Atrium European Real Estate Limited (Atrium or the Company) (VSE/Euronext: ATRS) has completed the sale of a portfolio of 10 retail assets (the Portfolio) in the Czech Republic. The Portfolio has been sold in a corporate transaction to a private client account managed by Palmer Capital for an asset value equivalent to €102.6m, which is approximately 8% above the 30 June 2015 book valuation.
The Portfolio consists of 10 retail assets located throughout the Czech Republic, with a total lettable area of approximately 86,200m², and comprises smaller format retail properties. The sale forms part of the Company’s ongoing strategy to improve its portfolio through selective rotation of the properties and focusing on larger scale, well-established shopping centres which dominate their catchment areas in Atrium’s core markets.
Within the past 15 months, Atrium has concluded several transactions in the Czech Republic, whereby it bought two large scale prime shopping centres and, including the sale of the Portfolio, sold 87 smaller non-strategic assets. Despite the large reduction in the number of Czech assets, Atrium’s exposure to the Czech Republic has increased to approximately 18% of its total standing investment portfolio market value (as at 30 September 2015 and excluding the disposed Portfolio), compared to approximately 16% at 30 September 2014 and prior to the abovementioned transactions, reflecting both Atrium’s commitment to the Czech Republic and the substantial increase in the quality of its portfolio located there.
Approximately 95% of Atrium’s Czech Republic portfolio by value is now attributable to three prime assets that have been acquired within the last four years - Atrium Flora and the Company’s 75% stake in Arkády Pankrác, both in Prague, and Atrium Palác in Pardubice.
Commenting on the sale, Josip Kardun, CEO of Atrium Group, said: “The sale of this portfolio marks an important milestone in Atrium’s evolution and continues the process of divesting our legacy non-strategic assets in the Czech Republic. It also represents another significant step forward in our strategy of reweighting our portfolio and income towards well-established, dominant shopping centres, where we see greater opportunities to create value.”
