Purchasing a new asset – Wars Sawa Junior in the center of Warsaw (Poland)
CATEGORY
Investment Deal of the Year, CEE
On 24 October 2018, Atrium European Real Estate Limited completed the purchase of the Wars Sawa Junior for €301.5 million. It is a prime high-footfall retail asset in a location in the heart of Warsaw, which enjoys around 60 million visitors in and around the asset annually.
Together with Wars Sawa Junior, Atrium Group has 5 assets located in Warsaw. Warsaw assets represent as much as 36% of the whole portfolio (in value).
In line with strategy for quality growth, this acquisition further strengthens AERE portfolio weighting towards both the strongest Central European economies of Poland and Czech Republic, and towards larger scale, retail centers that dominate their local catchment in strong urban locations.
Built in the early 1970’s, Wars Sawa Junior was originally Warsaw’s first department store. Remodeled, extended and upgraded a number of times, it is now one of Warsaw’s most well established and popular retail complexes. It offers 26,000 sqm of high quality modern retail GLA which is fully let to a range of strong international and domestic retail and leisure brands such as H&M, C&A, CCC, TK Maxx and Zara. Additionally, the retail center offers a further 11,000 sqm of predominantly office and storage space. Wars Sawa Junior also has exceptional connectivity, benefitting from direct access to Warsaw’s public communication network: underground (two lines), trams and buses, as well as a number of convenient local car parking facilities.
There are a number of exciting development opportunities that we have identified to fully unlock its potential while respecting the historical legacy of the asset. It is, most definitely, one of our crown jewels.
Name of the deal
Purchasing a new asset – Wars Sawa Junior in the center of Warsaw (Poland)
The date of closing the deal
23rd October 2018
Value of the transaction (in EUR)
301.5 million
Yield
We do not disclose
Seller, plus brief information about the company
PFCEE – funds managed by CBRE Global Investors. Is the second largest private equity real estate investment manager in Europe. The fund portfolio comprises 75 shopping centres and a total portfolio value of approximately 100 billion dollars.
Consultancy which advised Seller
Clifford Chance
Purchaser, 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,image,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 Purchaser
Dentons
Financing institution
Helaba
Current occupancy level
96%
Please say why this deal should be considered for the award
Wars Sawa Junior, a prime high-footfall retail asset in a location in the heart of Warsaw, which enjoys around 60 million visitors in and around the asset annually.Wars Sawa Junior is a Warsaw icon that is located in the city’s busiest high street. The area is also set to benefit from a number of local developments offering both cultural attractions and new office space, which will attract even more visitors. While we cannot go into too much detail at this stage as we have not owned the centre for long, but there are a number of exciting development opportunities that we have identified to fully unlock its potential while respecting the historical legacy of the asset. It is, most definitely, one of our crown jewels.This deal shows the strength of the company which want to create the best locations in capitals and develop city spaces having concepts of making this asset even more income producing and valuable on the market.
