DRFG Marks Bold Entry into Croatia with €40 Million ZTC Rijeka Purchase

DRFG Acquires ZTC Rijeka in Significant Croatian Market Entry

In a strategic expansion move, the Czech investment group DRFG has acquired the ZTC Rijeka shopping center for over €40 million. This acquisition marks DRFG’s first venture into the Croatian market, highlighting a new chapter of expansion in Southeast Europe. The ZTC Rijeka, one of the most prominent shopping destinations in the region, boasts a 21,000 square meter area and attracts approximately three million visitors annually. The transaction, facilitated by prominent financial entities such as Raiffeisenbank Austria, emphasizes the growing investor confidence in Croatia's commercial real estate sector. With plans for modernization and enhanced energy efficiency, this acquisition not only solidifies DRFG's presence in Croatia but also underscores the retail sector's vitality, marked by a 3.6% year-on-year sales growth in the region.

Croatia's Economic Stability Attracts Foreign Investment

According to insights from the Zagreb Property Forum 2025, Croatia's evolving investment landscape is increasingly appealing to foreign investors. The country's accession to the European Union and the Schengen Zone has contributed to heightened macroeconomic stability, making it a more attractive destination for international capital. The forum highlighted how domestic and regional investors are playing crucial roles in bridging investment gaps. Moreover, increased competition among banks for quality projects has led to a decrease in financing margins, indicating a favorable environment for real estate investments. Despite having less than a million square meters of high-quality industrial property, there is significant potential for growth, especially when compared to more mature markets like Poland and the Czech Republic.

Modernization Plans for ZTC Rijeka Underway

Post-acquisition, DRFG has announced plans to further modernize the ZTC Rijeka shopping center, with a focus on enhancing its energy efficiency and sustainability. According to JaTRGOVAC, these upgrades are expected to bolster the center's appeal to both tenants and consumers, driving increased foot traffic and sales. The intention to align the property with modern environmental, social, and governance (ESG) standards aligns with broader trends in commercial real estate, where sustainability is becoming a key investment criterion. DRFG's commitment to these improvements signifies a long-term investment strategy, aiming to capitalize on the center's established customer base and prime location in Rijeka.

Regional Retail Sector Exhibits Robust Growth

The retail sector in Croatia has shown solid performance, contributing to the rationale behind DRFG's investment in the ZTC Rijeka. The center’s fully leased status and robust annual visitor count reflect a thriving consumer market. With an annual sales growth of 3.6%, the market dynamics are favorable for investment. According to Cushman & Wakefield, the retail market in Zagreb alone has a stock of approximately 530,000 square meters GLA, demonstrating significant development in urban centers. Additionally, logistics zones near Rijeka are expanding, further enhancing the region's attractiveness for retail and commercial real estate developments.

Transaction Facilitators and Financial Backing

The acquisition involved key players such as JLMIG, MIDA Grupa, Colliers, and Deloitte, with financing support from Raiffeisenbank Austria. The involvement of these entities underlines the complexity and the scale of the transaction. Such collaborations are indicative of the high levels of due diligence and financial structuring required for significant property transactions in emerging markets. According to Torpedo.media, the acquisition from Universale International Realitäten, part of the UniCredit Group, signals a strategic divestment aligning with broader market trends.

Future Implications for Croatian Commercial Real Estate

Looking forward, DRFG's acquisition of ZTC Rijeka is likely to set a precedent for additional foreign investments in Croatia's commercial real estate sector. As the nation continues to stabilize economically and regulatory frameworks evolve favorably, investor confidence is expected to grow. RealEstateAbroad.com's analysis suggests that continued infrastructure development and modernization of existing assets will be pivotal in driving further growth. The focus on ESG improvements and sustainability will likely attract more environmentally conscious investors, ensuring long-term value creation. This transaction not only reflects the current optimism in Croatia's market but also sets a benchmark for future investments in the region.