CA Immo and Union Investment sell two shopping malls in the Czech Republic (DE/CZ)
Wednesday 25 May 2011
The Czech Olympia Shopping Centers in Teplice and Mladá Boleslav have been sold for a total of around €96 million.
Both shopping malls are fully let and have been held since 2003 in the portfolio of the C1 Fund, in which CA Immo subsidiary Europolis has a 51% holding and Union Investment Real Estate GmbH a 49% holding via its UniImmo: Europa open-ended real estate fund.
The purchaser of the two shopping malls is a Czech investor; the transaction took the form of a share deal and is still subject to conditions precedent. The rentable area in the Mladá Boleslav Center comprises 21,884 m² and in Teplice 32,157 m².
Dr. Bruno Ettenauer, CEO of CA Immo commented: “This successful sale is a first step in the strategy we announced at the start of the year, of focusing our portfolio in terms of both type of use and region. The transaction also underlines the perceptible upturn in the property investment market in Eastern Europe.”
Dr. Frank Billand, Member of the Management Board of Union Investment Real Estate GmbH said: “The sales price, which is higher than the expert valuation, emphasises that now is the right time to be disposing of the two properties. But the Czech Republic still remains an attractive investment market for us.”
Anchor tenant in both the Olympia Centers is the international supermarket chain, Ahold; the Mladá Boleslav Center has a further 54 tenants and the Teplice Center 74. Both malls are well-established and popular shopping destinations.