South African-listed NEPI Rockcastle, which invests in commercial property in Central Europe, on Thursday said it has acquired a controlling stake in Budapestʼs Mammut shopping mall for EUR 254 million, Hungarian news agency MTI reported.
NEPI Rockcastle acquired 100% of Mammut 2 and 81% of Mammut 1, the two buildings connected by a pedestrian bridge that comprise the shopping mall.
The mall has 61,300 square meters of gross lettable area and is 89% let. Its tenants include anchors such as CINEMApink, Hervis, H&M, Interspar, Media Markt and Reserved.
"The existing vacant space is primarily due to intense asset management initiatives, a redevelopment of existing units that is currently being undertaken, and the process of acquiring additional retail condominium units in Mammut 1, all of which are expected to significantly improve the net operating income, once completed," NEPI Rockcastle noted.
The mallʼs net operating income now stands at EUR 14.6 mln per year, excluding potential income from vacancies. Annual footfall at Mammut is 15.6 mln people.
The move follows NEPI Rockcastleʼs acquisition a year ago of another shopping mall in Budapest, the Arena Plaza, for EUR 275 mln. The latest acquisition makes the company the largest shopping mall owner in the capital.