance of the sale: “The sale of this portfolio is part of our long-term financing strategy to secure our major projects in the areas of logistics and production as well as the development of our market portfolio. We are very pleased about entering into another collaboration with Greenman OPEN, an excellent investor who shares our long-term visions and goals.”
Greenman’s subsidiary, White Bird, will oversee the technical management of these supermarkets, ensuring they run like a well-oiled machine. The integration of photovoltaic systems and hypercharging stations for electric vehicles by Greenman Energy is now standard in showcasing the company’s commitment to sustainability.
REFIRE: The EDEKA deal is a significant win for Greenman and GFORM, highlighting their strategic focus on sustainable and resilient investments in Germany’s retail real estate market. REFIRE has been tracking Greenman for many years, and we have witnessed its growth in one of the toughest retail environments in the world. We attended a GFORM party in Berlin not long ago, and we were impressed at the breadth and depth of the business partners that the company has managed to attract over the last few years, while consolidating its position as a leading player in the grocery-anchored retail sector.
Greenman seems to consistently stay a step ahead of its rivals with innovative improvements in this fiercely competitive sector. This DOES play a role in securing solid, long-term, stable income through its green leases and not least by enhancing the sustainability profile of its assets. This latest deal not only strengthens Greenman OPEN's portfolio, but reinforces the relationship between Greenman and EDEKA, the undisputed leader at the top end of German grocery retail. That's worth a lot.
