Trade Estates steps up investment as it targets further expansion in Bulgaria

According to the management of the listed real estate investment company (REIC), during yesterday’s briefing of analysts on the company’s first-half 2026 results, the REIC has already implemented almost half of its €250 million investment programme for the 2024–2028 period and is preparing to update the programme following the completion of the acquisition of a 50% stake in Sofia South Ring Mall.

The Sofia transaction appears to represent more than a standalone investment. Trade Estates’ management describes Bulgaria as a growth market, citing the country’s economic performance, low unemployment, the expansion of the middle class and the momentum of private consumption.

The acquisition of a 50% stake in Sofia South Ring Mall, combined with Trade Estates’ existing presence through IKEA, provides the company with an investment base of more than €130 million in the country and, according to management, the necessary “firepower” to pursue additional opportunities.

The company is primarily targeting mature, income-generating properties, while also remaining open to assets with potential for commercial repositioning and value creation.

The €161 million asset reshaping its footprint

Trade Estates has agreed to acquire, through Trade Estates Cyprus, a 50% stake in Sofia South Ring Mall from Fourlis for €49.35 million, with completion of the transaction expected in the fourth quarter of 2026.

The shopping centre has 69,000 sq m of gross lettable area and is valued at €161.2 million. It accommodates more than 180 tenants, with an occupancy rate of 98%, and attracts approximately 7.3 million visitors annually.

Store sales amounted to €139.5 million in 2025, while net operating income (NOI) stood at €12.5 million, corresponding to a net yield of approximately 7.8%.

Financing for the transaction has already been secured. Following completion, the net loan-to-value (net LTV) ratio is expected to increase to 48%–49%, from 43.8% at the end of June.

The REIC’s management made clear that it is not currently considering the acquisition of the remaining 50%, noting that cooperation with the property’s co-owners is proceeding smoothly.

Ellinikon: opening expected at the end of 2029

In Greece, the major project remains the Hellinikon Retail Park. The development has now secured all required permits, including the revised building permit, and has entered the construction phase. Management expects the retail park to commence operations in the fourth quarter of 2029.

Ellinikon forms part of the company’s investment programme for the 2024–2028 period. By the end of the first half of 2026, €123.6 million had been invested, representing approximately 49% of the overall plan.

A further €21.6 million of investment is expected during the remainder of 2026, while €34.7 million is planned for 2027 and €69.7 million for 2028.

Upon completion of the existing programme, the gross value of the portfolio is estimated to reach approximately €740–760 million by the end of 2028, compared with €625.3 million at the end of the first half of 2026.

Further growth plans in logistics

Alongside retail, Trade Estates is expanding its options in the logistics sector.

In Oinofyta, the company acquired an adjoining plot of 4,704 sq m which, together with the unused development potential of the existing property, creates scope for an additional 6,000–7,000 sq m of space.

The company is considering different use scenarios and potential tenants, with the final decision to be based on the return that the new development could generate.

In Aspropyrgos, the acquisition of two neighbouring plots supported the completion of the Inter IKEA Logistics Center. The property was handed over to the tenant and became operational as early as June, ahead of the original schedule, which had envisaged completion by the end of 2026.

€625 million portfolio

Trade Estates currently owns 16 properties with a total area of approximately 440,000 sq m and a gross value of €625.3 million. Retail parks form the core of the portfolio, accounting for approximately 79% of the value of the properties and 82% of income from income-generating assets.

The gross rental yield stands at 7.7%, the weighted average remaining lease term at 9.5 years, and the vacancy rate at 3.26%.

The operating performance of the retail parks remained positive during the first half of the year. Footfall increased by 6.8% to 11.6 million visits, while tenants’ sales rose by 7.5% to €261.4 million.

Gross rental income increased by 7.2% to €21.3 million, while adjusted EBITDA declined by 2.7% to €15.6 million. FFO stood at close to €10 million, up 0.6%, while net asset value (NAV) amounted to €347.6 million.