Having acquired an ownership stake in the City Center One shopping centre in Split in mid-2025, InterCapital Real Estate Fund Alfa has further strengthened its portfolio with another well-known shopping centre – Zagreb’s Avenue Mall. Under the sale and purchase agreement signed with the previous owners, the majority of which was held by GTC (Globe Trade Centre), the Fund is acquiring 100% ownership of Avenue Mall, together with the adjoining Avenue Center office tower. The value of the transaction is approximately €100 million, with closing expected by 31 July, subject to the satisfaction of customary conditions precedent, including the completion of acquisition debt financing by the Buyer and full repayment of the outstanding loan by the Seller.
This is also the Fund’s largest acquisition to date and is expected to rank among the largest commercial real estate transactions in Croatia in recent years. “Our Fund marks a turning point on the Croatian investment scene, as it finally allows domestic institutional as well as private individual investors to participate and invest jointly in prime real estate, rather than leaving such investments to foreign investors. Investments of this kind keep capital within Croatia, strengthen the country’s overall financial independence, and enable better diversification of investment options,” says Arn Willems, President of the Management Board of InterCapital Real Estate. Willems adds that the acquisition is fully aligned with the Fund’s strategy of investing in core and core-plus commercial real estate capable of generating stable long-term income and capital value growth for investors.
“Avenue Mall is one of the most recognisable retail destinations in Croatia and a truly unique asset in the Zagreb market. Its strategic location, stable operations and potential for further value creation make it an excellent fit within our long-term investment strategy. Following completion of the transaction, our priority will be to maintain the high quality of operations while selectively pursuing initiatives aimed at further enhancing the customer experience, supporting tenants, and strengthening Avenue Mall’s position as the leading retail destination in the surrounding catchment area,” adds Andrej Erjavec, Member of the Management Board of InterCapital Real Estate.
Located at Croatia’s busiest intersection, Avenue Mall is a landmark destination in the Zagreb retail market, offering excellent visibility, accessibility and a strong position within its catchment area. Opened in 2007, the property comprises approximately 28,000 sqm of retail space, around 7,000 sqm of office space, and more than 900 parking spaces. It is characterised by a diverse tenant mix, stable occupancy and consistent operating performance, supported by high footfall and strong tenant turnover.
The acquisition of Avenue Mall comes at a time of strong momentum for the Fund, which aims to position itself as one of the leading institutional platforms for commercial real estate investment in Southeast Europe. Over the past 12 months, InterCapital Real Estate Fund Alfa has generated a return exceeding 9% per annum, driven by the carefully executed acquisitions of City Center One Split, the Bonavia hotel in Rijeka, and the Matrix D office building in Zagreb. Following this transaction, the Fund’s assets under management are expected to exceed €200 million.
