Mitiska REIM, a leading specialist investor in European convenience real estate, announced that following the successful completion of its value creation program, it has completed the sale of 25 retail parks in Romania to LCP Group for €219 million. This sale is one of the largest retail real estate transactions in Romania and more than doubles the original investment over an average holding period of 5 years for investors in the FRI and FRI 2 funds which owned the assets.
Representing a total gross leasable area (GLA) of 132,000 sqm, the portfolio of 25 retail parks was developed, built and managed by Mitiska REIM in partnership with its Romanian country partner Square 7 Properties over the past 10 years. All retail parks in the portfolio are food-anchored by either a Kaufland or Lidl supermarket or a combination of both, with other tenants including leading international brands such as Deichmann, DM, Pepco, Jysk, KFC, Kik and Takko. In terms of sustainability, the entire portfolio has been awarded “Very Good” BREEAM certifications for Asset Performance.
Axel Despriet, Managing Partner of Mitiska REIM, comments: “We are delighted to conclude this transaction with LCP Group, part of M Core, and deliver such strong returns to investors in the funds. During the sale process, we saw significant interest from several potential buyers, which is a testament to the depth of liquidity for high-quality retail park assets in Europe.”
Sylvie Geuten-Carpentier, Managing Partner of Mitiska REIM, comments: “Our value-add investment approach is to buy, fix, manage and then sell when a portfolio reaches core status. The quality of these assets combined with the resilience of the retail park sector in general meant that we could realize such significant value, despite the wider economic environment.”
Clemens Petschnikar, CEO of Square 7 Properties, adds: “Working together with Mitiska REIM, we were able to create one of the largest retail real estate portfolios in Romania and become the market leader in the retail park sector. This sale is the successful culmination of this work and part of our ongoing partnership which combines our local expertise and on-the-ground management with Mitiska REIM’s international retailer relationships, access to funding and divestment expertise.”
The retail parks are located in the Romanian cities of Bucharest (2), Bistrița, Baia Mare, Pașcani, Slobozia, Ploiesti, Mediaș, Reșița, Buzău, Arad, Odorhei, Sighet, Câmpina, Caransebeș, Medgidia, Iași, Târgu Mureș, Tulcea, Slatina, Mioveni, Bacău, Drobeta-Turnu Severin, Brăila and Giurgiu.
The FRI Fund was launched in 2012 with an initial term of 8 years which was extended to 2026. The FRI 2 fund was launched in 2016 with an initial term of 10 years with options to extend.
Kepler Corporate Finance, Belfius and CBRE acted as financial advisors and PeliPartners was the sole legal advisor to Mitiska REIM on the transaction.
