Ivanhoe Cambridge announces it has sold to Mfi Management für Immobilien AG (mfi) a 50% ownership interest in Paunsdorf Center Arcaden, a shopping centre located in Leipzig, Germany. Both partners have also given the go-ahead to a much-anticipated, €80-million redevelopment project to revitalize the design of the centre as well as its retail mix. mfi will manage the project on behalf of the joint venture.
“Through this transaction, Ivanhoe Cambridge further strengthens and capitalizes on its existing relationship with mfi, one of Germany’s leading retail property owners and developers. mfi’s local experience and insight combined with Ivanhoe Cambridge’s shopping centre expertise will ensure that Paunsdorf Center is positioned at the forefront of its market,” said Kim McInnes, President and CEO of Ivanhoe Cambridge.
Matthias Böning, mfi CEO, stated: “This transaction represents anOther step towards furthering our partnership with Ivanhoe Cambridge, while the decision to redevelop Paunsdorf Center demonstrates our commitment to enhancing the quality of our portfolio. Thanks to this sizeable investment, Paunsdorf Center is poised to become one of Leipzig’s prime shopping destinations.”
Large areas of the property will be redeveloped to accommodate some 70 exciting new stores. The project also includes the creation of an internal corridor that will link two new lateral courts, a new food court with several innovative small and medium-sized dining options as well as the upgrading of current lighting, floor and finishes. As a result, the centre will be able to better meet the future needs of customers by offering them an optimal mix of retailers and services. Anchor tenants, including Kaufland, Media Markt, H&M, C&A and Drogerie Müller, will also contribute to this overall effort by upgrading their stores’ concepts.
About mfi AG
mfi management für immobilien AG (www.mfi.eu) has 600 employees and manages 21 properties for institutional investors. It is currently developing six projects with a total investment volume of €1.2 billion through to 2014. These projects include Höfe am Brühl, now under construction in downtown Leipzig, as well as Pasing Arcaden in Munich, where the first construction stage recently began. With Ruhrpark in Bochum and Paunsdorf Center in Leipzig, mfi is currently implementing refurbishments at the two largest shopping centers in Western and Eastern Germany respectively.