Mitiska REIM sells Polish retail park to AB Tewox

Mitiska REIM sells Polish retail park to AB Tewox

Mitiska REIM, the leading specialist investor in European convenience real estate, has today announced that following the successful completion of its value creation programme, it has completed the sale of Retail Park Mlyn in Wroclaw to AB Tewox, an investment company managed by Lords LB Asset Management. The retail park was originally acquired by Mitiska REIM in July 2015 on behalf of the First Retail International fund (FRI).

Located in the city of Wroclaw in Southwestern Poland, Retail Park Mlyn is a well-established retail location, with a gross leasable area of 10,567m2 and offers free parking for 250 cars. The site is anchored by a Lidl supermarket, with other tenants including a mix of leading convenience brands such as Media Expert, KiK, TK Maxx, Deichmann and Sports Direct.

As part of its value-add investment strategy, over the past 6 years Mitiska REIM has strengthened the tenant mix at Mlyn by replacing a previous food retailer with Lidl on a 12-year lease, and improved the WAULT by extending lease agreements to increase the long-term cash flow of the property. In 2020, the retail park was successfully refinanced through an agreement with mBank and, in line with Mitiska REIM’s wider ESG and sustainability initiatives, Retail Park Mlyn was last year awarded a ‘Good’ score on the BREEAM In Use scale.

Mitiska REIM first entered the Polish market in 2014 and, following a joint venture agreement with Karuzela Holding in December 2018, has accelerated its expansion to create a portfolio of 5 income-generating convenience retail schemes and 8 development projects, with a combined gross leasable area of approximatively 160,000m2. This year, 3 new convenience retail developments will be completed, located in the Polish cities of Pulawy, Wagrowiec and Kolobrzeg.

Radoslaw Misko, Mitiska REIM’s Senior Investment Associate for Poland, comments: “The interest we have received from the potential buyers for Retail Park Mlyn demonstrates the strong market demand for high-quality retail park properties and the ongoing attractiveness of this asset class in Poland. In addition, we are delighted to have been able to fully utilise the potential of the open tender sale process advised by BNP Paribas Real Estate and that the transaction was signed before the end of the year.”

Sylvie Geuten-Carpentier, Managing Partner at Mitiska REIM, comments: “This sale is in line with Mitiska REIM’s value-add investment strategy to exit properties after completion of the value creation business plan to the benefit of all stakeholders. Looking ahead, we have a solid pipeline of convenience real estate investment opportunities in joint venture with local operating partners. These include retail parks, urban logistics and multi-let light industrial projects, with a focus on urban infill locations that benefit from the structural trends in urbanisation and e-commerce growth.”

Efim Hiterer, Investment Company Manager at AB Tewox, comments: “First investments of funds managed by Lord LB Asset Management in the Polish market were made back in 2018 when we invested into renewable energy assets. Today, based on the experience we gained while working in the Baltic States, Poland is a natural destination for business development. It is the market that attracts the attention of institutional investors from all over Europe for many years and we are not the exception. The attractiveness of Retail Park Mlyn is the following: location of the building, strong structure of the tenants with well-known brands in the market and concentration of retailers in the area which local customers appreciate. Our aim is to continue expanding the portfolio of managed properties in the retail segment throughout the Polish market.”