Wednesday, 21 January 2026
Sonae Sierra and the Hahn Group have launched the Hahn Sierra Food Retail Fund as part of a cooperation agreement. The open-ended special AIF, established in accordance with the German Investment Code (KAGB), has a target investment volume of around €600 million and focuses on food retail assets in Southern Europe, specifically in Portugal, Spain and Italy. At the first closing, six institutional investors subscribed equity of approximately €150 million. The target equity volume is around €300 million.
The fund focuses on supermarkets, consumer markets and hypermarkets with long-term leases to leading food retailers. It provides German professional investors with access to high-quality, strategically located assets outside Germany. The partnership between the Hahn Group and Sonae Sierra combines the expertise of both companies. Sonae Sierra contributes decades of experience in Southern European markets and a proven track record in value creation within the real estate sector. The company currently manages 24 investment vehicles in partnership with blue-chip investors. The Hahn Group brings extensive experience in the investment and management of food-anchored assets, supported by long-standing relationships with institutional investors. This joint framework enhances the ability to identify suitable investment opportunities and to build a resilient and sustainable portfolio.
€130 million initial portfolio in preparation
Approximately 20 food retail assets in Spain and Portugal, with a total investment volume of around €130 million, are currently at an advanced stage of due diligence. The first acquisitions are planned for the first quarter of 2026. The objective is to reach a total investment volume of €300 million by the end of 2026.
“With the launch of the fund in partnership with the Hahn Group, we are consistently pursuing our expansion strategy in investment management. We bring 35 years of international experience in cooperation with institutional investors, as well as in-depth market knowledge of Southern Europe. The high resilience of the food retail sector—characterised by long-term leases, stable cash flows and high purchase frequency—forms the basis for a sustainable income portfolio. Together with our partner Hahn, we are pleased to offer investors such an attractive and distinctive investment opportunity,” said Dr Christoph Billwiller, Head of Investment Management at Sonae Sierra in Germany and member of the Executive Board.
7 per cent target return for professional investors
The open-ended special real estate fund is aimed at German professional investors. Classified in the Core/Core-Plus risk category, the fund targets an annual return of more than 7 per cent (IRR). Following the first closing, the Hahn Sierra Food Retail Fund remains open for further subscriptions. With a minimum investment of €30 million, the special AIF is aimed primarily at insurance companies, pension funds, pension schemes and church institutions.
Thomas Kuhlmann, CEO of the Hahn Group, said: “Our investors have been successfully investing in the German food retail sector for over 40 years. These investments traditionally offer high resilience and an excellent risk-return profile. We are pleased to now offer investments in the European food retail sector for the first time, enabling our institutional investors to achieve broader geographical diversification. Spain, Portugal and Italy are highly attractive markets with above-average growth rates in Europe. In Sonae Sierra, we have selected a cooperation partner with extensive industry expertise and in-depth regional market knowledge. Combined with our capital markets expertise, this provides a strong foundation for the fund’s success.”
Photo: Thomas Kuhlmann, CEO of the Hahn Group
