Slovak investor IAD Investments, acting through its fund Prvý realitný fond o.p.f., has purchased Laugaricio Shopping Centre in Trenčín, Slovakia. The original owners were private investors represented by Mint Investments. This sale, the largest property transaction in Slovakia this year, was brokered by real estate consultancy Cushman & Wakefield. The purchaser was represented by MiddleCap Partners, as the transaction adviser, and Havel, Holásek & Partners, which provided legal advice. The transaction went ahead on 20 December 2016.
Laugaricio, which opened its doors in 2009, is the Trenčín region’s dominant shopping centre, catering to a catchment area of some 250 000 people living within a 30-minute drive-time radius. Laugaricio Shopping Centre hosts more than 120 brands, with big hitters including C&A, CCC, H&M, New Yorker and Reserved, over an area of 26 000 sq m, and has a further 15 000 sq m available for expansion.
“Having previously invested in office buildings, the Laugaricio acquisition is our first foray into the retail segment. This acquisition was financed by a syndicate of Slovenská sporiteľňa and Komerční banka,” says Marián Fridrich, transaction manager at IAD Investments.
“The conditions in place at Laugaricio Shopping Centre and its potential for further development make it an excellent opportunity as we seek to continue diversifying our fund portfolio,” adds Vladimír Bolek, portfolio manager and board member at IAD Investments.
Laugaricio’s initial developer was the Mint Investments Group, which has managed the centre from day one and will continue to do so for the new owner.
“Having been involved with this project right from the start, we are pleased that we will be engaged in its further development and potential expansion, which will consolidate the centre’s dominant position in the region,” says Radim Bajgar, Partner at Mint Investments.
“This sale dovetails neatly with investors’ broader interest in regional shopping centres and just goes to show that domestic capital can compete with Western Europe’s institutional players,” says Alexander Rafajlovič, Associate at Cushman & Wakefield’s investment team, which represented the seller Mint Investments in the sale.
IAD Investments, Slovakia’s longest-running management company, has provided financial services in Central Europe since 1991. Its European operations encompass the management of assets aggregating almost EUR 500 million in Slovakia, the Czech Republic and Slovenia.
Over the 25 years of its market presence, it has assembled a portfolio of formidable products, offering clients investment management within mutual funds, along with savings schemes and individual asset management. It sells financial products via a network of financial intermediaries and in cooperation with leading international financial institutions and banks.
IAD Investments is a member of the Slovak Association of Management Companies (SASS) and the Czech Capital Market Association (AKAT ČR). The high quality and professionalism underpinning its mutual fund management is routinely spotlighted in prestigious financial product contests, including Zlatá minca, Fincentrum&Forbes, Top fond Slovakia and the World Finance Investment Management Awards. For details, please visit www.iad.sk.
The Mint Investments Group was founded in 2002 as a partnership, and today numbers upwards of 50 real estate professionals. Mint offers the services of an integrated real estate investment platform that overarches Investment Management, Asset Management, Development and Property Management in order to generate investments with a superior risk-return ratio. Today, Mint Investments manages assets with an investment value in excess of EUR 600 million in its two existing institutional funds (QPPH and Realitní fond KB) and five closed-end private investor funds.
MiddleCap Partners is a Slovak-Czech consultancy offering clients a wide panoply of financial advisory services in a range of industries. MiddleCap’s specific expertise lies in its real estate solutions, encompassing consulting in the purchase, sale, financing and structuring of property transactions and development projects. www.middlecap.com
Havel, Holásek & Partners delivers wide-ranging M&A consulting in projects entailing due diligence in the legal structuring of transactions, the drafting, negotiation and conclusion of transaction documentation, and the winding-up and subsequent merger of acquisitions. In the property sector, it provides legal advice for legions of transactions, including consulting for real estate funds and for international and local developers implementing far-reaching multipurpose projects in Slovakia and the Czech Republic.