Nepi Rockcastle has acquired the Silesia City Center mall in Katowice, in the Silesia province of southern Poland for €405 million, in one of the largest shopping centre transactions in Central and Eastern Europe in recent years. The vendors are Allianz (45%), Kamsa Luxco (45%) and Cura Beteiligungsgesellschaft (10%). Silesia City Center extends over 88,400 sqm of gross lettable area (GLA) and is a dominant shopping centre in Katowice, economically one of the strongest cities in Poland, with average spending per capita exceeding the national average by 35%.
The investment was primarily funded by Nepi Rockcastle’s successful €300 million equity raise, which was completed in October. The transaction also follows Nepi Rockcastle’s €373 million acquisition of the Magnolia Park shopping centre in Wroclaw in southwest Poland in September this year, the largest single asset retail real estate deal in Central and Eastern Europe since at least 2022.
Silesia City Center has a strong operational performance with a forecast net operating income of €30.3 million for 2024, which is anticipated to stabilize at €32 million after the integration of the property into Nepi Rockcastle’s shopping centre portfolio, the biggest in CEE, and following the implementation of asset management initiatives by the company.
Rüdiger Dany, Nepi Rockcastle CEO, said: “We are grateful for the confidence that Nepi Rockcastle’s investors have placed in our company during the recent equity raise as we continue to deliver on our strategy with the acquisition of Silesia City Center. This high-quality shopping centre has a commanding market position in Katowice, one of Poland’s largest and wealthiest cities, and we look forward to bringing our asset management expertise to bear in the execution of long-term value growth initiatives in this latest investment.”
Silesia City Center benefits from a dominant market position in the Katowice region and is well located in the city, with an immediate catchment area of over 280,000 people (within 15 minutes drive) and a regional catchment of almost 2.2 million people (within a 45-minute drive), offering access by both car and public transport.
The shopping centre has a 98.4% occupancy rate, and its anchor tenants include Cinema City, Half Price, H&M, Kaufland, Media Markt, Primark, Reserved, TK Maxx and Zara.
The Katowice conurbation is one of the most industrialized and urbanized European areas and the city has become a modern business services and research and development centre with technologically advanced companies, while heavy industry still plays a major role in the region’s economy.
