Acquisition by Redefine Properties over 75 % in newly established real estate company Echo Polska Properties. Griffin Real Estate – a company managing Redefine’s Polish assets – was an architect of the deal.

Acquisition by Redefine Properties over 75 % in newly established real estate company Echo Polska Properties. Griffin Real Estate – a company managing Redefine’s Polish assets – was an architect of the deal.

The value of Echo Polska Properties assets was 1.2 billion Euro. Under the deal, Redefine Properties Limited bought 75% shares in Echo Polska Properties, a newly established holding company controlling all yielding commercial assets of Echo Investment, i.e. the office and retail asset portfolio. The remaining 25% of shares remained with Echo Investment. The deal was the single largest offshore property deal in CEE market and the biggest transaction in the first half of this year.

Confidential

Echo Investment’s advisors were JLL and UBS bank, responsible for transaction advisory, Weil, Gotshal & Manges, responsible for legal advisory, EY responsible for tax advisory, Linklaters, Gleeds, Hill and WSP responsible for vendor due diligence and CBRE responsible for valuation of the Echo Investment’s assets for the transaction’s purposes.

Redefine Properties Limited - a South African REIT - is one of the Top 40 companies listed on the Johannesburg Stock Exchange. It manages the assets worth of 65 billion ZAR (ca. 4 billion EUR). The company has been quoted on the Johannesburg Stock Exchange since 2000 and has been systematically increasing its value since.The company’s portfolio includes office, retail and industrial assets. Besides South Africa, the group is present on the Australian market. Furthermore, Redefine invests on the German and British markets through Redefine International PLC – a fund quoted on the London Stock Exchange.

Java Capital, Savills and law firms Pinsent Masons; Cliffe Dekker Hofmeyr and Kochański Zięba & Partners were Redefine’s advisors.

N/A

Occupancy rate varies depending on a building

The companies involved in the deal have created the first investment fund comprising Poland-based real estate assets and operating similar to REIT funds. The deal was the single-largest offshore property deal in CEE market and the biggest transaction in the first half of this year. Acquiring 75% stake in Echo Polska Properties was Redefine Properties' first major investment in Poland and will become a springboard for its further expansion. On the other hand, setting up Poland's first REIT has been a real breakthrough in the country's real estate sector. As the first entrant to the market, EPP has all chances to become the dominant player and its success may speed up adopting legal framework that will facilitate such funds' operation. Also, EPP is the first Poland-originated real estate company listed on foreign stock exchanges – in Johannesburg and Luxembourg.