Atrium sells 12 assets for €175m in last seven months

By James Wallace - Wednesday, August 08, 2018 8:09

Atrium European Real Estate, the Central Europe retail and shopping centre owner and operator, has sold 12 assets for a total of €175m since December 2017, at 9% above book value.

In its half year results published this morning, Atrium confirmed the Atrium Militari, Romania for €95m and Atrium Saratov in Slovakia for €10.3m, as well as the agreement to sell the four residual assets in Hungary for €11.6m.

Group’s 34 asset portfolio remaining broadly flat at €2.5bn, while generated a 3.0% increase in like-for-like NRI with growth in all operating markets.

Further growth and improvements in quality from the company’s c.€300m redevelopment and extension pipeline (of which €115m had been spent cumulatively by the end of June 2018) which is due to create 60,000 sqm of GLA across three Warsaw centres, with 26,000 sqm planned to be completed in Q4 2018.

Atrium also increased and extended its revolving credit facility was signed in May, following which the revolving credit facility amounts to a total of €300m, an increase of €75m and an extension of three years to 2023.

Liad Barzilai, chief executive officer of Atrium, said: “Since the end of 2017 we have further progressed with our strategy of portfolio repositioning into dominant urban centres in prime locations and continued our programme of non-core asset sales, having now exited operational activities in both Hungary and Romania. As a result, over 80% of our portfolio by value is now located in the Czech Republic and Poland, with our portfolio also due to benefit from our redevelopment and extension programme which will create 60,000 sqm of GLA in total, including 26,000 sqm which will become income generating in 2018.

“Today we have once again reported robust like-for-like net rental income growth, lowered our administrative cost base and improved our EBITDA. I believe that this strong set of results shows that our portfolio repositioning strategy and cost efficiency programme are delivering shareholder value and that the Company is well placed for further growth.”

James Wallace is a freelance consultant and can be reached via Linkedin or email: jawallace32@gmail.com

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