Atrium European Real Estate Limited has entered into an agreement to sell Atrium Militari shopping centre in Bucharest, Romania to MAS Real Estate Inc., for €95 million, representing a 9% premium to book value on 31 December 2017. The transaction is subject to the fulfilment of certain conditions precedent which are expected to be finalised by the end of the third quarter of 2018.
The divestment of the company's only shopping centre in Romania forms part of Atrium's ongoing strategy of rebalancing its portfolio both geographically, towards Poland and the Czech Republic, Central Europe's strongest economies, and by asset class towards larger scale, well-established shopping centres in strong urban locations which dominate their catchment areas.
The sale follows shortly after the company's recent announcement that it had sold 19 properties, which represented substantially all of its assets in Hungary and completed its portfolio repositioning in the Czech Republic with the sale of its stake in a shopping centre in Brno, Czech Republic. Earlier this month, Atrium also signed an agreement for the disposal of Atrium Saratov in Slovakia for €10.3 million, 9% above book value, which it expects to complete shortly.
As a result of these sales, Atrium's Polish and Czech portfolios will increase to 81% of its total standing investments by value.
Liad Barzilai, Chief Executive Officer of Atrium Group, commented: "The disposal of Atrium Militari, our only Romanian asset, represents another important step in our strategy of reweighting our portfolio towards high-quality retail and leisure centres in strong urban locations at the heart of their local communities. This sale, together with our recent sales in Hungary, leaves us with an increased weighting towards Poland and the Czech Republic, where we have significant critical mass, and are better placed to benefit from leveraging efficiencies and economies of scale."