Hystead, the Balkans-focused joint venture between South African investors Hyprop Investments and Homestead Group, has added a shopping centre in the Macedonian capital Skopje to its growing retail property portfolio in the Balkans.
Property adviser JLL acted for the joint venture company in its acquisition of Skopje City Mall, the largest shopping centre in the Macedonian capital, for €92 mln.
Opened in 2013, Skopje City Mall is situated on the periphery of Skopje. The 36,500 m2 shopping centre was developed as a joint venture between Albania's Balfin Group and retailer Fashion Group.
Uros Grujic, head of capital markets for South Eastern Europe at JLL, stated: 'This deal is further evidence that investors are seeking new markets in emerging Europe. With other CEE markets witnessing record low yields, South Eastern Europe can still offer good quality shopping centres available at sensible pricing and with improving debt conditions.
'This year we have witnessed South African investors enter this region and their appetite for product is growing. We have completed three record-breaking deals in SEE in 2016 and expect more by year-end. This deal was particularly satisfying as our valuation team initially advised the European Bank for Reconstruction and Development (EBRD) on the financing of the development back in 2009 and the vendors have been a client since then.'
The deal follows Hystead's acquisition of the Delta City shopping centres earlier this year in Belgrade, Serbia and Podgorica, Montenegro, deals that were also the largest single asset deals in their respective countries to date, and involved JLL as sale-side advisors.
The Skopje City Mall transaction is the fifth shopping centre to be traded by JLL within South Eastern Europe in the past 14 months. Grujic said. 'With more set to close by year-end we will total approximately €650 mln of traded assets across the SEE region in the past 18 months.'
