by Property Forum | Investment

South African investor Tower has entered into an agreement to sell the Vukovarska retail property in Zagreb, Croatia at an 11% premium to its book value.


Tower’s Croatian subsidiary, Tower Europe Retail No. 2 d.o.o. has concluded an agreement to dispose of the Vukovarska retail property, situated in Zagreb, Croatia, to 3D Properties No.1 d.o.o. for an aggregate consideration of €12.4 million.

Vukovarska, with a GLA of 3,223 sqm, comprises a Konzum hypermarket and is let to Konzum Plus d.o.o. The disposal consideration is 11% higher than the most recent independent valuation of Vukovarska of €11.2 million reflecting the strength and desirability of Tower’s Croatian assets, even amidst the current market uncertainty.

The disposal is conditional upon certain conditions precedent being fulfilled, including the cooperation of the seller with 3D Properties’ bankers and the final transfer of the property.

Tower owns a portfolio of 43 properties in South Africa and Croatia valued at €272 million. The six properties in Croatia represent 32% of the fund’s total value.