Union Investment acquires Manufaktura (PL)

The acquisition of the Manufaktura regional shopping center, located in Lódz, Poland, by the Union Investment Real Estate AG for the open-ended fund Unilmmo: Deutschland will be completed on October 31, 2012.

Worth €390 mln, this transaction will stand as the largest single retail asset deal so far this year. The sellers are the Euris / Rallye group and Apsys, who will continue to manage the shopping center.

Largest transaction of the year
Apsys and the Euris/ Rallye Group have announced the acquisition of Manufaktura shopping center by Union Investment, on October 31, 2012. The sale transaction relates to 91,000 m².

At the request of its buyers, Apsys will go on assuming the property management of Manufaktura for a period of at least 10 years. Apsys currently manages 20 shopping centers, representing over 600,000 m² retail premises.

Maurice Bansay, president and founder of Apsys, states: "The sale of Manufaktura is an illustration of Apsys' excellence as a developer and manager of shopping centers and a demonstration of long term interest by investors in regional shopping centers in Polish cities. We are proud of this transaction: Union Investment has shown the trust it has in Apsys' savoir-faire as a developer of centers and long term manager. The equity generated by this transaction will be reinvested in new projects in France and Poland".

Manufaktura : a trophy asset
Located on the site of a former 19th century textile factory, Manufaktura has put life back into historical, red bricks, buildings, which it has meticulously renovated. In addition to the shopping center, the project includes three museums, a four-star hotel and a conference center.

Manufaktura opened its doors to the public on May 17, 2006. It develops 112,000 m² GLA, hosts 307 retail and entertainment activities and enjoys 2,955 parking spaces. Manufaktura was awarded the Excellence Award by Urban Land in 2007 and was voted as Best Shopping Center in Europe by the International Council of Shopping Centers (ICSC) in 2008.

With a catchment area of over 2.5 million inhabitants, Manufaktura has become, since it opened in 2006, a regional center of attraction, the place where gatherings and celebrations take place in Lodz (concerts, open air films and other public events).

Manufaktura is anchored by Real, Cinema City, Van Graaf, the Inditex Group, Leroy Merlin, C&A, H&M, Alma, Media Saturn and many others.

With 20 million visitors in 2011, Manufaktura has confirmed its status as leader in the region.

This center is truly unique in scale, architecture, commercial offer and location. Its focal point is a spectacular central square called Rynek, which guides visitors naturally towards the commercial, leisure and cultural buildings on the site.

Manufaktura received a "very good" BREEAM certification.

HSBC (agent), Salans (lawyers), Deloitte (tax specialist) and DTZ (evaluation) advised the sellers, while Hogan Lovell (lawyers), TPA (tax specialist) and Jones Lang LaSalle (evaluation) advised Union Investment.

Source: Union Investment

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