Dawnay, Day Carpathian has bought six Croatian supermarkets for E53.7m.

The retail property investment company , set up to invest in Central and Eastern Europe, has paid €53.7m (£38.8), representing an initial yield of 7.65%.

DDC will buy four Croatian special purpose vehicles from private investors that own the stores and will lease them to Konzum, the largest retailer in Croatia.

Konzum is owned by Agrokor, a retail and food manufacturing company and one of the largest in south eastern Europe.

Konzum’s market share is 21.5% in the country and it has more than 570 stores throughout Croatia.

Zagreb to Kutina

Two of the six stores bought by DDC are in Zagreb, two in commuter suburbs of Zagreb, one in Slavonski Brod and one in Kutina. The total lettable area is over 344,448 sq ft and all stores are in prominent areas and located on main roads.

New leases and indexed rent

Five of the stores will be leased on new 15 year leases that will run for a minimum of 10 years with 9 month break clauses and corresponding 9 month penalty clauses in the final 5 years. All the stores’ rent will be indexed annually.

Rupert Cottrell, chairman of DDC, said: ‘This acquisition represents the sixth transaction since the £100m secondary fund raising completed in May 2007. It is the first acquisition in Croatia, one of our target countries.’