Union Investment has profitably sold the Magnolia Park shopping centre in Wroclaw, Poland, to NEPI Rockcastle in an off-market transaction. The company is the leading owner and operator of shopping centres in Central and Eastern Europe. The sale price amounts to €373m. Union Investment acquired Magnolia Park in 2017 for the portfolio of the open-ended real estate fund UniImmo: Europa.
"Magnolia Park is one of the Top 10 shopping centres in Poland and it continues to perform well in terms of footfall and sales figures. It is currently 99 per cent let. We have therefore taken the current opportunity to sell the shopping centre and to strategically reduce our exposure in Poland," said Henri Eisenkopf, Director Transactions Shopping Places at Union Investment.
"In this off-market transaction, we benefited from our strong network and showed that the right product can meet the expectations of buyers and sellers even in a challenging market environment," said Roman Muller, Head of Investment Management Retail at Union Investment.
"NEPI Rockcastle has just acquired one of the top retail assets in Poland. Magnolia Park is a dominant shopping centre in Wroclaw the country’s third-largest city and one of its richest. The acquisition will significantly strengthen the Group’s portfolio, consolidating its position as the premier retail real estate owner in CEE. NEPI Rockcastle has a solid track record of adding significant value to the assets acquired, as evidenced by our most recent acquisitions, and this property has significant upside that will fuel NEPI Rockcastle’s growth in coming years,“ said Rudiger Dany, NEPI Rockcastle CEO.
"Magnolia Park is one of the largest deals in retail real estate in CEE in recent years, and this transaction is in line with NEPI Rockcastle’s investment strategy to increase the concentration of its portfolio in countries with an investment grade rating and focus on core dominant properties. This modern and sustainable shopping centre is of outstanding quality and is well positioned for future growth, both organically and through further value enhancement,” said Anca Nacu, Investments Director at NEPI Rockcastle
The 100,000m2 Magnolia Park has an immediate catchment area of over 360,000 people within 15 minutes’ drive and a regional catchment of almost 1.4 million consumers within one hour’s travelling.
Union Investment was advised commercially by JLL, legally by CMS and on tax aspects by Thedy & Partners while NEPI Rockcastle was assisted by Linklaters as buy-side legal advisor, PwC on tax and financial aspects and PM Services as technical advisor.
Written by Leon Goldwater for Europe Real Estate.
Image source - Union Investment.
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