2019 STAKE-HOLDER REPORT - www.redos.de/en - Redos Real Estate
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STAKE- HOLDER REPORT 2019 www.redos.de/en
Manage-
ment team
Oliver Herrmann Carsten Wimmer Christine Hager
Managing Director/ Managing Director/ Managing Director/
Head of Business Head of Finance Head of Shopping
Development Center Asset
Management
Torsten C. Wesch Carola Obermöller Frank Eckervogt Klaudia Herrmann
Managing Director/ Managing Director/ Managing Director/ Managing Director/
Head of Fund Head of Investment Head of Acquisition Head of Leasing
Management Management
2 redos | Stakeholder Report 2019
Dear investors, business partners,
friends and colleagues,
We are delighted to present With the completion of major will be the next to undergo this
the third annual redos Group revitalisation projects for our comprehensive transformation,
stakeholder report, in which we Havelpark Dallgow and following our submission last year
want to provide insights into Brandenburger Einkaufszentrum of a building permit application
our company, to share project Wust shopping centres on the for the first phase of this massive
highlights from the past year outskirts of Berlin, we achieved undertaking. With the planned
and to introduce some of the two further milestones over start of construction this year,
people who have worked so the past year – these with our Germany’s largest shopping
hard to make these successes joint venture partner Madison centre modernisation project
happen. Looking back on 2019 International Realty and will begin in close cooperation
fills us with pride – and not project developer HLG. Both of with our partners Morgan Stanley
only because it was the year these shopping centres were Real Estate Investing and HLG.
in which we crowned our more successfully repositioned in the
than five-year partnership with market, now ready for a future While some eventful and ex-
Union Investment with the joint in which retail means so much citing months are behind us,
launch of our third institutional more than just shopping. Our more are ahead. We look forward
AIF: the Redos Einzelhandel Rhein-Ruhr Zentrum shopping to continuing on our journey of
Deutschland III fund. centre, in Germany’s densely success with our many partners
populated Rhine-Ruhr region, and with our superb team.
UPDATE 2020 Yours faithfully,
The redos management team
Back at the beginning of 2020 when we were finalising this report, it was
impossible to foresee that 2020 would become a year like no other. Due to
the COVID-19 pandemic, we were not able to realize all our plans for 2020. And
yet, we still made solid progress over the course of the year, building on our
successes in 2019. On the following pages, we‘d like to share these with you.
redos | Stakeholder Report 2019 3
redos
in numbers
3
completed shopping centre
revitalisation projects since 2017
€ 2.8 18,000
bn retail properties
target volume for in our ROB
institutional AIFs I, II & III
proprietary database
89 € 2.8
properties bn
throughout assets under
Germany management
1,041 1.3
managed m sq. m.
leases
GLA
* as of 31 December 2019
4 redos | Stakeholder Report 2019
redos Group
Leading in retail real estate
redos Group invests throughout strive to anticipate changes
Germany in large-scale retail
properties with an eye for future
in consumer behaviour as
digitalisation transforms retail.
Five strong
trends and market needs. Through
our various service units – invest-
Through fresh ideas and new
approaches, we ensure the
reasons for
ment, asset management, fund long-term attractiveness of our redos
management, redevelopment, investment properties while, at
advisory and leasing – we offer the same time, helping to secure
a broad range of portfolio and
property management services
the continued future viability
of bricks-and-mortar retail. 1 We are an active
asset manager and
partnership-based
which are precisely tailored to
co-investor.
the needs of our institutional and As co-investor, we stake our own
2
semi-institutional clients. Our ca- capital to our projects. This pro- We work with the full
pabilities span all risk classes and vides our investing clients with the range of investment
typical investment vehicles, and ultimate assurance of our com- vehicles.
we have successfully launched mitment to proactively address
three of our own institutional funds. the challenges facing retail and
to develop solutions which will
3 We manage the full
range of risk classes.
4
Our mission is to provide our bring profitable returns in the long
We bring a proven
investing clients with access to term. We rigorously manage our track record of
promising retail-sector real es- investment properties with close revitalisation expertise.
tate opportunities with balanced attention to value appreciation,
5
risk-return profiles. With our developing only those concepts We have a broad
forward-looking approach to of which we are firmly convinced. network of retail
active asset management, we tenants.
