A Game-Changing Deal on the Polish Retail Market - EPP Becomes the Leading Shopping Centre Landlord with €692.1 Million Acquisition
JSE listed Echo Polska Properties (EPP) today announced the acquisition of 12 major shopping centres and retail parks (M1 portfolio) in three tranches over the next three years. The acquisition from a consortium (owned 25% by Redefine Properties), totals €692 million and forms part of a larger 28 property portfolio that has been acquired by the consortium. Upon completion of the transaction in mid-2020, EPP’s portfolio will comprise at least 27 modern shopping centers comprising almost 1 million square metres GLA.
This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20171204005833/en/
One of the M1 portfolio shopping centers acquired by EPP (Photo: Business Wire)
The M1 portfolio comprises 12 dominant retail properties with a total of 446,500 m² GLA and over 620 stores situated in densely populated catchments which are complementary to EPP’s existing assets:
- Eight M1 regional shopping centres with GLA ranging from 30,000 m² to 55,000 m² which attract more than 40 million annual visitors, and
- Four retail power parks with GLA ranging from 20,000 m² to 35,000 m².
All the properties are single level and fully leased, grocery anchored and are situated on large motorway fronting sites which total over 195 hectares. All of the centres are anchored by Auchan Hypermarkets as well as a variety of international and domestic brands such as MediaMarkt and fashion retailers, TK Maxx, H&M and C&A. The average rental rate across the portfolio is a low €9.10 per m² per month and the average rent to sales ratio is below 9%. The entire portfolio is subject to a master lease from Metro AG which expires in April 2024.
“This deal is based on a 'up to 30 minute drive time' measurement, which will treble our portfolio catchment to 34% of Poland's total population, increasing to 39% after Młociny in Warsaw is opened,” says Dean. The transaction will also boost EPP’s annual portfolio footfall 61% from 76 million to 122 million. “These stats speak to EPP becoming a derivative of Poland's burgeoning consumer market.”
Dean said that EPP as well as the consortium are happy to enjoy the benefits of the income from Metro AG’s head lease until 2024. Auchan acquired from Metro the ‘Real’ supermarket business in Poland in 2014 and the 28 properties that will now be owned by the consortium and EPP represent approximately 35% of the number of stores that Auchan have in Poland. The properties being acquired by EPP have significant extension opportunities and also have asset management initiatives as the line shops are on average paying below market rentals. The entire portfolio was secured at a yield of 7,1%. The transaction will be closed in 3 tranches:
- Tranche 1 (January 2018) €358.7 million GAV comprising M1 Czeladź, M1 Kraków, M1 Łódź and M1 Zabrze totalling collectively 194,400 m² GLA and NOI of €25.1 million.
- Tranche 2 (June 2019) €222.5 million GAV comprising M1 Bytom, M1 Czestochowa, M1 Radom, PP Kielce, PP Olsztyn and PP Opole collectively 184,000 m² GLA and NOI of €16.3 million
- Tranche 3 (June 2020) €110.9 million GAV comprising M1 Poznan and PP Tychy collectively 68,100 m² and NOI of €7.6 million.
Tranche 1 is being financed by way of 62% debt and the redeployment of some of the capital to be received on the sale of the offices previously announced, as well as the subscription by funds managed by Oaktree and LVS II Luxembourg II S.à r.l for €112.5 million of EPP shares at €1.27 per share. As a result there will be no need for EPP to raise capital from the market. This direct investment in EPP by LVS II Luxembourg II S.à r.l and funds managed by Oaktree reflects their confidence in our platform. Redefine’s holding in EPP will reduce to +/- 35% but Redefine have undertaken to invest a further €40 million for future acquisitions in order to restore their holding to circa 40%.
On completion of the first tranche the return on equity pre-tax and transaction cost will be 13,5%. In the short term the acquisition results in a small increase in EPP’s LTV from 51% to 54% but this is being addressed and the company is committed in the medium term to reducing the LTV to below 50%.
Hadley Dean concludes “this acquisition fits perfectly with our strategy. The M1 portfolio has substantial expansion opportunities which we will develop over time and which will serve to further grow the NOI and strengthen each property’s competitive position”.
EPP’s advisor in the deal was Dentons law office.
EPP (Echo Polska Properties) is a Dutch dual listed real estate investment company that follows the REIT formula, investing in retail properties throughout Poland. With a current portfolio that includes 14 retail projects, 6 offices, and two retail development sites in Warsaw, our initial portfolio is highly diversified. The buildings are located in 17 cities across the country, characterized by their strong economy and purchasing power, and ability to attract international investment interests. Our goal is to create Poland’s leading, cash-generating platform of well-performing office, retail, and industrial assets that will deliver consistently high returns to our shareholders.
Marketing & Communications Director
Mobile: +48 603 203 619
For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.
Tilaa tiedotteet sähköpostiisi
Haluatko tietää asioista ensimmäisten joukossa? Kun tilaat mediatiedotteemme, saat ne sähköpostiisi välittömästi julkaisuhetkellä. Tilauksen voit halutessasi perua milloin tahansa.
