CB Richard Ellis has advised GE Real Estate on the sale of a key shopping centre in Katowice, Upper Silesia, Poland for €95 million to Union Investment Real Estate AG. This is the most significant shopping centre transaction in Poland in 2008, and shows the sustained demand for retail investment opportunities in central Europe, Poland being attractive for its relative economic strength and rental growth prospects despite the global economy’s current difficulties.

Union Investments has acquired the 37,000 sq m “3 Stawy” shopping centre, its first Polish acquisition, as it looks to extend its retail portfolio in Central and Eastern Europe (CEE). The fully-let property is on a long term lease to REAL hypermarket, and also leased to leading retailers such as H&M, Empik and SMYK.

The centre is in a prime location on the A4 and E75, the main transport routes through the region, and includes 1,866 car parking spaces. It also benefits from its 375,000-resident catchment area, over six million visitors annually, and has experienced increasing revenues over the past few years.

Patrick O’Gorman of CB Richard Ellis’ CEE Capital Markets team, said: “This transaction is a good example of how the Polish retail investment market can still provide strong investment returns, given the unique strength of the Polish economy in the midst of a wider global economic crisis. Predicted GDP growth rates of 4-5% for 2008 enable an investor to capitalise on growing consumer incomes, which will translate into higher rents.”