NEPI Rockcastle buys Magnolia Park in Wroclaw for €373m

NEPI Rockcastle, the listed retail real estate company, has acquired the Magnolia Park shopping centre in Wroclaw, Poland, from Union Investment for €373 million in an off-market transaction. The acquisition represents the biggest single asset shopping centre transaction by value in Central and Eastern European markets in recent years. 

“NEPI Rockcastle has just acquired one of the top retail assets in Poland. Magnolia Park is one of the top retail assets in Poland, the dominant shopping centre in Wroclaw, which is the country’s third largest city and one of its richest,” said Rüdiger Dany, CEO, NEPI Rockcastle. “The acquisition will significantly strengthen the group’s portfolio, consolidating its position as the premier retail real estate owner in CEE.”

Magnolia Park is a 100,000 sq m shopping centre and is 99% let. Union Investment had acquired the asset in 2017 for the portfolio of the open-ended real estate fund UniImmo: Europa but it is now “strategically reducing its exposure to Poland”, the group said.

The shopping centre is one of the Top 10 malls in Poland and enjoys a strategic location in Wroclaw, with easy access both by car and public transport, which is reflected in its operational performance and high occupancy rate. The shopping centre has an immediate catchment area of over 360,000 people within 15 minutes’ drive and a regional catchment of almost 1.4 million consumers within one hour’s travelling, 

Anchor tenants among the 240 stores in the centre include well-known brands such as Carrefour, Primark, Castorama, Decathlon, Media Markt, Peek & Cloppenburg, Zara, Half Price, H&M, Reserved, TK Maxx and Helios. Magnolia Park has a BREEAM Excellent sustainability certification. 

“Magnolia Park is one of the largest deals in retail real estate in CEE in recent years and this transaction is in line with our investment strategy to increase the concentration of our portfolio in countries with an investment grade rating and focus on core dominant properties,” said Anca Nacu, investment director, NEPI Rockcastle. “This modern and sustainable shopping centre is of outstanding quality and is well positioned for future growth, both organically and through further value enhancement.” 

NEPI Rockcastle is Europe’s third-largest listed retail real estate company by investment portfolio value and the largest owner, operator and developer of shopping centres in CEE. The company’s €7 billion portfolio is located across nine CEE countries. It is a market leader in Romania and Poland and has a presence in Bulgaria, Hungary, Slovakia, Croatia, the Czech Republic, Lithuania and Serbia.