Equest takes Heitman shopping in Bulgaria
Article Date: Nov 26 2008A London-based real estate investor that targets properties in South Eastern Europe has sold a shopping centre in Bulgaria for an eight-figure sum.
Equest Balkan Properties, which focuses on commercial, retail and industrial properties, has disposed of City Center Sofia to US investor Heitman.
Heitman closed the deal after agreeing a €101.5 million (£85.5 million) price tag, which it financed through its European Property Partners III fund. It paid €42 million in cash for the site and assumed the property’s existing mortgage.
The deal represented a premium of €7.5 million over Equest’s March 2006 acquisition price of €94 million. It will use the proceeds to repay debt as well as to complete one of its construction projects.
The retail mall covers almost 23,000 square metres and is situated in Bulgaria’s capital, Sofia. It was valued in June by commercial real estate adviser CB Richard Ellis in preparation for a potential sale.
Michael Uhler, an investment adviser to the vendor, said the company sold the property to Heitman due to its reputation as an investor that could complete the deal in the current climate.
“Equest is well positioned operationally and financially for 2009 and can complete its existing construction projects,” he added. “Additional asset sales are planned but only if our pricing expectations can be achieved.”