Our investment profile
The focus of our investment z conventional We are usually able to conclude
activities is on large-scale retail shopping centres purchase agreements without
properties in prominent locations z hybrid shopping centres making them conditional upon
throughout Germany. We exam- z retail parks the availability of financing
ine every potential investment z specialty stores or committee approvals. We
property down to the smallest z home improvement stores are thus able to offer sellers
detail. In identifying and execut- z hypermarkets of retail properties reliability
ing our acquisitions, our motto is z local convenience and professionalism of
quality before quantity. Through shopping centres transaction execution, from
our joint venture arrangements, z supermarkets initial negotiations all the way
as well as for portfolio additions z mixed-use properties through to final closing.
to our institutional funds, we
seek to acquire various types
of investment properties within
the following retail segments:
redos | Stakeholder Report 2019 5
“We need to have
UPDATE 2020
The corona crisis has affected espe-
cially the non-food retail sector. Yet
long-term trends such as a rise in
the courage to
digitization and a stronger focus on
customer needs accelerated over
the course of the past months. The
related statements in this interview
rethink retail.”
have therefore lost none of their
relevance.
A conversation about the trends and
challenges that affect the asset class
People will always So much is happening these significant differences in ex-
go shopping in days, particularly within the pectations and objectives. Yet it
physical stores, also area of shopping centres. must ultimately be about winning
in the future. But retailers
Where will these dramatic long-term customer loyalty by
must constantly question
what they’re doing and changes ultimately lead us? providing what customers want
how they’re positioned. in a convincing and appealing
Christine Hager: We need to have
way. We can only respond to these
the courage to rethink retail. This
customer needs and desires if we
Oliver Herrmann is the big challenge in 2020 – and
tackle this challenge together.
not just within the shopping centre
segment. Large retail complexes, in In addition to shopping centres,
redos has been specialised in
particular, are growing increasingly redos also focuses on local
large-scale retail properties
attractive where they effective- convenience retail properties.
for more than 15 years now.
ly combine shopping, dining and Last year, together with Union
Are you planning to retain
entertainment with complementary Investment, you jointly launched
that this strategy?
usages such as offices, co-working, your third institutional AIF with
Oliver Herrmann: Retail is and will hotels and even logistics. Large- a corresponding investment
remain our focus. The asset class scale retail spaces are becoming focus. What prompted you to
continues to offer large invest- places for modern lifestyles and expand this partnership?
ment potential and many market workstyles. For this new approach
Torsten C. Wesch: Retail parks
opportunities that we want to and to succeed, it is essential for all
and shopping centres focused
will exploit together with our strong of the key players involved to pull
on specialist retailers offer stable
partners, such as Union Investment together – from key investors to
long-term cash flows. In addition,
in the fund area, HLG in revitalisa- shopping centre operators to
many established retailers within
tion project management, and ECE tenants. This is not always easy
Germany, with strong credit rating,
on the shopping centre manage- because there can, of course, be
are continuing to expand in the
ment side. We are specifically
market. Against this backdrop, it’s
expanding our strategic part-
hardly surprising that the interest
nerships within these important It is essential
from our investors remains very
areas. We firmly believe in the for all of the key
high. Putting these factors togeth-
future of retail. At the same time, players involved
to pull together – from key er, these were just the right starting
it is abundantly clear that tradi-
investors to shopping centre conditions for the launch of our
tional approaches and concepts
operators to tenants. third fund with Union Investment
within retailing must change.
– a proven partnership for more
This can, for example, mean
Christine Hager than five years now. With this new
a blurring of property usages
vehicle, our investing clients are
which were previously distinct.
6 redos | Stakeholder Report 2019
Christine Hager Oliver Herrmann Torsten C. Wesch
Managing Director/Head of Managing Director/ Managing Director/
Shopping Center Asset Management Head of Business Development Head of Fund Management
Supermarket- manageable risks. However, this Does this mean that recognising
anchored does not mean that the manage- and seizing upon trends at an
retail properties continue to ment of these properties is any early stage is the critical factor for
offer very attractive returns less intensive or rigorous. Before retail as an asset class to remain
with manageable risks. any acquisition, every investment attractive over the long term?
property must be carefully exam-
Oliver Herrmann: A large part of
Torsten C. Wesch ined and must offer a concept
retail purchases are still being
which will be viable in the long term
made in bricks-and-mortar stores.
