The completion of the largest Hungarian retail portfolio transaction in 2017 happened on the last day of the first half year. Trei Real Estate, the property estate arm of the German Tengelmann Group, successfully sold a portfolio of 40 Spar leased supermarkets to Erste Asset Management. The parties did not reveal the value of the acquired assets.
With this transaction Trei Real Estate effectively consolidated its Hungarian real estate operation. Following the disposal of its portfolio in Austria, it was the second successful delivery of the group on their strategic goal of selling operating properties and focusing on new developments, mostly in Germany, Poland, the Czech Republic and the USA.
With the exception of two assets all the elements of the portfolio are leased to Spar Hungary on long term. The total size of the deal was in excess of 39,500 m², geographically spread around the entire country, including 13 locations in the capital, Budapest. In the past the properties were exclusively leased to the retail chain Plus, the retail brand solely owned by the Tengelmann Group until its sale in 2008 to Spar Hungary.
The closing on the deal took place on the last day of the month with Erste Asset Management who is managing funds close to €4.9bn (HUF 1.500bn), including €1.46bn (450bn HUF) of real estate.
”This is an important step in achieving our strategic goals. Besides consolidating in a smaller number of countries, focus has shifted more towards development of residential properties as well as retail parks. With the sale of our portfolios in Austria and Hungary as well as the sale of the entire logistics portfolio in the last 2.5 years, the company’s focus now once again is on growth” says Pepijn Morshuis, CEO of Trei Real Estate.
Colliers International supported Trei Real Estate on the transaction from its preparation until its successful closing.
