Atrium European Real Estate, real estate companies focused on shopping centre investment, management and development in Central and Eastern Europe, announced the EUR 151.7 million acquisition of the Galeria Dominikańska shopping centre in Wrocław from a JV comprising the Otto Family and Deutsche EuroShop AG. Cushman & Wakefield, a leading global real estate services firm, represented the buyer in the transaction.
Atrium will finance the acquisition using the Group’s existing cash resources. The transaction is subject to approval by the Polish antimonopoly office and the fulfilment of certain conditions precedent, which are expected to be finalized in Q3 2013.
Galeria Dominikańska is the number one shopping centre in Wrocław. It has approximately 32,900 sqm of gross lettable area spread over three levels and across 102 units, as well as a gym let to AM Fitness Club and approximately 1,250 sqm of office space. The centre is 100% let to well-known international and national brands with a focus on fashion. Retailers include Zara, Bershka, Pull & Bear, Stradivarius, Carrefour, Media Markt, Van Graaf, C&A and Reserved. The centre was opened in 2001 and refurbished and extensively re-let in 2011, successfully strengthening the tenant mix. Galeria Dominikańska is located at the heart of the city, on 3 Dominikański square, next to the historic Old Town.
Rachel Lavine, CEO of Atrium European Real Estate, said, “Galeria Dominikańska is an important acquisition for us, being a large, well-established and dominant shopping centre which is in a prime location in one of the major cities of Poland, our most important market. ECE is one of Europe’s preeminent managers and developers of shopping centres and we look forward to working with them in managing this centre.
“The transaction allows us to start putting the proceeds of our recent Eurobond placement to effective use while increasing Atrium’s weighting to Poland, the CEE’s largest economy, to over 50%, and taking its exposure to A- rated or above countries to above 75%.”
Wojciech Pisz, Head of Capital Markets Group of Cushman & Wakefield in Warsaw, commented, “The acquisition of Galeria Dominikańska is one of the most significant investment transactions on the Polish market this year. We are very pleased to have been able to represent the purchaser in this major transaction.”
