Investors - OCTOBER 27, 2014

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Valad Europe enters into €500m JV

by Andrea Waitrovich

Valad Europe has entered into a €500 million ($634.2 million) joint venture agreement with a new investor to build a portfolio of Central European retail assets called the Valad Central Europe Retail Partnership.

VCERP will invest in value-added assets in Central Europe, predominantly focused on Poland and the Czech Republic. It has completed the partnership’s first investment by purchasing the Galeria Butovice shopping center in Prague from ING Real Estate Finance.

Seeded with €200 million ($253.67 million) of equity, VCERP will employ 60 percent to 70 percent leverage, with strong cash-on-cash yields. Debt financing will be sourced from a pool of lenders with whom Valad Europe already has strong existing relationships.

VCERP will invest in first- and second-generation shopping centers, retail parks and retail outlets in primary and secondary macro locations in Poland and the Czech Republic. It will seek to acquire good-quality, well-

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