Rodamco Europe and Globe Trade Centre S.A. (GTC) are joining forces in Poland. The first deal is joint ownership of Galeria Mokotow, one of the largest and most successful shopping and entertainment centres in Poland. Rodamco Europe has acquired 50% of Galeria Mokotow, based on an asset valuation of around EUR 170 million, which translates into a net initial yield of over 10%.
Formalisation and final closing will be in the second quarter of 2003. Rodamco Europe and GTC will also cooperate on future retail projects in Poland, whereby Rodamco Europe will have the right of first refusal to acquire (a 50% stake in) shopping centres to be developed by GTC.
Galeria Mokotow is a state-of-the-art, regional shopping centre located in the most affluent southern part of Warsaw. Built in two phases, the initial phase of 48,000 m2 NLA opened in September 2000 and the second phase of 11,000 m2 NLA in October 2002, bringing the total NLA to 59,000 m2. The shopping centre has around 240 shops and service outlets on three floors, and multilevel parking facilities for over 2,100 cars. Due to its size and quality, Galeria Mokotow is the most dominant and successful shopping and entertainment centre in Warsaw. Occupancy has been 100% since opening. Galeria Mokotow includes international anchors such as Ahold, Peek & Cloppenburg, Marks & Spencer, KappAhl, Cubus, Giacomeli, Mango and Duka, and national anchors Galeria Centrum, Royal Collection, Smyk and Euro RTV AGD. Rodamco Europe and GTC have also agreed thatRodamco Europe will be responsible for shopping centre management in Galeria Mokotow on behalf of both owners. Rodamco Europe and GTC are confident that the cooperation will be beneficial for both parties: Rodamco Europe will benefit from GTCÂ's knowledge and expertise of the Polish property market, while GTC will enefit from Rodamco EuropeÂ's experience and expertise in managing dominant shopping centres across Europe.
The 50% ownership of Galeria Mokotow is Rodamco EuropeÂ's secondÂ's investment in Warsaw. It will take turnkey delivery of Zlote Tarasy, the shopping centre currently being developed by ING, in 2005. In terms of catchment area, the two centres are complementary: Zlote Tarasy will be a mixed-use project in the heartof Warsaw, whereas Galeria Mokotow is a dominant regional shopping centre located in the south of the city.
Hans Pars, Rodamco EuropeÂ's Managing Director for Central Europe, comments: 'This investment is a very important milestone in our Central European investment program. With the 50% acquisition of Galeria Mokotow, Rodamco Europe now (co)owns six major shopping centres in this emerging region of Europe. We now have two centres in each of the capital cities of Poland, the Czech Republic and Hungary. This latest transaction is a strategic fit, based on stringent financial and performance-driven investment criteria. Through this transaction, we are now by far the largest retail investor and manager in this promising part of Europe. Our cooperation with GTC is exciting and opens up greater potential.'
Mr. Eli Alroy, Chairman of the Supervisory Board of GTC, comments:
'By joining forces with a leading European shopping centre investor and manager,GTC will further strengthen its position in the Polish retail market. We intend to develop more retail centres in other major Polish cities, benchmarked by the success achieved with Galeria Mokotow. Rodamco joins a group of existing top GTC partners, including Deutsche Bank, Citibank and EBRD'.
(source: Rodamco Europe)