Hungary TriGranit sets up JV for Arena Centar in Croatia, sells 50% to Heitman

Hungary’s TriGranit Development Corporation has entered a joint venture with Heitman European Property Partners IV (HEPP IV) to own Arena Centar Shopping Centre in Zagreb, Croatia.


Both TriGranit and HEPP IV, a unit of Heitman LLC, will hold a 50% stake in this newly developed, landmark (180,000 square meters GBA) shopping centre.

The transaction includes two land plots for a future potential extension of the retail centre and the development of a mixed-use project including office, residential units and a congress centre.

The Arena Centar JV deal directly follows on the heels of HEPP IV’s recently announced joint venture of the Galeria Malta Shopping Centre in Poznan, Poland. At the end of 2010, the Chicago-based private equity firm acquired a 75% stake in the Galeria Malta shopping centre and formed a JV with Spanish developer Neinver for the management of the 54,000-sqm retail scheme in Poland's second-largest city. Financial details were not disclosed.

"With EUR 505 million in equity commitments, HEPP IV is the fourth and latest in a series of European value-added property investment funds managed by Heitman, which has been active in the region since 1995", said Gordon Black, Managing Director of Heitman’s European private real estate equity group.

"This is the largest property investment transaction in Croatia to date. The financial resources are secured by the very same six banks (Intesa Sanpaolo, Erste Group AG, Hypo Investment Bank AG, Cassa di Risparmio della Repubblica di San Marino SpA., MKB Bank Zrt. and CIB Bank Zrt.) participated in the club deal transaction providing financing for the Arena Centar project development," said Zsolt Szabó, CIO of TriGranit Development Corporation.

Arena Centar’s tenants composed of retail, entertainment and hypermarkets currently include southeast Europe’s first IMAX theatre as well as leading retailers Zara, Gap, Apple Stores, Esprit, and Swarovski. The facility’s 60,000 square meters dedicated to 220 individual retail units are already 95% leased.