NEPI Rockcastle, acting through its wholly owned NE Property B.V. subsidiary, has entered into a binding agreement to acquire all the issued shares in Kasama Investments sp. z.o.o., which owns the Magnolia Park shopping center in Wroclaw, from Union Investment Real Estate GmbH.
Union Investment Real Estate GmbH is 90% directly held by Union Asset Management Holding AG, with the remainder held by various smaller investors. It initially purchased the Magnolia Park shopping center from Blackstone in 2017 for approximately EUR 380 million.
The aggregate purchase price for the transaction is EUR 373 million, including the full settlement of Kasama Investments’ outstanding debt, and according to NEPI Rockcastle, “the acquisition represents the biggest single-asset shopping-center transaction by value in CEE since at least 2022.” In addition, NEP Rockcastle reports, “Magnolia has a BREEAM Excellent (Asset Performance) certification and an outstanding occupancy rate of more than 99%, including anchor tenants such as Carrefour, Primark, Castorama, Decathlon, Media Markt, Peek & Cloppenburg, Zara, Half Price, H&M, Reserved, TK Maxx and Helios. The Property has outstanding operational performance and is well positioned for future growth, both organically and through further value enhancement.”
“NEPI Rockcastle has just acquired one of the top retail assets in Poland,” said NEPI Rockcastle CEO Rudiger Dany. “Magnolia has a GLA of 100,000 square meters and is a dominant shopping center in one of the country’s largest and richest cities. The acquisition will significantly strengthen the group’s portfolio, consolidating its position as the premier retail real estate owner in CEE with a solid track record of adding significant value to the assets acquired, as evidenced by our most recent acquisitions. The property has significant upside that will fuel NEPI Rockcastle’s growth in coming years.”
The Linklaters law firm advised NEPI Rockcastle on the acquisition, while the CMS law firm advised Union Investment.
Image source: VisitWroclaw.eu