Allianz to Buy Polish Mall From Immofinanz for $532 Million
Allianz, based in Munich, is expected to complete the purchase of the Silesia City Center in September, Vienna-based Immofinanz said in a statement today. The mall has about 340 stores with combined space of 89,000 square meters (958,000 square feet), all of which is occupied, Immofinanz said.
The Austrian company plans to increase development and sell properties more quickly in a strategy to increase profit. Immofinanz expects to hold assets from three to 10 years before selling them, Chief Executive Officer Eduard Zehetner said in March last year.
“The Silesia sale underscores the start of recovery on the investment market in eastern Europe,” Zehetner said in the statement. “We are optimistic that we will be able to conclude further sales in this region during the current financial year.”
Immofinanz bought the mall in 2006 and sold it for more than the property’s book value, the company said, without elaborating. The deal is subject to approval by the Polish competition authorities.