Promenada changes hands for zł.500 million
Retail commercial property investment company Dawnay, Day Carpathian PLC already owns four shopping centres in Poland: Osowa in Gdańsk, Kometa in Toruń, Tulipan in Łód, and one in Sosnowiec, which were all acquired last year for EUR 64 (zł.253) million. Now the company has purchased the Promenada Shopping and Business Centre in Warsaw from EBD, owned by a private Dutch individual, for EUR 127 (zł.503) million. DDC says the acquisition is only the first one of other large transactions that are close to completion.
"Promenada is one of the largest single asset deals ever concluded in Poland," said Rupert Cottrell, chairman of DDC in a comment on the acquisition. "Importantly, the transaction comes with sustainable income, good growth prospects, and the opportunity to add value through asset management," he added. In the transaction, DDC was advised by King Sturge Poland, who also valued Promenada for the purposes of the transaction.
Located on the right bank of the Vistula river, Promenada is the only modern shopping center in southeast Warsaw. The total lettable floor area in Promenada is 49,571 sqm. The existing space includes a three-level shopping gallery, a cinema, office space and a multi-storey parking facility. It has attracted a number of high profile retail tenants including H&M, Zara, Empik, Sephora, and Alma. The average monthly rental yields for the retail tenants in Promenda is about EUR 18 (zł.71) per sqm. The initial yield for the acquisition is approximately seven percent. DCC plans to increase the area of Promenada by a further 5,000 sqm, which will consist of a fashion store and a fitness club.
