Neptune – a joint venture between NEINVER and TH Real Estate, acting on behalf of TIAA, has completed the purchase of FACTORY Warsaw Ursus Outlet Mall in the capital of Poland for €79.7m representing a net initial yield of 6.33%.
Acquired from the IRUS European Retail Property Fund, FACTORY Warsaw Ursus features 19,593 m² GLA (210,897 ft²) of retail space. It boasts over 103 retailers, including Nike, Adidas, Reebok, Tommy Hilfiger, United Colors of Benetton and Calvin Klein. Located 10 km from the Warsaw City Centre, Factory Ursus is a 30-minute drive time of 2.1 million people.
The acquisition enhances Neptune’s dominance of the Polish outlet market, allowing the team to benefit from synergies of owning other outlets in the country – in Krakow, Poznan and an existing asset in Annopol, in the north of Warsaw. As part of the transaction, Neptune also acquired adjoining land with the retail consent in order to provide flexibility for potential future expansion of the retail provision in the area.
Carlos González, Managing Director at NEINVER, says: “We are proud to end the year successfully by adding this strategic asset to our JV’s portfolio. Neptune’s acquisition of its fifth asset in Poland strengthens its portfolio and reinforces its solid, successful growth. From our experience in the Polish market, we are firmly convinced that this centre still has much to offer in terms of profitability and reliable returns.”
Charlotte Ashworth, Fund Manager, Neptune TH Real Estate, comments: “Following a number of successful transactions in late in 2016, this acquisition is the final asset to be acquired from the former IRUS Fund and expands our successful joint venture with NEINVER. The outlet mall sector is one we strongly believe in given its ability to continuously outperform other retail sectors and deliver year on year growth. Ursus, in particular, combines the characteristics of a strong retail location, an excellent track record, a market leading manager and a large local catchment. This asset complements FACTORY Annopol, which is already held in the JV and is located north of Warsaw. Holding the two together, as well as assets in Krakow and Poznan creates a real brand synergy across our Polish portfolio that we will seek to build on in the future.”