Key Takeaways
- • Schoeller Group's family office and a major German pension fund acquired the Hamburger Alsterhaus department store for approximately €150 million through a joint venture structure managed by HIH Invest.
- • The property was valued at around €400 million in 2022 during Signa's insolvency proceedings, representing a significant discount on the acquisition price reflecting the distressed asset environment.
- • The transaction was structured through an indirect JV with HIH Invest serving as investment manager on behalf of the pension fund partner, with Realty Corporation assuming post-acquisition asset management responsibilities.
- • Schoeller Group, already a creditor of insolvent Austrian real estate developer Signa, secured long-term lease arrangements with indexation to stabilize the asset's position as a leading German retail destination.
- • The deal signals institutional appetite for high-quality real estate assets emerging from the Signa insolvency, with Schoeller management indicating continued evaluation of other distressed properties from the same portfolio.
Summary
The Schoeller Group's family office and a major German pension fund have formed a joint venture to acquire the Hamburger Alsterhaus, one of Germany's most prominent retail properties, for approximately €150 million. The transaction represents a significant recovery play within the European real estate market, acquiring the Hamburg-based department store from insolvent Austrian developer Signa at a substantial discount to its 2022 valuation of around €400 million.
The acquisition was structured through an indirect joint venture with HIH Invest serving as the investment management company representing the German pension fund, while Schoeller Group provides capital and operational oversight through its family office. Realty Corporation, the transaction structuring firm, will assume responsibility for asset management post-acquisition. This institutional partnership reflects the broader trend of family offices and pension funds combining capital and expertise to acquire distressed premium assets with long-term stabilization potential.
Schoeller Group brings existing creditor status within the Signa insolvency to the transaction, a position that informed the firm's strategic evaluation of the acquisition opportunity. The company has already expanded its Signa exposure, acquiring the Upper West office and hotel property in Berlin for €450 million. Christoph Schoeller, chief executive of Schoeller Invest, emphasized the long-term institutional nature of the partnership, stating that "with our long-term oriented institutional partner, we are securing its sustainable position as one of the leading retail destinations in Germany."
The deal structure incorporates a long-term lease arrangement with indexation, designed to provide operational stability and strategic development potential. Jonathan Lurie, managing partner at Realty Corporation, signaled that the consortium intends to actively pursue additional assets from the Signa portfolio. "We think there are assets within Signa that deserve to have a more stable and clear future under institutional ownership," Lurie told IPE Real Assets, noting the firms would apply capital discipline when evaluating further opportunities.
The transaction underscores the opportunity set within European real estate insolvencies, where institutional capital—particularly family offices paired with pension funds—can deploy substantial dry powder to acquire premium assets at significant discounts to historical valuations, coupled with the operational stability afforded by long-term institutional ownership structures.
The acquisition was structured through an indirect joint venture with HIH Invest serving as the investment management company representing the German pension fund, while Schoeller Group provides capital and operational oversight through its family office. Realty Corporation, the transaction structuring firm, will assume responsibility for asset management post-acquisition. This institutional partnership reflects the broader trend of family offices and pension funds combining capital and expertise to acquire distressed premium assets with long-term stabilization potential.
Schoeller Group brings existing creditor status within the Signa insolvency to the transaction, a position that informed the firm's strategic evaluation of the acquisition opportunity. The company has already expanded its Signa exposure, acquiring the Upper West office and hotel property in Berlin for €450 million. Christoph Schoeller, chief executive of Schoeller Invest, emphasized the long-term institutional nature of the partnership, stating that "with our long-term oriented institutional partner, we are securing its sustainable position as one of the leading retail destinations in Germany."
The deal structure incorporates a long-term lease arrangement with indexation, designed to provide operational stability and strategic development potential. Jonathan Lurie, managing partner at Realty Corporation, signaled that the consortium intends to actively pursue additional assets from the Signa portfolio. "We think there are assets within Signa that deserve to have a more stable and clear future under institutional ownership," Lurie told IPE Real Assets, noting the firms would apply capital discipline when evaluating further opportunities.
The transaction underscores the opportunity set within European real estate insolvencies, where institutional capital—particularly family offices paired with pension funds—can deploy substantial dry powder to acquire premium assets at significant discounts to historical valuations, coupled with the operational stability afforded by long-term institutional ownership structures.
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