G-City Europe, formerly known as Atrium European Real Estate, has secured a €125 mln investment loan from Bank Pekao and Berlin Hyp for its Promenada shopping centre in Warsaw.
The loan will be used to finance the centre's recent expansion, which added 13,200 square meters of new retail space, expanding the shopping and service offer.
Promenada has been enjoying a large and growing footfall since its redevelopment, and nearly all of its retail and service spaces have already been leased.
The shopping centre's success is due to its strategic location on the right bank of the Vistula River, the expertise of the management team, and the large catchment area it serves (over one million people within a 20-minute drive).
Or Ackerman, Group CFO, G-City Europe, said: ‘It was a pleasure for us to cooperate with Bank Pekao and Berlin Hyp on the Promenada agreement due to the professional and efficient process of project assessment and finance preparation. The commercial real estate sector is evolving, and opportunities are emerging to generate great results. We have extensive experience in international markets, and we are forward-looking in the management of our portfolio, taking advantage of development opportunities and keeping our assets appealing to both our tenants and customers, as well as finance providers.’
Lukasz Bialecki, director, head of real estate finance at Bank Pekao, added: ‘We are enthusiastic about the opportunity to unite forces with G-City Europe and Berlin Hyp for this groundbreaking financing project. Pekao have recognised the strength and potential of Promenada, and we strongly believe that its regular modernisation and numerous extensions reflect an unwavering commitment to providing a better shopping experience. The impressive footfall and rate of commercialisation emphasise the centres buoyancy and appeal on the market.’
G-City Europe, a subsidiary of G-City, is a leading owner, manager, and developer of retail and residential rental properties in Central Europe, with a primary focus on Warsaw. The company's current portfolio comprises 14 properties with a total market value of €1.9 bn and over 410,000 m2 of gross leasable area.