US-based fund manager Heitman has agreed a conditional contract to buy two Polish projects with a combined value of €95m from Danish property company TK Development.
They include the 16,500 m2 Galeria Tarnovia shopping centre in Tarnów, which opened in 2009. The selling price was some €40m.
Prime yields for retail investments in Poland are around 6-7% depending on their location.
Heitman is also acquiring TK Development’s planned mall development in Jelenia Góra of around 24,000 m2. Construction work is expected to start next year and to complete in 2015. The project value is around €55m.
Heitman is to take a 70% stake in the projects via investment in a holding company. The deal is expected to be finalised in August.
