Mitiska REIM, the specialist investor in European convenience real estate, has completed the sale of Retail Park Mlyn in Wroclaw to AB Tewox, an investment company managed by Lords LB Asset Management.

Mitiska REIM deal

Mitiska REIM Deal

The retail park was originally acquired by Mitiska REIM in July 2015 on behalf of the First Retail International fund (FRI).

Located in the city of Wroclaw in Southwestern Poland, Retail Park Mlyn is a well-established retail location, with a gross leasable area of 10,567 m2 and offers free parking for 250 cars.

The site is anchored by a Lidl supermarket, with other tenants including a mix of leading convenience brands such as Media Expert, KiK, TK Maxx, Deichmann and Sports Direct.

Radoslaw Misko, Mitiska REIM’s senior investment associate for Poland, said: 'The interest we have received from the potential buyers for Retail Park Mlyn demonstrates the strong market demand for high-quality retail park properties and the ongoing attractiveness of this asset class in Poland.

'In addition, we are delighted to have been able to fully utilise the potential of the open tender sale process advised by BNP Paribas Real Estate and that the transaction was signed before the end of the year.'

As part of its value-add investment strategy, over the past six years Mitiska REIM has strengthened the tenant mix at Mlyn by replacing a previous food retailer with Lidl on a 12-year lease, and improved the WAULT by extending lease agreements to increase the long-term cash flow of the property.

In 2020, the retail park was successfully refinanced through an agreement with mBank and, in line with Mitiska REIM’s wider ESG and sustainability initiatives, Retail Park Mlyn was last year awarded a ‘Good’ score on the BREEAM In Use scale.

Mitiska REIM first entered the Polish market in 2014 and, following a joint venture agreement with Karuzela Holding in December 2018, created a portfolio of five income-generating convenience retail schemes and eight development projects covering 160,000 m2. This year, three new convenience retail developments will be completed in Pulawy, Wagrowiec and Kolobrzeg.

Sylvie Geuten-Carpentier, managing partner at Mitiska REIM, said: 'This sale is in line with Mitiska REIM’s value-add investment strategy to exit properties after completion of the value creation business plan to the benefit of all stakeholders.

'Looking ahead, we have a solid pipeline of convenience real estate investment opportunities in joint venture with local operating partners. These include retail parks, urban logistics and multi-let light industrial projects, with a focus on urban infill locations that benefit from the structural trends in urbanisation and e-commerce growth.'

Efim Hiterer, investment company manager at AB Tewox, said: 'Poland is a natural destination for business development. It is the market that attracts the attention of institutional investors from all over Europe for many years and we are no exception.

'Our aim is to continue expanding the portfolio of managed properties in the retail segment throughout the Polish market.'