TK Development's subsidiary Euro Mall Holding has sold a 24,000 m² retail park in Targówek, Poland, to Credit Suisse Asset Management Immobilien Kapitalanlagegesellschaft mbH. The selling price amounts to about €29 million (DKK 235 million), and the first stores are scheduled for completion in spring 2007.
TK Development has entered into an agreement regarding the sale of Targówek Retail Park, Poland, to Credit Suisse Asset Management Immobilien Kapitalanlagegesellschaft mbH (CSAM), Frankfurt, acting on behalf of the open-ended real estate fund "CS PROPERTY DYNAMIC.
The retail park has an attractive location close to the northern ring road in Warsaw's most rapidly developing residential district, next to Centrum Handlowe Targówek, which was built by TK Development in 1998. Following an extension in 2002, the shopping center now comprises 90 shops and is one of the most successful shopping centers in Poland with an annual footfall of about 8 million.
When fully developed, the retail park will comprise about ten stores, and more than 80% of the premises have already been let. The anchor tenants include Media Saturn (electronics), Opex (furniture, kitchens, bathrooms), BlackRed- White (furniture).
The project has been sold to CSAM on the basis of an annual yield of 7.0% p.a., and the selling price is expected to amount to about €29 million (DKK 235 million). The parties have agreed on payment of the purchase price by instalments as construction is completed. The project has been initiated, and the first stores are expected to open in spring 2007.
This is the Group's first sale of a retail park in Poland, and Management anticipates more projects in this segment in future.
The sale of Targówek Retail Park contributes to TK Development's long-term earnings. Management still expects a profit of about €29 million (DKK 240 million) after tax and minority interests for the 2006/07 financial year.
Source: TK Development