CS property fund, operated by Czech investment company Reico Ceská Sporitelna, has acquired the Galeria Sloneczna shopping centre in the Polish city of Radom for around CZK 4.3 bn (€164 mln) from White Star Real Estate.
'By acquiring Galeria Sloneczna, we have stepped up not only the regional diversification of the fund's real estate assets, but also significantly expanded their sectoral diversification. Both changes will be positively reflected in the fund's return and at the same time it will strengthen its long-term stable performance,' commented Filip Kubricht, chairman of the board of directors of Reico.
'The Sloneczna Gallery is the dominant shopping center in the city centre serving a catchment area of up to 700,000 inhabitants. With its mix of tenants with various entertainment, gastronomic and fashion concepts, it can maintain its dominant position on the market for a long time and respond to the latest trends in internet commerce,' added Tomáš Jandík, member of Reico's board of directors.
The vendor was Legend Eastern Europe Poland, a subsidiary of US-based multinational White Star Real Estate, which has extensive holdings in CEE.
The CS property fund extends its portfolio to 13 buildings after this acquisition, with a total market value of over CZK 19 bn (€729 mln). At the end of August 2017, the fund counted more than 59,000 shareholders and its yield for the past five years was 2.57% per annum.
It was established in 2007 and is the largest and longest running mutual fund on the Czech market, according to the business.
