Immofinanz closes Silesia sale

Immofinanz Group closed the sale of Silesia City Center for EUR 412 million to an international consortium of investors led by Allianz with the involvement of Asian partners. The sale price exceeded the book value, as it had been previously reported.

„Cycle-optimised sales like the Silesia City Center generate the liquidity for investments in new properties and again confirm our valuation approach in Eastern Europe. The Silesia transaction also underscores and supports the recovery that has taken hold on the investment market” – said Eduard Zehetner, CEO of Immofinanz Group. The responsibility for Silesia’s center management is now taken by ECE, which is part of the buyers’ consortium.

According to CBRE, real estate transactions with a combined volume of EUR 4,5 billion were completed in Eastern Europe during the first half of 2013 – which is 60% over the comparable amount for 2012. The Cushman & Wakefield researches say, that retail property investment markets around Europe, the Middle East and Africa (EMEA) have been getting busier this year, with EUR 16,3 billion traded in the opening 6 months, 31% more than the first half of 2012.

According to Michael Rodda, head of EMEA retail investment at Cushman & Wakefield, retail transactions involve more cross border buying, with some of the larger global funds increasingly looking at retail as they diversify from capital city office markets. Very similar situation was in case of the Katowice transaction. „We are anticipating an increased flow of cross border money into the retail sector and in particular, more interest from Asian funds following the successful purchase by Allianz of Silesia City Center on behalf of a consortium which included Asian partners.”

After the successful deal with the Allianz consortium, Immofinanz did not exit the Katowice market – the company is currently realising the third stage of the „Dębowe Tarasy” (Oak Terraces) located very close to Silesia City Center. The 317 apartments of the stage will be delivered by the end of this year.