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Dec 21, 2018

CBRE

The retail park portfolio in Slovakia has a new owner

The management company of Tatra Asset Management (TAM) has acquired a portfolio of nine regional retail parks in Slovakia. The seller, which was represented by the real estate consultancy company CBRE, is KLM Real Estate (KLMre). The transaction also includes the pre-emptive right for other retail parks that the developer is currently preparing.

Nine retail parks located in multiple western, central and eastern Slovakia regions with total rental area of 35,000+ square meters were built in 2015-2018. All retail parks are fully occupied, which means long-term stability of rental income for a new investor. The available retail space is occupied by 70 tenants altogether. Strong brands such as Billa, Deichmann, Takko, KIK, DM Drug, PEPCO and Planeo Elektro are included in the tenant portfolio.

The seller and buyer have agreed not to publish the transaction price. Yearly revenues from renting the retail space amount to more than € 3.8m per year.

"We have decided to sell part of our portfolio to the investment fund, however, we continue to stay active in managing and renting all business centers through our subsidiaries. We are pleased the best transaction conditions have been arranged with the slovak fund - TAM, " said Rastislav Čačko, co-owner of KLMre.

According to another KLMre co-owner Vladimír Buček, "the decision to sell was driven by opportunity to enable further growth and diversification of the developer's activities in the near future as well as the opportunity to cooperate with a strong partner in the process of additional retail parks development in Slovakia".

CBRE Director for Investment Properties Marian Mlynárik claims this business deal to be the one of the largest and the most important transactions in the retail park segment in Slovakia.

"We are delighted that CBRE has helped to successfully close this important transaction. It clearly shows that Slovak investment market situation is very favorable and retail properties are still very attractive investment option, "says M. Mlynárik.

"We are delighted to introduce our retail fund clients to a new acquisition, one of the largest transactions in the Slovak retail market this year. The portfolio of retail parks perfectly complements the structure of our real estate fund and contributes positively to its regional strategy and overall performance. Retail projects currently create one third of the total TAM real estate funds. We are convinced that the composition of renowned tenants and strategic regional locations provide a good starting position for future portfolio value growth, "says Martin Ďuriančik, Vice-Chairman of the Board of Directors of Tatra Asset Management.