Cushman & Wakefield has been appointed to act on behalf of Atrium European Real Estate to dispose of their hypermarket anchored retail portfolio comprised of ten assets located across the Czech Republic in eight locations. The challenge was to target investors who have the capabilities to take on the project of this size and nature, do not mind majority of income being denominated in Czech currency and have a platform to support management of each asset.
Prior to the sale renewal of almost all leases with Ahold took place which extended overall WAULT above 8 years. This helped us to position the investment opportunity as a secured long-term income with certain value add asset management initiatives. Our positioning involved depicting Ahold as a strong international AAA tenant that has a long track record and is in fact the largest grocery retailer in the Czech Republic.
We have managed to attract attention to this sale which resulted in several competitive bids. After investor interviews one party was selected into an exclusivity and the entire transaction was successfully completed in February 2016. The hypermarket portfolio was sold to Palmer Capital.