Unibail-Rodamco has signed a preliminary agreement to acquire the 50% it did not already own in Galeria Mokotow, Warsaw. The acquisition from listed CEE real estate developer Globe Trade Centre (GTC) values the shopping centre at about EUR 475 mln.
Unibail-Rodamco has signed a preliminary agreement to acquire the 50% it did not already own in Galeria Mokotow, Warsaw. The acquisition from listed CEE real estate developer Globe Trade Centre (GTC) values the shopping centre at about EUR 475 mln.
The sale will generate EUR 110 mln in cash for GTC, helping strengthen the company's financial position and facilitate future developments.
'Assets of this quality with strong reversionary and extension potential are rarely available on the market,' said Jaap Tonckens, Chief Investment Officer of Unibail-Rodamco. He added: 'The transaction demonstrates Unibail-Rodamco's commitment to Poland and Unibail-Rodamco's ability to recycle the proceeds of its asset disposal program into assets with superior growth potential.'
Completed in 2000, Galeria Mokotow is a prime retail and entertainment centre located in Warsaw comprising 62,300 m2 of gross lettable area including a multiplex cinema. Unibail-Rodamco will continue to manage the centre, which is fully let and generated EUR 24.8 mln in rental income last year.
'The transaction is in line with GTC's strategy of rebalancing its property portfolio, including the sale of mature assets and reinvesting in further expansion,' said Eli Alroy, chairman of the GTC supervisory board. 'As the real estate investment market continues to improve, we proceed with recycling of capital and plan new investments in the commercial sector in Poland.'
