South African fund Hystead has acquired of The Mall, one of the largest shopping centres in Bulgaria, located in the capital city Sofia. The acquisition, upwards of €156 million, represents the fourth investment in the region by Hystead Limited, a joint venture between Hyprop Investments and Homestead Limited, who previously acquired the Delta City shopping centres in Podgorica and Belgrade alongside Skopje City Mall in Macedonia at the end of 2016.
Situated on Tsarigradsko Shosse, the main boulevard linking the centre of the city with a number of large residential neighbourhoods, the airport and the regional highway network, The Mall was developed in 2010 and extends to over 52,000 sqm. It is anchored by Inditex Group, P&C, H&M and Arena cinema and benefits from over 130,000 sqm of offices in its immediate proximity. It is currently 99% occupied.
Andrew Peirson, Managing Director, South East Europe, JLL added: “With the fourth shopping centre being transacted in Bulgaria in 2017, the country is certainly back on the investor map following a period of recovery over the past five years. With rents and consumer spending increasing, along with a general improvement in Bulgaria’s economic situation, the country is again considered by investors as one of the prime investment destination in South Eastern Europe. With this recent increase in retail investment activity, we expect that 2018 will also witness an increase in office activity, with Sofia offering a wide range of high quality office schemes that again are witnessing rental uplifts and year-on-year increase in office take-up.”
JLL’s Capital Markets team in Belgrade advised the buyer on the acquisition of The Mall.
