Thursday, 15 December 2016 21:32

Echo Polska Properties in €54 million Kraków retail property acquisition

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Echo Polska Properties NV (EPP) today announced the conclusion of a preliminary agreement to acquire a holding in Hadley Dean  retail park in Kraków for €54 million.

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The price represents an acquisition yield of approximately 10%.

EPP will acquire 100% of the equity in EPISO 3 Zakopianka Sp. z o.o. which holds 38% of the leasehold rights to all rental income derived from leases from tenants in Zakopianka retail park. The deal excludes the owner occupied Carrefour and Castorama stores.

CEO Hadley Dean says: “This acquisition is in line with our stated strategy of acquiring retail assets in strategic locations, with high density catchment areas and being the dominant centre in their location.” Zakopianka is located in the affluent southern part of Kraków with a catchment area of 1.3 million people. The city is Poland’s top tourist destination and a leading destination for business process outsourcing and IT outsourcing in Europe.

The 27 463m² centre has a diversified tenant mix with a weighted average unexpired lease term of approximately four years. Opened in 1998 Zakopianka is well-established and boasts easy access by car and public transport. Retailers include Cinema City, Jysk, Intersport, Decathlon, Komfort, Reserved, Euro RTV AGD and many others.

“This acquisition boosts our portfolio to 22 properties and is evidence of our delivery on our target of adding two properties per annum,” says Dean.

The acquisition remains conditional on any indebtedness of the entity being discharged and the issuance of an insurance policy in favour of EPP. The transaction is expected to close in April 2017.

EPP was represented by Linklaters and Savills in the deal. Tristan was represented by Dentons law firm and Balmain Asset Management.

Last modified on Friday, 16 December 2016 06:10

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