In recent days, Newgate Investment (NGI) has finalized the acquisition of a ready-made retail park in Zgorzelec with a gross leasable area of 5,488 sq m (GLA). The seller was Smart Park Poland - an investor and developer of retail parks. The price has not been disclosed. Financing for the transaction was provided by mLeasing.
The facility in Zgorzelec, which was opened in April this year, is fully commercialized. Newgate Investment is at an advanced stage of negotiations to purchase further properties. This is a continuation of the investment strategy announced in 2023, which provides for doubling the value of its portfolio over the next 2-3 years. After purchasing the project in Zgorzelec, NGI's real estate portfolio consists of 32 properties with a total gross leasable area of nearly 150,000 sq m. The level of occupancy of the owned properties is almost 100%.
"In recent days, we have finalized the purchase of a retail park located in the border town of Zgorzelec, where Rossmann, Sinsay, Dealz, Pepco, TEDi, and Woolworth have their stores. The new park is located in a traditionally commercial location, which has been in the minds of consumers as a commercial destination for years. Right next to our retail park, there are Aldi and Lidl stores, as well as a BP petrol station", enumerates Krystian Modrzejewski, Investment Director at Newgate Investment. "Concentration of retail functions in one place is a guarantee of the success of the facility also due to the unique location of the city. Zgorzelec is located right next to the German town of Gorlitz. This means that our retail park covers not only 30,000 residents of Zgorzelec but also 56,000 residents of the neighbouring German town", emphasizes Krystian Modrzejewski.
RG-Leasing supported Smart Park Poland not only in the commercialization of the facility but also carried out the sale transaction of the retail park in Zgorzelec. The construction was carried out by Zakład Budowlano Remontowy BUDREM sp. z o.o. sp. k. and the investment financing was provided by Bank Polskiej Spółdzielczości. "Thanks to our experience and cooperation with trusted partners, this project was carried out with the utmost care, which enabled its efficient sale to Newgate Investment, as a fully commercialized property with great investment potential," says Paweł Żerański, CEO of Smart Park Poland.
The acquisition was financed by mLeasing Sp. z o.o., which provided NGI with financing in the form of a long-term real estate lease.
"We were pleased to finance a new, appropriately commercialized facility that is adapted to the local market. We are pleased that the proposed conditions and our experience allowed us to convince NGI to choose an alternative product to credit, which is real estate leasing. We are convinced that this is the beginning of many years of successful cooperation", emphasizes Anna Woźniak, Head of the Real Estate and Structured Investments Department at mLeasing.
Newgate Investment plans further purchases of both finished and developing properties. “Our interests also include older retail parks that allow for the generation of added value, whether through expansion, reconstruction or recommercialization. Examples of such investments include Wysockiego Park Handlowy in Białystok with a GLA of over 16,000 sqm, or a convenience centre with a GLA of over 8,000 sqm located in Sieradz, which we rebuilt, commercialized and significantly increased the income generated by the properties while significantly increasing the added value for local communities, for example by expanding the offer”, says Krystian Modrzejewski.
“Retail parks are assets that offer a satisfactory rate of return while limiting risks compared to large-scale shopping malls or cost-intensive office buildings, hence financial institutions are looking at them more and more favourably. A well-thought-out retail park project located in a typical commercial destination and managed by a team of experienced people will certainly achieve the assumed business goals, a very good example of which are the properties that make up our portfolio", summarizes the Investment Director at Newgate Investment.
