MGPA shops for largest deal in Poland since 2007

The Europe and Asia-focused fund has acquired two new shopping centres in the country for €187m, and has taken an option over a third

MGPA, the Europe and Asia-focused private equity real estate firm, has entered into the largest Polish real estate deal since 2007.

The firm revealed today it had it completed the acquisition of two new shopping centres in Poland and had taken an option over a third from DTC Finance BV.

The firm would not reveal the identity of the shareholders behind DTC, however the two centres are projects of Poland-based property firm, Mayland Real Estate, which is owned by French retailer, Groupe Casino.

Groupe Casino formed a €680 million development joint venture in 2007 with Goldman Sachs' Whitehall funds. At the time of the announcement, the parties said Whitehall would invest a minimum of €500 million over the following five years in a deal that catapulted Mayland into one of Central and Eastern Europe's most significant retail contractor developers.   

The shopping centres being acquired by MGPA will continue to be managed by Mayland Real Estate.

Including the option to acquire a third centre, the total investment will be up to €236 million for MGPA Europe Fund III, which has total equity commitments of €841.5 million and was established in 2007. 

The two shopping centres acquired initially are Karolinka and Pogoria malls located in the Silesia region near the German and Czech Republic borders. They opened in 2008.

The acquisition price was €187 million equating to €1,765 per square meter, said MGPA in a statement.

Karolinka is an out of town regional shopping centre of 70,000 square metres. Pogoria is the smaller of the two at 36,000 square metres. Both assets have occupancy levels above 98 percent. The weighted average lease length is approximately 6.5 years and 70 percent of the tenants are established international brands such as Decathlon and H&M.