Hungarian retail real estate manager Shopper Park Plus (SPP) plans to acquire four Tesco-anchored retail parks in Slovakia with a total gross leasable area of 72,146 m2.
The acquisition is part of the company’s strategy of becoming a leading owner and operator of food-anchored retail parks in Central and Eastern Europe.
SPP will form a joint venture with a reputable investor to acquire the retail parks. The acquisition will require an upfront investment of approximately €36 mln, which will be shared by SPP and the joint venture partner.
SPP will raise the necessary funds through a private placement of up to 2,315,523 new ordinary shares.
The initial yield stands at approximately 9.5% and the portfolio currently generates an annual net operating income of around €8.15 mln.
The four retail parks are Žilina (17,910 m2 GLA), Nitra - OC Galeria (26,332 m2), Trnava - OC Galeria (17,428 m2), and Dunajská Streda - OC Galeria (10,496 m2).
Although the buildings lack green certificates, they have energy performance certificates. A comprehensive ESG due diligence has been conducted, and the investment strategy includes plans to reduce energy consumption, obtain BREEAM in-use accreditation, and use recycled materials. Approximately €4.7 mln will be spent on capital expenditure and ESG-related works during the hold period.
The acquisition and capital increase have been approved by SPP's board of directors. The specific details of the private offering will be announced by 31 October.
Tesco will continue to operate in the acquired locations under a 15-year fixed-term lease with three 5-year extension options.
The acquisition and capital increase are contingent upon final corporate approvals from the seller; acceptable transaction-related documentation and lease agreement; a final binding term sheet from the financing bank; successful private placement: Successful completion of the private placement; a satisfactory and binding joint venture agreement; and approval from the existing financing banks, OTP and Erste Bank.
