Pasaż Chełmiński, a modern retail park, in the main shopping area in Chełmno, has been sold by TUF Real Estate to LCP Properties. Avison Young investment team represented the buyer in the transaction.
Pasaż Chełmiński is a modern retail and service complex of three buildings developed in November 2019 and located at 18 Polna street in Chelmno. It offers ca. 5,800 sqm of GLA and provides 170 parking places. Currently it is fully let to the Polish and international chain brands such as: Pepco, Rossmann, CCC, Martes Sport, KIK, Media Expert, Dealz, Gzella, PLUS GSM, La Dama boutique, bank desk – BS Toruń and a grocery store Biedronka.
Pasaż Chełmiński constitutes the first TUF Real Estate investment in the real estate market. The second project – Pasaż Warmiński – is currently under construction with scheduled delivery by the end of 2020.
“We are satisfied that we are disposing to the new owner this modern property, fully commercialized, which will serve the local community for years. For us, as a developer, it is crucial that the buildings we deliver are functional. Therefore, we put a lot of effort in choosing appropriate land for our investment projects. We target smaller cities, where such retail concepts would respond to shopping needs of the local community. Apart from Pasaż Warmiński, which is currently under construction, we have already started preparations and commercialization in Golub Dobrzyń, which will be delivered in 2021. We actively work on two subsequent locations, which will come to the market still in 2020,” comments the transaction Fabian Eryk Barbarowicz, Managing Partner at TUF Real Estate Polska
“Pasaż Chełmiński is a longterm investment for LCP Properties, in line with the business strategy of the fund. Pasaż will greatly fulfill our portfolio of retail properties located in smaller cities all over Poland. We plan further investments in retail parks, office properties and in-town warehouses, as our goal for the coming years is to double the volume of assets in our portfolio in Poland,“ adds Krystian Modrzejewski, Country Manager Poland at LCP Properties.
“This great transaction exemplifies the trend observed in the retail market in Poland – dynamic development of retail parks. In recent years they have become an attractive segment, offering rates of return of 8-9 percent. In the years 2015-2017, transactions of retail parks amounted to only 1 percent of the total value of sold retail schemes. In the years 2018-2019, this percentage increased to 4 percent. This is still marginal value with regards to the total retail investment volume, but definitely worth noting as these 4 percent constitute ¼ of the total amount of retail transactions closed in 2019 (8 of 32). Due to the above-mentioned factors, observing ongoing transactions and after many meetings with the investors, we see that this product is sought after and will be even more,” said Artur Czuba, Senior Consultant, Investment at Avison Young.
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