Fur­ther re­tail as­set ac­qui­si­tion in Poland

The Star Early Edition - - COMPANIES - Sandile Mchunu

ECHO Pol­ska Prop­er­ties (EPP), the Poland re­tail prop­erty fund in which listed Rede­fine Prop­er­ties has a 49.9 per­cent share­hold­ing, said it had con­cluded an ac­qui­si­tion agree­ment for an­other re­tail as­set, Ga­le­ria Solna in Inowro­claw, north-cen­tral Poland.

The pur­chase con­sid­er­a­tion was €22.4 mil­lion (R343m), based on the as­set value of €55.4m. Echo Pol­ska chief ex­ec­u­tive Hadley Dean said: “We are ex­cited to add an­other re­gion­ally dom­i­nant cen­tre to our port­fo­lio, which ad­vances our claim of build­ing a Pol­ish re­tail prop­erty cham­pion.

“In the last nine months EPP has added seven re­tail prop­er­ties to its port­fo­lio, which now has prop­er­ties sit­u­ated in 16 ma­jor re­tail lo­ca­tions across Poland.” The JSE-listed group said in line with EPP strat­egy, the 24 000m² cen­tre was lo­cated in a re­gion­ally grow­ing Pol­ish city with a large catch­ment area and a proven track record since open­ing in 2013.

The ac­qui­si­tion is a fur­ther step in re­al­is­ing EPP’s strat­egy of be­com­ing a pure re­tail prop­erty fund by 2019.

In Oc­to­ber the group also ac­quired a 70 per­cent in­ter­est in a spe­cial pur­pose ve­hi­cle that owned the big­gest com­mer­cial prop­erty de­vel­op­ment site in War­saw for up to €120m.

EPP ac­quired the 22 Towarowa Street prop­erty from Grif­fin Real Es­tate, Poland’s lead­ing real es­tate fund.

The group con­tin­ued with its ac­qui­si­tion spree when it ac­quired an­other 70 per­cent stake in Va­le­ria Mlociny in War­saw, Poland for €29m from Rose­hill In­vest­ments.

Ga­le­ria Solna boasts 100 per­cent oc­cu­pancy with 92 shops and an­chor ten­ants in­clud­ing Tesco, McDon­ald's, LPP Group brands (Re­served), H&M, Ross­mann, Me­dia Markt, Martes Sport, De­ich­mann, CCC, Smyk, Empik. The pro­posed ac­qui­si­tion, Ga­le­ria Solna, has been awarded the pres­ti­gious BREEAM cer­tifi­cate for the build­ing’s en­vi­ron­men­tal stan­dard. EPP, the Dutch-based com­pany also listed on the Lux­em­bourg Stock Ex­change, said in March it had grown its prop­erty port­fo­lio by 17 per­cent to €1.4bn in the six months since list­ing in Septem­ber and had ex­panded its port­fo­lio to 19 prop­er­ties.

The group said Poland’s solid macroe­co­nomic fun­da­men­tals as well as ini­tia­tives such as the state child al­lowance were ex­pected to con­tinue im­pact­ing pos­i­tively on pur­chas­ing power.

“With this re­tail growth we in­tend dou­bling the value of our re­tail port­fo­lio by 2019 and be­com­ing the Pol­ish re­tail land­lord of choice,” said Dean.

The trans­ac­tion is not sub­ject to ap­proval by the EPP share­hold­ers as it is not cat­e­goris­able in terms of the JSE list­ings re­quire­ments.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.