Project Sarmat

Background

In March 2018 JLL won the pitch for commercial advisory services to be provided to Atrium European Real Estate in the sale process of Atrium Felicity shopping centre located in Lublin and Atrium Koszalin shopping centre located in Koszalin.

Both schemes are dominant, regional, well established and healthy performing, with locations in regional city Lublin (350,000 inhabitants) and tertiary city Koszalin (110,000 inhabitants). Concurrently with the sale process, both centres were undergoing 5 and 10-years lease roll-over.

Strategy

JLL identified a targeted group of investors including international institutions and retail specialists that in our opinion would be interested in the long term holding of such geographically diverse shopping centres. The prevailing goal was to sell both centres as a portfolio at the targeted price.

Results

Following a targeted marketing process the LOI was signed with the selected Investor in September 2018 and the deal closed in July 2019, after agreed roll-over leasing targets were met. Both centres were acquired by ECE European Prime Shopping Centre Fund II at a price of €298 million (3% premium over book value).

The transaction is the largest retail deal in Poland in 2019 and provides evidence that relevant retail assets are in high demand with retail specialist investors.