CBRE advises on major Polish mall deal

CB Richard Ellis has said it advised GE Real Estate on the sale of the 3 Stawy shopping centre in the Polish city of Katowice to Union Investment for EUR 95 mln in early October.

In a statement, CBRE said the sale was one of the most significant shopping centre transactions in Poland in 2008, and showed the sustained demand for retail investment opportunities in central Europe. Poland is attractive because of its 'relative economic strength and rental growth prospects despite the global economy’s current difficulties,' the broker said.

Germany's Union Investment acquired the 37,000-m² shopping centre, its first Polish acquisition, as part of the expansion of its retail portfolio in Central and Eastern Europe (CEE). The fully-let property is on a long-term lease to REAL hypermarket, and is also leased to leading retailers such as H&M, Empik and SMYK.

Patrick O'Gorman of CB Richard Ellis' CEE Capital Markets team, said: 'This transaction is a good example of how the Polish retail investment market can still provide strong investment returns, given the unique strength of the Polish economy in the midst of a wider global economic crisis. Predicted GDP growth rates of 4-5% for 2008 enable an investor to capitalise on growing consumer incomes, which will translate into higher rents.'