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CBRE GI sells European portfolio for €650m

A listed real estate firm bought the 11 retail-focused properties spanning four countries.

CBRE Global Investors has sold a central and eastern European retail-focused portfolio for €650 million, the Los Angeles-based real estate investment manager said Wednesday.

Luxembourg-based public real estate firm CPI Property Group bought the 11-property portfolio, which comprised shopping centers in the Czech Republic, Poland, Hungary, and Romania; mixed-use complexes in Prague and Budapest; and two stores in Hungary. The deal is expected to close this quarter.

The properties in the portfolio, totaling 869,000 square feet, came from two CBRE GI funds. One, the Property Fund Central Europe, is a core fund with net asset value of €260.7 million as of the end of the fourth quarter, while the other, Property Fund Central Eastern Europe, is a core-plus fund with a NAV of €526.2 million as of Q4.

“The portfolio attracted a lot of interest as a result of its CEE wide composition and dominant retail exposure,” Roland Bebcak, CBRE GI’s head of central and eastern European divestments, said in Wednesday’s statement. “It illustrates that sizeable investments particularly in Poland, Czech Republic and Hungary are firmly back on investors' agendas.”

In the last year, CBRE GI had made almost €600 million of purchases in the CEE region, the firm said.

CBRE GI was advised by law firm Clifford Chance, brokerage Cushman & Wakefield and consultancy Arcadis.

CBRE GI managed $86.6 billion of assets as of December 31.