NEPI Rockcastle acquires Magnolia Park Shopping Centre for EUR 373 million in Poland

NEPI Rockcastle has completed the acquisition of the Magnolia Park shopping centre in Wroclaw, Poland, from Union Investment in an off-market deal valued at EUR 373 million. The transaction, one of the largest single-asset shopping centre deals in Central and Eastern Europe in recent years, marks a significant addition to NEPI Rockcastle’s portfolio.

The 100,000-square-meter retail complex, located in Poland’s third-largest city, was originally acquired by Union Investment in 2017 through its open-ended real estate fund UniImmo: Europa. The sale represents a major strategic move for NEPI Rockcastle, reinforcing its position as a leading retail real estate owner in the region.

“Magnolia Park is one of the top retail assets in Poland,” said Rüdiger Dany, CEO of NEPI Rockcastle. “The acquisition will significantly strengthen our portfolio and help consolidate our standing as a premier retail real estate player in Central and Eastern Europe. With a strong track record of adding value to our acquisitions, we believe this property has significant potential for growth in the coming years.”

Union Investment’s Roman Müller, Head of Investment Management Retail, added, “This off-market transaction highlights the strength of our network and demonstrates that even in challenging market conditions, the right product can meet the expectations of both buyers and sellers.”

Magnolia Park, one of Poland’s top 10 shopping malls, enjoys a prime location in Wroclaw, a key economic hub with excellent visibility and access via car and public transport. The mall is 99% leased, hosting 240 stores, including major tenants such as Carrefour, Primark, Castorama, Decathlon, Media Markt, Zara, H&M, and TK Maxx. The property boasts a BREEAM Excellent sustainability certification, highlighting its commitment to environmental responsibility.

Anca Nacu, Investment Director at NEPI Rockcastle, noted, “This transaction is in line with our strategy to concentrate our portfolio in investment-grade rated countries, focusing on core, dominant properties. Magnolia Park is a modern, sustainable asset positioned for future growth.”

Union Investment’s Henri Eisenkopf, Director Transactions Shopping Places, explained that the sale aligns with the company’s broader strategic plan to reduce exposure in Poland, despite Magnolia Park’s strong performance.

The acquisition was supported by a team of advisors, with Linklaters acting as legal advisor for NEPI Rockcastle, PwC providing tax and financial advice, and PM Services offering technical expertise. Union Investment was advised commercially by JLL, legally by CMS, and on tax matters by Thedy & Partners.