S IMMO AG: Successful sale of Serdika Center & Offices
S IMMO AG today has entered into contracts regarding the sale of its participation (65%) in the shopping center Serdika Center and the sale of its office building Serdika Offices to New Europe Property Investments plc (NEPI). The Serdika Center combines more than 200 shops in a total usable area of roughly 47,000 m², the Serdika Offices have got a usable area of about 28,500 m². In terms of space, the sold properties make up about 8% of S IMMO’s real estate portfolio. The transaction is subject to the approval of the Bulgarian competition authority and is expected to close within the next months.
With this sale, S IMMO is withdrawing from Bulgaria. The transaction will result in a net inflow (after deduction of credit financing) of approximately EUR 80m and furthermore has a positive effect on the consolidated net income for the period.
Ernst Vejdovszky, CEO of S IMMO AG, commented: “We completed this property in 2010 under circumstances that have been far away from easy. Nevertheless, we succeeded in fully letting the center and office spaces and in establishing both on the market. The sale is the completion of this successful project development. Currently, S IMMO has potential development projects with a total investment volume of more than EUR 600m – so there is enough to do.”