Resolution acquires Polish mall for EUR 51m

European real estate investor Resolution Property has purchased Galeria Pomorska in the northern Polish city of Bydgoszcz for EUR 50.75 mln, reflecting an initial yield of 10%.

Resolution acquired the centre from Babcok & Brown on behalf of Resolution Real Estate Fund III.

CB Richard Ellis advised Resolution, while Balmain Asset Management acted for the vendor. Balmain has been retained by Resolution as its local asset management partner.

Resolution said that the 20,000-m² Galeria Pomorska is one of the best-established shopping centres in Bydgoszcz, Poland's eighth largest city.

The asset adjoins a 9,890-m² Carrefour hypermarket, which is not included in the purchase. Resolution has an active asset management strategy for the centre. This will include tenant re-engineering, remerchandising and expanding the centre in line with a recently approved master plan that allows for a 12,000-m² extension.

Peter Todd, director at Resolution Property, said: 'Having monitored the Polish retail market for some time, our decision to acquire Galeria Pomorska was driven by its strong income stream coupled with the opportunity to unlock increased returns through Resolution's long-established active management strategy. This is against the backdrop of Poland's highly resilient economy and the recognised growth potential of the city of Bydgoszcz.'

Galeria Pomorska is Resolution's second purchase in mainland Europe in recent weeks, following its acquisition of McArthurGlen Troyes from Henderson Global Investor's European Outlet Mall Fund for EUR 85.5 mln.

Resolution Real Estate Fund III currently has close to EUR 1.5 bn of spending power to invest across mainland Europe and the UK.