Unibail-Rodamco completes EUR 607m buy of Vienna mall

Franco-Dutch property giant Unibail-Rodamco said on Thursday it had completed the acquisition of 140,400 m² in Vienna’s Shopping City Sud, Austria's largest retail and leisure complex. The company first announced in December 2007 that it was buying the shopping centre from the private family trust Hans Dujsik Privatstiftung. The transaction gives Unibail-Rodamco a 100% stake in the company holding the property. The net initial yield, which comes to 5%, is expected to increase further through the leasing of vacant space and operating improvements, Unibail-Rodamco said in statement.

The property provides 131,200 m² of retail space and 9,200 m² of office accommodation. Unibail-Rodamco has also bought adjacent land with development potential of up to 40,000 m² of retail. The land will be developed over the next five years, it added.

With a total surface of approximately 300,000 m2, Shopping City Süd is anchored by Interspar, Kleider Bauer, Peek & Cloppenburg, C&A, Zara, H&M, Leiner, Saturn and Ikea.

Unibail-Rodamco's CEO, Guillaume Poitrinal, said: 'This is the largest single shopping centre asset transaction in the history of the group. The acquisition of this prime asset is at the heart of our strategy, as we can apply all our knowledge and skills in active property management and development to generate substantial shareholder value.'

The centre adds to Unibail-Rodamco's portfolio in Vienna, which also includes the 112,000 m² Donauzentrum shopping centre.