– without reliance upon any par-
And I am convinced that people
once again able to uniquely benefit ticular anchor tenant. This sound
will always go shopping in physi-
from our combined real estate concept must then be consistent-
cal stores, also in the future. But in
and fund expertise. Our respective ly developed and carried out.
today’s fiercely competitive retail
teams work very well together.
Against the backdrop of environment, and particularly in
What specifically makes digitalisation and rapidly terms of the struggle to win and
local convenience retail shifting customer preferences, hold the attention of consumers –
properties attractive? how is the role of asset the so-called ‘attention economy’
management changing? of today – retailers must constantly
Torsten C. Wesch: When, for exam-
question what they’re doing and
ple, you have not only one of the Christine Hager: Active asset man-
how they’re positioned. Focusing
major convenience supermarkets agement means so much more
on the consumer more than ever
as anchor tenant but also one than just proactively negotiating
before means not only reacting to
of the major health and beauty lease extensions. Digitalisation
changing needs but also proac-
chains. Bricks-and-mortar food makes it possible to get much
tively developing new offers and
retail has the big advantage that closer to customers, and to opti-
new concepts. This means mak-
it has been largely unaffected mise and expand service offerings.
ing the shopping experience fun
by online retail, which will remain Correctly implemented, this can
and enjoyable and relaxing at the
so for the foreseeable future. The work to sustain and increase long-
same time. The customer wants an
things that people need on a day- term value. The prerequisite for
overall experience. This is the big
to-day basis will continue, for the success, however, is that various
challenge which we, as investors
most part, to be bought from these specialists must work closely to-
and asset managers, must face.
local convenience destinations gether on the asset management
– spontaneously and at prices side – and in an interdisciplinary
which are highly competitive. As way, recognising and adapting
a result, these supermarket-an- to retail trends at an early stage
chored retail properties continue so that we are ready to imple-
to offer very attractive returns with ment them ahead of the market.
redos | Stakeholder Report 2019 7
Who is redos? Our team of 51 dedicated, highly motivated
professionals – not all of them in this photo – who bring
true passion to their work every day at our offices in
Hamburg and in Lohmar near Cologne.
The people behind
the success at redos
The launch of a new institutional challenges and turn them into
AIF, several major property ac- opportunities, thereby ensuring
quisitions for our funds, numerous the success of our projects.
lease agreements, two completed
+ 8%*
51
revitalisation projects, and pre- redos continues to grow: Last
parations for Germany’s largest year we added several new
shopping centre modernisation members to our team, including,
– all of these major achievements for example, Jan Steinhauer as
employees during 2019 were only made pos- Director/Head of Construction.
sible thanks to our extraordinary We are always on the lookout for
* compared to 2018
staff. Through the tireless efforts of motivated, highly talented new
our interdisciplinary teams, we not employees who want to shape
only expertly manage our day-to- the future of retail as part of one
day business but also overcome of the industry’s leading teams.
8 redos | Stakeholder Report 2019
Approx. 25,000 sq.m. of GLA Welcome to redos,
newly leased or prolonged
Jan Steinhauer!
We are particularly proud of our strong rental manage-
During 2019, we were fortunate to
ment performance in 2019, particularly in terms of lease
be able to bring Jan Steinhauer
agreements signed. How does this success come about?
into our team as Director/Head of
We bring our specialised expertise together with an ex-
Construction. His new responsibilities
tensive network of tenant contacts, including many of
Europe’s leading retailers, and supplementing our own
include, needless to say, managing
tenant relationships with those of our partner HLG as well our largest revitalisation project
as the long-standing tenant relationships of our shopping to date, the Rhein-Ruhr Zentrum
centre management partners. Together, working hand in shopping centre. In this role, he
hand in a spirit of partnership and mutual trust, we relent- serves as our interface to the project
lessly drive towards our shared goals in rental manage- developer and is also responsible
ment, in each of our 89 investment properties throughout for coordination and oversight of
Germany, with a total of more than 1,000 managed leases. two other very important project
partners, the general contractor
and the project manager. Before
joining redos, Jan Steinhauer worked
for prominent industry participants,
including Drees & Sommer and ECE.
redos | Stakeholder Report 2019 9
Christie portfolio
Successful repositioning
of our hybrid shopping centres
redos and ECE expand
strategic cooperation
We have chosen ECE as new
partner for the property man-
agement and shopping centre
management of our four Christie
properties. With this decision, we
are expanding our successful
long-term strategic cooperation.
