Tower Property Fund takes over four Konzum facilities in Croatia for EUR 66.4 million

South Africa's investment fund Tower Property has signed a preliminary agreement with companies Agrokor DD and Konzum DD to take over four Konzum facilities in Croatia for EUR 66.4 million, the company said in a statement.

Tower Property is taking over the entire Agrokor's stake in the Sub Dubrovnik company which owns Sub City Shopping Center in Zupa Dubrovacka, and this transaction is valued at EUR 28.7 million. However, Sub Dubrovnik's debt will be deducted from the price, meaning that the total value of acquisition of EUR 66.4 million will be reduced a bit.

The South African investment fund will also take over a stand-alone Super Konzum facility in Zagreb (275 Grada Vukovara Street) for EUR 13.2 million, Meridijan 16 Shopping Center in Zagreb's neighborhood Gracani for EUR 15.7 million, as well as a stand-alone Super Konzum facility in Velika Gorica (64 A.K. Miošića Street) for EUR 8.8 million. All prices are without VAT.

According to Tower Property's statement, they are now in the process of setting up a branch office in Croatia which will assume all the rights and obligations of the investment fund for all the acquisitions done. The statement also reads that all these transactions are expected to be closed by April 2016.