Tristan buys five Polish shopping centers

The London-based firm has purchased the portfolio for €174.5 million on behalf of its EPISO3 opportunity fund.

Tristan Capital Partners has agreed to acquire a portfolio of five shopping centers in Poland for €174.5 million on behalf of its European Property Investors Special Opportunities (EPISO) 3 fund. The seller was Charter Hall Retail REIT, which is exiting Europe to refocus on its core domestic market of Australia.

Through EPISO 3, the London-based investment firm will acquire four centers located in different cities in southwest Poland, including the country’s second-largest city of Krakow. The fifth asset in the portfolio is the Turzyn center in Szczecin, northwest Poland.

Daniel Harris, managing director of investments at Tristan, said: “We like the relative strength of the Polish economy and believe these are good retail assets that will be enhanced through further investment.”

The five centers are located in affluent and densely populated neighborhoods in each of their respective cities. All five centers are anchored by hypermarkets owned separately by Carrefour, although these are not part of the transaction. The average occupancy level across the portfolio is 94 percent.

The transaction, which is scheduled to complete by the end of the third quarter, is the second deal in Poland for Tristan-advised funds since November, when it closed the €210 million acquisition of the Warsaw Financial Center through a joint venture with Allianz Real Estate. Tristan made its investment in that center on behalf of Curzon Capital Partners III, a €420 million core-plus/value-added fund. 

Tristan expects to announce a third closing for the EPISO 3 fundraising in the coming weeks. The firm is targeting €750 million in commitments to deploy on value-added investments and distressed opportunities arising from the shortage of debt and equity capital.