Catalyst Capital has acquired a mixed-use portfolio in Poland on behalf of its WCC Europe Fund from Echo Investments for a total of EUR 69 mln. The portfolio, covering some 37,900 m[sup]2[/sup] of space, comprises two shopping centres and two office properties in the cities of Kielce and Lodz. The deal reflects an initial yield of 7.35%. Catalyst said it has also opened an office in Plac Pilsudskiego, Warsaw.
Catalyst Capital has acquired a mixed-use portfolio in Poland on behalf of its WCC Europe Fund from Echo Investments for a total of EUR 69 mln. The portfolio, covering some 37,900 m2 of space, comprises two shopping centres and two office properties in the cities of Kielce and Lodz. The deal reflects an initial yield of 7.35%. Catalyst said it has also opened an office in Plac Pilsudskiego, Warsaw.
The portfolio includes the Pasaz Swietokrzyski shopping centre, located in Kielce. It is anchored by French supermarket operator Leclerc, which accounts for some 35% of the rental income. The other main tenants include Vision Express, Kolporter and Euro-Net, a national electrical goods retailer. The 13,200 m2 centre was completed in November 2006. In addition to the initial purchase, Catalyst has signed an option for a second phase of development, which will increase the floor area to 18,200 m2.
MDP Entertainment Centre, a 7,500 m2 retail/leisure complex located in Lodz, is also part of the portfolio. Completed about two years ago, this property is anchored by Silver Screen, one of Poland's largest cinema operators. The other principal tenants include Orbis, the casino operator, Commerz Bank, Deutsche Bank and an amusement arcade operator. Adjacent to the entertainment centre is the Centrum Office Building, another component of the portfolio. It comprises 7,600 m2 of office space let to two banks, two law firms and several other national tenants. The 9,500 m2 Orion Office Building is also located in Lodz. Extensively refurbished in 2004, the building is now let on a number of short-term leases with only one upper floor vacant. The main tenants are Philips Electronics, ING, BRE Bank and Ercipol Telecom.
The acquisition fof the portfolio comes close on the heels of Catalyst's purchase of three logistics units in Budakalasz, Budapest in Hungary, from Mocca Negra for EUR 27 mln, also on behalf of the WCC Europe Fund. Kean Hird, managing partner of Catalyst Capital EM, said: 'The acquisition of these assets and those already purchased in Hungary to date is firmly in line with our investment strategy for the region. The establishment of our Polish office underlines our commitment to acquire future assets and will permit us to be more "hands on" in Poland and the wider Central European region.'
