News Article Colliers investment retail retail park Slovakia Tatra Asset Management
by Property Forum | Investment

Tatra Asset Management has acquired the Hexagon retail park in Žarnovice, Central Slovakia from Hexagon Retail s.r.o. The new owner of the Hexagon retail park with an area of 3,600 sqm is a real estate fund managed by Tatra Asset Management, which with this acquisition has expanded its portfolio to 11 retail parks operated under the Lipa Park brand.

A smooth dealmaking process

Colliers provided comprehensive advisory services to the seller in the transaction and explained the process in detail to Property Forum.

“We were approached by F.L.R. Invest to help them implement the plan for the construction of a retail park in Žarnovica. As the investor had no previous experience with similar projects, our task from the beginning was to set up the project to meet the client's idea of design and purpose and at the same time ensure the highest possible economic profit. After mutual agreement on the project’s final design, intensive work began on the tenant selection, taking into account the location and local purchasing power. The first and most crucial step was to acquire a food operator, which is always the cornerstone of any retail park. This was achieved in the third quarter of 2020 by signing a future contract with Billa.

We then began actively approaching suitable potential tenants who would bring new brands to the city and complement each other well. In the end, we managed to achieve full occupancy. As the client was not interested in operating the retail park after its completion, once occupancy was achieved, we began to search for potential investors.

After several negotiations, the client decided to accept the offer of Tatra Asset Management (TAM). The company owns several retail parks in Slovakia and this project was a suitable addition to their portfolio. From the offer through due diligence to the closing of the transaction, the whole process was very constructive and relatively fast,” Peter Sobihard MRICS, Capital Markets Senior Associate at Colliers explains.

Retail parks continue to attract investors

“Similarly to all other Central and Eastern European countries, interest in retail park schemes is prevalent in our territory as well. There are several reasons. The first is the seamless availability of rental units without the need to enter common areas that are susceptible to pandemic restrictions. The second and most important reason is the discount tenant composition in retail parks, which appears to be highly resilient even in extremely saturated retail markets,” adds Peter Sobihard, MRICS.