Redefine Properties fulfills all conditions necessary to seal 1.2bn Euro investment in Poland

Posted On Thursday, 02 June 2016 08:56 Published by
Rate this item
(0 votes)

Today Redefine Properties has fulfilled all of the conditions necessary to finalise its 75% plus one share investment into a 1.2 billion Euro high-yielding commercial platform comprising 18 properties in the Polish market.

 Andrew_Konig_Redefine_Properties_CEO

This sees the agreement with Echo Investment S.A. and Echo Prime Properties B.V. (EPP) in terms of which Redefine will acquire a majority interest in EPP, being officially implemented from June 1.

As we announced in March, this deal significantly advances our international strategy as it brings the right partners together and has the ability to take our international diversification to the next level.

 

The deal is the largest ever real estate investment transaction in Poland, as well as the largest ever single transaction of income generating real estate assets in Central Eastern Europe.

 

However, it was always Redefine's intention to reduce its shareholding in EPP to approximately 50% through the immediate on-sale of approximately 25% of EPP's total issued shares.

 

We have concluded agreements with a consortium of co-investors whereby they will acquire from Redefine a beneficial interest in 25% of EPP's total issued shares, which has the effect of reducing Redefine's beneficial shareholding in EPP upon implementation of the EPP transaction to around 50%.

 

The co-investment transactions are being implemented on a back-to-back basis with the EPP transaction with the co-investors effectively assuming the commercial rights and obligations associated with their shareholding in EPP on 1 June 2016.

 

The future expansion pipeline of this transaction is extremely exciting for us.

 

The deal is complemented by a right of first offer on over 500 million Euro worth of newly developed properties from the large retail and office development pipeline of Echo, with more than 80% of the projects expected to be delivered within the next two years.

 

Redefine's 25% participation right in these developments gives it access to the exciting growth potential of a pipeline of properties via profit share if these properties are sold to third parties.

 

Poland has a large, stable and liquid real estate market and it is a great opportunity for us to be able to diversify into an offshore growth region like this and for our shareholders to benefit from the returns that will emanate from high quality, modern and sizeable properties.

Last modified on Thursday, 02 June 2016 13:34

Most Popular

Africrest Roars Proud With Its Latest Office To Residential Conversation- ‘The Leo’

Apr 29, 2019
 THE LEO
This month, Africrest Properties opened their latest residential conversion project up…

John Rabie launches European development company with R1,4b project in Lisbon

Apr 29, 2019
 JOHN RABIE
John Rabie, one of South Africa’s most successful property developers, has recently…

Appeal court ruling against high interest rates charged by bodies corporate

Apr 23, 2019
MICHEAL BAUER
The recent ruling by the Supreme Court of Appeal where the body corporate of Gardens…

Request for Proposals for the Lease and Development of Properties

Apr 29, 2019
PRASA hereby invites proposals from potential tenants to lease and develop/upgrade…

If a bond approval is included as a suspensive condition in an offer to purchase, does this conclude the terms ans conditions thereof?

Apr 23, 2019
MICHEAL BAUER
In most cases when a person purchases a property, he will have to apply for a mortgage…

Please publish modules in offcanvas position.