Retail specialist NEPI Rockcastle is buying the Magnolia Park shopping centre in Wroclaw, Poland in an off-market deal for €373 million.
The deal is the biggest single-asset shopping centre transaction by value in Central and Eastern European (CEE) markets since 2022.
The seller is CEE retail specialist, Union Investment. It acquired Magnolia Park in 2017 for the portfolio of the open-ended real estate fund UniImmo: Europa.
Magnolia has a BREEAM Excellent (Asset Performance) certification and an outstanding occupancy rate of more than 99%. Its anchor tenants include Carrefour, Primark, Castorama, Decathlon, Media Markt, Peek & Cloppenburg, Zara, Half Price, H&M, Reserved, TK Maxx and Helios.
The 100,000 square meter Magnolia Park has more than 360,000 people within 15 minutes’ drive and almost 1.4 million within one hour.
Magnolia Park among top retail assets
Rüdiger Dany, Chief Executive Officer of NEPI Rockcastle, says, “NEPI Rockcastle has just acquired one of the top retail assets in Poland. Magnolia Park is a dominant shopping centre in Wroclaw the country’s third largest city and one of its richest. The acquisition will significantly strengthen the Group’s portfolio, consolidating its position as the premier retail real estate owner in CEE. NEPI Rockcastle has a solid track record of adding significant value to the assets acquired, as evidenced by our most recent acquisitions, and this property has significant upside that will fuel NEPI Rockcastle’s growth in coming years.”
Anca Nacu, Investments Director at NEPI Rockcastle, says, “Magnolia Park is one of the largest deals in retail real estate in CEE in recent years and this transaction is in line with NEPI Rockcastle’s investment strategy to increase the concentration of its portfolio in countries with an investment grade rating and focus on core dominant properties. This modern and sustainable shopping centre is of outstanding quality and is well positioned for future growth, both organically and through further value enhancement.”
Top 10 shopping centers
Henri Eisenkopf, Director Transactions Shopping Places at Union Investment, says, “Magnolia Park is one of the Top 10 shopping centres in Poland and it continues to perform well in terms of footfall and sales figures. It is currently 99 per cent let. We have therefore taken the current opportunity to sell the shopping centre and to strategically reduce our exposure in Poland.”
The transaction is in line with NEPI Rockcastle’s investment strategy to increase its portfolio in countries with an investment grade rating and focus on core dominant properties in local markets.
NEPI Rockcastle was assisted by Linklaters as buy-side legal advisor, PwC on tax and financial aspects and PM Services as technical advisor.Union Investment was advised by JLL, legally by CMS and on tax aspects by Thedy & Partners.
