The management company of Tatra Asset Management (TAM) has acquired a portfolio of nine regional retail parks in Slovakia.
The seller, which was represented by the real estate consultancy company CBRE is KLM Real Estate (KLMre).
The transaction also includes the pre-emptive right for other retail parks that the developer is currently preparing.
Nine retail parks located in multiple western, central and eastern Slovakia regions with a total rental area of 35,000 sq m were built between 2015-2018 and all the retail parks are fully occupied, which means long-term stability of rental income for a new investor.
The available retail space is occupied by 70 tenants altogether and a series of strong brands are included in the tenant portfolio. The seller and buyer have agreed not to publish the transaction price. Yearly revenues from renting the retail space amount to more than €3.8m per year.
"We have decided to sell part of our portfolio to the investment fund, however, we continue to stay active in managing and renting all business centres through our subsidiaries. We are pleased the best transaction conditions have been arranged with the Slovak fund - TAM," said Rastislav Cacko, co-owner of KLMre.
According to another KLMre co-owner Vladimir Bucek, "The decision to sell was driven by the opportunity to enable further growth and diversification of the developer's activities in the near future as well as the opportunity to cooperate with a strong partner in the process of additional retail parks development in Slovakia".
"We are delighted that CBRE has helped to successfully close this important transaction. It clearly shows that Slovak investment market situation is very favourable and retail properties are still very attractive investment option," said M Mlynarik.
"We are delighted to introduce our retail fund clients to a new acquisition, one of the largest transactions in the Slovak retail market this year. The portfolio of retail parks perfectly complements the structure of our real estate fund and contributes positively to its regional strategy and overall performance. Retail projects currently create one-third of the total TAM real estate funds. We are convinced that the composition of renowned tenants and strategic regional locations provide a good starting position for future portfolio value growth,"commented Martin Muriancik, Vice-Chairman of the Board of Directors of Tatra Asset Management.
RPA Perspective In December Multi Corporation and GEMO Holding sold the Forum Poprad shopping centre in Poprad, Slovakia. The asset has been acquired by the real estate fund of ZFP Investments and MAT Corporation, part of the DBK Group. The purchase price was not disclosed.
One of the most modern shopping centres in Slovakia Forum Poprad opened in the city centre in October 2015 and has become a leading destination for shopping in the Poprad area, catering to a catchment population of 215 000 people living within a 30-minute drive-time radius. The centre attracts almost six million visitors annually.
The fully occupied centre with a leasable area of 22,500 sq m includes 120 retail units and 450 parking lots.
“The acquisition of Forum Poprad adds another prime asset to the ZFP real estate fund, ensuring the diversification of its investments in the retail sector,” said Vladimir Bencz, member of the board of ZFP Investments.
“This purchase confirmed again, that prime shopping centres located in city centres are favoured by shoppers and investors alike,” said Alexander Rafajlovic, Partner, CEE Capital Markets Group at Cushman & Wakefield, which represented sellers Multi Corporation and GEMO during the transaction.
