NEPI Rockcastle announced the acquisition of 100% of Mammut 2 and 81% of Mammut 1, which jointly form the Mammut shopping centre in Budapest. The aggregate net purchase price for the acquisition was €254 million, according to the company's statement.
Mammut is one of the largest and most popular shopping and entertainment destinations in Budapest. It is prominently located at the busiest interchange hub in the Buda side of the city, and benefits from a strong annual footfall of 15.6 million people. The shopping centre offers 61,300 sqm of total gross lettable area in two buildings connected via a double-level pedestrian bridge.
With a GLA of 56,400 sqm (weighted for control), the project is 89% let, including key anchors such as Cinema Pink, Hervis, H&M, Interspar, Media Markt and Reserved, as well as a New Yorker which is opening in November 2018. The existing vacant space is primarily due to intense asset management initiatives, a redevelopment of existing units that is currently being undertaken, and the process of acquiring additional retail condominium units in Mammut 1, all of which are expected to significantly improve the net operating income of the project once completed.
The weighted average rental of the project is €22.1 per sqm per month, based on rent rolls as at the effective date of the acquisition. It has a current net operating income of €14.6 million per annum, excluding potential income from vacancies.
The acquisition of the project positions NEPI Rockcastle as the largest shopping centre owner in Budapest, following last year’s purchase of Arena Plaza located on the opposite side of the city centre. The company’s strengthened position in the city and its retail expertise allows for the development of an ambitious asset management plan for Mammut.
