M Core enters Romanian market with EUR 219 mln acquisition of Mitiska REIM’s retail portfolio

Pan-European commercial property collective M Core acquired the 25 retail parks owned by Mitiska REIM in Romania in a deal nearing EUR 219 million. The transaction, completed on December 6, marks the British group's "largest deal to date" and its entrance into the local market.

The deal sees M Core purchase a 132,000 sqm retail portfolio from Mitiska REIM, positioning the collective as the largest retail park property owner in the Romanian retail market.

The portfolio acquisition is located in 24 cities, spanning across the country from Arad in the west of Romania to Iași in the east, as well as the capital Bucharest. The 25 retail centres offer a varied tenant mix, including global brands such as Deichmann, Pepco, KFC, Lidl, and H&M.

Notable retail parks in the Romanian portfolio include Shopping Park Pipera Plaza, which houses a gross leasable area of 11,000 sqm, and Shopping Park Medias, with a gross leasable area of 9,089 sqm.

The venture is led by M Core co-CEOs of Romania, Sebastian MacDonald-Hall and James Fife.

Sebastian MacDonald-Hall, M Core Chief Investment Officer (Europe) and co-CEO of Romania, commented: "I am delighted to announce M Core's inaugural portfolio acquisition in Romania. Recognising the strategic significance of Romania as a territory boasting promising macro tail winds and robust investment opportunities, this move marks a pivotal moment for our collective."

James Fife, Chief Executive Officer of LCP in Poland, part of M Core and co-CEO of Romania, added: "After an extensive period of exploring opportunities in emerging markets, I am delighted to join Sebastian MacDonald-Hall in launching our Romanian portfolio. By entering the Romanian market, we are able to diversify our portfolio and create further opportunities to establish strong national business relationships. As we look to expand our portfolio in 2024, asset sustainability and community integration will remain key focuses underpinning our growth."

M Core representatives said the company intends to bolster the Romanian portfolio through continued investment, mirroring the approach taken in the UK, France, Poland, and Germany.

Andrei Văcaru, CEE Head of Capital Markets iO Partners, stated: "This acquisition is the largest single-country transaction in 2023 in CEE. It therefore represents a strong vote of confidence in the Romanian market as well as confirms M Core's increasing dominance in the region."

M Core said this territory expansion is another milestone in its growth strategy as it actively seeks key investment opportunities to contribute towards its collective EUR 1 billion European investment target.

M Core was advised on this transaction by real estate consultancy company iO Partners.