Sonae Sierra and the Hahn Gruppe have set up a new real estate investment fund focused on food retail in Southern Europe, the Hahn Sierra Food Retail Fund, with the aim of investing up to €600 million in this region.
Just a few months after its launch, the fund’s first acquisitions in Portugal and Spain have already been finalised, and include the purchase of two Continente Bom Dia supermarkets in Marinha Grande and Benedita, due to open between 2025 and 2026. Two options to purchase assets also occupied by Sonae MC have been secured; according to ECO, these are also located in this part of the country (unspecified). The two deals are expected to be finalised by the end of the year.
Currently, the domestic portfolio of the Hahn Sierra Food Retail Fund, acquired through Magnify Partners, has a combined lettable area of around 8,000 sqm.
At the same time, an Eroski hypermarket (Mondragon Group) has also been acquired at the Garbela Shopping Centre in San Sebastián, in the Basque Country.
The total amount invested in these five properties exceeds €70 million, with a total of 22,800 sqm. According to the German group, exclusive negotiations are underway to add further assets valued at over €60 million to the portfolio.
Christoph Billwiller, director of this business area at Sonae Sierra, noted that the launch of this fund and these initial acquisitions “drive Sonae Sierra’s investment management strategy to significantly expand its presence in Europe”. The company offers “privileged access to attractive investment opportunities in southern Europe with stable cash flows and long-term yield visibility”.
For the Hahn Gruppe, these acquisitions are “a strong signal”, said Christoph Horbach, a member of the group’s Board of Directors. “Just a few months after the fund’s launch, we have managed to secure a high-quality initial portfolio that perfectly reflects our investment strategy: first-class shopping centres with tenants of high creditworthiness, long-term lease agreements and a defensive yield profile. With other promising properties currently under review for acquisition, we are well on the way to achieving the target returns we aim to deliver for our investors”.
