Pareto takes 25% stake in Atterbury Europe

Pareto Group buys 25% stake in Atterbury Europe, whose portfolio includes investments like Iulius Mall Iasi in Romania.

The Pareto Group, a sister company to Pareto Limited which owns Durban's Pavilion Shopping Centre, said on Monday it had concluded a deal to acquire a 25% stake in Atterbury Europe Holding B.V.

Offshore property was one of the best money-spinning sectors in the world last year. SA property investors will have to brace themselves as SA-focused real estate investment trusts cut payout ratios.

Pareto said it had been fortunate in Europe, having timed its entry well and managing to partner with Atterbury Europe.

Atterbury Europe's portfolio includes assets in Romania, Cyprus and Serbia, with a combined gross lettable area of 524,052m2, split between retail and offices. 

“This acquisition provides the Group with the opportunity to diversify its portfolio outside South Africa, reducing its concentration risk whilst venturing into jurisdictions with robust economies and significant fiscal strength,” said Malose Kekana, the Group CEO of Pareto.

The Romanian portfolio includes 4 retail shopping centres in Timisoara, Cluj, Suceava and Iasi, as well as 4 office towers that anchor the retail centres, which are owned 50% by Atterbury Europe.

In Cyprus, the 98% portfolio owned by Atterbury, comprises of two retail shopping centres which are located in Nicosia, being the Mall of Cyprus and the Mall of Engomi. 

These shopping centres houses international brands such as ZARA and six other Inditex brands, Marks & Spencer, Mango, Armani Exchange, Lacoste, Tommy Hilfiger, OVS and Intersport.

Usce Shopping Centre, Immocentre 1 as well as Mercator, all located in Belgrade, form part of the Serbia portfolio and is owned 25% by Atterbury Europe. Atterbury Europe also owns a 50% stake in the BEO Beograd shopping centre located in old Belgrade with a GLA of 43,630 m2 currently under construction and opening in the European Spring this year.

“An investment into Europe will assist in building Pareto’s growth story as well as ensuring that the Group remains on par with its peers. This investment also improves access to international brands to anchor the Group’s leasing pipeline.” concluded Kekana.