Convenience retail property: from forward deal to the right tenant
Food retail is the asset class that works even in difficult cycles: people buy groceries, full-range supermarkets and discounters keep expanding, and institutional capital seeks index-linked leases with creditworthy anchor tenants. That is precisely why success is decided not by planning law but by three questions: who is the tenant, how long will they stay — and who buys in the end?
Forward deal: securing the exit before ground-breaking
For new-build supermarkets and retail parks the forward deal is the rule: the investor buys before or during construction on the basis of lease, building specification and completion date. For the developer this means early planning certainty and a robust financing basis — for the investor an asset whose cash flow is fixed before the first customer shops.
We structure these processes from project appraisal through review of the anchor lease (term, indexation, special termination rights, turnover-rent components) to the investor’s acquisition decision. The remaining term after completion counts as much as the building’s alternative-use potential should the tenant not extend in fifteen years.
Finding tenants: anchors, local supply, complementary space
Not every site is a full-range supermarket location — and not every location needs one. We assess catchment, purchasing power, competition and transport links and approach the expansion departments of the right operators: full-range supermarkets, discounters, drugstores, beverage markets, bakers and food service as footfall generators for retail parks and neighbourhood supply.
Our requirement profiles range from large-format retail on the edge of town to small-scale local supply in the neighbourhood or town centre — including space that only becomes lettable again through subdivision or change of use. Anyone seeking a tenant for an existing or planned space receives not a list from us but an assessment of which operator is realistic and on what terms.
Selling existing assets: who buys convenience retail — and how
The buyer market for convenience retail property is deep: special funds, insurers, pension schemes and family offices, plus asset managers specialising in food retail. They all have clear acquisition profiles — minimum volume, remaining term, tenant covenant, site size. Knowing these profiles means approaching the right houses directly and avoiding the market noise of a portal sale.
We sell supermarkets, retail parks and convenience portfolios off-market across Germany: with a complete data room, reviewed leases and a buyer approach tailored to the asset — whether a single asset in a mid-sized town or a portfolio across several federal states.
Frequently asked questions
What is a forward deal in food retail?
The sale of a new-build supermarket or retail park before or during construction: the investor buys on the basis of lease and building specification, the developer gains early certainty and a financing basis. Purchase price is usually paid in tranches by construction progress or at completion.
Which tenants do you seek for retail space?
Full-range supermarkets, discounters, drugstores, beverage markets and complementary users such as bakers, food service or service providers — for new builds as well as existing space that becomes lettable again through subdivision or change of use.
What do investors look for in convenience retail property?
Remaining term of the anchor lease, indexation, operator covenant, catchment and competition, alternative-use potential of the building and increasingly ESG criteria such as energy standard and photovoltaics.
Do you work only in Bavaria or throughout Germany?
Throughout Germany. Our office is in Würzburg, the focus is on southern Germany — mandates and investor contacts extend across all federal states.