ECE has, on our behalf, already
been managing the very large
Rhein-Ruhr Zentrum shopping
centre since 2018. Through our
new chosen partner, we aim to
raise the management quality
of our properties to a higher
level, thereby ensuring and
stabilising the strong financial
performance of our shopping
centres and positioning them
for long-term success in their
highly competitive local markets.
Positioning and revitalising retail of tenants, including notable
properties to remain viable in anchor tenants with strong credit
the future means developing an ratings. Over recent years, three
individual, sustainable concept for of the four centres have been
each property that takes account comprehensively modernised.
of rapidly changing consumer In 2019, together with our project
preferences. This is exactly the partners and through a joint
approach we are taking with venture with Madison International
our repositioning of the Christie Realty, we successfully completed
portfolio, consisting of four large- the revitalisations of the Dallgow
scale hybrid shopping centres Havelpark and Brandenburger
on the outskirts of Berlin and Einkaufszentrum Wust shopping
Dresden, with total combined GLA centres. As to the remaining
of some 218,000 square metres. shopping centre in the portfolio,
and more than 350 shops. Each Kaufpark Dresden-Nickern, we
of these established shopping have already drafted several
centres enjoys a strong local conceptual approaches and
market position, high visitor construction planning variants for
traffic, and an attractive mix its revitalisation and repositioning.
10 redos | Stakeholder Report 2019redos | Stakeholder Report 2019 11
Havelpark Dallgow
A modern design with a broad range
of offers for young and old
With Havelpark Dallgow, in the region with the new Havelpark community which the shopping
western suburbs of Berlin, we Dallgow. Through a fresh colour centre serves. We specially
have created a new and exciting scheme and façade materials, included e-filling stations to
gathering place for young and old. along with a modernised fore- encourage electromobility.
Its grand reopening was cele- court, including an outdoor play- We took care not only to install
brated in October 2019, following ground, new bus stop and gen- energy-efficient lighting but
two years of extensive construc- erously sized entrance areas, we also to use only environmen-
tion works. The location, which have been able to raise the quality tally friendly materials. Through
was formerly largely a retail park, of the customer experience and these efforts, we are proud to
was transformed into a contem- create a feel-good atmosphere. have achieved a BREEAM certifi-
porary shopping centre with a The optimised visitor guidance cation for the shopping centre.
modern design and a diverse mix within the mall and central esca-
of retailer types and tenants. Our lator system also serve to improve
Project partners:
central focus in this project was orientation and to make the shop-
Project development and leasing:
to make the offers more varied ping experience more pleasant.
HLG (Münster)
and appealing to all age groups.
General contractor: sgi strempel &
We have also taken care to in- Sustainability was an important
große ingenieurgesellschaft (Berlin)
clude more local businesses and criterion in this revitalisation pro-
Architectural planning:
to bring more regionality into ject – because of the commitment
Maas & Partner Architekten (Münster)
the centre’s marketing, thereby by redos and our partners to the
Project manager:
strengthening people’s identifica- environment, and because it is
Drees & Sommer (Hamburg)
tion potential across this populous important to the shoppers and
Shopping centre management:
Unibail-Rodamco-Westfield (Düsseldorf)
At a glance:
€ 203.2 m € 33 m 54,000 sq.m. 98 shops and approx. 3,400
total investment total rental space restaurants free parking
investment in property spaces
amount revitalisation
Anchor tenants New tenants approx.
