Orlando-based Global Income Trust, a real estate investment trust focused on acquiring income-producing assets, has purchased its first international acquisition, a fully leased, six tenant value retail center in Giessen, Germany for approximately â¬4.0 million (USD $5.2 million).
"This property represents the first of many potential international transactions through our relationship with MGPA and is our first step in executing this REIT's global strategy," said Andy Hyltin, president of Global Income Trust. "With this acquisition we continue our efforts to build a global, diversified portfolio of real estate assets providing strong, reliable income to our shareholders."
The two-building retail center, totaling 34,714 square feet, is located just north of Frankfurt, Germany. It was completed in 2008 and is fully leased to six established retailers. Four of those tenants are multinational European brands, and the majority has more than 1,000 stores.
The property will be actively managed by members of Global Income Trust's sub-advisor MGPA out of the company's Frankfurt office.
The retail center is located in the Rhine-Main region of Germany, which has a population exceeding 5.5 million, comparable in size to the Miami/Fort Lauderdale Metropolitan Statistical Area. The shopping center is well positioned in a commercial area with nearby supermarkets and retailers, a railway line and easy access to the German highway system. The retail center's tenants focus on products for price conscious consumers, who comprise 37 percent of Germany's retail market.
"The retail center should provide stable income and beneficial diversification to our portfolio," Global Income Trust's Chief Financial Officer Steve Shackelford added. "We expect that well-located retail real estate that serves value-conscious consumers should be not only consistent, but resilient, through good times and bad."
Global Income Trust is sponsored by an affiliate of CNL Financial Group and advised by CNL Global Income Advisors and is a non-traded real estate investment trust designed to create a global portfolio.