Valad Europe has entered into a joint venture agreement with a new investor to build a €500 mln retail property portfolio in Central Europe.
Valad Europe has entered into a joint venture agreement with a new investor to build a €500 mln retail property portfolio in Central Europe.
The co-investor was not identified.
The new vehicle, Valad Central Europe Retail Partnership (VCERP), has already completed its first investment by purchasing the 36,000 m2 Galeria Butovice shopping centre in Prague from ING Real Estate Finance.
With an initial target gross asset value of €500 mln, VCERP will invest in value-add assets in Central Europe, predominantly focussed on Poland and the Czech Republic. Seeded with €200 mln of equity, VCERP will employ 60% to 70% leverage, with strong cash-on-cash yields. Debt financing will be sourced from a pool of lenders with whom Valad Europe already has strong existing relationships.
VCERP will invest in first and second generation shopping centres, retail parks and retail outlets in primary and secondary macro locations in Poland and the Czech Republic. It will seek to acquire good quality, well located real estate, targeting both single assets, primarily in lot sizes ranging from €10 mln to €60 mln, and portfolios in excess of €50 mln.
Valad Europe manages €4.9 bn of real estate assets and investment capacity across 20 funds and mandates in Europe. Valad has a team of 26 people in Central Europe who currently manage €850 mln of funds, invested in approximately 30 assets accommodating 880 tenants.