Lue lisää julkaisijalta Business Wire
AIDUS Coin Successfully Raises Investment from CoinBene, the World's Leading Exchange13.12.2018 03:00 | Tiedote
AISYS GLOBAL PTE. LTD. announced that it has received investment from CoinBene, one of the world’s leading crypto assets exchanges. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181212005153/en/ Investment contract ceremony between CoinBene and AISYS GLOBAL. Left: CoinBene CMO Daniel Lee. Right AISYS GLOBAL Founder Ted Min (Photo: Business Wire) AISYS GLOBAL is building the AIDUS Decentralized Fund Platform (ADFP), where users can subscribe to funds only via AIDUS coin. ADFP is the platform to connect investors and asset management companies with AIDUS coin without barriers of borders, language, currency. The most important part of the ADFP is the Smart QTS (Quant Trading System), which boasts an annual average return of 100% (as of December 1, 2018). Smart QTS is an automated trading program that has been validated through more than 15 years of development and over four years of operational performance. The weekly returns
The Epic Showdown Against the Black Mage Begins Now in MapleStory13.12.2018 01:12 | Tiedote
MapleStory, the iconic free-to-play global MMORPG from Nexon, has launched the final chapter of the war with the game’s long-awaited villain, the Black Mage. The most anticipated clash event in Maple history brings two brand new Tenebris areas, an epic duel against Black Mage’s leading Commander Verus Hilla, and the monumental battle against the Black Mage himself. Players level 200 or higher who have completed the 5th job advancement can access the Labyrinth of Suffering, Tenebris’ second area. At the end of the quest, players will find Verus Hilla, one of the Black Mage’s leading Commanders, ready to fight. Limina, Tenebris’ final area, is also available as players must help the Tenebris expedition escape dangerous situations inside to complete the Journey of Destiny. In addition, every class will receive a new 5th job skill to fight the Black Mage and once the Maple Alliance gathers enough Determination to power up the Spark of Determination, all out war breaks loose as the highly a
Pacific Drilling Announces Relisting on NYSE13.12.2018 01:11 | Tiedote
Pacific Drilling S.A. (OTC: PACDD) (the “Company”) today announced that it has received approval to relist its common shares on the New York Stock Exchange (“NYSE”) under the ticker symbol “PACD.” The Company expects that its common shares will commence trading on the NYSE at the market open on December 18, 2018. About Pacific Drilling With its best-in-class drillships and highly experienced team, Pacific Drilling is committed to becoming the industry’s preferred high-specification, deepwater drilling contractor. Pacific Drilling’s fleet of seven drillships represents one of the youngest and most technologically advanced fleets in the world. Pacific Drilling has its principal offices in Luxembourg and Houston. For more information about Pacific Drilling, including our current Fleet Status, please visit our website at www.pacificdrilling.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20181212005880/en/ Contact information Investor Contact: Johannes
IFF Declares Dividend for Fourth Quarter 201813.12.2018 00:20 | Tiedote
Regulatory News: International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris:IFF) (TASE:IFF), a leading innovator of scent, taste, and nutrition, announced that its Board of Directors has declared a regular quarterly cash dividend of $0.73 per share of its common stock, payable on January 7, 2019 to shareholders of record as of December 28, 2018. Meet IFF International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF) (TASE: IFF) is a leading innovator of scent, taste, and nutrition, with over 110 manufacturing facilities, 100 R&D centers, and 33,000 customers globally. At the heart of our company, we are fueled by a sense of discovery, constantly asking “what if?”. That passion for exploration drives us to co-create unique products that consumers experience in more than 150,000 unique products sold annually. Our 13,000 team members globally take advantage of leading consumer insights, naturals exploration, research and development, creative expertise, and customer inti
Allied World Announces Fairfax WorldWideSM Multinational Initiative13.12.2018 00:06 | Tiedote
Allied World Assurance Company Holdings, GmbH announces the development of a new multinational platform, called Fairfax WorldWideSM, that operates across the portfolio of insurance companies of Fairfax Financial Holdings Limited (“Fairfax”). The platform, which will be rolled-out in phases, will enable the issuance of locally admitted insurance policies using Fairfax subsidiary licensing capabilities and other strategic partners. Fairfax WorldWideSM, which will be modelled after Allied World’s existing Allied WorldWide® multinational platform, will consist of a global cross-functional group of dedicated people and a future leaning IT system. The platform will facilitate collaboration across the entire Fairfax network to deliver global policy placement services. Karl Jordan, Senior Vice President of Fairfax WorldWideSM, said, “Once fully implemented, Fairfax WorldWideSM will provide us with the ability to collaborate across the Fairfax group of companies to seamlessly and reliably issue
Dubai’s Meydan One Takes Shape12.12.2018 17:58 | Tiedote
Meydan One, a pioneering, next-generation lifestyle and retail destination, has announced that the project is on track for its launch in early 2020 with 60 per cent of structural work already completed. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181212005508/en/ Meydan Masterplan (Photo: AETOSWire) The Meydan One project is Dubai’s latest centrepiece development aimed at enhancing the Emirate’s mall landscape through a wholly reimagined approach that combines retail, hospitality, entertainment and leisure experiences. A sprawling, next-generation destination, Meydan One offers immersive lifestyle experiences, world-class design, entrepreneurship and technologies, reaffirming Dubai’s vision to become the preferred global hub for tourism and shopping. Meydan One offers a unique business proposition for global and local investors eyeing investments in Dubai. As a free-zone entity, the destination offers unmatched advantages
Uutishuoneessa voit lukea tiedotteitamme ja muuta julkaisemaamme materiaalia. Löydät sieltä niin yhteyshenkilöidemme tiedot kuin vapaasti julkaistavissa olevia kuvia ja videoita. Uutishuoneessa voit nähdä myös sosiaalisen median sisältöjä. Kaikki STT Infossa julkaistu materiaali on vapaasti median käytettävissä.Tutustu uutishuoneeseemme