TREI Real Estate, the property estate arm of the German Tengelmann Group, successfully sold a portfolio of 40 Spar leased supermarkets in Hungary to Erste Asset Management.
With this transaction TREI Real Estate effectively consolidated its Hungarian real estate operation. Following the disposal of its portfolio in Austria, it was the second successful delivery of the group on their strategic goal of selling operating properties and focussing on new developments, mostly in Germany, Poland, the Czech Republic and the USA.
With the exception of two assets all the elements of the portfolio are leased to Spar Hungary on long term. The total size of the deal was in excess of 39,500 sqm, geographically spread around the entire country, including 13 locations in the capital, Budapest. In the past the properties were exclusively leased to the retail chain Plus, the retail brand solely owned by the Tengelmann Group until its sale in 2008 to Spar Hungary.
The closing on the deal took place on the last day of the month with Erste Asset Management who is managing funds close to HUF 1,500 billion, including HUF 450 billion of real estate.
”This is an important step in achieving our strategic goals. Besides consolidating in a smaller number of countries, focus has shifted more towards development of residential properties as well as retail parks. With the sale of our portfolios in Austria and Hungary as well as the sale of the entire logistics portfolio in the last 2.5 years, the company’s focus now once again is on growth” says Pepijn Morshuis, CEO of Trei Real Estate GmbH.
Colliers International supported TREI Real Estate on the transaction from its preparation until its successful closing.
The Hungarian office of CMS Cameron McKenna provided legal advice to TREI Real Estate on the transaction.
