Eurobuild Awards

IPO of Griffin Premium RE.. on the Warsaw Stock Exchange

CATEGORY
Investment deal of the year, CEE
The shares of Griffin Premium RE.. N.V. successfully debuted on the Warsaw Stock Exchange on Thursday, 13 April 2017, making it the first REIT-type firm listed on the WSE. The total value of the public offering of shares of Griffin Premium RE.. was over PLN 508 million (about EUR 118 million), and it was one of the largest IPOs on the Warsaw Stock Exchange in recent years. Griffin Premium RE.. is a REIT-type company established in December 2016 by spinning off nine attractive properties from a portfolio created and managed by Griffin Real Estate, the leading and most dynamic investor in the CEE commercial real estate market. At present, GPRE’s portfolio includes six pure office and three mixed-use high-street properties. All of them are located in prime locations in five Polish cities: Warsaw, Wrocław, Łódź, Cracow and Katowice. They were valued in excess of €0.5 billion as of 30 June 2017. GPRE has also forward funded the acquisition of the West Link office in Wrocław and acquired a 25% stake in office development projects in Warsaw (Browary Stage J and Beethovena I&II) in June 2017. The company's strategy sees expansion of the property portfolio, including further acquisitions of projects meeting stringent criteria, delivering attractive and stable returns to the company’s shareholders. In early Q4 2017 GPRE signed the preliminary share purchase agreements for 3 yielding office projects in Katowice (A4 Business Park), Wrocław (West Gate) and Gdańsk (Tryton Business House) at the total GAV of approximately €160 million. This makes GPRE the largest office landlord in Poland.
Name of the deal
IPO of Griffin Premium RE.. on the Warsaw Stock Exchange
The date of closing the deal
The shares of Griffin Premium RE.. N.V. debuted on the Warsaw Stock Exchange on Thursday, 13 April 2017.
Value of the transaction (in EUR)
The total value of the initial public offering of Griffin Premium RE.. shares was PLN 508 million (about EUR 118 million).The share price at the opening of the trading session was PLN 5.70, translating into a market capitalization of Griffin Premium RE.. of PLN 890 million (about EUR 206 million). At the same time, it was the second largest listing on the WSE recorded in 2017.
Yield
Total portfolio 6.7 % (initial yield defined as annualized NOI as of 31/12/2016 divided by portfolio GAV as of 31/12/2016)
Seller, plus brief information about the company
Griffin Real Estate was the architect of the deal. Griffin has built a unique and diversified property portfolio that became the basis for the creation of Griffin Premium RE.. and prepared its IPO.
Griffin Real Estate is Poland’s largest and most dynamic investor on the commercial real estate market, with assets under management valued at about EUR 5 billion. Its strategic partners are Oaktree Capital Management, Pacific Investment Management Company (PIMCO), Redefine Properties from South Africa and Globalworth. Aside from its involvement in Echo Investment, Griffin holds, directly and indirectly, several yield-generating real estate platforms, a student housing operator StudentDepot, a rental housing operator Resi 4 Rent and an office REIT type company - Griffin Premium RE...
Consultancy which advised Seller
In the IPO of Griffin Premium RE.., Bank Zachodni WBK S.A. and Joh. Berenberg, Gossler & Co. KG served as the global coordinators and joint book runners, while Dom Maklerski BOŚ S.A. acted as co-lead manager of the offering. The transaction was supported also by Weil, Gotshal & Manges, White&Case, Loyens & Loef, CBRE, JLL and EY
Purchaser, plus brief information about the company
Nationale Nederlenden OFE
EBRD
Other institutional and retail shareholders (free float)
Consultancy which advised Purchaser
N/A
Financing institution
N/A
Current occupancy level
c. 98% (as of 30/06/2017) Occupancy rate varies depending on the building.
Please say why this deal should be considered for the award
It was the second largest listing on the WSE recorded in 2017. The company is the first REIT-type company listed on the Warsaw Stock Exchange, enabling retail investors to buy stakes in otherwise unavailable commercial properties and receive hefty dividends amounting approximately 65% of funds from operations. Griffin Premium RE.. sets new trends in the commercial real estate market in Poland. Griffin Real Estate and Griffin Premium RE.. opened a new chapter in the development of the WSE and Polish capital market. Until now, Polish investors, particularly retail investors, have not had a convenient opportunity to invest in the commercial real estate market. By buying shares of Griffin Premium RE.., they can indirectly become co-owners of portfolio of attractive office and mixed-use properties with a combined value of over EUR 800 million, and thus participate in the rental income from these properties.