German fund manager Union Investment has made its debut investment in the Polish city of Wroclaw, with the acquisition of Magnolia Park shopping centre from private equity firm Blackstone for €380 mln.
Purchased for open-ended real estate fund Unilmmo: Europa, the asset comprises some 100,000 m2 of retail space and is almost fully let, with leases having an average of 4.2 years to run.
'We look for purchasing power, young and modern properties and sensible prices. This combination, in particular in relation to shopping centres, makes Poland one of the most attractive investment locations in Europe,' commented Henrike Waldburg, head of investment management retail at Union Investment Real Estate.
The centre, which was completed in 2007 and extended in 2015, has 241 stores, 3,000 parking spaces, and attracts some 11 million visitors a year. Anchor tenants include Tesco, Castorama, Saturn, Helios, P&C and Decathlon. The shopping centre, which is located around 4 km from the city centre, will continue to be managed by Multi after the sale.
Union Investment’s open-ended special and retail real estate funds now hold seven shopping centres in Polish secondary cities, including Katowice, Lódz, Rybnik, Bielsko-Biala, Gdynia, Konin and now Wroclaw. The properties comprise total rental space of around 390,000 m2, are worth some €1bn and have an occupancy rate of approximately 99%.
In terms of area, Magnolia Park is the largest shopping centre in Union Investment’s Poland portfolio. The second largest shopping centre, with approximately 94,000 m2 of retail space, is Manufaktura in Lódz, which has been part of Union Investment’s Unilmmo: Deutschland fund since 2012.
Cushman & Wakefield advised Union Investment on the transaction. JLL advised Blackstone.
