Australian REIT Macquarie CountryWide has acquired seven shopping centers in Germany and Poland for a total of EUR 351 mln in its first foray into Europe. This is the first major transaction for Steven Sewell, who was appointed ceo last September. Sewell said in a statement the company is planning to increase its property holdings in Europe further to account for 15% to 20% of total assets.
Australian REIT Macquarie CountryWide has acquired seven shopping centers in Germany and Poland for a total of EUR 351 mln in its first foray into Europe. This is the first major transaction for Steven Sewell, who was appointed ceo last September. Sewell said in a statement the company is planning to increase its property holdings in Europe further to account for 15% to 20% of total assets.
Ceo Steven Sewell stated: 'We are delighted to be announcing our first acquisitions in Europe, a quality portfolio of properties anchored by two of Europe's largest and most successful retailers - the French Carrefour Group and Rewe Group of Germany. The transaction establishes a strong platform for Macquarie CountryWide to further grow earnings in Europe.'
The Sydney-based group will fund the purchase through debt, about EUR 98.4 mln in stock sales to institutional and existing investors, as well as through the proceeds from the sale of supermarkets in New Zealand in December 2006. Macquarie will sell about 58 million shares at A$2.07 (EUR 1.27) per share, 5.9% below Tuesday's closing price. The share sale to institutional investors is underwritten by Macquarie Bank, Merrill Lynch & Co. and Morgan Stanley. Settlement of both portfolios is expected to take place by June 30, 2007, the company said.
The properties include five malls in Poland and two in Germany acquired for a combined yield of 6.5% pre-acquisition costs. The five sub-regional shopping centres in Poland are being acquired for EUR 232 mln. The properties are located primarily within Poland's southern major cities, and have an average age of six years. They are mainly leased to international and national specialty retailers with an average occupancy rate of 96%, slightly below Macquarie CountryWide's portfolio average of 96.8%. With an average lease expiry of 3.9 years, the company expects to raise net operating income through the renewal. The two German shopping centres are being purchased for EUR 119 mln from the Rewe Group, Germany's second-largest grocery retailer. The occupancy rate comes to 93%.
Macquarie CountryWide owns 244 retail properties in the US, Australia and New Zealand valued at A$5 bn (EUR 3 bn).
