Arcona to acquire Polish retail portfolio

Arcona Property Fund, an investment fund focused on commercial real estate in Central Europe, is to acquire a portfolio of a total of 11 neighborhood shopping centers in ten regional cities in Poland from RECE for EUR25.9 million. The fund expects to finalize the acquisition of the first eight assets from the portfolio in December, and of the remaining three assets by the end of the first quarter of next year. The investor plans to finance the acquisition by, among other things, a EUR10.5 million loan from Raiffeisen Bank Poland. The shopping centers were developed between 2001 and 2009, and are located in Łódź, Gdańsk and eight medium-sized cities across Poland. The centers have a combined leasable area of almost 22,900 sqm, which is mostly occupied by major food retailers including Piotr i Paweł, Biedronka and Tesco. “With this acquisition in Poland the fund is taking a strategic position in Central Europe’s largest real estate market. It is a crucial step in establishing the fund as the benchmark quoted real estate vehicle in the region, offering both private and institutional investors an attractive dividend yield,” said Guy Barker, the director of Arcona Capital, the manager of the fund. Once the acquisition of the portfolio has been completed, the value of the Arcona Property Fund-owned assets will grow to EUR83.7 million. In the long term, the investment fund wants to reach a size of approximately EUR500 million and hold from 30 to 50 assets, with around EUR200 million to be allocated in Poland.

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