S.A. investor Rockcastle has signed a preliminary agreement to acquire Galeria Warmińska shopping center in the city of Olsztyn from Libra Project 2. The value of the transaction is €150m, which represents an acquisition yield of 6.0 percent to be settled from Rockcastle’s existing cash resources. The deal is expected to close before the end of January, 2017. Savills represented Rockcastle in the transaction, while JLL advised the seller
In its filing on the acquisition, Rockcastle describes Galeria Warmińska as the leading retail destination in a 135km radius. It opened in September 2014, and offers 150 stores with a gross lettable area of 42,711 sqm. The center is fully let.
The deal comes a month after Rockcastle’s portfolio acquisition of Bonarka City Center in Karkow, Focus Mall Zielona Góra and of Focus Mall Piotrków Trybunalski earlier this year. In addition, the South African investor also announced it has entered into negotiations to merge with its local competitor NEPI. The step is being seen as an effort to create an “Eastern European powerhouse,” according to analysts on Johannesburg Stock Exchange.
