Central and eastern Europe’s emerging markets have clinched a series of massive investment deals.
Apollo Real Estate Advisors has bought a $750m portfolio of German retailer Metro’s M1 hypermarket chain in Poland. Apollo refused to comment on the deal but it is thought to include all 28 of the German group’s Polish centres. Metro will lease back the property.
Meanwhile, Chicago-based fund manager Heitman International is understood to have paid Israeli company Plaza Centers $610m for a 90% stake in a portfolio of 90 central and eastern European shopping centres, plus several more under development.
Heitman, which has built up a portfolio in the region worth over $1.2bn, has also set up a new $170m joint venture with New York-based developer Polimeni International to develop a portfolio of shopping centres in secondary Polish cities. The hypermarket-anchored projects will range from 21,400m2 to 36,205m2.
Development will start early this year with completion due for mid 2006. Heitman’s Central Europe Property Partners II (HCEPP-II) fund will own the completed centres.
Recently, Heitman, on behalf of HCEPP-II, completed a $115m joint-venture with Denmark’s TK Developments to buy four hypermarket- anchored centres in the Czech Republic and the 110,000m2 Rudna logistics park in Prague.
Heitman’s European assets under management are now worth €1.2bn, and it has European investment mandates for around $753m.
