Hystead Ltd., a U.K.-based joint venture between Hyprop Investments Ltd. and PDI Investment Holdings Ltd., paid a net sum of €154.4 million to purchase a 90% stake in two shopping centers in Zagreb, Croatia.
The deal involved €129.1 million worth of asset-based funding, of which Hyprop's share was roughly €77.5 million. The retail real estate investment trust's CEO, Pieter Prinsloo, noted that the two assets were bought for an aggregate property yield of about 7%.
City Center one Zagreb West has the potential to accommodate premium brands across 13,600 square meters of additional gross leaseable area. Meanwhile, City Center one Zagreb East has an additional capacity of 10,000 square meters of gross leaseable area to house an extended food court and other retail elements, Hyprop said in a release.
The deal is anticipated to close at March-end, subject to the Croatian competition authority's approval.
Following the transaction, Hystead will own six real estate assets across five countries in southeastern Europe, with a gross asset value upward of €740 million.