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Shopping Centers: an attractive asset class

Stable return characteristics

Throughout historical business cycles, prime shopping centres managed by ECE have generated stable returns for investors through a diverse tenant mix with long-term leases

Opportunity for pro-active value creation

“Hands-on” asset management expertise resulting in the ability to execute tenant mix optimisation, expansions and repositioning measures

High barriers to entry

Target markets characterised by strict planning regimes, reduced new supply coming online, a limited number of competitive buyers with in-house management capabilities and the need for economies of scale

Inflation protection

Achieved through a combination of real estate ownership, indexed lease agreements and tenant sales rental revenues

Market opportunity

In a rapidly changing retail market, an increasing number of dominant shopping centres in prime locations requires revitalisation, or refurbishment

Our investment philosophy

Focus on proactive value creation

Active centre management and income generation

  • Provision of “hands-on” centre management services in-house generates substantial rental income and ensures long-term value appreciation
  • Secure ancillary revenues through shopping centre marketing, advertising and other activities

Redevelopment/ expansion

  • Cost-effective, timely and innovative execution of redevelopment
  • Improve layout and composition of retail areas and ensure the maximisation of value

Repositioning

  • Revitalise through value enhancement via reinvestment, refurbishment and modernisation
  • Optimise shop design, high-impact marketing concepts and product range

Re-leasing

  • Optimise branch and tenant mix
  • Attract market leading retailers, that are vital to the success of prime urban shopping centres

Portfolio management

  • Create synergies across the portfolio saving costs and enhancing value
  • Risk management and reporting excellence

Our Investment focus

Existing dominant shopping centres with potential for operational value creation

Investing exclusively in existing dominant prime (or the potential to be repositioned as prime) shopping centres in select European countries with re-leasing, repositioning or expansion opportunities.

Target properties fulfil the following criteria:

  • €100-€400 million of value per centre (€50-€200 million of equity)
  • Situated in a urban or integrated location with a minimum designated catchment area of at least 200,000 inhabitants
  • Dominant in its local market/sub-market with a size of at least 25,000 sqm GLA
  • High visibility, good accessibility and provision of on-site parking
  • Featuring multiple tenants (at least 50 retail units) and with a potential to be a one-stop shopping location
  • Single ownership with centralised management
  • High targeted sales per square meter relative to geographic-specified metrics
  • No ground up developments
  • No minority interests

How to invest with us

We have a successful track record partnering with global, highly-reputable and like-minded institutional investors, including some of the world’s largest sovereign wealth funds, pension funds and insurance companies.

We offer our partners Europe’s only private open-ended shopping centre fund, pooled closed-ended value-add funds, segregated accounts and co-investment opportunities with professional investment partners.

Pooled closed ended Funds

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    We currently manage two Luxembourg based discretionary closed-end shopping centre funds:

    1. ECE European Prime Shopping Centre Fund:

    • Launched: 2011
    • Capital Commitments: EUR 775.5 million
    • Strategy: Acquisition of existing shopping centres with active value-creation potential
    • Portfolio: 12 shopping centres across Germany, Italy, Poland, Denmark, Austria and the Czech Republic
    • Assets under Management: In excess of EUR 2 billion
    • Fund Lifecycle: Fully Invested. Divestment phase has commenced.

    2. ECE European Prime Shopping Centre Fund II:

    • Launched: 2014
    • Capital Commitments: EUR 850 million
    • Strategy: Acquisition of existing shopping centres with active value-creation potential
    • Portfolio: 12 shopping centres across Germany, Hungary, Italy, Poland, and Spain
    • Assets under Management: Almost EUR 2 billion
    • Fund Lifecycle: Investment phase completed

Open ended Fund

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    The ECE Progressive Income Growth Fund (EPIG Fund) was launched in June 2019 with equity commitments of more than 700 million Euros from a leading global institutional investor base. It has acquired a seed portfolio consisting of dominant shopping centres in Germany, Austria, Denmark, Poland, and Italy with a market value in excess of 2.2 billion Euros.

    The EPIG Fund is aimed at long-term investors striving for stable regular distribution yields and sustainable income growth. Its open-ended structure with an unlimited lifetime allows for a long-term investment strategy regardless of market cycles. Institutional investors participate in a well-diversified portfolio and can adjust their participation over time to match their investment needs.

    For the upcoming years, further acquisitions of market leading European shopping centres are planned.

Co-Investments

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    We have a strong track record in structuring and managing joint ventures with strategic partners and offering co-investment opportunities to our Partners.

    We retain operational control of our joint ventures and co-investments, enabling our Partners to further leverage off our long-standing shopping centre management expertise and capabilities.

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