Adler, C&A, H&M, Intersport, Bäckerei Junge, 280,000
Kaufland, Medimax, Depot, Olymp&Hades people in the
New Yorker, Olymp&Hades, catchment
Pflanzen Kölle, Rossmann, Certifications area
Spiele Max BREEAM
12 redos | Stakeholder Report 2019redos | Stakeholder Report 2019 13
Brandenburger
Einkaufszentrum Wust
A new quality of visitor experience in a
long-established destination for families
For more than 27 years, the Bran- areas and new furniture through- regularly drawn some 1.7 million
denburg Einkaufszentrum Wust has out the mall – thereby upgrading visitors annually. With the new
been an established destination the shopping experience and en- concept now in place, we are con-
for shoppers and a region- couraging visitors to spend more fident that we will further increase
al landmark on the far western time in the centre. We also acted the number of regular shoppers,
outskirts of Berlin. Under previous quickly to bring in desirable new thereby stabilising and enhancing
ownership, however, it had long tenants, including Modepark Röther the property’s long-term value.
lacked the kind of meaningful as a strong new anchor tenant,
investment needed to keep with which across ist 5,700 square
Project partners:
the times. Immediately upon our metres of retail space now offers a
Project development and leasing:
acquisition of the Christie port- broad range of fashion brands and
HLG (Münster)
folio, we therefore developed a is thus a major draw for fashion
General contractor:
comprehensive new concept shoppers. Furthermore, we worked
Undkrauss (Berlin)
to revitalise and reposition this with long-time established tenants
Architectural planning:
shopping complex as an attractive such as Dänisches Bettenlager
Maas & Partner Architekten (Münster)
and appealing destination with a and Intersport to optimise and
Project manager:
broad range of offers for families. modernise their space to the latest
Drees & Sommer (Hamburg)
To achieve this, we invested in spe- design standards. The crowds at
Shopping centre management:
cific high-visibility improvements – the grand reopening ceremony in
Unibail-Rodamco-Westfield (Düsseldorf)
enhanced walking areas, new October 2019 were enormous. This
washrooms, redesigned entrance established shopping venue has
14 redos | Stakeholder Report 2019As partner for the centre
management, we very
much appreciate the spirit of
cooperation built upon trust,
the solution-oriented way of
working, and the partnership-
based approach of redos. We
are particularly delighted that
we are now able to expand
this cooperation, assuming
the operational management
of another four shopping
centres as we work together
to further develop the redos
portfolio – and thus to partner
even closer in creating the
shopping centres of the future.
Joanna Fisher
Managing Director
Center Management, ECE
Grand opening of Modepark
Röther in the newly revitalised
Brandenburger Einkaufszentrum
Wust, an especially popular
destination for families
At a glance:
€ 40 m € 18 m 40,000 sq.m. 46 shops and approx. 1,800
total investment total rental space restaurants, free parking
investment in property including large- spaces
amount revitalisation format home
improvement
store Toom
Anchor tenants Certifications approx.
Deichmann, expert, Intersport, Jeans Fritz, 174,000
Kaufland, Modepark Röther, Modepark Röther, people in the
Spiele Max, Toom Orovivo Juweliere catchment
area
redos | Stakeholder Report 2019 15Visualisations: Maas & Partner
Architekten / bloomimages
Above: The design of the new main entrance will be open and inviting.
Right: The range of food offerings will be significantly expanded, including outdoor options.
Rhein-Ruhr Zentrum
The new “living room of the Rhine-Ruhr region”
A massive revitalisation project in- existing appeal but also enormous We are confident that this ap-
volving a total investment of more development potential. Although pealing and broad mix in a new
than 200 million euros and span- the Karstadt Arkaden and the and exciting environment will
ning some 140,000 square me- office tower, formerly occupied by dramatically raise the quality of
tres of rentable retail space: The Brenntag, are considered part of the visitor experience, thereby
reconstruction of the Rhein-Ruhr Rhein-Ruhr Zentrum, it has never encouraging shoppers to spend
Zentrum in Mülheim an der Ruhr been possible to comprehensive- more time than ever before in the
will, starting this year, be the ly redevelop and reposition the revitalised mixed-use complex.
largest such project in the en- entire complex as one – until now.
