Real estate investor and manager Cromwell Property Group (ASX:CMW) inked a deal to acquire all third party investor interests in the Cromwell Polish Retail Fund (CPRF).
Cromwell will then typically hold a coinvestment stake in each fund, manage the assets and recycle the capital into new initiatives.
CPRF contains seven catchment-dominating shopping centres with a Gross Asset Value of approximately €600 million (A$1 billion). The centres have an occupancy rate of 96.3 per cent and a weighted average lease term (WALT) of 5.1 years.
Cromwell’s Polish team has been managing and developing the assets for over a decade. In August 2019, Cromwell opened the newest section of Janki Shopping Centre in Warsaw, following the completion of a major €65 million (A$110 million) refurbishment which added gross lettable area of 21,000 square metres (sqm).
Poland has been Europe’s fastest growing economy over the past five years, with Gross Domestic Product growth of 4.5 per cent in the 12 months to 30 June 2019. It also has one of the highest expected growths in disposable income, consumer spending and retail sales globally.
Cromwell Chief Executive Officer, Paul Weightman, says "Poland is Europe’s success story. It is a market we know well and are very positive about."
Shares in Cromwell Property Group (ASX:CMW) closed 0.4 per cent higher at $1.32 on Friday.