IRISH WEALTH management company, Custom House Capital Ltd, has broadened its European investment property portfolio with another acquisition in Germany.

It has paid €27.34 million (including costs) for a newly-built retail warehouse in the Altona district of Hamburg. The investment was bought in conjunction with Murray Spellman (Financial Services) of Galway. The retail warehouse, completed in January, has 15,720sq m (169,209sq ft) of lettable space and 320 car-parking spaces. It operates as a cash and carry, and is rented by a single tenant, the Fegro/Selgros Group.

One of the attractions is a 20-year lease which is longer than usual. Fegro will be paying a rent of €1.485 million per annum. The Fegro/Selgros Group cash and carry chain - the giant Otto group is a major shareholder - has 44 outlets in Germany, 10 in Poland and 12 in Romania. The Altona facility is in a wealthy district with 250,000 residents. It has excellent transport links to the Hamburg region and the city centre.

Harry Cassidy, chief executive of Custom House Capital, said the purchase complements its portfolio of retail and office properties in Germany and was a strategic purchase. The covenant, 20-year term and location should ensure strong returns. The property was sourced by Berendes Partners. Knight Frank in Dublin also advised Custom House Capital.