Multi mulls new platforms for CEE and southern Europe

Multi Corporation is considering the creation of a new funds for its shopping centre activities in Central and Eastern Europe. The firm's Polish interests could potentially be included in the new vehicle, Multi chairman Hans van Veggel has told PropertyEU.

Van Veggel made the comments during a joint interview with Corio CEO Gerard Groener on the strategic alliance between the firms. In March Corio announced the long awaited acquisition of operating shopping centres and development projects from Multi in a EUR 1.3 bn deal. The operational assets are in Germany, Spain and Portugal, while the five shopping centre developments acquired by Corio are in Germany.

The deal gives Corio a new home market, Germany, Europe's largest economy. Up to now its EUR 6.5 bn portfolio has been divided over the Netherlands, France, Italy, Spain and Portugal and Turkey.

In March Multi also sold its portfolio of 22 office projects in the Netherlands to Cradle of Development (COD), a private vehicle owned by Van Veggel.

There was significant interest in the larger portfolio of operating shopping centres and mall projects. German investor Allianz had also been in the race to acquire the portfolio but Multi opted for Corio. 'Piece-meal sales might have generated more in the short term but the deal with Corio gives Multi an enormous chance to grow with a partner who has the channels to source private equity,' Van Veggel said.

Van Veggel said the creation of a fund for CEE and country funds for Spain, Portugal and Italy would be the next step in the restructuring of Multi's international portfolio. In 2009 Multi established a EUR 4.3 bn fund for its Turkish activities.

The restructuring was prompted by the global financial crisis and pressure from Multi's shareholder, Morgan Stanley Real Estate Fund V.

The interview with Van Veggel and Groener appears in the April edition of PropertyEU Magazine. Click on the link below to subscribe