Invesco spends big on Polish and UK shopping centres

Invesco Real Estate (IRE) claims its flagship pan-European Fund is one of the largest open-ended property funds in Europe after large shopping centre acquisitions in Poland and the UK lifted its assets under management to €1.3 bn.

Acting for the fund, IRE purchased Galeria Kazimierz in Krakow, Poland and Queensgate Shopping Centre in Peterborough, UK, together representing a total investment of €425 mln and 120,000 m2 of total space.

Paddy Bingham, senior director - fund management commented: 'Our research suggests that the UK and Poland are currently two of the strongest investment markets in Europe, thus cementing our decision to buy what we believe are the right assets in the right markets, at the right time.

'The acquisitions continue our theme of buying retail assets where we are able to pursue active asset management opportunities by our "on-the-ground" asset management teams. We believe there is potential to improve the tenant mix, physical areas and marketing strategies of both assets in order to reinvigorate and increase operating income.'

Invesco acquired Galeria Kazimierz from developer/owner Globe Trade Center SA for €180 mln. ‘It is undoubtedly one of the highest profile retail transactions of 2013 and proves that retail has remained high on investors’ wish lists,’ said Mike Atwell, Head of CEE Capital Markets at CBRE. The advisory firm acted on behalf of Invesco in the transaction.

Galeria Kazimierz is a well-established 38,273 m2 shopping centre located in Krakow CBD, Poland’s second largest city, within the historical Kazimierz district, one of the city’s top tourist destinations and easily accessible by public transport. The asset offers a mix of tenants with strong international brands across 140 stores, including Alma, H&M, Zara and C&A as well as a food court and cinema.

Queensgate Shopping Centre, a 80,140 m2 dominant shopping centre in Peterborough in the east of England consists of 110 shops and restaurants anchored by John Lewis, Primark, BHS, Boots and Marks and Spencer, in addition to various fashion retailers. Queensgate provides approximately 50% of the total retail floorspace in the city and is the dominant centre.

DTZ represented IRE in the acquisition of Queensgate.