Dawnay, Day Carpathian PLC is pleased to announce the acquisition of 31 retail units located within the Marina Mokotów residential development in Warsaw, Poland ('Marina Mokotów') for a total purchase price of 9.2 mln. representing an initial yield of 8.5%.
The individual assets are being purchased in two phases. The first phase comprises the purchase of 25 properties completed on 16 October 2007 with an equity contribution from DDC of 1.72 mln. The second phase purchase, comprising the remaining 6 properties, is expected to complete and be transferred into DDC in the first quarter of 2008, using an additional 750,000 financed by DDC. The balance of the funding for the acquisitions will be financed through bank debt on competitive terms.
The premises are let at a minimum of five years to a variety of tenants focusing on the convenience goods and services segment serving the local residents. The majority of shops are each between 40 and 70 m² in size and are located on the ground floors of six apartment buildings. 32 parking spaces are also included as part of the purchase. Once fully completed, this purchase will provide the Company with ownership of 100% of the retail units and associated parking within Marina Mokotów.
Marina Mokotów is an upmarket residential development of almost forty apartment buildings, some up to seven storeys tall, and approximately sixty detached and semi-detached homes situated on 310,000 m² of land. At the junction of Zwirki i Wigury and Racùawicka Streets, the development is well-located, proximate to Warsaw's international airport, 3 km to the south and also the city centre, 4 km to the north along Zwirki i Wigury. The Mokotów district is well served by public transportation and considered a major residential area as well as a non-central office location.
Commenting on the acquisition, Rupert Cottrell, Chairman of Dawnay, Day Carpathian PLC said "This acquisition represents the fifth transaction since the £100 mln. secondary fund raising completed in May 2007 and demonstrates the continued progress DDC is making in establishing a premier retail portfolio across Central and Eastern Europe."
Source: Dawnay, Day Carpathian