InterCapital Real Estate Fund buys Zagreb's Avenue Mall for 100 million euros

InterCapital Real Estate Fund Alfa has acquired the popular Avenue Mall in Zagreb for approximately 100 million euros, marking a significant transaction in Croatia's commercial real estate market. This acquisition, following the fund's earlier purchase of a stake in City Center One in Split, underscores the increasing involvement of domestic capital in prime commercial properties, which have historically been dominated by foreign ownership.

The deal, which includes the adjacent Avenue Center complex, was finalized with the previous owners, primarily GTC (Globe Trade Centre), a major pan-European investor. The transaction is expected to be completed by July 31. This acquisition represents the fund's largest to date and is anticipated to be among the most substantial retail property deals in Croatia in recent years.

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Our Fund represents a turning point on the Croatian investment scene because with it, an opportunity is finally opening up for domestic institutional investors as well as individual investors to get involved and jointly invest in prime real estate, instead of leaving investments to foreigners. With such investments, capital is retained in Croatia and the country's overall financial independence is strengthened, and higher quality diversification of investment options is enabled.

Arn Willems, CEO of InterCapital Real Estate, highlighted the fund's role in opening opportunities for Croatian institutional and individual investors to participate in prime real estate investments. "With our Fund, an opportunity is finally opening up on the Croatian investment scene for domestic institutional and individual investors to get involved and invest jointly in prime real estate, instead of leaving investments to foreigners," Willems stated. He emphasized that such investments help retain capital within Croatia, strengthening the country's financial independence and diversifying investment options.

Andrej Erjavec, a board member at InterCapital Real Estate, added that the acquisition aligns with the fund's strategy of investing in core and core-plus commercial properties that generate stable, long-term income. "Avenue Mall is one of Croatia's most recognizable retail destinations and a truly unique asset in the Zagreb market. Its strategic location, stable operations, and potential for further value creation make it an excellent choice within our long-term investment strategy," Erjavec said. Following the transaction's closure, the fund's priority will be to maintain high operational standards and implement initiatives to enhance the customer experience and strengthen Avenue Mall's market position.

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Avenue Mall is one of the most recognizable retail destinations in Croatia and a truly unique asset in the Zagreb market. Its strategic location, stable business operations, and potential for further value creation make it an excellent choice within our long-term investment strategy.