Atrium European Real Estate Limited
EANS-Adhoc: Atrium European Real Estate Limited
ATRIUM STRENGTHENS POLISH
PORTFOLIO BY COMPLETING THE PROMENADA ACQUISITION AND ACQUIRING DEVELOPMENT LAND
IN TORUN
-------------------------------------------------------------------------------- ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------------
06.05.2011
Atrium European Real Estate Limited
("Atrium" or the "Company")
ATRIUM STRENGTHENS POLISH PORTFOLIO BY COMPLETING THE PROMENADA ACQUISITION AND ACQUIRING DEVELOPMENT LAND IN TORUN
-SALE IN TURKEY CONTINUES RATIONALISATION OF NON CORE LAND BANK-
Jersey, 6 May 2011. Atrium European Real Estate (VSE / Euronext: ATRS), one of the leading real estate companies focused on shopping centre investment, management and development in Central and Eastern Europe, announces that, further to its announcement on 20 December 2010, it has completed the acquisition of the Promenada Shopping Centre ("Promenada") in Warsaw, Poland for EUR171 million from Carpathian PLC.
Promenada is Warsaw´s number four shopping centre and the EUR171 million transaction value comprises a purchase price of EUR169.5 million, as well as a further EUR1.5 million payable upon receiving a VAT refund, which is expected within three months.
In addition to achieving an immediate cost saving through internalising the centre´s management, Atrium has already identified a number of short-term value enhancing initiatives at the centre. Atrium also intends to progress the development potential of the asset and, in February 2011, conditionally acquired an adjacent 22,500 sq m land plot from Pirelli Pekao Real Estate for EUR10.7 million (PLZ41.5 million), on which it intends to build an extension to the centre.
This transaction is in line with Atrium's strategy of growth by acquisition, through adding value by extending and redeveloping its existing assets and of its focus on the key markets of Poland, The Czech Republic and Slovakia. This strategy is further evidenced by the Company's recent acquisition of a 38,000 sq m land plot adjacent to its Copernicus shopping centre in Toru?, Poland, for EUR7.5 million which will allow the Company to extend the current centre, and the sale of a 3.6 hectare land plot in Kahramanmara?, Turkey, for EUR16.5 million, which is above Atrium´s book value (both of which are subject to certain conditions precedent).
Commenting, Rachel Lavine, CEO of Atrium European Real Estate, said: "These two acquisitions underline our strategy of both seeking high quality income producing assets, located in the major cities of our target geographies, and of continually looking at ways of utilising our asset management and development skills to add value to our existing assets. The sale of the land plot in Turkey, at above book value, is in line with our strategy of disposing of projects which no longer fit within our development criteria, in order to focus on those properties which will best complement our operating portfolio."
For further information:
Financial Dynamics: +44(0)20 7831 3113 Richard Sunderland Laurence Jones Will Henderson Richard.sunderland@fd.com
More information about Atrium European Real Estate Ltd can be found on the Atrium page of the Vienna Börse website at http://en.wienerborse.at/ and on the Company´s page of the Euronext Amsterdam website, www.euronext.com or on the Company´s website at www.aere.com.
About Promenada Promenada has a total gross lettable area ("GLA") of 53,840 sq m, comprising 41,778 sq m of retail across three floors, below 12,062 sq m of offices. The centre has an occupancy level of 93.99% by GLA, is anchored by a 4,030 sq m Alma supermarket, as well as a 6,600 sq m Cinema-City and houses a number of other strong international and Polish retail brands including Agent Provocateur, Bennetton, LaCoste, Electroworld, H&M, Zara, Go Sport, Empik, Max Mara, Versace and Liu Jo.
About Copernicus and the recent acquisition of land for development in Toru? The EUR7.5 million (PLZ36 million) acquisition of a 38,000 sq m land plot adjacent to Atrium´s Copernicus shopping centre in Toru?, allows Atrium to expand the current offering by around 19,000 sq m of GLA and build a new multi-level car park for over 1000 car spaces.
The extension is expected to increase Copernicus´s total GLA to around 55,000 sq m and strengthen its position as the dominant retail destination in the area. Based on preliminary discussions with retailers, Atrium believes that the extension will attract many new international and local brands and food outlets, as well as allowing current tenants to expand their presence in the centre.
The acquisition is subject to a number of condition precedents, including the receipt of the required building permits and the transaction is expected to close in Q3 this year, with construction expected to start around 12 months thereafter.
Currently Copernicus is a 30,200 sq m GLA modern shopping centre which is anchored by 11,300 sq m REAL hypermarket and bowling complex. The shopping Centre was opened in 2005 and is a home to a number of international retailers including Media Markt and H&M which in 2009 extended its space at the centre. The centre has a catchment area with a population of around 200,000 people within a 10 minute drive and in 2010 it attracted up to 5 million visitors. The existing entrances and ground level car park for 850 car spaces will remain and it is not expected that there will be any restrictions on their use throughout the construction phases.
About Atrium European Real Estate Limited Atrium is a leading real estate company focused on shopping centre investment, management and development in Central and Eastern Europe. As of 31 December 2010 the Group owned 153 shopping centres, with a market value of EUR1.5 billion, diversified across eight countries with a total gross lettable area of 1.1 million sq m. Gross rental income from investment properties for the year ended 31 December 2010 was EUR151 million and net rental income for the period was EUR134 million.
Geographically, the Group´s focus is principally concentrated in Poland, the Czech Republic and Hungary with a presence in Russia, Romania, Slovakia, Latvia and Turkey. In addition, the Company has a development portfolio with a market value of EUR635 million as of 31 December 2010.
The Company is based in Jersey and dual listed on Vienna and Euronext Amsterdam Stock Exchanges under the ticker ATRS.
This press release appears as a matter of record only and does not constitute an offer to sell or a solicitation of an offer to purchase any security.
Atrium is established as a closed-end investment company domiciled in Jersey. Atrium is registered with the Dutch Authority for the Financial Markets as a collective investment scheme which may offer participations in The Netherlands pursuant to article 2:66 of the Financial Supervision Act (Wet op het financieel toezicht). All investments are subject to risk. Past performance is no guarantee of future returns. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. The Dutch and Austrian paying agent of Atrium is Kempen & Co. N.V., Beethovenstraat 300, 1077 WZ Amsterdam, the Netherlands.
end of announcement euro adhoc --------------------------------------------------------------------------------
Further inquiry note:
Financial Dynamics, London
Richard Sunderland / Laurence Jones
Phone: +44 (0)20 7831 3113
mailto:richard.sunderland@fd.com
Branche: Real Estate
ISIN: JE00B3DCF752
WKN:
Index: Standard Market Continuous
Börsen: Wien / official market
Original content of: Atrium European Real Estate Limited, transmitted by news aktuell