GFORM Secures Sustainable Framework Agreement with Kaufland for Seven Retail Centres of the Greenman OPEN Fund

• New long-term leases secured for 7 Properties in Berlin, Brandenburg, Saxony, Saxony-Anhalt, and North Rhine-Westphalia
• Enhancement of Contracts with Sustainable Green Leases
• New long-term lease signed for a 5,400 sqm supermarket in refurbished retail centre in Datteln
• Roll-out of PV and EV-chargers planned for each property through Greenman Energy
• Increase of the total WARLT of the GM OPEN fund to ca. 10.4 years and the rent to term by €190 m

GFORM, a subsidiary of the Greenman Group and the portfolio manager of the Greenman Open Fund, one of Germany's leading grocery real estate investment funds and Europe's largest Article 9 real estate fund, has announced a strategic framework agreement with the grocery retailer Kaufland. Kaufland, a long-standing partner of the Greenman Group, occupies numerous properties within the fund's portfolio across Germany.

The agreement encompasses a combination of new long-term leases for a total of seven properties located in Berlin, Brandenburg, Saxony, Saxony-Anhalt, and North Rhine-Westphalia. GFORM, in particular, has secured a long-term lease for the Biesdorf Centre in Berlin, one of GMO’s flagship centres. The deal also includes several significant enhancements to existing cooperations, such as the installation of electric vehicle charging stations and photovoltaic systems by Greenman Energy, sister company of GFORM. Additionally, newly structured Green Leases were agreed which integrate sustainability criteria and promote environmentally friendly practices.

A key component of the framework agreement is an innovative initiative, established by GFORM to provide tenants with access to a variety of sustainability initiatives, including access to buying green energy. The programme supports tenants in achieving their Net-Zero and Scope 3 emissions goals, facilitating their transition to greener operations. These initiatives are managed by the Greenman Group’s subsidiaries and partners at the sites of the assets and focus on generating renewable energy, organising social educational projects, and implementing innovative technologies like Direct Air Capture.

Completely new is a signed agreement with Kaufland for a retail centre in Datteln, North Rhine-Westphalia. This long-term lease covers a brand new Kaufland space of over 5,400 square meters, currently being developed as part of an extensive revitalisation of the hybrid centre (we report). In addition to this new lease, the remaining agreements cover six existing and well-established retail centres. By securing new long-term leases for these centres, Kaufland demonstrated a robust commitment to these locations, underscoring the strong performance and strategic importance of these sites within the portfolio.

Nick Wazynski-Reuber, Head of Expansion at Kaufland, stated, "We are pleased to continue our successful cooperation with Greenman OPEN, a reliable partner and investor who shares our vision. We also value the expertise and long-term commitment of GFORM as the manager of our supermarkets. This framework agreement enables us to expand our presence further at strategically important locations."

The framework agreement significantly strengthens OPEN's position by securing long-term lease commitments and substantially increasing the value of the fund’s properties. The total WARLT of the GM OPEN fund increases to ca. 10.4 years and the rent to term by €190 m. This strategic partnership further solidifies the enduring relationship between GFORM and Kaufland, exemplifying the deep trust and collaboration between the two entities.

Henning Hedemann, Head of Strategic Relations & Development at GFORM, added, "Having successfully signed this deal highlights GFORM’s ability to reinforce existing relationships and explore new opportunities. We are particularly pleased to address the urgent demand from the community in Datteln for a food anchor at this location, enhancing the region's overall attractiveness. Kaufland, with its leading commitment to sustainability and innovation, is an ideal tenant for all seven centres, and we look forward to future-proofing the properties together.

The retail centre in Datteln is an important central hub for the surrounding area's infrastructure. It will feature a parking deck with 199 parking spaces, an underground garage with 63 spaces, and a large rooftop photovoltaic installation by Greenman Energy.

With Kaufland now committed for the long-term on all centres, GFORM is in an excellent position to further improve the overall WARLT and rent to term on each centre by signing new leases with non-grocery retail occupiers. GFORM plans to agree on similar tenant framework agreements with other grocery retailers and ensure collaborative efforts to future-proof each centre from a Net-Zero perspective.