SPP unveils €132m retail park acquisition pipeline

Hungary’s Shopper Park Plus (SPP) is pursuing an acquisition strategy that includes four projects valued at €132 mln, targeting an average asset yield of approximately 8.45%.

Shopper Park Plus property in Hungary

Central to this strategy are three retail property deals: two in Poland and one in Czechia, encompassing roughly 42,000 m2 of leasable space. These properties are, or will be, anchored by major food retailers with long-term leases, ensuring steady customer traffic and reliable revenue. Two of these are existing, high-performing properties (98-100% occupancy) in established retail locations, supported by strong anchor tenants, including a DIY store in one case. These align with SPP's investment criteria, promising Internal Rates of Return (IRRs) exceeding 12% and cash-on-cash returns of at least 8%, assuming 55% Loan-to-Value (LTV) with interest-only financing.

The third significant transaction involves forward-funding a new 6,340 m2 strip mall in Poland. SPP has structured this to mitigate development risks by committing only after key conditions are met: securing the building permit, pre-leasing over half the space (including the grocery anchor), finalising a binding financing term sheet, and signing the general contractor agreement. This approach enables SPP to acquire a new retail park at a 70-100 basis point yield premium compared to mature properties, while retaining influence over project details. Construction is expected to take about 12 months.

The combined cost for the two existing property acquisitions and the construction of the forward-funded project is estimated at €49 mln. Upon completion, these three assets are projected to generate around €4.1 mln in annual Net Operating Income (NOI). The forward-funded project is expected to yield even higher cash-on-cash returns due to more favourable financing terms for new constructions.

All targeted assets are aimed at achieving at least a BREEAM "Very Good" ESG certification, aligning with SPP's commitment to sustainable, essential retail. These transactions are expected to close in the second half of 2026.

SPP has exclusive rights to these three projects, and a fourth project is in early stages but is also expected to meet SPP's investment standards.

The forward-funded project and one of the two existing property acquisitions can be financed using SPP's internal cash flow and the remaining funds from its November 2025 secondary public offering, as SPP held a cash balance of €31 million at the end of 2025.

To partially finance these initiatives, SPP plans to issue €-denominated bonds within the next two years, with an estimated €40-50 mln issuance in 2026. This strategy is projected to keep SPP's LTV ratio healthy and within its target range of 50-60%.