Equest Balkan Properties has completed the sale of the City Center Sofia shopping centre to Heitman European Property Partners III for EUR 101.5 mln. Equest, an investment company focused on commercial, retail and industrial property in South Eastern Europe, said the transaction volume represented a premium of EUR 7.5 mln over the March 2006 acquisition price, though CB Richard Ellis valued the asset in June 2008 at EUR 102 mln.
Equest Balkan Properties has completed the sale of the City Center Sofia shopping centre to Heitman European Property Partners III for EUR 101.5 mln. Equest, an investment company focused on commercial, retail and industrial property in South Eastern Europe, said the transaction volume represented a premium of EUR 7.5 mln over the March 2006 acquisition price, though CB Richard Ellis valued the asset in June 2008 at EUR 102 mln.
City Center Sofia comprises just under 23,000 m2 of retail space.
EPB, a commercial property investment company focused on South Eastern Europe, entered into a share purchase agreement with Heitman European Property Partners III on 19 September 2008 for the sale of Lerma, 100% owner of Auriga EAD, the 100% owner of City Center Sofia. Completion is expected in November. Gibson, Dunn & Crutcher acted as legal advisor to the seller and Cushman & Wakefield acted as the investment sale broker.
The sale price will include EUR 64 mln of mortgage debt financing and the payment of EUR 37.5 mln in cash on completion, subject to customary closing adjustments. The company said it will use this to fund continued operations and to repay debt.
