METRO PROPERTIES divested majority shareholdings in 10 Real hypermarkets to Berlin-based Carlton Investment as part of a joint venture

  • Carlton Investment acquires 60% of real estate portfolio comprising 10 Real hypermarkets; METRO PROPERTIES retains shareholding of 40%
  • Locations for Real secured in the long term
  • Together with Real focus on sustainable development enhancing the appeal of the retail stores

Düsseldorf, Germany, 2015-7-22 — /EPR Retail News/ — The real estate subsidiary of METRO GROUP, METRO PROPERTIES, has divested majority shareholdings in 10 Real hypermarkets to Berlin-based Carlton Investment as part of a joint venture. Carlton Investment is a joint enterprise between Hildesheim-based company group Lüder and Berlin-based Jan Wehle. METRO PROPERTIES retains an interest in the portfolio with a 40% shareholding. The objective pursued by the joint venture partners is to sustainably boost and enhance the attractiveness and footfall of the retail stores that are of strategic importance to Real through the gradual renovation and development of the properties.

The real estate properties are bundled in the so called “Socrates portfolio,” which METRO PROPERTIES had reacquired from the DELEK Group in 2014 to systematically optimise and strategically secure Real’s store portfolio. “When we addressed the projected resale more closely after reacquiring the properties, we soon realised just how much potential the individual stores offered for increasing attractiveness and value,” Jürgen Schwarze, CFO at METRO PROPERTIES, explains. “To achieve optimum leverage of this potential, apart from solid financing, an experienced project developer was also required who contributes the specialised competence and drive to reposition large-area retail real estate. We found the ideal partner for this in Carlton Investment.”

The Lüder group of companies is a project developer that operates across Germany. It specialises in the development of large-area retail and has already been active successfully in the market for 60 years. Recently, in collaboration with Jan Wehle, Lüder repositioned both the Planetencenter shopping centre in Garbsen as well as acquiring the EKZ Mainspitze shopping centre in Raunheim. Carlton General Managers Sebastian Lüder and Jan Wehle agree: “The investment in the joint venture offers us far more than a mere shareholding in a highly sought-after retail real estate portfolio. We look forward to implementing attractive project developments in collaboration with Real in order to raise the intrinsic value of the individual stores.”

Real CEO Didier Fleury also welcomed the transaction: “Alongside extensive investments by METRO GROUP in recent years in Real, this move will also contribute to the long-term consolidation of our store network and thus to securing Real’s future overall. We look forward to collaborating with Carlton Investment.”

Under the chosen transaction structure, the properties were transferred into a holding company, in which METRO PROPERTIES holds a 40% stake and Carlton Investment holds 60% through a property management company. Specifically, the Real hypermarkets that form a part of the transaction are Bremerhaven-Pferdebade, Castrop-Rauxel, Gross-Gerau, Darmstadt, Freiburg (Gundelfinger Strasse), Heidenau, Würzburg (Nürnberger Strasse), Wetzlar, Raunheim and Wiesbaden (Mainzer Strasse). All stores were secured for Real through long-term rental agreements.

METRO GROUP is one of the most important international trading companies. In the financial year 2013/14, it generated sales of about €63 billion. The company operates around 2,200 stores in 30 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry – the international leader in self-service wholesale –, Media Markt and Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

METRO PROPERTIES is METRO GROUP’s real estate company. The company combines comprehensive retail competence, highly developed real estate expertise and implementation capability. METRO PROPERTIES is a partner for investments as well as for the development and support of modern wholesale and retail stores. At both the national and international level, METRO PROPERTIES pursues active and value-enhancing property management. Investors, leasing partners and customers receive competent support at METRO GROUP’s stores worldwide. Apart from its headquarters in Germany, the company operates through locations in Poland, Russia and Turkey. In other countries, the company is represented by regional managements.

The real,- SB-Warenhaus GmbH is an enterprise of the METRO GROUP. real,- stands for diverse brand name products, a high competency for freshness as well as an attractive price-performance ratio. Under the umbrella of the real,- group, the company operates approximately 300 hypermarkets in Germany. Furthermore, it operates 2 drive-in stores in Germany and the real,- online shop. For the fiscal year 2013/14, the company achieved net sales of approx. €8.4 billion with about 38,000 employees. Additional information is available at www.real.info and www.metrogroup.de.

METRO GROUP acquires 15% stake in Düsseldorf-based start-up retailer Emmas Enkel

  • Real supplies Emmas Enkel stores
  • Significant acceleration of expansion in German city centres

Düsseldorf, Germany, 2014-12-12 — /EPR Retail News/ — Emmas Enkel, an emerging corner store and online food retailer, has found a strong partner: METRO GROUP is a new shareholder in the Düsseldorf-based start-up company and now supports its business processes as well as the further growth of the retailer across the whole of Germany. Among others, an intensification of its expansion in Germany and the supply of all stores by METRO’s sales line Real are planned.

Emmas Enkel (which translates to Emma’s grandchildren) combines conventional retail in the tradition of the former corner stores, or so called “mom-and-pop stores” with modern online retail. The start-up company currently operates two stores in Düsseldorf and Essen. “We are pleased to move forward into the future together with Emmas Enkel. At the heart of the concept is the absolute proximity to the customer, and this is also what our sales lines are committed to”, says Olaf Koch, Chairman of the Management Board of METRO AG and CEO of METRO Cash & Carry. “We will support this innovative young retail company as a partner in the opening of further locations in German city centres”.

To this effect, METRO GROUP acquired a 15 percent stake in the Düsseldorf-based multichannel start-up. As an operational partner, the sales line Real supports the sourcing process of the city-centre stores: Real supplies Emmas Enkel with quality food, regional fresh produce, household items and drugstore products as well as own brand articles.

