NEPI Rockcastle has agreed to buy Silesia City Center, a shopping mall in Katowice, Poland.
The acquisition includes the mall itself and two companies, Elco Energy and Elco ICT, which provide its utilities and communication services.
NEPI Rockcastle will acquire Silesia City Center and the Elco Companies for a total of €406.5 mln (€405 mln for the mall and €1.5 mln for the utility companies). The purchase is funded by cash reserves from a recent October 2024 equity raise.
The deal involves purchasing all shares from the current owners: Allianz Finance VII Luxembourg, Kamsa Luxco 2, and Cura Beteiligungsgesellschaft International.
Rüdiger Dany, CEO, remarked: ‘We are grateful for the confidence that NEPI Rockcastle’s investors have placed in our company during the recent equity raise as we continue to deliver on our strategy with the acquisition of Silesia City Center. This high-quality shopping centre has a commanding market position in Katowice, one of Poland’s largest and wealthiest cities, and we look forward bringing our asset management expertise to bear in the execution of long-term value growth initiatives in this latest investment.’
Following its September 2024 purchase of Magnolia Park in Wroclaw, NEPI Rockcastle’s acquisition of Silesia City Center continues its strategy of expanding its portfolio with high-quality, income-generating assets in financially stable countries.
Silesia City Center comprises 88,400 m2 and has a catchment of over 280,000 within a 15-minute drive and a wider regional market of almost 2.2 million within 45 minutes.
As of November 2024, the mall had a 98.4% occupancy rate, anchored by major retailers like H&M, Zara, and Primark.
The sellers - Allianz Finance VII Luxembourg, Kamsa Luxco 2, and Cura Beteiligungsgesellschaft International - are independent of NEPI Rockcastle and ultimately owned by Allianz Finance VIII Luxembourg, Allianz Leben Real Estate Holding II, Kamsa Luxco 1, and KG CURA Vermögensverwaltung, respectively.
