NEPI Rockcastle acquires Magnolia Park in Poland for €373 million

NEPI Rockcastle acquired the Magnolia Shopping Center in Wroclaw (Poland), following an off-market transaction, worth 373 million euros. The property, which has an area of ​​100,000 square meters, was bought by Union Investment in 2017, for the portfolio of the open-ended real estate fund UniImmo: Europe.

“NEPI Rockcastle has acquired one of the most valuable retail properties in Poland. Magnolia Park is a shopping center with a dominant position in Wroclaw, the third largest city in the country and one of the most economically prosperous. This transaction significantly strengthens the group’s portfolio, strengthening our position as the largest owner of shopping centers in Central and Eastern Europe. NEPI Rockcastle has a strong track record of growing the value of acquired assets, as evidenced by our most recent investments, and this property has considerable potential to drive the Group’s growth in the coming years,” said Rüdiger Dany, CEO of NEPI Rockcastle.

“In this off-market transaction, we benefited from the support of colleagues from our strong network and demonstrated that the right product can meet the expectations of both sellers and buyers, even in a challenging market environment,” added Roman Müller, Head of Investment Management Retail, Union Investment.

The shopping center, 99% leased, is one of the top 10 shopping malls in Poland and enjoys a strategic location in Wroclaw, with very good visibility and quick access both by car and public transport. Magnolia Park directly serves an area of ​​over 360,000 inhabitants, but also an extended region of nearly 1.4 million people.

“The entry of Magnolia Park into our portfolio is one of the largest commercial retail transactions in Central and Eastern Europe in recent years. This acquisition is in line with NEPI Rockcastle’s investment strategy to increase portfolio concentration in investment grade countries and focus on properties with a dominant market position. This modern and sustainable shopping center is of exceptional quality and has a great potential to grow both organically and through further improvements”, emphasized Anca Nacu, Investment Director, NEPI Rockcastle.

“Magnolia Park continues to perform well in terms of visitor numbers and sales. It is currently 99% leased. Therefore, we took this opportunity to sell the shopping center and strategically reduce our exposure to the Polish market,” said Henri Eisenkopf, Director Transactions Shopping Places of Union Investment.