“Real is one of the most innovative players in the German retail sector. For several years already, we have been very successfully testing different distribution channels in addition to our store-based business. The next step is now to offer more customers solutions for their food purchases that optimally match their personal circumstances. This way, we are responding to the growing customer demand for planning their shopping according to individual needs and time available. Here, Emmas Enkel offers the perfect complement allowing us to reach also new customers, especially in city center locations”, explains Didier Fleury, CEO of Real.

The concept of Emmas Enkel links the best of “the good old times” with the technology of the internet age. The two young entrepreneurs Sebastian Diehl and Benjamin Brüser founded Emmas Enkel in 2011. Since then, customers can conventionally buy fresh groceries, office supplies as well as drugstore products and household items at the counter of a centrally located corner store. Alternatively they can order them via smart phone and online shop and have them delivered to their home. “We are pleased that, with METRO GROUP and Real we have found competent, experienced partners with a strong national footprint”, said Sebastian Diehl. “Our business model combining traditional and digital retail is extremely well received by the customers. Together with our new shareholder and our existing co-partners Andreas Bremke, Hartmut Ostrowski and Christian Busch, we plan to rapidly accelerate our expansion in Germany in the next few months”.

Emmas Enkel has around 3,500 articles on stock at the different stores. Customers collect their picked purchases at the store or have them delivered to their homes by the food delivery service in the metropolitan areas of Düsseldorf, Essen or the entire Ruhr Region on the same day. Delivery is always handled from one of the stores. That is where the employees pick the customer’s purchases according to his choice: whether for the soccer evening, breakfast or dinner with friends, the complete “healthy week” or filling up the refrigerator after returning from vacation. The atmosphere at the homey local corner store, including a lounge area and in-store online ordering options as well as friendly and competent staff, combined with modern ordering and delivery services characterise the concept.

“Acquiring a stake in Emmas Enkel is also in line with our strategy of opening up all customer-oriented and innovative distribution channels for METRO GROUP”, stresses Olaf Koch. “It is only a small step for now – but it sends a strong signal and offers a very high potential”.

METRO GROUP is one of the largest and most important international retailing companies. In the financial year 2013/14 it generated sales of around €63 billion. The company operates around 2,200 stores in 31 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry – the international leader in self-service wholesale – Media Markt and Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

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Hypermarket chain Real announces management board changes

  • General Manager Jörg Kramer to become Head of HR
    Frank Kretzschmar joins management board as Chief Operations Officer
  • Labour Director Andreas Schrödinger assumes new task within the METRO GROUP
  • Contracts of CEO Didier Fleury and CMO Patrick Müller-Sarmiento extended by three years

Düsseldorf, Germany, 2014-10-3— /EPR Retail News/ — Hypermarket chain Real reorganises responsibilities within its management board. As the Mönchengladbach-based company announced subsequently to a meeting of the supervisory board, the management board positions for HR and operations will be reassigned. At the same time, the employment contracts of Didier Fleury, Chairman of the Management Board, and Patrick Müller-Sarmiento, Chief Merchandise Officer, were extended for another three years until August 2018, respectively September 2018.

Former General Manager Jörg Kramer will lead the HR department of Real as new Labour Director as of 1st of January 2015, taking over the position from Andreas Schrödinger, who at his own request, will leave the Real management board in order to accept new responsibilities within the METRO GROUP. In addition, Frank Kretzschmar, former Chairman of the Management Board of Media Markt and Saturn Austria, will manage the sales activities as new Chief Operations Officer (COO) and will be at the same time responsible for the region north from the beginning of next year. Together with CFO Henning Gieseke, Real’s Management Board comprises five members as before.

“The realignment of Real initiated by Didier Fleury and his team is returning first successful results,” says Olaf Koch, Chairman of the Supervisory Board of Real and Chairman of the Management Board of METRO AG. “The early extension of the employment contracts ensures the required continuity during our transformation process. The reassignment of management responsibilities paves the way for the company’s future success. We would like to thank Andreas Schrödinger for many years of excellent work and also wish Jörg Kramer and Frank Kretzschmar all the best and success for their new tasks.”

As General Manager in the Real management board, Jörg Kramer currently is responsible for the sales region north, and furthermore coordinates all sales activities regarding national topics. He previously coordinated the non-food sector within the Real management board from 2004 to March 2013. Frank Kretzschmar joined the management board of Media Markt and Saturn Austria in 2005 and became Chairman of the Management Board in 2008. He also served as COO of Media-Saturn-Holding in Ingolstadt from 2011 to 2013. Andreas Schrödinger has been Labour Director and a member of the Real management board since 2003. He previously held various executive positions outside of the METRO GROUP, e.g. as HR Manager of the ABB AG.

METRO GROUP is one of the largest and most important international retailing companies. During the financial year 2012/13 (pro forma), it generated sales of about €66 billion. The company operates around 2,200 stores in 31 countries and has a headcount of around 250,000 employees. The performance of METRO GROUP is based on the strength of its sales brands that operate independently in their respective market segments: METRO/MAKRO Cash & Carry – the international leader in self-service wholesale – Media Markt and Saturn – the European market leader in consumer electronics retailing – Real hypermarkets and Galeria Kaufhof department stores.

real,- SB-Warenhaus GmbH is a METRO GROUP company. real,- offers a comprehensive range of food and non-food products, high quality fresh items and attractive prices. All this makes Real one of the leading hypermarket companies in Germany. Under the umbrella of real,- Group, the company operates about 300 hypermarkets throughout Germany, as well as a 2 Drive-In-Food-Stores in Germany and the real,- Online-Shop. The company, employing about 40,000 employees, generated a sales volume of around €7.3 billion in the 2012/13 fiscal year (pro forma). Further information on www.real.info and www.metrogroup.de

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