Despite the complex’ opening in February, property investor Rodamco has not yet been able to benefit from its agreed interest in the retail part of Zlote Tarasy Centre in Warsaw.
The firm is still discussing the "formalities of the future transfer of ownership and the retail management with ING Real Estate," according to its first quarter report.
While Rodamco and ING have agreed on a 50-50 ownership of the complex, ING is still discussing with the local authorities the promised transfer of a 23% stake in its investments in the city of Warsaw, spokeswoman for Rodamco Carina Hamaker pointed out.
"We are having discussions with Rodamco about financial compensation for the rental income we have missed out on," said Hamaker.
Landmark complex Zlote Tarasy opened in February, after significant delays.
This follows the resignation of Paul Trip, ceo of development at ING Real Estate, in 2005 over problems at the retail centre.
Excluding the impact of the intended merger with Unibail, Rotterdam-based Rodamco Europe expects its revenue after tax to grow by at least 3% this year, the property investor announced in its first quarter report.
Rodamcos net rental income like-for-like growth increased by 4.7% to 7.2%, as a result of new leases, higher average indexation, sales-based rent and additional specialty leasing, the company stated.
The company’s triple net asset value (NAV) per share rose by 6% to €81.01. Its overall occupancy rate dropped slightly to 98.3%, while the retail occupancy rate remained unchanged at 98.9%.
The rise in property assets by €297m was mainly as a result of valuations in invested property. Of the company’s €2.7bn pipeline business, 49% of assets are committed.
In April, Rodamco Europe announced a merger with Unibail, to create a pan-European commercial property company with a combined portfolio of almost €22bn and a net rental income of €974m.
Its international headquarter operations will be based in the Netherlands while the registered office will be listed in Paris.
Based on its first quarter results, Rodamco is more than ready for the proposed merger with Unibail, CEO Maarten Hulshoff said.
Meanwhile, Rodamco also announced it has signed a €34.5m purchase agreement to acquire a 50% stake the 22,700 m2 shopping centre Südpark in Klagenfurt, Austria.
This transaction should generate a net initial yield of 5.8% once Rodamco takes over management of the centre which is co-owned by Austrian entrepreneur Anton Pletzer, it added.
Rodamco Europe is the largest publicly listed property investor and management company in the retail sector in Europe.