Croatia's first investment fund dedicated to commercial real estate has made one of the country's larger property transactions, a further sign that domestic capital is moving into a prime segment previously dominated by foreign owners.
Having acquired a stake in the City Center One shopping centre in Split in mid-2025, InterCapital Real Estate Fund Alfa has added another Zagreb shopping centre to its portfolio, Avenue Mall. Under the sale and purchase agreement signed with the previous owners, the majority of which was held by GTC (Globe Trade Centre), the Fund is acquiring 100% ownership of Avenue Mall, together with the adjoining Avenue Center office tower. The transaction is worth approximately €100 million, with closing expected by 31 July, subject to customary conditions including acquisition debt financing by the buyer and full repayment of the outstanding loan by the seller.
"Our Fund marks a turning point on the Croatian investment scene, as it gives domestic institutional and private investors the opportunity to invest jointly in prime real estate, rather than leaving such investments to foreign investors. Investments of this kind keep capital within Croatia," says Arn Willems, President of the Management Board of InterCapital Real Estate. He adds that the acquisition is aligned with the Fund's strategy of investing in core and core-plus commercial real estate capable of generating long-term income.
"Avenue Mall is one of the most recognisable retail destinations in Croatia. Following completion, our priority will be to maintain the quality of operations while pursuing initiatives to enhance the customer experience and support tenants," adds Andrej Erjavec, Member of the Management Board.
Located at Zagreb's busiest intersection, Avenue Mall opened in 2007 and comprises approximately 28,000 sqm of retail space, around 7,000 sqm of office space, and more than 900 parking spaces, with a diverse tenant mix and stable occupancy. Over the past 12 months, the Fund has generated a return exceeding 9% per annum, driven by acquisitions of City Center One Split, the Bonavia hotel in Rijeka, and the Matrix D office building in Zagreb. Following this transaction, the Fund's assets under management are expected to exceed €200 million.
