Sonae Sierra strengthens position in German retail market with strong 2024 performance

Sonae Sierra has demonstrated remarkable growth in the German retail sector in 2024, achieving increased sales and footfall across its managed shopping centers. The international real estate specialist reported a 2.5% year-on-year increase in sales and a 1% rise in visitor numbers across its portfolio, reinforcing its position as a leading retail property manager in Germany.

Following its second-place ranking in the Shopping Center Performance Report (SCPR) 2024, Sonae Sierra secured an impressive 111 lease agreements and extensions totaling 33,600 square meters in flagship locations such as Alexa in Berlin, Europa-Galerie Saarbrücken, Mercaden Böblingen, Mercado, Quarree Wandsbek, Ottensen in Hamburg, and Münster Arkaden. The occupancy rate across these centers stood at 94% by the end of 2024, with top performers Alexa, Mercado, and Münster Arkaden achieving an outstanding 99% occupancy rate.

Sonae Sierra’s expertise in tailored center and property management services has played a pivotal role in the strong performance of these shopping centers. Their commitment to optimizing tenant mix, enhancing retail experiences, and maintaining high operational standards has attracted major investors, including Union Investment Real Estate, Aachener Grundvermögen, and Hanse Merkur Grundvermögen, all of whom have extended their management contracts with Sierra.

Christine Hager, Director of Property Management at Sonae Sierra Germany, highlighted the company’s ability to deliver exceptional results through personalized strategies that meet the evolving needs of tenants and business partners. She emphasized that the trust placed in Sonae Sierra by both national and international retailers underscores the company’s commitment to excellence in the industry.

The leasing success of 2024 was marked by high-profile tenants such as Stradivarius, Pull&Bear, Bershka, and the non-food discounter Action. These brands expanded their presence in key locations such as Alexa in Berlin and Europa-Galerie Saarbrücken. Additionally, several anchor tenants, including H&M, Thalia, C&A, dm Drogerie, TK Maxx, and P&C, renewed their contracts, further strengthening the retail offering and reinforcing customer loyalty.

Dirk von der Ahé, Leasing Manager at Sonae Sierra Germany, emphasized the importance of strategic leasing in maintaining vibrant shopping environments. He noted that Sierra’s leasing services, introduced separately from management mandates in 2024, have been instrumental in attracting new tenants and curating an optimal retail mix.

Throughout the year, flagship properties across Germany achieved notable milestones. Alexa in Berlin welcomed 19 new tenants, including major brands like Skechers, Lindt, Lacoste, and Union Berlin. In Saarbrücken, the Europa-Galerie expanded its fashion segment with the introduction of Pull&Bear and Bershka, while Mercaden Böblingen celebrated its tenth anniversary with new openings such as Telekom, Takko Fashion, and the innovative “Cool! Arena.”

In Hamburg, Mercado Altona saw 99% of its space leased, with new additions such as Ruff’s Burger, Blume2000, and Dragon Wok. Meanwhile, Münster Arcaden secured 14 new leases, retaining key tenants such as dm Drogerie and Manufactum, and achieving near-full occupancy. The culinary landscape of Quarree Wandsbek expanded with Café Amaya and Dil India, with further additions planned for 2025.

Looking ahead, Sonae Sierra continues to focus on delivering exceptional value to its tenants and stakeholders, driving growth and innovation in the German retail property market.