Atrium European Real Estate (VSE / Euronext: ATRS), one of the leading real estate companies focused on shopping center investment, management and development in Central and Eastern Europe, announces that, further to its announcement on December 20, 2010, it has completed the acquisition of the Promenada shopping center in Warsaw, Poland for 171 million from Carpathian PLC.
In addition to achieving an immediate cost saving through internalizing the center's management, Atrium has already identified a number of short-term value enhancing initiatives at the center. Atrium also intends to progress the development potential of the asset and, in February 2011, conditionally acquired an adjacent 22,500-m² land plot from Pirelli Pekao Real Estate for 10.7 million (PLZ 41.5 million), on which it intends to build an extension to the center.
This transaction is in line with Atrium's strategy of growth by acquisition, through adding value by extending and redeveloping its existing assets and of its focus on the key markets of Poland, Czech Republic and Slovakia. This strategy is further evidenced by the company's recent acquisition of a 38,000-m² land plot adjacent to its Copernicus shopping center in Torun, Poland, for 7.5 million which will allow the company to extend the current center, and the sale of a 3.6 hectare land plot in Kahramanmaraþ, Turkey, for 16.5 million, which is above Atrium's book value (both of which are subject to certain conditions precedent).
Commenting, Rachel Lavine, CEO of Atrium European Real Estate, said: "These two acquisitions underline our strategy of both seeking high quality income producing assets, located in the major cities of our target geographies, and of continually looking at ways of utilizing our asset management and development skills to add value to our existing assets. The sale of the land plot in Turkey, at above book value, is in line with our strategy of disposing of projects which no longer fit within our development criteria, in order to focus on those properties which will best complement our operating portfolio."