Atrium European Real Estate Limited
EANS-News: Atrium European Real Estate Limited
ATRIUM FURTHER REBALANCES
PORTFOLIO THROUGH THE SALE OF A PORTFOLIO OF 72 SMALLER RETAIL ASSETS IN THE
CZECH REPUBLIC FOR EUR70 MILLION
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Company Information/Disposal
ATRIUM FURTHER REBALANCES PORTFOLIO THROUGH THE SALE OF A PORTFOLIO OF 72
SMALLER RETAIL ASSETS IN THE CZECH REPUBLIC FOR EUR70 MILLION
Ad hoc announcement - Jersey, 9 December 2014: Atrium European Real Estate
Limited ("Atrium" or the "Company") (VSE/Euronext: ATRS), a leading owner,
operator and developer of shopping centres and retail real estate in Central and
Eastern Europe, announces that it has agreed to sell a portfolio of 72 retail
assets (the "Portfolio") in the Czech Republic to a private client account
managed by Peakside Capital Advisors (the "Purchaser") for a consideration of
c.EUR70 million. The consideration comprises a cash payment of c. EUR61 million
with the balance satisfied through a secured vendor loan to the Purchaser. The
transaction is subject to certain conditions precedent and is expected to close
in Q1 2015.
The Portfolio consists of 72 retail assets spread throughout the Czech Republic
with a total lettable area of c.177,000 sqm and primarily comprises smaller
format retail properties with an average size of c.2,500 sqm.
The divestment of these assets forms part of the Company's on-going rebalancing
of its portfolio towards larger scale, well established shopping centres in
Atrium's core markets which dominate their catchment areas and follows Atrium's
recent acquisitions of two prime shopping centres - AFI Palác in Pardubice, the
Czech Republic and Focus Mall in Bydgoszcz, Poland - comprising c.62,000 sqm of
retail space for around EUR205 million. Following the sale and two recent
acquisitions, the Company's Czech portfolio will comprise 22 properties,
accounting for 15.9% of Atrium's total portfolio by value, compared to 93
properties or 16.4% of the portfolio as at 30 September 2014.
As a result of the transaction, EUR11 million of currency translations
historically accrued in equity due to fluctuations in the Czech Koruna, will be
recorded in the retained earnings through the Company's income statement in the
next financial results following completion, but with no impact on equity. The
purchase price reflects a discount of around 4% to the 30 September 2014 book
valuation.
Commenting on the divestment, Josip Kardun, Atrium Group CEO, said:"This
disposal marks another significant step forward in our ambition for Atrium to
become the dominant shopping centre owner, operator and developer in our core
markets within the CEE. Combined with our recently announced acquisition of the
AFI Palác shopping centre in Pardubice, it means that we have significantly
reweighted our income stream in the Czech Republic away from a significant
number of smaller assets and, taking into account the recent acquisition of the
Focus Mall in Bydgoszcz, Poland, provides our overall portfolio with a far
greater focus on larger scale shopping centres and higher quality cash flow."
For further information:
FTI Consulting Inc.:
+44 (0)20 3727 1000
Richard Sunderland
Claire Turvey
Nick Taylor
atrium@fticonsulting.com
About Atrium European Real Estate
Atrium is a leading real estate company focused on shopping centre investment,
management and development in Central and Eastern Europe. As at 30September
2014the Group owned 151 shopping centres and retail properties, with a market
value of EUR2.5billion, diversified across seven countries with a total gross
lettable area of 1.3 million sqm. In 2013, Atrium produced a gross rental income
of EUR203.5 million.
The Company is based in Jersey and dual listed on the Vienna and Euronext
Amsterdam Stock Exchanges under the ticker ATRS.
This press release appears as a matter of record only and does not constitute an
offer to sell or a solicitation of an offer to purchase any security.
Atrium is established as a closed-end investment company incorporated and
domiciled in Jersey and regulated by the Jersey Financial Services Authority as
a certified Jersey listed fund, and is listed on both the Vienna Stock Exchange
and the NYSE Euronext Amsterdam Stock Exchange. Appropriate professional advice
should be sought in the case of any uncertainty as to the scope of the
regulatory requirements that apply by reason of the above regulation and
listings. All investments are subject to risk. Past performance is no guarantee
of future returns. The value of investments may fluctuate. Results achieved in
the past are no guarantee of future results.
Further inquiry note:
For further information:
FTI Consulting Inc.:
+44 (0)20 3727 1000
Richard Sunderland
Nick Taylor
Richard.sunderland@fticonsulting.com
end of announcement euro adhoc
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company: Atrium European Real Estate Limited
Seaton Place 11-15
UK-JE4 0QH St Helier Jersey / Channel Islands
phone: +44 (0)20 7831 3113
mail: richard.sunderland@fticonsulting.com
WWW: http://www.aere.com
sector: Real Estate
ISIN: JE00B3DCF752
indexes: Standard Market Continuous
stockmarkets: official market: Wien
language: English