M Core has officially launched into the Romanian market with its largest deal to date — an investment nearing €219m consisting of 25 managed assets. The deal, which was completed on 6th December, sees M Core purchase a 132,000m2 retail portfolio from Mitiska REIM positioning the collective as the largest property owner in the Romanian retail park market. M Core was advised on this transaction by real estate consultancy company iO Partners.
M Core’s Romanian portfolio acquisition is located across 24 cities, spanning across the country from Arad in the west of Romania to Ia?i in the east, as well as the country’s capital, Bucharest. The 25 retail centres offer a varied tenant mix including large global brands such as Deichmann, Pepco, KFC, Lidl and H&M.
Notable retail parks in the Romanian portfolio include Shopping Park Pipera Plaza, which houses a gross leasable area of 11,000m2, across 35 units including tenants such as Starbucks, JYSK and national service providers. Shopping Park Medias also forms part of the portfolio with a gross leasable area of 9,089m2, including 16 units largely centred around European supermarket chain, Kaufland.
During this continued expansion period, M Core has partnered with Oliver Fraser-Looen to identify investment opportunities and support the collective's expansion plans.Commenting on his involvement, Oliver Fraser-Looen stated: “This is an exciting time for the collective as it continues to attain dynamic investments, extending to further territories within Europe. With over 35 years’ experience of investing in the commercial property market, M Core is in a prime position to continue identifying acquisition opportunities requiring intensive management and ultimately maximising their value.”
Sebastian MacDonald-Hall, M Core Chief Investment Officer (Europe) and co-CEO of Romania, comments: "I am delighted to announce M Core's inaugural portfolio acquisition in Romania. Recognising the strategic significance of Romania, as a territory boasting promising macro tail winds and robust investment opportunities, this move marks a pivotal moment for our collective. Central to our success in Romania is a well-equipped team dedicated to managing these investments. The team is not only committed to delivering exceptional service but also aims to cultivate enduring partnerships with businesses and communities in the region. M Core's expansion into Romania represents a significant milestone, underscoring our forward-looking strategy and confidence in the local market. As we continue to broaden our portfolio, our commitment to excellence and community engagement remains unwavering."
James Fife, Chief Executive Officer of LCP in Poland, part of M Core and co-CEO of Romania, added “After an extensive period of exploring opportunities in emerging markets, I am delighted to join Sebastian MacDonald-Hall in launching our Romanian portfolio. By entering the Romanian market, we are able to diversify our portfolio and create further opportunities to establish strong national business relationships. As we look to expand our portfolio in 2024, asset sustainability and community integration will remain key focuses underpinning our growth.”
Andrei Vacaru, CEE Head of Capital Markets iO Partners, comments: “This acquisition is the largest single-country transaction in 2023 in CEE. It therefore represents a strong vote of confidence in the Romanian market as well as confirms M Core’s increasing dominance in the region. The deal demonstrates iO’s ability to support our clients navigate through the complex market environment and seize great opportunities.”
Image provided by RBH.