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Liad Barzilai, Chief Executive Officer of Atrium European Real Estate Limited, Credit: Atrium

Atrium: benefiting from prime portfolio in capital cities

Atrium European Real Estate Limited announced its results for the six months ended June 30, 2019.

Liad Barzilai, Chief Executive Officer of the Group, commented: “The first half of 2019 has been yet another successful period where we have undertaken effective capital recycling and are seeing the true benefits of the refurbishments, particularly in our Warsaw assets. Our management focus remains on the continued implementation of our strategy and the delivery of positive operational results.”

Highlights from Atrium’s Polish portfolio

  • 1.5% improvement in the Group’s EPRA like-for-like net rental income (“NRI”) excluding Russia, or 0.5% growth across the whole portfolio
  • The market value of Atrium’s 20 income producing properties in Poland is €1.7bn, now representing 64% of its total €2.7bn income producing portfolio of 32 assets in CEE
  • €1bn of the Group’s portfolio is located in Warsaw, representing 36% of total market value and delivering 23% of the Group’s €92.4m Net Rental Income in the period
  • 15.7% increase in GRI from the Polish portfolio to €57.4m (H1 2018: €49.6m) and 16.1% increase in NRI to €55.1m (H1 2018: €47.5m)
  • EPRA Occupancy across the Polish portfolio remained strong at 95.7%

Progress continues in executing the Group’s strategy to focus the portfolio on prime shopping centers in capital cities

  • In July 2019 Atrium completed the sale of two Polish shopping centers, Atrium Koszalin, in Koszalin and Atrium Felicity, in Lublin, with a total lettable area of approximately 111,100 sqm, for €298m or around 3% above book value
  • Acquisition of Atrium’s fifth Warsaw asset, King Cross shopping center, for €43m in June 2019. A well-connected and established center with a diverse tenant mix and future redevelopment opportunities
  • Monetised 13% of the Group’s land bank in January 2019 with the completion of a €28m land disposal in Gdansk, Poland at around book value

Recommended cash acquisition by Gazit-Globe Ltd.

  • The Independent Committee of the Board of Directors of the Company and the Board of directors of Nb (2019) B.V. (“Bidco”), which is an indirect wholly-owned subsidiary of Gazit, on July 23, 2019 announced that they have reached an agreement on the terms and conditions of a recommended cash acquisition (the “Acquisition”) of the entire issued and to be issued ordinary share capital of the Company that is not already owned directly or indirectly by Gazit or its affiliates (including, in particular, Gazit Gaia Limited or Gazit Midas Limited). It is intended that the Acquisition will be implemented by means of a court-sanctioned scheme of arrangement under Article 125 of the Jersey Companies Law. At the date of the Announcement, Gazit and its affiliates Gaia and Midas together owned approximately 60.1% of the Company’s issued share capital.
  • In connection with the Acquisition, the Independent Committee of the Board of Directors has agreed to stop dividend payments by the Company as Gazit’s offer assumes that no further regular dividends will be paid until the completion of the transaction which is scheduled for January 02, 2020.


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