Erste Immorent refinances Austria's third largest mall

Erste Group Immorent, the property arm of Austrian bank Erste, has granted a EUR 243 mln refinancing facility for the ShoppingCity Seiersberg mall in the southeastern city of Graz.

The scheme, Austria's third largest shopping centre, opened in March 2003 and currently offers 85,000 m² over 200 shops. It is owned by businessmen Martin Klein and Christian Guzy.

'The economic challenges we are facing today require both a high degree of flexibility as well as long-term stability. With Erste Group Immorent, we have found a strong and professional financing partner,' said Guzy.

According to Erste Group's co-head of CEE equity research Günter Artner, conditions for Austrian shopping centres are expected to remain stable . 'What investors find particularly appealing is the stable development of high-end rents and yields, supported by solid consumption and a Europe-wide trend towards retail investments.'

Erste Group Immorent is Erste Group's real estate financing and development specialist, managing a leasing and credit portfolio of around EUR 13 bn. In the past two years the company also financed the 48,000-m² City Gate office complex in Bucharest, and the Avenue 19 office scheme in Belgrade.