Belgian retail property group First Retail International has taken a 50% stake in the Romanian retail park portfolio 'InterCora'.
Belgian retail property group First Retail International has taken a 50% stake in the Romanian retail park portfolio 'InterCora'.
The transaction is the first step in a country partnership between Mitiska Ventures, manager of FRI, and Alpha Property Development, the development arm of InterCora group in Romania. The financial details were not disclosed.
The InterCora portfolio consists of eight operational retail parks in eight Romanian cities, with a total gross lettable area of 32,000 m2. The portfolio includes extension possibilities.
The properties are multi-tenanted and each is anchored by a food retailer (Kaufland and/or Lidl). Currently 98% of GLA is leased with an average remaining fixed lease term (without break options) amounting to about eight years. Full occupancy is expected to be reached by mid-2013.
Karel De Bondt, Real Estate Director CEE at Belgian-based Mitiska Ventures, commented: 'In our opinion the perception of Romania and Romanian politics does not correctly reflect reality. As is the case for Europe and the world as a whole, the economic situation in Romania has changed. However, retailers are still expanding and good projects continue to perform well. The InterCora portfolio is a very good example of this.'
First Retail International is a Belgium-based real estate club deal with a specialist focus on retail warehouse properties in Europe. At present, FRI’s committed capital amounts to €41 mln with a final target at €75 mln. Current shareholders of FRI include Belgian, Dutch, Luxembourg and Swiss private and institutional investors. Mitiska has committed €10 mln to FRI as the sponsor of the club deal.
Alpha Property Development is a Romanian company specialised in developing and investing in retail warehousing in Romania.
InterCora Group is a German-backed real estate investor and developer active in the Czech Republic, Slovakia and Romania.