15 January 2013
Corio acquires Boulevard Berlin from Multi
Utrecht, 15 January 2013
Corio has acquired Boulevard Berlin from Multi Corporation (‘Multi’) for € 366.0 m at a net initial yield of 6.0%. Boulevard Berlin is one of the largest shopping centres in Berlin with 86,000 m2 GLA and 850 parking spaces, located in the popular shopping destination Schloßstraße. Boulevard Berlin will add to Corio’s result as of 15 January 2013. The acquisition was part of the Multi transaction that was announced on 25 March 2010. Next to the handover of Boulevard Berlin Corio and Multi have ended their cooperation in Germany and will continue their activities independently.
Gerard Groener: ‘With the handover of Boulevard Berlin, the Corio portfolio in Germany reaches the size of a strong platform. Near future goals are to enhance this relatively young portfolio by increasing footfall and sales for our tenants, creating shareholder value. Once established Corio aims to grow its German presence. All properties are located downtown and fit with the Favourite Meeting Place concept’.
The Boulevard Berlin occupancy in GLA currently is 88%. Multi has provided a rental guarantee that covers any vacancy up to an amount of € 15.25 m to Corio for a period of three years. The rental guarantee also covers the remaining vacancy in Königsgalerie in Duisburg and Arneken Galerie in Hildesheim.
With its location, tenant mix, size and potential for organising events, Boulevard Berlin definitely fits within Corio’s strategy to create Favourite Meeting Places. Corio will rapidly implement a full range of marketing activities: boosting the name of Boulevard Berlin with all possible social media, radio commercials, billboards on strategic locations, exhibitions and high class events.
Corio aims for an annual footfall of at least 13 million per year after stabilisation. Corio will also implement its loyalty system Britelayer (www.britelayer.com) as soon as possible.
Corio currently has five operational shopping centres in Germany, total value of Corio’s portfolio in Germany is over € 1 billion which amounts to approximately 14% of Corio’s total portfolio (based on 30 September 2012 value).
Boulevard Berlin hosts 200 shops with Karstadt, Saturn, Zara, H&M, Hollister, New Yorker, S´Oliver, Esprit, Desigual, Douglas and Deichmann and a large dining area serving as anchor tenant.