Antimonopoly Committee of Ukraine allowed Dragon Capital to buy SEC Aladdin

The transaction amount between the largest investment company in Ukraine and the current SEC Owners – the investment fund Meyer Bergman – can be $23 million, according to mass media.

Dragon Capital Investments LTD (Nicosia, Cyprus) and Golden Sachs Group Inc. (New York, USA) obtained the Antimonopoly Committee of Ukraine permission for indirectly obtaining control over Royalty Rent LTD, as the Antimonopoly Committee of Ukraine website reported. It is registered at Ukraine, 3 A M.Grishko str., Kiev. Shopping and entertainment center Aladdin is located at this address. We can expect to close the transaction in the near future after obtaining permission from the Antimonopoly Committee of Ukraine.

Aladdin is a regional shopping center, which is located near the metro station Poznyaki, with an attractive yield and high potential. The SEC trade square is 10,600 sq. m, where there are 120 different stores, most of which are international brands. Vacancy in the center is less than 1%. About 325,000 people visit it per month. Information that the center was put up for sale appeared in this year May.

Dragon Capital already owns the SC Pyramyda, which is located near SC Aladdin. “The SC Aladdin buying is a reasonable step by Dragon Capital. Management by two objects in one location will allow coordinating actions and not worsening the work of any of the two shopping centers. Two assets value will increase thanks to coordinated actions” – the UTG consulting company President Vadim Neposedov noted to LIGA.net comments.

Recall, this is not the Dragon Capital first investment in retail properties. The company indicated its interest in the development direction in 2010, acquiring 35% Arricano Real Estate shares. Arricano owns SEC Prospekt in Kiev (rental square and RayON), Zaporozhye City Mall, Krivoy Rog Sunny Gallery. It is suing for the ownership’ right to the SEC SkyMall. The investment company intensified in 2016, when it bought the Kiev SEC Pyramyda with a rental square ​​more than 12,600 sq. m. After a year and a half, in March 2018, the purchase transaction of the largest SEC in Western Ukraine – Lviv’s Victoria Gardens (GLA – 48,500 sq. m) – was closed. In July, the company acquired most successful Vinnitsa shopping and entertainment center SkyPark (GLA – 20 000 sq. m). The investment company will complete the transaction registration with the SEC Aladdin (10 600 sq. m) most likely before the year end.

Thus, Dragon Capital will concentrate four SEC with a total rental square ​​91,700 sq. m under its direct management. In addition, the investment company owns a stock share in Arricano, whose portfolio also includes four objects with a total rental square ​​more than 115,000 sq. m. It is worth mentioning the SEC SkyMall (GLA 63,000 sq. m), on which Arricano has been seeking to restore the right of ownership already for several years.

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