Echo Polska Properties NV (EPP) today announced the conclusion of a preliminary agreement to acquire four retail assets located across Poland from real estate funds managed by Blackstone.
The acquisition encompasses the 23 039m² Galeria Twierdza Shopping Centre in Kłodzko as well as the adjacent plot with a Broaster Chicken Drive restaurant. The other three malls are Galeria Twierdza Shopping Centre in Zamość (23 785m²), Galeria Tęcza Shopping Centre in Kalisz (16 003m²) and Wzorcownia Shopping Centre in Włocławek (25 629m²).
The established centres have been operational since 2009 (Wzorcownia and Twierdza Kłodzko) and 2011 (Twierdza Zamość and Galeria Tęcza), respectively, and boast a diverse tenant mix with anchor tenants across the four assets including LLP Group, H&M, Rossman, Carrefour and Cinema 3D.
EPP will acquire 100% of the equity in Kłodzko Retail LLC, Zamość Retail LLC, Kalisz Retail LLC and Włoclawek Retail LLC. CEO Hadley Dean says: “These shopping centres are dominant within their catchment area and represent a strategic fit in our retail long-term ownership.” Twierdza Kłodzko and Wzorcownia are the only large modern retail properties in their respective cities. “EPP is fortunate to already own a portfolio of strong retail and office properties across Poland and the acquisition of these four shopping centres in regional cities is a part of our ongoing strategy to build the company into a ‘national champion’ while delivering double digit growth in dividend per share per annum.”
All four of the shopping centres have easy access by road and public transport with three of them located in the city centre and are located in cities which are commercial, tourist or industrial hubs with populations ranging from 175 000 to 360 000. The acquisitions mark EPP’s entry into Kłodzko and Zamość. In Kalisz, the company already owns Galeria Amber shopping centre.
The four shopping centres have been managed by Multi Poland since 2014. Multi Poland is part of Multi Corporation, a leading owner, manager and developer of shopping centres in Europe and Turkey. Barbara Topolska, Managing Director Multi Poland, says :“I am glad that our investor was able to complete the successful sale of these four assets, and exit from this investment. Over the almost three years that these properties were under the asset and property management of Multi, they have noted a significant improvement in tenant-mix, cost efficiency, and overall performance. We are satisfied that the buyer will soon take over four assets that operate at the highest possible market standards.”
This acquisition boosts EPP’s portfolio with another four regionally dominant shopping centres. The acquisition remains conditional on competition clearance and the issuance of an insurance policy in favour of EPP. The transaction is expected to close in April 2017. Colliers International and Linklaters were acting as commercial and legal advisor for EPP whereas JLL and Greenberg Traurig were acting as commercial and legal advisors of the seller.