Retail properties – i.e. large shopping centres and retail parks – are very popular among investors as capital investments. In the industry they are considered to be very high-yielding and profitable. The experts from E1 Holding GmbH in Wiesbaden explain which arguments speak in favour of investing in “EKZ” properties and what investors should pay attention to.
Why are shopping centres lucrative investment objects?
The so-called EKZ properties as well as retail parks, including DIY stores and garden centres: At E1 International Investment Holding GmbH, real estate of this size is an integral part of the portfolio. The company has long since made a name for itself in this area and built up expertise. “We are interested in the acquisition of shopping centres in the classic segment, as well as specialist retail parks, mainly in the non-food sector, both nationally and internationally,” explains E1 Managing Director Muharrem Erdogdu. “If the properties meet our purchase criteria, we are happy to become active as a real estate investor and later broker the properties to solvent tenants or lessees”.
Boom in EKZ properties
Retail real estate has been booming for years – despite the recent slight downturn. For the past five years, the annual transaction volume has exceeded ten billion euros. Properties with a catchment area in a region with high purchasing power are particularly interesting. Whether food or drugstore goods: Renowned chains attract customers particularly well and operate profitably even in times of crisis.Retail properties are also in demand because the rental contracts with the utilities are generally concluded for a long-term period. “Shopping centres are therefore among the most secure investment properties,” summarises Muharrem Erdogdu.
Sector mix and sustainability
When selecting EKZ real estate, E1 Holding GmbH is primarily guided by factors such as location, size and purchasing power at the respective location. “Shopping centres with an attractive branch mix and local suppliers with good transport connections are highly frequented even in times of crisis,” Erdogdu continues. “We are currently further expanding our portfolio in this profitable segment. But it is not only the return expectations that play a role for E1 Holding GmbH in this business segment. “We select our tenants and lessees not only on the basis of their creditworthiness and a convincing corporate strategy,” says Muharrem Erdogdu. “It is also important to us that they focus on sustainability and respectability in their work.”