South African firm buys assets in Southeastern Europe

Delta Real Estate has sold two retail properties in Serbia and Montenegro for a total of €202.7 million ($219.9 million) to a joint venture between Homestead Funds and Hyprop, a South Africa–based shopping center REIT. The Delta City shopping centers are located in Belgrade, Serbia, and Podgorica, Montenegro.

“Serbia has started to become attractive to international investors after years of being overlooked compared to its Southeastern Europe counterparts,” said Andrew Peirson, managing director for Southeastern Europe and Romania, in a statement.

This transaction represents the largest single-asset deal in Southeastern Europe for five years.

“We haven't witnessed a transaction of this scale in many years, and it is symbolic of the increasing international investor interest in Serbia and the surrounding SEE region,“ said Uros Grujic, head of capital markets, Southeastern Europe at JLL, in a statement. “The groups of buyers we saw considering the SE