Rockspring on behalf of TransEuropean Property VI LP, announces that it has acquired the Flora Park shopping centre in Magdeburg, which is c.150km west of Berlin, for €117m from Chenavari in an off-market transaction.
One of the largest shopping centres in the state of Saxony-Anhalt, Flora Park comprises 66,500m² of retail space across 90 units and has 2,700 car parking spaces. It is anchored by a 12,000m² Real hypermarket, a 16,000m² Roller furniture store and a 2,400m² TK Maxx, while other tenants include Medimax, C&A, Deichmann and Aldi.
The centre, which was originally constructed in 1992, is currently undergoing a full refurbishment which was commenced by the vendor and will be completed by Rockspring in 2017. The total capital cost of the renovations, once completed, will be in the region of €25m. The refurbishment will be managed by Rockspring’s Berlin office, which also originated the transaction and will co-ordinate the final lettings on completion of the improvement works.
Estama was mandated exclusively as sales agent on behalf of the vendors.
To date, TEP VI has committed in excess of €680m across nine projects across Europe. The fund has a diversified pan-European investment programme with a focus on office, retail, residential and industrial properties in large metropolitan areas of core Western Europe.
Flora Park is the tenth shopping centre that Rockspring has acquired on behalf of its portfolio of funds in the former East Germany since 2011, bringing its total investment in the region to ca. €440m.
