Acquisition of M1 portfolio composed of 12 major shopping centres located across Poland
In December 2017 EPP announced an acquisition of 12 major shopping centres located in densely populated catchments. The takeover from a consortium owned 25% by Redefine Properties totaled €692 million and was one of the biggest acquisitions in the history of the Polish real estate sector.
As a result of the takeover EPP acquired the 446,500 sqm portfolio comprised of over 620 stores located in eight M1 superregional shopping centres with GLA ranging from 30,000 sqm to 55,000 sqm, which attract more than 40 million annual visitors, and four retail power parks with GLA ranging from 20,000 sqm to 35,000 sqm.
All of the properties are well established and have long trading history of approx. 20 years. All of them are single level and fully leased, grocery anchored shopping malls situated in great urban locations, on large motorway fronting sites. They 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 deal has already been closed, but due to its size and value the actual takeover was divided into three stages with the first €358.7 million GAV comprised M1 Czeladz, M1 Krakow, M1 Lodz and M1 Zabrze, totaling collectively 194,400 sqm GLA and NOI of €25.1 million and concluded in January 2018. This will be followed by tranche two of €222.5 million GAV in June 2019 consisting of M1 Bytom, M1 Czestochowa, M1 Radom, PP Kielce, PP Olsztyn and PP Opole and adding 184,000 sqm GLA NOI of €16.3 million. The final €110.9 million tranche consisting of M1 Poznan and PP Tychy, collectively 68,100 sqm and NOI of €7.6 million, will conclude in June 2020.
Once the purchase is finalised, EPP will expand its current portfolio by further 252,000 sqm, becoming the country’s leading retail property operator, with over 1 million sqm of space located in at least 28 schemes.