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CBRE GI picks up €92m Polish shopping center

The purchase from Tristan Capital represents CBRE GI’s second foray in the Polish market in four months.

CBRE Global Investors has purchased the Jantar shopping center in northern Poland for €92 million.

The real estate investment management business of LA-based  property services firm CBRE has acquired the asset from London-based private equity real estate firm Tristan Capital Partners on behalf of one of its separate accounts clients. The deal reflected an initial net yield of 7.1 percent.

The site, described as a “dominant regional center” by CBRE GI, is 477,530 square feet and located in the city of Slupsk, northern Poland. The shopping center has tenants including Intermarche, H&M, New Yorker and Decathlon plus a six-screen cinema multiplex and a food court.

Jeroen de Grunt, portfolio director separate accounts EMEA at CBRE GI, said: “We acquired this well-performing center as the first direct acquisition for this client in Poland. Poland provides an attractive pricing/risk premium in comparison to shopping centers in western Europe, and fits with our client's strategy to acquire dominant regional shopping centers with limited competition.”

In December, the firm also purchased the Sfera shopping center in Bielsko-Biala, in southern Poland.

Martin Sabelko, CEE managing director at CBRE GI, said: “Retail investments in Polish second-tier cities are offering prime investment opportunities and are in line with our strategy. Our long-standing team continues to be active on the ground looking to source additional investments for our clients.”

CBRE GI was advised by Linklaters, Savills and CBRE Building Consultancy. Tristan Capital, the London-based real estate investment management firm, was advised by Cushman & Wakefield and Dentons.

CEE property markets saw their proportion of investor preference rise from 6 percent to 23 percent, according to CBRE’s 2016 EMEA Investor Intentions Survey, published in March. The report stated that in the second half of 2015, prime yields in western Europe fell dramatically. This, it said, resulted in the yield gap between CEE and western Europe widening, raising the region’s attractiveness to real estate investors.

CBRE GI has $89 million in assets under management as of December 31, 2015, with $1.5 billion in AUM in Poland.