Union Investment acquires Cinema City building at Manufaktura in Łódź
Union Investment has acquired the Cinema City building ,which holds a modern multiplex cinema with 15 screens across some 7,400 sqm of rental space in the Polish city of Łódź. The largest cinema in the city, it is located on the same site as the Manufaktura shopping centre, which the Hamburg-based real estate investment manager has held in its portfolio since 2012. The acquisition sees Union Investment’s managed rental space on the Manufaktura site rise to over 100,000 sqm and its total investment at the location increase to around €470 million. Going forward, the shopping centre and multiplex cinema will form a single economic entity in the portfolio of open-ended real estate fund Unilmmo: Deutschland. The vendor of the cinema property, which is let on a long-term lease, is part of the Global City Holdings group. The purchase price is around €21 million.
“Our Manufaktura shopping centre forms the heart of a diverse and booming leisure district in Łódź and is one of our most successful retail investments. Acquiring Cinema City building further boosts our investment because we are convinced of the long-term attractiveness of the area. As a result of our additional presence at the location, we will benefit even more strongly from economic synergies within the district,” said Henrike Waldburg, Head of Investment Management Retail.
Alongside around 300 shops, the Manufaktura complex is well known for its large market square, which regularly hosts concerts, open air performances and similar events. Architecturally, the complex consists of eleven historic brick buildings.
The 15 screens at Cinema City provide space for 3,100 cinema goers in total. Opened in 2006, facilities at the multiplex cinema have been continually modernised and the cinema now features state-of-the-art technology, including an IMAX 3D screen. Free car parking is provided for cinema goers. Cinema City’s offerings are an excellent fit with the Manufaktura site. Łódź is Poland’s third largest city and currently has 700,000 inhabitants. The wider catchment area for the shopping centre and cinema comprises approximately 2.5 million people.