MFI bags 50% of Paunsdorf Center in Leipzig

German shopping centre specialist Management für Immobilien (MFI) has acquired a 50% stake in the Paunsdorf Center in Leipzig, Germany, from a subsidiary of the Canadian shopping centre group Ivanhoe Cambridge. The Canadian group is retaining the remaining 50%.

The financial details of the deal were not disclosed.

Opened in 1994, the centre has roughly 115,000 m² of retail space across 110 shops including H&M, C&A, Media Markt, and Esprit as well as 7,300 parking spaces. MFI has long been the centre's asset manager.

The new 50/50 partnership intends to invest further in the scheme by carrying out a EUR 80 mln renovation programme in the coming months. The revamp will boost the centre's units from the current 110 to roughly 180 shops. Phase I is due for completion by the end of October, while the entire project is planned to be completed by October 2012. A consortium of Imtech, Lindner and Storck will carry out the construction work.

Kim McInnes, President and CEO of Ivanhoe Cambridge, said: 'Through this transaction we will consolidate further our business relationship with MFI, one of Germany's leading owners and developers of city-centre retail property.' Ivanhoe Cambridge entered Germany in 2005 signing a joint venture with MFI for the management of its portfolio in the country. The company currently owns four centres consisting of Paunsdorf Center in Leipzig, Wilmersdorfer Arcaden in Berlin, Duesseldorf Arcaden in Duesseldorf, Zwickau Arcaden in Zwickau.

Freshfields Bruckhaus Deringer advised MFI on the deal.