CA Immo successfully sells two land lease retail plots in Graz, Austria

  • CA Immo exits last secondary city in Austria with the sale of two land lease plots in Graz
  • Sales price of around € 55 m reflects a premium to book value of around 50%


Vienna, 17 December 2020. CA Immo has successfully closed the sale of two land lease retail plots in Graz at a premium of around 50% to H1 2020 book value to Ikea Austria GmbH and J.M.Offner Immobilien GmbH. The two plots totaling around 107,000 sqm of site area are fully leased on a lease-hold basis to the big box retail occupiers OBI and IKEA respectively. On one of the plots there is a built to suit big box retail unit (OBI DIY store) built by J.M.Offner, which is leased to OBI. The other plot is built up with an IKEA furniture store also in the form of a building on non-owned land. The properties generate an annualized gross rental income (GRI) of € 2.4 m per annum.

 

Keegan Viscius, Chief Investment Officer of CA Immo: "Following the sale of Zagrebtower office building in October, this highly successful sale in Graz is another good example for our strategic capital rotation program where we seek to profitably divest assets where the incremental rate of return is below an acceptable level, or there is no strategic fit in our long term portfolio. The proceeds of sale are then reinvested into value accretive investments, including continued build out of our prime development pipeline as well as external acquisitions – illustrated by the recent acquisitions of the nearly fully let office buildings Karlsbad 11 in Berlin and Postepu 14 in Warsaw, both signed and closed in 2020.”

 

Hedwig Höfler, Head of Investment Management AT & CEE: “With this disposal we have successfully sold our last two pure play retail assets and last assets in Austria outside our core city of Vienna. This disposal at a material premium to book value strongly supports our valuations during an uncertain market environment.”