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TH Real Estate makes €62m Poland debut

The firm has acquired three assets on behalf of TIAA-CREF as part of a JV announced at the start of the year

TH Real Estate has completed a deal to buy stakes in three retail properties in Poland as part of a Europe-wide strategy hinged on the belief that the region is ‘under-retailed’.

The global firm has acquired a 50 percent share in two outlet centers, Factory Annopol in Warsaw valued at €50 million and Factory Krakow in Krakow valued at €74.1 million – as well as a retail park called Futura Park also in Krakow. 

The 50 percent stakes in all three assets are being bought on behalf of US investor TIAA-CREF from Spain’s Neinver which developed them all and with whom TH Real Estate has an existing joint venture to build a pan-Europe factory outlet platform initially predicated upon Neinver’s 15-strong European portfolio, plus development pipeline.

The joint venture was announced in January this year when TH Real Estate announced the acquisition of Roppenheim outlet in France, and when it also said it would buy Factory Annopol in Warsaw and similar assets in Krakow.

Jamie Acheson, investment manager, European outlet malls at TH Real Estate, said: “The acquisitions of Annopol and Krakow represent our first investment in the Polish market, and form the next step of our European joint venture with Neinver. The retail sector in Poland offers excellent prospects for growth, and we believe that the outlet mall market is well-placed to capture this growth as the market matures.

Phil McAndrews, senior managing director and chief investment officer of TIAA-CREF Global Real Estate, added: “We have a strong interest in European shopping centers, as we believe the continent is under-retailed and the outlet mall sector is performing particularly well. Poland is an interesting market as it is highly literate, has positive employment prospects and strong economic growth.”

Factory Annopol measures around 213,000 square feet and was originally developed by Neinver in 2013. It is located in one of the most densely populated, fastest growing areas of Warsaw. Meanwhile, Factory Krakow comprises 237,000 square foot and the adjoining Futura retail park is 204,000 square feet.