September 17 (SeeNews) - Investment fund Tower Industrial, the wholly owned Croatian subsidiary of TPF International Limited (TPF), has concluded an agreement to acquire a prime industrial property in Zagreb, Croatia for an aggregate purchase consideration of 8.6 million euro ($10 million) in cash from VMD Grupa, TPF said on Monday.
The property is let to a leading manufacturer of wiring harnesses in the automotive industry until 2027, with part of its engineering division based in Zagreb, TPF said in a filing to the Johannesburg Stock Exchange.
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The lessee occupies a gross lettable area of 5 755 sq m, with an additional 1 020 sq m of vacant gross lettable area set aside for the lessee’s expansion. The property, which comprises two A-grade buildings of two floors each, is located in Zitnjak, the largest industrial node in Zagreb.
TPF noted it intends to grow it exposure to the region through its strong relationships including those opportunities provided by VMD. It plans to particularly target industrial and convenience retail properties.
TPF is Tower’s newly incorporated Mauritian 74% owned subsidiary which houses Tower’s Croatian assets. VMD is Tower’s partner in its Croatian office property, VMD Kvart building B, Tower’s first Croatian acquisition.
($=0.859499 euro)