tire German retail industry. The And a regional landmark like the
well-established and very popu- Rhein-Ruhr Zentrum deserves an Project partners:
lar retail-office complex with its approach to positioning which Project development and leasing:
shopping centre, the integrated recognises its uniqueness. With HLG (Münster)
Karstadt Arkaden and the adja- this in mind, our concept is to Architectural planning:
cant office tower has – with the remake the vast shopping com- Maas & Partner Architekten (Münster)
densely populated Ruhr area and plex into the “living room of the Project manager:
the northern Rhineland – one of Rhine-Ruhr region” – and thus Drees & Sommer (Hamburg)
the largest catchment areas in an attractive regional destina- Shopping centre management:
Germany and is already a ma- tion where visitors from across ECE (Hamburg)
jor draw for millions of shoppers the region can shop, dine, meet Owner:
within a one-hour driving radius, with family and friends, spend Joint venture between redos and
the “North Haven Real Estate Fund IX
extending beyond this even into leisure time, and enjoy a sin-
Global” managed by Morgan Stanley
the Netherlands. As such, the gular experience, all in an ap- Real Estate Investing (MSREI)
location offers not only strong pealing modern atmosphere.
16 redos | Stakeholder Report 2019Here’s a brief preview of the new
Rhein-Ruhr Zentrum:
Six unique themed areas will combine shopping,
dining, sports and entertainment. The themed
areas over two levels will offer a unique overall
experience while at the same time addressing the
changing expectations and desires of shoppers
and visitors. Dedicated entrances from the parking
structure to the various areas will also draw
more visitors by making it easier for shoppers
to find their preferred shopping destinations.
The optimised mix of tenants and retailer types
will offer a wide variety for all age groups. The
shopping centre will, for example, include more
convenience stores for day-to-day shopping,
while at the same time offering new shops with
modern, younger brands in new and exciting
ways which combine the best of online and offline
(physical) shopping. The improved mix will draw new
target consumer groups while at the same time
improving offerings for long-time loyal shoppers.
Germany’s first “market square” within a
shopping centre will be a lively gathering space
for young and old. This large new themed area will
give the relaunched Rhein-Ruhr Zentrum a very
distinctive character. With modular market stalls
which can be rented and quickly individualised,
the mall will become a lively venue for a new kind
of retail, with the character of an open-air market
square. The new concept will thus offer retailers
a maximum of flexibility in their presentation.
The event, food and sports offers will draw more
visitors to actively spend more leisure time. In
addition to a state-of-the-art cinema complex, the new
Rhein-Ruhr Zentrum will offer areas for large and small
events, along with a broad variety of dining options.
Sports enthusiasts will love the new indoor football
pitch, along with fan shops for popular regional sports
teams and a large screen for live events. Planned
offerings will also include virtual and augmented reality
experiences as well as an extensive e-gaming world.
The architecture will create a new quality of
visitor experience. All existing entrance areas
are being reconstructed, and low existing ceilings
opened up to let in more daylight, thereby
making the mall brighter and more appealing.
The design will capture the region’s industrial
history and character. The Rhein-Ruhr Zentrum
stands on the site where the old Humboldt colliery
once stood. The “industrial style” of the new
design concept celebrates the region’s industrial
legacy, with the added attractiveness of warm
colours and high-quality building materials.
The adjacent former office tower will ideally
complement the new mixed-use concept. Several
options are currently under consideration to allocate
tower space for offices or medical offices, for a
hotel, for wellness and leisure options, and/or for
conferences and events. We are also planning to
add a rooftop bar offering a spectacular view over
the entire region. The building permit application
for the office tower will be separately submitted
once these decisions have been made.
The new “market square” will be a lively gathering space.
redos | Stakeholder Report 2019 17The Rhein-Ruhr Zentrum’s new design concept features
warm colours and high-quality façade materials.
Showroom invites visitors and tenants to
experience future Rhein-Ruhr Zentrum
Existing tenants, potential new shopping centre, the display the modular market stalls that will
tenants and shoppers can area shows current planning and be offered for rent in the planned
already get an idea of what the visualisations along with actual market square in front of the
future, revitalised Rhein-Ruhr samples of the new materials Karstadt Arkaden. In this way, the
Zentrum will look like in our spe- and building façade. Potential future Rhein-Ruhr Zentrum can
cially designed showroom. Lo- tenants will be particularly inter- already be experienced today
cated right in the heart of the ested in seeing our prototype of during showroom opening hours.
