Romania M Core acquires 25 retail parks

The sale more than doubles the original investment over an average holding period of 5 years for investors in the FRI and FRI 2 funds which owned the assets. Kepler Corporate Finance, Belfius and CBRE acted as financial advisors and PeliPartners was the sole legal advisor to Mitiska REIM on the transaction, and iO Partners acted as an advisor for the buyer, M Core.

We are delighted to conclude this transaction with LCP Group, part of M Core, and deliver such strong returns to investors in the funds. During the sale process, we saw significant interest from a number of potential buyers, which is testament to the depth of liquidity for high-quality retail park assets in Europe.
Axel Despriet, Managing Partner of Mitiska REIM

This acquisition is the largest single-country transaction in 2023 in CEE.
Andrei Văcaru, CEE head of Capital Markets iO Partners

Representing a total GLA of 132,000 sqm, the portfolio of 25 retail parks was developed, built and managed by Mitiska REIM in partnership with its Romanian country partner Square 7 Properties over the past 10 years. All retail parks in the portfolio are food-anchored by either a Kaufland or Lidl supermarket, or a combination of both, with other tenants including brands such as Deichmann, DM, Pepco, Jysk, KFC, Kik and Takko. In terms of sustainability, the entire portfolio has been awarded “Very Good” BREEAM certifications for Asset Performance.

Working together with Mitiska REIM, we were able to create one of the largest retail real estate portfolios in Romania and become the market leader in the retail park sector. This sale is the successful culmination of this work and part of our ongoing partnership which combines our local expertise and on-the-ground management with Mitiska REIM’s international retailer relationships, access to funding and divestment expertise.
Clemens Petschnikar, CEO of Square 7 Properties

The retail parks are located in the Romanian cities of Bucharest (2), Bistrița, Baia Mare, Pașcani, Slobozia, Ploiesti, Mediaș, Reșița, Buzău, Arad, Odorhei, Sighet, Câmpina, Caransebeș, Medgidia, Iași, Târgu Mureș, Tulcea, Slatina, Mioveni, Bacău, Drobeta-Turnu Severin, Brăila and Giurgiu.

Following the transaction, M Core Group, which includes LCP Properties, is the largest property owner in the retail park market in Romania. It also marks M Core's debut in the country. The group plans to strengthen its Romanian portfolio through further investments. M Core is currently actively seeking investment opportunities to build a portfolio of assets in Europe worth EUR 1 bln.

The FRI Fund was launched in 2012 with an initial term of 8 years which was extended to 2026. The FRI 2 fund was launched in 2016 with an initial term of 10 years with options to extend.

Mitiska REIM, headquartered in Belgium, is a specialist investor in convenience real estate, comprising retail parks, multi-let light industrial, self storage and urban logistics projects. The company’s investment focus capitalizes on the converging trends across these sectors and the increasing demand for urban infill sites from a growing range of end-users that offer accessible locations, affordable buildings, flexible design and sustainable solutions.