Tower Property Fund’s Croatian subsidiary TPF International has acquired a prime industrial property in Zagreb, Croatia, for nearly €8.6-million.
TPF will fund the purchase price, which is payable in cash on the transfer date, using 60% cash and 40% shares.
The cash portion will be funded from the recent R100-million subscription for shares in TPF by Oryx Property Fund.
Acquired from VMD, Tower’s partner in its Croatian office property, the property is let to a manufacturer of wiring harnesses in the automotive industry, with part of its engineering division based in Zagreb.
The lessee occupies a gross lettable area of 5 755 m2, with an additional 1 020 m2 of vacant gross lettable area set aside for the lessee’s expansion.
Should the lessee expand into the vacant area, this will result in an upside for TPF.
TPF intends to grow its exposure in the region through strong local relationships, including those opportunities provided by VMD.
TPF will target industrial and convenience retail properties.