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December 12, 2016

The Arena Centar in Zagreb, Croatia, has sold for €235 million making it the largest single asset transaction in the region to date.

South African commercial property investor, New Europe Property Investors (NEPI), acquired the asset from a joint venture between Granit Polus of Hungary and U.S.-based Heitman, adding to their retail portfolio across Romania and Serbia.

The six-year-old Arena Centar is the largest in Zagreb at 60,000 sq m and boats tenants such as Interspar, P&C, H&M and Intidex.

“We are extremely proud to have advised Granit Polus and Heitman on such a ground-breaking transaction,” said Uros Grujic, Head of Capital Markets, South East Europe, JLL, who advised the sellers. “The level of interest in the asset was high and we received bids from a wide range of highly institutional investor groups.

“This proves that the SEE region is becoming a new investment destination thanks to good quality assets, combined with attractive yields across emerging economies like Slovenia, Croatia and Serbia. With debt terms becoming more attractive by the quarter, we expect to see new capital come into the region which will be targeting not only the retail segment but also other proven asset classes across South East Europe”.

This deal takes JLL’s total number of shopping centre transactions in the SEE region to over €650 million, having previously advised on the Delta City sales in Serbia and Montenegro, together with Mall of Montenegro in Podgorica and Skopje City Mall in Macedonia. It’s expected that, by year-end, almost €1 billion will have traded making this a record year for South Eastern Europe.

“With the sale of the six largest shopping centres between four countries in the past 18 months the region is proving to be an interesting destination,” said Andrew Peirson, Managing Director, South East Europe, JLL. “We expect demand from investors to continue and hope to see more supply come to the market in 2017 in order to meet increased investor interest”.

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Uros Grujic

Head of Capital Markets, South East Europe, JLL

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