The sale of the two Polish assets: Atrium Koszalin, located in Koszalin, and Atrium Felicity in Lublin
CATEGORY
Investment Deal of the Year, CEE
In July 2019 Atrium European Real Estate completed the sale of two Polish shopping centres, Atrium Koszalin, in Koszalin and Atrium Felicity, in Lublin, with a total lettable area of approximately 111,100 sqm, for 298 million euro or around 3% above book value. The sale of the two Polish assets is part of the company’s ongoing strategy to reposition its portfolio towards large, high quality dominant retail centres in prime urban locations and capital cities.
Atrium Felicity was opened in 1Q 2014 and offers 75,000 sqm total GLA. It is conveniently connected with the system of regional and national roads which allow comfortable access to inhabitants of the region. At the same time, it is located at a distance of not more than 5 minutes driving distance from the city centre, at Aleja W. Witosa, one of the main arteries of Lublin (which is a part of the way from Warsaw to Chełm and Zamość). It is equally easy to reach it by means of public transport.
Atrium Koszalin, regional fashion shopping centre with total catchment area 247 000 inhabitants and 89 200 households, was opened in 4Q 2008. It offers 55,000 sqm total GLA.It’s a regional shopping center with a strong position in whole voivodship.
Name of the deal
The sale of the two Polish assets: Atrium Koszalin, located in Koszalin, and Atrium Felicity in Lublin
The date of closing the deal
July 2019
Value of the transaction (in EUR)
298 million
Yield
We do not disclose
Seller, plus brief information about the company
Atrium European Real Estate(AERE) is one of the top owners,operators and redevelopers of fashion and food driven shopping centers in Central Europe.As of today,the Group's portfolio includes 32 shopping centers and properties located in four countries with a market value of EUR 2.7 billion and a total gross leasable area of more than 870,000 sqm.Atrium is listed on the Vienna Stock Exchange and Euronext Amsterdam under the ticker ATRS.AERE focuses on strengthening and further developing its portfolio in Poland and Czech with focus on the capital cities as locations with the biggest growth potential.AERE systematically increases overall quality, mage,and value of its key assets.AERE keeps focus on assets dominant in their regions,at the hearts of their communities,and further improving customer experience,building attractive product and service offer and increasing awareness of their local brands.Company redevelopments are carried out in accordance with the global trend.
Consultancy which advised Seller
Dentons
Purchaser, plus brief information about the company
ECE European Prime Shopping Centre Fund II – funds managed by ECE Real Estate Partners, Europe’s leading private equity real estate investment manager with an exclusive focus on shopping centres. The Shopping Centre Funds administer equity commitments of more than 2.3 billion euros, raised from globally leading institutional investors.
Consultancy which advised Purchaser
Linklaters
Financing institution
Not applicable
Current occupancy level
98%
Please say why this deal should be considered for the award
These disposals continue the implementation of Atrium ongoing strategy to consolidate assets and to focus on higher quality assets in prime urban locations, that can deliver a stronger and more sustainable income in the long term. Warsaw and Prague are central to this strategy due to growing populations and very low unemployment, which are structural drivers that will support the growth performance of our assets. We were able to dispose of a significant portfolio at a premium to book value. The disposal proceeds will support us in the continued optimization of our balance sheet and further growth of our portfolio towards dominant retail centres in prime cities in our core markets.
