International: Largest Tri-City Shopping Center Sells for Record Price
- Jul 28, 2015
By Veronica Grecu, Associate Editor
A giant 753,000-square-foot shopping mall in northern Poland will soon change ownership.
International advisory companies Colliers International and JLL announced that Foncière Euris and its subsidiary Rallye signed a preliminary agreement to sell the Riviera Shopping Center located at Kazimierza Górskiego 2, 81-304 in Gdynia, 275 miles from Warsaw.
The price tag is a whopping is €291 million ($319.11 million) and could increase up to €300 million (nearly $330 million) through earnouts over the next three years. According to CIJ Online, the transaction has a cap rate of stabilized NOI of 5.40 percent.
“The sale of Riviera in Gdynia illustrates the strong interest that investors continue to have in core retail properties located in Poland’s major agglomerations,” said Agata Sekuła, International Director, Head of Retail Investment CEE at JLL in a prepared statement. Neil Gregory-Eaves, International Director at Colliers, added that “Demand for regionally dominant centers in Poland is growing and now attracting the top investors globally. Investor interest in Riviera originated from across the EMEA and Asia and the fierce competition for the property was reflected in pricing, a new benchmark in Poland.”
Set to be completed on Aug. 31, the sale of the Riviera Shopping Center marks the biggest commercial real estate deal in Poland so far this year. The buyer was identified as Union Investment Real Estate GmbH, a German real estate investor.
Riviera Shopping Center opened in October 2015 as the largest and most advanced commerce and entertainment center in the entire Tri-City region (Gdańsk, Gdynia, Sopot), as well as one of the largest retail centers in Poland. The shopping mall currently has more than 230 shops on two floors, as well as 2,500 parking spaces for customers and an attended parking area for 300 bycicles—the largest in Poland and the first one to open in Tri-City.
Riviera Shopping Center is managed by Mayland Real Estate