EPP voices its confidence as Polish fund lists on the JSE

ECHO Polska Properties (EPP), the Polish retail-property-focused fund in which listed Redefine Properties has a 49.9 percent shareholding, made its debut on the main board of the JSE yesterday after successfully raising 100 million (R1.6billion) through a private placement.

EPP’s issued shares are currently traded on the Luxembourg Stock Exchange (LuxSE) and its listing on the JSE constituted a dual primary listing and was a foreign inward listing.

The company placed about 71.5million of its shares with invited investors at an issue price of €1.45 a private placement share.

EPP shares were trading at R24 a share in the morning session on the JSE but dropped 2.27percent during the day to close at R23.

The company owns and manages real estate developments, with a focus on major cities in Poland. Its portfolio of property assets valued at €1.2bn comprises six office and 10 retail assets.

Hadley Dean, the chief executive of EPP, said the success of the private placement demonstrated investors’ confidence in their growth strategy.

The company owns and manages real estate developments, with a focus on major cities in Poland.

"We are very happy with the strong interest shown in EPP, which serves as an endorsement of the unique investment opportunity we believe Poland represents. Proceeds from the capital raise will be utilised to accelerate and fund acquisitions," he said.

Dean said EPP’s goal was to become the dominant retail landlord in Poland while targeting sustainable double-digit annual growth in dividends a share in the short and medium term through a combination of organic and acquisitive growth.

Dean said EPP’s listing on the LuxSE and the JSE would provide the company with significantly improved access to expansionary capital and provide existing and future shareholders with an opportunity to invest in a highly attractive Polish economy.

Dean said EPP would remain focused on acquiring further high quality, well located office assets with strong international and domestic tenants in major Polish cities.

“EPP will also closely monitor the logistics and fulfilment centre sectors, which are in many respects derivatives of the dynamically growing retail sector.

“We will also look to trade assets where appropriate to ensure our portfolio remains balanced and competitive in the long term, while maintaining a weighted average unexpired lease term in excess of four years,” he said.