Gordon Group

☎ +49 173 67 33 99 8

We sell and manage brand-new supermarkets in Germany

Brand-new REWE XL near the Belgian border.

Brokered and managed by Gordon Group.

Questions & Answers

Why Germany

Despite short-term recession risks driven by inflation and weaker consumer sentiment, Germany — a nation of 84.5 million people with a GDP of $4.66 trillion (the world’s No. 3 economy after the USA and China, and the No. 3 exporting country after China and the USA) — remains Europe’s economic No. 1. More than 1,500 German companies are still global leaders in their sectors. By early 2025, total private wealth had reached €7.95 trillion, keeping Germany one of the strongest consumer markets on the planet. Its decentralised economic structure and disciplined household spending sustain consistently high demand across the country and support a notably resilient retail environment.

Why Food Retail

No matter what kind of crisis emerges, people will always need to eat, drink and cover their basic daily needs. Germany’s largest food retailers continue to demonstrate remarkable stability even in today’s turbulent environment. Did you know that total spending on food and drinks in Germany in 2024 nearly reached €203 billion, with only €3.9 billion of that amount spent online? Because German consumers remain conservative and still prefer buying groceries offline, well-located stationary stores retain their position as the No. 1 capital-preservation tool for risk-averse investors. This consistent demand makes food retail the most resilient asset class among all types of commercial real estate.

What (not) to invest in

For a number of structural and market-driven reasons, we do not recommend investing in hotels, restaurants, car dealerships, retirement homes or even office buildings in Germany at the moment. In contrast, a perfectly located, brand-new or fully refurbished freehold food supermarket — whether a stand-alone property, a dual asset with a shared parking area, or part of a shopping centre — leased long-term to one of the major German retail chains such as EDEKA, REWE, ALDI, LIDL, NETTO, DM, Kaufland, Norma, Rossmann or Alnatura remains one of the most robust investment choices for a conservative ultra-high-net-worth individual or an institutional fund.

Where (not) to invest

Germany is a strongly decentralised country, and although its “Big 7” cities — Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf — may appear attractive for a theoretical retail investment, micro-locations in these markets are characterised by exceptionally intense competition. For conservative investors, greater attention should be directed toward Germany’s B, C and even D-type towns, where a newly built food supermarket leased long-term to a leading retailer often plays a strategic and, in some cases, near-monopolistic role, reducing competing supply and reinforcing stable turnover, strong covenant quality and defensive yield performance.

How to finance

After a long period of historically low interest rates, commercial loans have become so expensive that bank financing often makes little economic sense. In many cases, leverage now dilutes net returns. In the current environment, investors in commercial real estate are generally expected to provide 100% equity. A major advantage for international buyers without tax residence in Germany is the ability to structure this equity as a “shareholder loan”, with interest payments remaining exempt from local income tax. This approach is particularly attractive for investors holding citizenship in jurisdictions that do not tax foreign-source income earned by their residents.

How to purchase

The German legal system provides one of the safest acquisition procedures

in the world for both buyers and sellers of commercial real estate. Purchase contracts must be notarised. Comprehensive due diligence — legal, technical, financial and tax — together with a detailed location analysis remains essential and should never be overlooked, even when acquiring brand-new assets. Using a notary escrow account, opened specifically for the transaction, adds an additional layer of security and ensures that funds are released only once all contractual conditions have been satisfied. Advance payments in the field of real estate are prohibited in Germany — only payment on full or partial completion is legally permitted.

Why Gordon Group

Gordon Group is a highly efficient family business with 20 years of experience in closing commercial real estate transactions across Germany. Over these years, we have built strong partnerships with leading development groups, bankers, lawyers, technical experts, tax advisers and other high-calibre professionals. Their combined expertise forms an integral part of the tactics and strategies we apply when identifying, evaluating and securing assets for our clients — international ultra-high-net-worth investors. This network-driven approach allows us to access high-quality opportunities at early stages and consistently deliver stable, long-term outcomes in the German commercial real estate market.

Contact us

Gordon Real Estate Group
Owner & CEO: Ilya Gordon
Kaiser-Joseph-Str. 254
79098 Freiburg
Germany

Phone: +49 761 384 28 00
Mobile: +49 173 67 33 998
Web New: gordongroup.de
Web Old: gordon-group.de
Email: info@gordon-group.de

Impressum

Legal Notice | Impressum:

Gordon Real Estate Group

Owner | Inhaber & CEO:

Ilya Gordon, M.A.

Registered Address:

Kaiser-Joseph-Str. 254

79098 Freiburg

Germany

Licence § 34c Abs. I GewO

issued on 04.03.2005 by the

City Administration of Freiburg,

Baden-Württemberg, Germany

Licence § 34c Abs. II GewO

issued on 17.01.2017 by the

City Administration of Freiburg,

Baden-Württemberg, Germany

German VAT

Ust.-Ident. Nr.:

DE232024701

Image credits:

Getty Images

Authentic Shots by Daniel Niessen

Regio TV Stuttgart Production

Unternehmensgruppe ALDI Nord

Landesbank Baden-Württemberg

EDEKA Gruppe

Gordon Group

Statistics:

Statistisches Bundesamt

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