Dawnay, Day Carpathian PLC, the retail property investment company established to invest in Central and Eastern Europe, is pleased to announce that it has acquired a retail portfolio of four properties from MID Group based in Austria for a total consideration of £46.7 mln. (67.7 mln.).
The portfolio comprises two properties in the Czech Republic; a 22,000 m² shopping centre in Hradec Kralove and a 7,700 m² supermarket in Znojmo, and two properties in Hungary; a 10,000 m² retail park in Ozd and a 9,000 m² supermarket in Gyula. The majority of the portfolio is let to major international brand retailers on long leases with 87% of the income secured against leases with Interspar and Baumax. The average unexpired lease term in the portfolio is in excess of 10 years.
After purchase costs, the portfolio will produce net initial returns of approximately 6.45% rising with lease indexation. The purchase was closed and simultaneously part financed with a 3 year loan from Hypo Real Estate International. Equity invested is £9.7 mln., (14.07 mln.)
The properties offer predominantly convenience-based retailing activities with car parking in areas of strong resident population. The average rent per m² is approximately 8.00 per month.
Commenting on the acquisition, Rupert Cottrell, Chairman of Dawnay, Day Carpathian PLC said "This is an excellent strategic purchase for the Company, bringing a secure, long term income flow to our diverse portfolio. These properties leased to high quality retailers compliment well the more active asset management led investments within the portfolio and the development activity we are also now undertaking."
Source: Dawnay, Day Carpathian