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xandbicks

We buy food anchored real estate

About x+bricks

We buy food anchored real estate.

x+bricks AG invests in food-anchored real estate such as supermarkets, discounters and retail warehouses. It focuses on the acquisition of both individual properties and portfolios in prosperous cities and regions across Germany. Using its own internal resources and expertise, the company is able to cover the entire value chain. At the same time, it rigorously drives forward process optimisation through digitalisation. Its objective is to be able to manage the homogeneous asset class more efficiently through standardisation, thereby strengthening its relationships with key tenants while at the same time minimising landlord-borne property costs.

To support its acquisition process, x+bricks has developed its own proprietary PATA® software solution, which provides not only current valuations but also analysis of long-term value potential on the basis of the Huff Model. PATA® thus serves as the foundation for the company’s property analysis and valuation, supporting the operative management team in its day-to-day activities.

x+bricks was founded in August 2018 by Sascha Wilhelm, who leads the company as its Chief Executive Officer. Sascha previously served as CEO of the Corestate Capital Group, an listed real estate investment manager. The senior management team is complemented by Thomas Dänzel, Chief Transaction Officer, who was previously head of retail investment at Colliers Germany, and Jorgen Verink, Chief Financial Officer, who previously served as head of finance of the Corestate Capital Group. Supporting the senior management team as a Senior Advisor is Stefan Zimmermann, founder of the ACREST Property Group.

As of end-2018, x+bricks AG and its subsidiaries already completed the acquisitions of 23 food-anchored properties valued at approx. EUR 300 million, around EUR 100 million of which was financed with equity.

Management

Sascha M. Wilhelm

Chief Executive Officer

Sascha serves as chairman and speaker of the executive board, with responsibility for investor relations, strategy, asset management and operations. Following his studies of law at the Ludwig Maximilian University (LMU) in Munich, Sascha went on to receive an MBA in International Real Estate Management, studying in Germany, London and Zurich.

Until April 2018, Sascha led the expansion of the Corestate Capital Group as its CEO, with responsibility not only for overall corporate strategy but also direct management of equity raising and client relations. His executive board responsibilities at the Luxembourg-based real estate investment management group further extended to staff development, corporate law and real estate management services. During his tenure as CEO, Corestate grew its assets under management from less than EUR 5 billion to over EUR 20 billion. In 2016 he led the company’s IPO on the Frankfurt Stock Exchange, where it is now included in the SDAX index comprised of small-caps.

Thomas Dänzel

Chief Transaction Officer

Thomas serves as executive board member with direct responsibility for all transactions. A graduate in business administration, Thomas worked for more than 18 years at Colliers International, where he was responsible for retail investment. In his role at Colliers, Thomas established the investment area of retail warehouses, supermarkets and discounters as a stand-alone asset class, managing transactions valued at more than EUR 10 billion. Thomas brings unparalleled knowledge of the market as well as a superb network of contacts.

Thomas is a member of the German Council of Shopping Centers (GCSC).

Jorgen Verink

Chief Financial Officer

Jorgen is the third member of the executive board, with responsibility for corporate and property accounting, IT, property management, controlling and treasury. In his previous role as head of finance at the Corestate Capital Group, he was not only responsible for all of these functions but also played a key role in managing the company’s listing on the Frankfurt Stock Exchange. Prior to his work at Corestate, Jorgen served as head of finance for a family office in Australia, with a focus on real estate in the mining sector. Jorgen brings a background in plot and housing management.

Stefan Zimmermann

Senior Advisor

Stefan supports and advises the executive board on matters of strategic development and fund raising, as well as in building the company’s network of strategic tenant-partners. In 2006, Stefan founded the ACREST Property Group, which he developed together with his business partner into Germany’s leading asset manager for retail property, with EUR 5.5 billion of assets under management. Following the acquisition of ACREST by Jones Lang LaSalle on 1 January 2016, Stefan managed the firm’s integration as co-head of retail asset management, then subsequently headed the area of business development. Since September 2018, he has been occupied with the launch of 4 Friends Investment GmbH, of which he is a founding partner.

