Equest Balkan Properties (EPB) has announced the sale of its City Center Sofia Mall, a 23,000-m[sup]2[/sup] retail mall located in Bulgaria's capital city, to Heitman European Property Partners III for EUR 101.5 mln. The sale price is in line with valuation by CB Richard Ellis in June 2008 and represents a premium over the March 2006 acquisition price of EUR 94 mln, according to the statement.
Equest Balkan Properties (EPB) has announced the sale of its City Center Sofia Mall, a 23,000-m2 retail mall located in Bulgaria's capital city, to Heitman European Property Partners III for EUR 101.5 mln. The sale price is in line with valuation by CB Richard Ellis in June 2008 and represents a premium over the March 2006 acquisition price of EUR 94 mln, according to the statement.
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.
Commenting, Michael Uhler, CFO Property, of Equest Partners said: 'Despite challenging market conditions, we are pleased to report that we have sold a significant EBP asset in line with its balance sheet value. This sale confirms to us that institutional investors remain interested in prime assets in the Balkans and, accordingly, confirms the inherent value contained in EBP's real estate assets.'
