Property development company Echo Polska Properties (EPP) has closed the €358.7-million first tranche of its acquisition of the Poland-based M1 portfolio.
The company in December announced that it would acquire the portfolio, which comprises 12 shopping centres and retail parks, for €692-million.
The first tranche of the transaction comprised the acquisition of the M1 Czeladź, M1 Kraków, M1 Łódź and M1 Zabrze shopping centres.
“We are delighted to announce the closing of Tranche 1 of the M1 portfolio. The deal helps us provide further scale benefits for our tenants and further strengthens relationships with our financial partners,” CEO Hadley Dean said in a statement on Tuesday.
The first tranche was financed by way of debt, redeployment of the capital received on the sale of certain offices and the subscription by an entity managed by Oaktree Capital Management and LVS II Luxembourg II for €112.5-million of EPP shares at €1.27 a share.
The remaining two tranches will be finalised over the next three years.
The M1 portfolio comprises single-level and fully leased properties that are situated on large motorway fronting sites.
All of the centres are anchored by Auchan Hypermarkets, as well as a variety of international and domestic brands with an average rent to sales ratio below 9%.
The entire portfolio is subject to a master lease from German global diversified retail and wholesale group Metro, which expires in April 2024.
- Links: Engineering News
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