Stefan is involved with various industry associations such as the German Property Federation (ZIA), the International Council of Shopping Centers (ICSC), the Urban Land Institute (ULI) and the German Council of Shopping Centers (GCSC).

Our philosophy

We believe in physical food retail.

1) Groceries are an essential daily requirement

In our view, food-anchored real estate is as much a basic and universal need as housing. Demand for food which is fresh and available in the local vicinity remains enormous, and the density of food retailers within Germany makes it possible for 80% of the country’s population to drive to a local grocery store in less than 10 minutes.

2) Tenants with excellent credit ratings

The German food retailing sector is dominated by the “Big Four” – Schwarz Group, Rewe Group, Edeka Group and Aldi. These key tenants enjoy excellent credit ratings and continue to expand rapidly. Schwarz Group, operator of the Kaufland and Lidl food retail chains, alone generates an annual revenue of some EUR 100 billion, making it the world’s fifth largest food retailer.

3) Strong revenue growth resilient to economic cycles

The continued growth in overall German retail food revenue for more than 10 years underscores its independence from the economy’s ups and downs. At roughly 35% of total retail sales, and more than EUR 200 billion in 2018, food retailing is also the driving force of the overall sector.

4) Building restrictions create a barrier to new competitors

Highly restrictive policies on new construction imposed by German municipalities combined with the country’s high existing density of food retailers means that existing store locations often enjoy a virtual micro-monopoly. This barrier to local market entry makes it unlikely that a new competitor would be able to capture existing sales.

5) Long lease terms

Food retailers generally sign long leases on their store locations. The market standard in Germany is ten years or more. These long-term tenant-landlord relationships encourage a spirit of cooperation and provide for long-term investment certainty.

6) Limited role of online groceries

Online food retailing is a relatively expensive model. With a total revenue of approx. EUR 1.1 billion in 2017, representing year-over-year growth of just EUR 200 million, it plays only an ancillary role in the overall German market. Online food retailing makes up only 0.6% of total revenues. Taking out the online shops of the major brick-and-mortar retailers, the figure even drops to 0.4%.

Portfolio

Portfolio by usage type

Portfolio by region

Top ten tenants

1. Kaufland

2. REWE

3. toom

4. OBI

5. Lidl

6. Aldi

7. Edeka

8. Netto

9. Rossmann

10. AWG

Portfolio by region

Schleswig-Holstein
4.58%

Lower Saxony
21.15%

Saxony-Anhalt
5.99%

Brandenburg
9.91%

Berlin
8.51%

Hesse
11.50%

Rhineland-Palatinate
2.11%

Saarland
8.57%

Baden-Würtemberg
2.47%

Bavaria
0.90%

Thuringia
7.84%

Saxony
16.47%

Portfolio in detail

  Objects (Quantity) 40
  WALT (Years) 9.2
  Vacancy (%) 1.72

Investment criteria

We invest in food-anchored real estate across Germany, including both individual properties and portfolios.

Supermarkets and hypermarkets

Discounters

Retail warehouses

Location

minimum local population of 2,500

minimum local population of 2,500

minimum local population of 10,000

Rentable area

at least 1,100 sq.m.

at least 1,000 sq.m.

at least 5,000 sq.m.

Plot

at least 3 times the size of rentable area
(applies only to stand-alone assets, integrated urban locations may have a land factor as low as 1.5)

at least 3 times the size of rentable area
(applies only to stand-alone assets, integrated urban locations may have a land factor as low as 1.5)

at least 2.5 times the size of rentable area
(applies only to stand-alone assets, integrated urban locations may have a land factor as low as 2)

Lease term

at least two remaining years

at least two remaining years

at least two remaining years

Tenants

Edeka Group, Rewe Group, HIT Group, Kaufland, Real

Edeka Group, Rewe Group, Aldi, Lidl

high credit ratings, maximum two-level store format

Contact

x+bricks AG

Ulmenstraße 30
Westend Sky
60325 Frankfurt

Press contact

Feldhoff & Cie. GmbH
Tom Zeller
T +49 69 2648 677 15
M +49 176 104 300 63

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