On Tuesday, 28th of May, Immofinanz Group officially confirmed its large property sale in Eastern Europe. Silesia City Center (SCC) in Katowice – one of the premium standing investments owned by this Austrian real estate company – will be purchased by an international investor consortium led by Allianz. At EUR 412 million, the purchase price exceeds the respective carrying amount.
The contract was signed yesterday, on 27th of May 2013. The transaction is subject to suspensive conditions, e.g. approval by the Office of Competition and Consumer Protection (UOKiK), and the closing is expected to take place in September 2013.
“The Silesia City Center is one of Immofinanz’s most notable success stories to date in the retail sector. The shopping mall is fully rented and one of the top five in Poland. Cycle-optimized sales like this are an important part of our business model – in this way we release equity and create the necessary liquidity to invest in new development projects. This transaction further confirms our valuations in Eastern Europe“ – indicates Eduard Zehetner, CEO of Immofinanz Group. “A look at the Immofinanz core countries shows that Poland – in addition to Moscow – has the greatest potential for the development of high-quality shopping centers.“ This is also illustrated by Immofinanz’s decision to build the Tarasy Zamkowe – a shopping, entertainment and recreation center in Lublin.
“The Silesia sale underscores the start of recovery on the investment market in Eastern Europe. The interest of investors is returning, a trend that is also supported by general market indicators. We are optimistic that we will be able to conclude further sales in this region during the current financial year“ – added Zehetner. According to CBRE, the transaction volume in CEE tripled in quarter-on-quarter comparison during the first three months of 2013 and, at EUR 2,6 billion, reached the highest level since the first quarter of 2008.
Immofinanz acquired Silesia City Center in 2006 and, based on the high demand, decided to expand the facility. The extension opened at the end of 2011. With approximately 89 000 sq. meters of selling space and nearly 340 shops, Silesia City Center is the market leader in Silesia. This Immofinanz property has received numerous prizes and was one of the winners at the ICSC European Shopping Center Awards in 2013.