Dawnay Day Carpathian Plc announces that it has acquired the MacroMall Shopping Center in Brasov, Romania for 19 million. This includes a consideration of 2 million for an adjoining development site. The acquisition represents an initial net yield for the shopping centre of 9.00%.
The MacroMall Shopping center was opened in December 2005, and has a net lettable area of 7,868 m² with 350 parking spaces. MacroMall has approximately 82 tenants with an average rent of 16/m². This acquisition also includes an adjoining site of 7,735 m² which could provide an additional opportunity to develop around 70% of this area. Of the 2 million consideration for the site 1m is deferred until building consent has been approved in accordance with the Company's requirements.
Brasov is one of the largest cities in Romania, with a population of approximately 320,000. It is located in the Transylvanian Plateau, about 100 miles North of Bucharest, surrounded by several popular tourist resorts.
MacroMall is situated on the south side of Brasov, at the centre of a cluster of modern retailing buildings, including Selgros, Cash and Carry, Carrefour, Metro and a Praktiker DIY store, with several other commercial developments in the area.
This acquisition is a share purchase transaction from two Romanian companies and represents the first investment in Romania for the Company. Geographical coverage has increased in Central and Eastern European to five countries, and this represents the 7th transaction since our inception.
Commenting on the transaction, Rupert Cottrell, Chairman of DDC PLC said:
"This is an excellent acquisition for us. With an initial 9.00% net yield we are starting from a strong base, as usual we are confident of adding further value through asset management, and in this instance we also have the opportunity to develop the adjacent site. Together this adds up to be a very interesting acquisition and takes our total investments to date to 363 million."
Source: Dawnay Day Carpathian