Greenberg Traurig advised Garbe Institutional Capital (GARBE) on the acquisition of GRR Real Estate Management GmbH (GRR), one of the leading platforms for retail real estate with a focus on the food sector. With the acquisition, GARBE can take over a market-leading position in local supply real estate. The parties have agreed not to disclose the purchase price.
GARBE is taking over the operating business of GRR Management from GRR AG, which includes approximately 80 employees and 500 managed properties. The real estate assets managed by GRR (AuM) for institutional funds and mandates amount to around two billion euros. GARBE is also acquiring 52 properties for its own institutional fund, which GRR previously managed as on-balance-sheet properties. GARBE will continue to manage the GRR brand as an independent company.
Christopher Garbe, Managing Partner of GARBE, explained: “With the acquisition of GRR, we are taking another key strategic step towards establishing our leading and vertically integrated platform based upon a 360-degree management approach. As an active real estate manager, we are expanding our organisation’s resources and expertise into the retail real estate segment, spanning the entire value chain all the way to the end customer. By doing this, we will create significant added value not only for our investors but also for our tenants. The food retail sector fulfils a systemically important role in Germany and throughout Europe. It is highly attractive due to its stable tenant structure, which is why it has already been a strategic focus for GARBE in recent years. GRR is a recognised leader in this market segment, where it has built an excellent reputation. In addition, GRR’s fully integrated organisation with capabilities and service offerings ranging from portfolio level to property and project management fits perfectly with GARBE’s entrepreneurial philosophy. GRR’s proven expertise in implementing ESG measures and in renovating existing properties makes it an ideal partner. The management and the entire team at GRR have delivered superb performance in the past years and we look forward to shaping the future together with our new colleagues.”
Andreas Freier and Martin Führlein, members of the Executive Board of GRR AG, added: “By bringing GRR Real Estate Management into the GARBE family of companies, we are setting the course for strong future growth. As an owner-managed company, GARBE fits ideally with our own business philosophy. In recent years, we have steadily expanded our market position as one of the leading players in the food-anchored retail segment and successfully launched five of our own open-ended AIFs for institutional investors. With our sustainability strategy, we have successfully begun the ESG transition. At the same time, we are driving forward the sustainable development of our portfolio. By combining our operational business with GARBE, we are now taking the next step with the shared goal of market and innovation leadership within the German retail property segment.”
GARBE Institutional Capital is part of the owner-managed German real estate company GARBE with around 500 employees at 16 locations in 11 countries and real estate assets under management of around €13 billion.
Greenberg Traurig’s lawyers provided advice on all legal aspects of the acquisition of the platform including various purchase agreements, financing, fund structuring and management agreements.