TREI Real Estate Czech Republic has completed the sale of a portfolio of retail properties to CPI Group, the Czech leading investment and development holding. The properties included in this portfolio are 9 supermarkets in the Czech Republic leased to Penny Market or Billa for in excess of 10 years. The portfolio provides a diverse geographical exposure, with supermarkets located in the following towns and cities: Dobøíš, Holešov, Holice, Jablonec nad Nisou, Liberec, Øíèany, Semily, Tanvald, and Turnov. Total leasable area of the properties includes 10 900 sq m.
TREI was advised by Colliers International on selecting a purchaser and assisted with due diligence and negotiation of the SPA. The deal was legally supported by Kinstellar, acting on behalf of CPI Group and CMS Cameron McKenna, acting for TREI throughout the due diligence and in the negotiation of the legal documents. “TREI have successfully capitalised on the value of their portfolio of standing assets in order to invest in their pipeline of VENDO PARK developments in the Czech Republic and Slovakia,” said Björn Fraeb, Head of Portfolio Management & Business Development, TREI Real Estate GmbH (Germany).
“CPI Group has acquired a geographically diverse portfolio providing solid income secured against the excellent covenants of Penny and Billa for in excess of 10 years,” said Martin Nìmeèek, Director of Acquisitions, CPI Group. “This is an excellent transaction for both parties,” said Chris Sheils, MRICS, Director, Colliers Czech Republic Investment Services. “There have been very few transactions of this type in recent months and it underlines the attractiveness of long leased, retailer backed income, to investors.”
About TREI Real Estate
TREI Real Estate is the real estate arm of the 100 % family-owned Tengelmann Group. TREI Real Estate as a long term, financially sound investor is focused on property investments and developments in retail asset schemes in Germany and 6 European countries (Poland, Czech Republic, Slovakia, Hungary, Austria and Portugal). New retail park schemes, known as “VENDO PARK” – a TREI Real Estate owned brand – were opened most recently in Kyjov. Further openings will follow soon in Jablonec nad Nisou (CZ), Banovce (SK), Nysa (PL). New development opportunities and sites in PL/ SK/ CZ are constantly under review. Total rental volume is currently at 100 Mio €/p.a., with more than 80% of this contracted with tenants outside of Tengelmann Group. More information on TREI Real Estate at www.treirealestate.com
About the Tengelmann Group
The Tengelmann Group is a retail company whose business is spread across a number of different industries and international marketplaces and whose operative retail subsidiaries include OBI, KiK, Kaiser’s Tengelmann and Plus.de. The real estate company, TREI Real Estate, as well as the holding company, Tengelmann Ventures, which has been investing in promising online start-ups since the end of 2009, also belong to the group. This family-owned enterprise was established in 1867 in Mülheim an der Ruhr and is currently managed by the fifth generation of the family. Operating in 15 different countries and employing a staff of approx. 80,000 people who work in 4,000 stores, the company most recently turned over annual sales of more than EUR 10bn.
About CPI Group
CPI Group is a significant real estate company dealing with long-term investment, development and real estate management. The Group has been operating on Czech and Slovak markets since the beginning of the 1990s. It has developed its activities in the area of residential real estate, office buildings, retail areas, hotels and logistics centres. With 12,700 apartments, CPI Group is today the second largest provider of rental housing in the Czech Republic. The Group further owns and manages over 500,000 sq m of retail areas, 230,000 sq m of new office areas, 17 hotels with 7 500 beds and 148,800 sq m of land suitable for industrial construction projects or storing. More information on CPI Group at www.cpi.cz