GTC buys €100m Mall of Sofia from Europa Capital

CEE developer-investor GTC has acquired the Mall of Sofia in the Bulgarian capital's central business district from Europa Capital.

The deal amounts to nearly €100 mln, with GTC putting less than €30 mln in equity for the deal. Lenders OTP and DSK are providing finance with a 65% loan-to-value with respect to the deal.

Mall of Sofia provides 23,700 m2 of gross lettable space as well as 10,300 m2 of office space and around 600 underground parking places. The shopping mall is currently 98% occupied while the office section is fully let. The scheme provides a net operating income of €7.55 mln.

'During the last year we secured attractive land plots to develop new class A office buildings in various European capitals, amongst them, in Budapest, Bucharest, Sofia and Zagreb. The acquisition of Mall of Sofia was an excellent opportunity to buy a stable cash-flow generating building, at the heart of Sofia,' said Thomas Kurzmann, GTC’s CEO.

'This deal will increase our FFO, provide for additional dividend capacity and thrust for self-propelling growth,' added Erez Boniel, GTC’s CFO.

This sale represents the latest disposal from Europa Capital’s 2008 vintage Europa Fund III, which commenced acquisitions in mid 2009, following the post-global financial crisis market correction. The remaining two investments in the fund are both in advanced stages of being realised.


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