Gránit Asset Management, acting on behalf of the Magyar Posta Takarék Real Estate Investment Fund, as buyer, signs a sale and purchase agreement with international real estate investment firm Revetas Capital, as seller, for the acquisition of the Park Center portfolio in Hungary. The transaction comprises 12 retail parks and single-tenant retail units totalling 45,000 sqm of GLA across key regional cities, which will become the property of the open-ended real estate investment fund managed by the asset manager and held by tens of thousands of investors.
The transaction, for an undisclosed amount, will be executed as an asset deal, subject to customary closing conditions and approval from the Hungarian Competition Authority.
As a result of the transaction, Gránit Asset Management will operate the expanded portfolio under the Zone Retail Park brand name, and the units will gradually be given a common image and communication strategy over the coming months. As a result of the transaction, the Zone Retail Park network will now have seventeen strip mall shopping centres under unified management, strengthening the brand’s national presence with an increase in retail space from 97,800 sqm to over 142,000 sqm.
The acquisition is not just a portfolio expansion: previously, the Park Center units belonged to different owners, but now, joining the nine retail parks already managed, a comprehensive, nationwide retail platform has been created in the portfolio of Magyar Posta Takarék Real Estate Investment Fund. Thanks to the brand’s unified identity and communication, tenants and shoppers nationwide will enjoy the same high-quality service, while operations will continue uninterrupted.
“This acquisition is an important strategic step in strengthening the domestic retail market. Through the Park Center units integrated into the Zone Retail Park network, we are creating a unified, nationwide platform that enables sustainable operation, strengthens tenant confidence and creates long-term stable value for both investors and shoppers,” said Álmos Mikesy, Chairman of the Board and CEO of Gránit Asset Management.
The signing is an important step towards consolidating ownership of retail parks nationwide, further strengthening the Fund’s position in the Hungarian retail property market. The acquisition consists of eight retail parks and four single-tenant retail units located in Sopron, Mosonmagyaróvár, Miskolc, Debrecen, Zalaegerszeg, Siófok, Dunaújváros, Nagykanizsa, Marcali, Tolna, Szekszárd and Szentlőrinc, offering more than 45,000 sqm of gross leasable area.
The properties, most of which were developed in the 2000s, are nearly 100 percent leased to strong tenants such as C&A, Deichmann, Intersport, Libri, McDonald’s and Müller, among others. All properties are conveniently located and easily accessible along major transport routes, ensuring a steady stream of visitors and stable rental income in regional centres.
Turnover in strip mall-type retail parks has grown steadily in recent years, outpacing inflation, and forecasts indicate that this trend will continue in the future, ensuring stable long-term revenue.
The performance of shopping centres has not declined even during the Covid pandemic, and due to their low maintenance costs, tenants have a high level of confidence in them, with many retailers planning to open their first stores in these strip mall units. Thanks to this transaction, the Zone Retail Park brand is becoming one of the largest players in the domestic retail property market.
“We are pleased to cooperate with a leading Hungarian investment manager such as Granit Asset Management – whose investment strategy aligns with our long-term vision for the portfolio of assets and its valuable tenants. This transaction marks a significant milestone in our focused and disciplined effort to enhance the Park Center Hungary portfolio’s performance and value for our investors. Since the initial acquisition as part of a restructuring agreement in 2013, we have adopted a hands-on asset management approach, implementing targeted investments in tenant improvements and operational enhancements. As a result, the assets are now fully leased, supported by long-term tenancy and stable income streams. The outcome exemplifies Revetas Capital’s ability to transform complex situations into resilient, income-generating assets that deliver sustainable returns and long-term value for our stakeholders”, commented Vlad Dragoescu, Partner and CEE Head of Portfolio Management, Revetas Capital.
Gránit Asset Management was supported by Kinstellar, Sentient and Grandum Real Estate in the transaction process. CMS acted as legal advisor to Revetas Capital, while Cushman & Wakefield represented the seller as the broker in the transaction.
