It’s tough to think of many more important transactions that could take place in Central Europe than one involving the Warsaw Financial Center. And that’s exactly what was announced today, with co-owners CA Immo and Pramerica Real Estate Investors agreeing provisionally to selling the asset to Allianz and Curzon Capital Partners III, a fund managed by Tristan Capital. JLL and Colliers advised the vendors on the deal, who acquired the building originally in 2005. The two held 50% shares each in the 50,000 sqm asset, but in the new arrangement, Allianz will hold 87.5%. The sale price was announced to have been €210m.
“Our investment strategy calls for 7-10 % of the overall portfolio to be sold every year in order to take maximum advantage of positive market phases and generate profits,” says Bruno Ettenauer, Chief Executive Officer of CA Immo. “Capital released in this way is earmarked for debt reduction and the realisation of current development projects. We are looking forward to the successful sale of the Warsaw Financial Center, which has now been agreed. This transaction will have a significantly positive impact on the annual result for 2012.”
Allianz Real Estate Germany has taken a 50% share in the Allee Shopping Centre, ING Real Estate Development’s latest project in Budapest which was completed last year. The project, which won Best Shopping Center Project at the Hungarian CIJ Awards, offers 47,000 sqm of retail space and was fully let upon completion. Allianz paid roughly €100m for its share of the scheme. JLL advised Allianz, while Cushman & Wakefield represented ING.
Allee, Budapest’s latest shopping mall (and the only such project to be completed in the city this year) officially opened earlier today in District XI. At the gala event last night, attended by what seemed to be Budapest’s entire real estate community, the chatter in the crowd focused not only on the extravagant party, heavy security and the army of eye-catching hostesses, but also on a likely buyer for the 46,000 sqm development.
According to multiple sources, German investor Allianz is more than a little interested in the property. Talks are said to be well-advanced with Jones Lang LaSalle representing Allianz and Cushman & Wakefield working with ING. Further details remain under wraps, though both parties reportedly hope to have the deal settled in the next few weeks. No one actually involved in the deal is talking about it, however, so confirmation will have to wait, as will guidance on pricing.
The 140 units at Allee have apparently all been let, though a handful still remained closed off and anonymous as of last night’s festivities. Major retailers at the new mall include Zara, H&M, C&A, Electro World, Interspar, Apple and Van Graaf, which is opening its first Hungarian outlet.
Posted in Events, Hungary, investment, retail
Tagged Allee, Allianz, Budapest, Cushman & Wakefield, ING, investment, Jones Lang LaSalle, retail, shopping mall