At a glance:
€ 590 m over € 200 m 140,000 sq.m. 200 shops and 3,600
total investment total rental space restaurants free parking
investment in property spaces
amount revitalisation
18 redos | Stakeholder Report 2019redos & Morgan Stanley –
successful together for
more than ten years
In our joint venture with Morgan Stanley
Real Estate Investing, we have been working
closely together since 2009 to successfully
invest in value-add and opportunistic
properties. In this partnership, we have to
date completed a total of some 2.5 billion
euros in single and portfolio transactions.
An indoor football pitch is also planned.
Timeline: Future-proof – this is how
one might describe our
cooperation, not only in terms of
the forward-looking approach
to shopping centre revitalisation
but also the quality of our working
2023
relationship. Following the
Grand reopening
properties in the Christie portfolio,
the Rhein-Ruhr Zentrum is now the
largest revitalisation project to date
which we have the good fortune to
be realising as part of the project
Mid-2020 team. In order to create unique
Planned start of
demolition work and destinations to draw shoppers,
subsequent rebuil- concepts need to be fundamentally
ding during normal
operations
rethought, carefully thinking out
Nov how the shopping centre fits into
2019 and serves its surrounding area in
Submission of
initial building permit
a holistic way – and in a way which
applications for is both resilient and geared to the
shopping centre and new digital age. This is a key part of
Karstadt Arkaden
Feb the secret of our shared success.
2018
Ownership transfer
Prof. Phillip Goltermann
Partner, Drees & Sommer
Nov UPDATE 2020
2017
Unfortunately, corona has upended this
Purchase agreements
schedule. However, even if we have to accept
for shopping centre, delays due to the pandemic: We stick to our
Karstadt Arkaden and plans for the comprehensive modernization
adjacent office tower of the Rhein-Ruhr Zentrum.
redos | Stakeholder Report 2019 19Expansion of successful
AIF series with Union
Investment
Five years ago, redos launched will be added to the portfolio in
its first property investment fund 2020. We were, over the past year,
Our three
together with partner Union also able to make several superb
institutional AIFs Investment. At the end of 2019, acquisitions for the Redos Einzel-
in numbers: we added a third fund to this handel Deutschland I and Redos
successful institutional AIF se- Einzelhandel Deutschland II funds.
ries, thereby further expanding A noteworthy highlight was secur-
approx. our partnership. Like the first two ing the Mercury portfolio of 11 retail
€ 1.66 bn funds, the new Redos Einzelhan- parks and home improvement
assets under del Deutschland III is restricted stores, in such desirable locations
management
to institutional investors. Through as Bad Aibling outside of Munich
this vehicle, we invest on behalf und Vilshofen, close to Passau
of our clients in large-format and the Austrian border. The
retail properties within Germany, combined GLA of this established
84 such as retail parks and shop- portfolio is some 110,000 square
property
ping centres focused on specialty metres, with anchor tenants
locations
throughout retailers, that offer stable funda- including German retail giants
Germany mental value with the potential such as Kaufland and home
for good returns by developing improvement store Obi. While the
of their full economic potential. Redos Einzelhandel Deutschland
Following the acquisition of the I fund is now fully invested, we
approx.
Förde Park shopping centre in are examining further acquisition
867,000
Flensburg, with approx. 48,000 opportunities for Redos Einzel-
sq.m. square metres, as the fund’s first handel Deutschland II and III.
managed
rental space investment, additional properties
redos and Noerr have enjoyed a longstanding,
597
managed trust-based client relationship. Most recently,
leases we had the opportunity to advise redos on two portfolio
acquisition transactions and support the redos team’s
highly professional work. What especially strikes us is
how all team members are on precisely the same page,
something that not only makes redos an outstanding
dealmaker, but also a pleasure to work with.
Annette Pospich
Lawyer, partner and head of Noerr’s
Real Estate Investment Group
20 redos | Stakeholder Report 2019© MEC
Redos Einzelhandel For many years now, we
Deutschland I, II & III have had a partnership with
redos built on trust. We find that
Investing clients Institutional investors
the highly qualified asset man-
agement team from redos and our
Fund, asset redos
and transaction own experienced property man-
management, leasing agement experts work beautifully
together. This means that as the
Service-providing Union Investment portfolio grows, we can together
investment
management master new challenges such as
company (KVG), digitalisation and the increasingly
investor servicing
complex technology requirements
within our managed properties.
