Resolution Property, the leading European real estate investor, has purchased Galeria Pomorska in Bydgoszcz, Poland for 50.75 million, on behalf of Resolution Real Estate Fund III. Resolution was advised by CB Richard Ellis.
Resolution aims to capitalize on Galeria Pomorska's established customer base and the strong economic growth potential of Bydgoszcz, via an active asset management strategy. This will include tenant re-engineering, remerchandising and the opportunity to expand the center in line with a recently-approved master plan that allows for a 12,000-m² extension to the existing mall.
Peter Todd, Director at Resolution Property, said: "Having monitored the Polish retail market for some time, our decision to acquire Galeria Pomorska was driven by its strong income stream coupled with the opportunity to unlock increased returns through Resolution's long-established active management strategy. This is against the backdrop of Poland's highly resilient economy and the recognized growth potential of the city of Bydgoszcz."
Patrick O'Gorman, Head of Capital Markets Poland, CB Richard Ellis, said: "This transaction illustrates the significant latent value that is available in the Polish retail investment market when compared to other parts of Europe: buying strong real estate at attractive levels of return."
The purchase represents an initial yield of 10%.
Galeria Pomorska is Resolution's second purchase in mainland Europe in recent weeks, following its acquisition of McArthurGlen Troyes from Henderson Global Investor's European Outlet Mall Fund for 85.5 million. Resolution Real Estate Fund III currently has close to 1.5 billion of spending power to invest across mainland Europe and the UK.
The vendors were Babcock & Brown, who were advised by Balmain Asset Management. Balmain will be retained by Resolution as its local asset management partner.
Source: CB Richard Ellis