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xandbicks

We buy food anchored real estate

About x+bricks

We buy food anchored real estate.

x+bricks invests in food-anchored real estate such as supermarkets, discounters or specialty shopping centers. The focus is on the purchase of portfolios and individual properties in prospering cities throughout Germany. The Immobilien AG has internalized the entire value chain and has a clear focus on digitalization and process optimization. The goal is to manage this homogeneous asset class more efficiently through standardization, thereby strengthening tenant relationships and minimizing non-apportionable service charges.

x+bricks has developed the software solution PATA® for the purchase assessment, which analyses the sustainability and value of a location based on the Huff model. PATA® is used as a basis for real estate analysis and pricing and supports the operative team in its daily management.

x+bricks was founded in August 2018 by Sascha Wilhelm, who leads the company as Chief Executive Officer. In addition, the senior management team is completed by Thomas Dänzel as Chief Transaction Officer and Jorgen Verink as Chief Financial Officer. Stefan Zimmermann supports the management team as Senior Advisor.

By the end of 2019, x+bricks has acquired food-anchored properties worth more than EUR 400 million.

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

As a member of the Management Board, Jorgen is responsible for Corporate and Property Accounting, Property Management, Controlling and Treasury. In his previous function as Head of Finance of Corestate Capital Group, he was responsible for the preparation of the IPO in addition to the above-mentioned areas. The IPO was followed by the issue of two corporate bonds with a combined issue volume of EUR 500 million and the listing of the company on the S-DAX. Prior to joining Corestate, Jorgen headed the finance department of a private equity company in Australia and the controlling department at Pirelli RE and BauBeCon AG. Jorgen was also a member of the supervisory board of the then listed Youniq AG.

Stefan Zimmermann

Senior Advisor

Stefan supports the management board in the areas of strategy development and fund raising as well as in establishing a network with strategic rental partners. Stefan founded the ACREST Property Group in 2006 and, together with his business partner, developed it into the leading asset manager for retail properties with EUR 5.5 billion in managed real estate assets. ACREST was acquired by Jones Lang LaSalle on 1 January 2016. Stefan accompanied the integration as Co-Head of Retail Asset Management and subsequently headed the Business Development department. Since September 2018 he has been a founding partner of 4 Friends Investment GmbH.

Stefan is involved in numerous associations such as the ZIA, ISCS, ULI and 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

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)

ca. 100

WALT (Years)

8,4

Vacancy(%)

1,6

Retail space

rd. 231.300 m²

TOP 10 tenants

Kaufland, Netto, REWE, Lidl, toom, Edeka, OBI, Aldi, Rossmann, Penny

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
Tel.: +49 (0)69 509 548 900

Press contact

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

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