Valad Europe's lettings in CEE top 70,000 m2

Multi-let real estate investment manager Valad Europe has let some 70,000 m² across the CEE region so far this year, the company said in a statement. The lettings will generate annualised rental income of EUR 4 mln on behalf of the Central European Industrial Fund (CEIF).

The company says on average during the first nine months of 2011, it completed one letting every two days across Poland, Romania, Hungary and the Czech Republic.

Highlights include lettings at City Point Business Park in Poland where courier company, Siódemka, renewed its lease on 5,138 m² and took a new lease on an additional 1,570 m².

Valad manages 22 properties across the CEE with over 250 tenants from offices in Warsaw, Bucharest, Budapest and Prague.

The company was separated from Sydney-listed Valad in August this year when US private equity group Blackstone acquired the Australian group. The takeover came after executives of the Valad's European business attempted a management buy-out.

The MBO attempt collapsed in April 2011 but Blackstone agreed to provide financial backing to the managers through its Blackstone Real Estate Fund VI. Valad Europe is now an independent partnership with Blackstone, while Blackstone is the 100% owner of Valad in Australia. There is no direct link anymore between Valad Europe and Valad in Australia.

Martyn McCarthy, CEO of Valad Europe, told PropertyEU said the strategy is for Valad Europe to become one of the leading real estate investment managers in Europe over the next five years. This will involve growing the company’s core fund management platform by targeting large-scale investment from its pension fund and sovereign wealth fund clients. In addition, Valad Europe is using its banking connections to bid for bank mandates, work-outs and recaptialisations.

Valad Europe will also seek public-to-private opportunities and to acquire ‘complementary’ real estate investment management businesses.