JLL advises Atrium in a disposal of Polish retail portfolio

JLL is pleased to inform that the Warsaw based Retail Investment Team headed by Agata Sekuła advised Atrium European Real Estate Limited, a leading owner, operator and redeveloper of shopping centres and retail real estate in Central Europe in the disposal process of two Polish shopping centres, namely Atrium Felicity and Atrium Koszalin to funds ECE European Prime Shopping Centre Fund II, managed by the independent fund managing company ECE Real Estate Partners. The parties signed on 9th May 2019 an agreement concerning sale of both assets for €298 million, representing around 3% premium to book value as at 31 March 2019. The transaction is subject to the fulfilment of certain conditions precedent and is expected to be completed in the third quarter of 2019.

Both centres are absolute market leaders in their catchment areas and strong performers. Atrium Felicity offers ca. 77,000 sq m^[1] of retail space (total GLA in Atrium ownership of 57,200 sq m excludes Auchan) located in Lublin, a major administrative centre in Lubelskie voivodship, and a growing academic and back office centre in the south eastern Poland, with a population exceeding 340,000 inhabitants. The centre opened in March 2014 is the fashion destination of town with anchor tenants including ZARA, H&M and RESERVED built around AUCHAN HYPERMARKET and LEROY MERLIN DIY store accompanied by extensive food court and entertainment anchored by CINEMA CITY with 9 screens.

Atrium Koszalin features 57,300 sq m of retail space and has been trading for over 10 years now. Located in Koszalin, one of the best developed and most attractive cities in north western Poland. The centre is anchored by highly popular TESCO hypermarket, CASTORAMA DIY store, extensive leisure element, including MULTIKINO as well as leading fashion retailers, such as H&M, RESERVED, C&A. Atrium Koszalin serves catchment area of circa 250,000 inhabitants, without comparable competition within 70km radius.

“We would like to congratulate Atrium on the disposal of such significant portfolio further enhancing Atrium’s position as most active investor in the retail sector both on acquisition and disposition side. We would also like to congratulate ECE addition of two assets with such strong fundamentals that shall enrich the overall ECE Polish portfolio”, says Agata Sekuła, Head of Retail Investment CEE, JLL.

[1] Total GLA including owner - occupied Auchan hypermarket of 19,750 sq m (excluded from the transaction.