Launch dates June 2014, September 2017,
October 2019
Dr. Andreas Iding
Combined target size approx. € 2.8 bn*
Managing Director,
Goldbeck Services
Combined approx. € 1.7 bn*
invested assets
* as of 31 December 2019
redos | Stakeholder Report 2019 21Our
experts
… at the industry’s most important events
Whether at the German Council leaders and policymakers, joint plans with project developer
Congress, Expo Real, or the and with local communities,so HLG for the massive Rhein-Ruhr
Deutscher Fachmarktimmobilien- that we may jointly discuss the Zentrum shopping centre. Starting
Kongress: whereever the movers opportunities and challenges this year, we will together with
and shakers of the German real which face us today and shape our partners, be expanding and
estate industry gather, redos is the future of tomorrow. transforming this prime location
sure to be there. During 2019, as in one of Germany’s most densely
in prior years, our experts were In 2019, we were particularly populated areas into the new
prominently represented at the pleased about the enthusiastic “living room of the Rhine-Ruhr
most important German and response to our Retailer Meeting region” – at an investment
international industry events. We which we hosted on our beautiful volume of more than 200 million
actively seek interdisciplinary office terrace, as well as the high euros. In 2020, redos will again be
exchanges with all players – demand for our special lunch represented at various events.
not only from within the retail event at Mapic. At this high-
property sub-sector but also profile event held at the Bobo You can find out exactly where at
within other asset classes, with Bistro in Cannes, we reported redos.de/en/redos-on-the-go/.
the retail industry, with political on our projects, particularly our
© KD Busch © KD Busch
Our Rhein-Ruhr Zentrum project team at the Mapic lunch event at the
Bobo Bistro in Cannes and in an interview with Thorsten Müller, editor-
in-chief of Handelsimmobilien Heute, at Expo Real (top row); some
impressions from the German Council of Shopping Centers general
meeting, the German Council Congress, and the redos Retailer Meeting
on our rooftop terrace in Hamburg (bottom row)
22 redos | Stakeholder Report 2019Outlook
UPDATE 2020
As a result of the COVID-19 pandemic the market has clearly
developed differently than expected at the beginning of 2020.
for 2020
However, the corona crisis has mainly reinforced previous
trends, such as the shift towards omnichannel retailing, accel-
erating change. This means major challenges for the industry
are to come. At redos, we remain convinced of retail‘s large
and diverse potential. You‘ll find out more in our upcoming
Stakeholder Report 2020.
Further Exploiting New expert
expansion of market additions
our property opportunities to our team
portfolio
We are always on the lookout The retail property asset class To lay the foundations for our
for desirable new properties is very attractive right now and company’s continued growth,
in which to invest our capital will remain so for the foreseea- we will also make further
and expertise, thereby pro- ble future. In fact, even today, additions to our staff in the
viding an optimal risk-return today, about 90 percent of all course of 2020. Besides all the
balance to our investors as retail still takes place through opportunities that lie before
we continue to grow our in-store shopping. That being us, the market also presents
portfolio. Our focus continues said, fresh and bold approa- challenges and risks for
to be on large-scale retail ches are essential in today’s which we must be prepared.
properties such as traditional market to ensure the long- Our approach to this is not
and hybrid shopping cen- term viability of physical retail only active but proactive,
tres, retail parks, super- and spaces. The transformation and this means recruiting,
hypermarkets, home improve- which is rapidly taking place among others, additional
ment stores and local con- from traditional retail to om- specialists to our team with
venience shopping centres. ni-channel retail offers great needed technical expertise.
potential to turn established
shopping centres into appea-
ling, vibrant social gathering
spaces with new concepts
which speak to today’s con-
sumers through individualisa-
tion, multimedia and service
offerings.
linkedin.com/ xing.com/ twitter.com/ facebook.com/
company/redos companies/redos redosRealEstate redosRealEstate
redos | Stakeholder Report 2019 23redos Group
Pacific Haus
Holzdamm 28-32
20099 Hamburg
Germany
redos memberships
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