Trei Real Estate GmbH (“Trei”), an internationally active property developer and property asset holder of residential and retail real estate, just signed a comprehensive master agreement with a leading German discount grocer concerning 25 supermarket assets in Germany. The properties are part of Trei’s portfolio, and have been let to the retailer for a long time. New long-term lease agreements have now been signed for all of these assets. Three of the supermarkets, located in good locations in Berlin and Wiesbaden, qualify for demolish-and-rebuild developments.
René Westerheider, Head of Asset Management at Trei, commented: “The conclusion of the agreement was preceded by a lengthy negotiating process and a reconciliation of interests. The agreement now signed represents a solution from which both of the contracting parties stand to benefit. Of key importance for Trei was to secure the long-term occupancy of our retail properties. In addition, there is now the opportunity to move ahead with three property developments in very interesting residential locations. These three locations show a great potential for the new-build construction of modern retail units on the ground floor and of apartments on the upper floors. The projects would put the existing plots of land to much more efficient use.”
Pepijn Morshuis, CEO of Trei Real Estate, added: “Coming to terms with our tenants is a major strategic step forward for us. Our Germany portfolio includes 75 retail properties, and generates important cash flows. This opportunity to construct three new properties also helps us to lay the basis for our future development business and for our growth in Germany.”