The second tranche of the M1 portfolio, which was closed in June 2019, included the Bytom, Czestochowa, Radom and Poznan M1 shopping centres totalling 141 000 sqm GLA, NOI of 15 mln euro and 100% occupancy for 224 mln euro. These are well-established properties with a 20-year track record, supported by strong anchors: Auchan, CCC, OBI and Media Markt. They’re located on large sites and catchments with over 200 ha of land on sites and with ample parking.
Earlier, on 11 October 2017, the EPP signed an PSPA for the acquisition of larger portfolio of 12 shopping centres and power parks with the Chariot Group and the Chariot Top Group. The assets aggregated value is 692.1 mln euro. The acquisition has been divided into three tranches. The first tranche was successfully concluded in January 2018, tranche 2 in June 2019 with tranche 3 expected in June 2020.
The M1 portfolio comprises 12 dominant retail properties with a total of 446 500 sqm GLA and over 620 stores situated in densely populated catchments which are complementary to EPP’s existing assets.
Name of the deal
Closing of tranche 2 of the M1 transaction
The date of closing the deal
June 2019
Value of the transaction (in EUR)
224 mln euro.
Yield
6.86%
Seller, plus brief information about the company
Chariot Group B.V.
Consultancy which advised Seller
Linklaters
Purchaser, plus brief information about the company
EPP is the largest owner of retail real estate in Poland in terms of GLA with its portfolio valued at 2.6 bln euro. It operates like a REIT, with a current portfolio of 24 retail properties, six office locations and one development site in Warsaw, offering a total of over 1 000 000 square meters of leasable area in Poland’s biggest cities.
Consultancy which advised Purchaser
Dentons
Financing institution
SOCIÉTÉ GÉNÉRALE S.A., ZWEIGNIEDERLASSUNG DER SOCIÉTÉ GÉNÉRALE S.A. with 115 mln euro
Current occupancy level
100%
Please say why this deal should be considered for the award
The second tranche of the M1 transaction increased EPP’s presence across Poland and took place following an oversubscribed equity raise of approximately 90 mln euro offered to investors through an accelerated bookbuild process on the JSE and LuxSE. With the transaction concluded, EPP continues to solidify its position of the leading retail landlord in Poland thanks to its investments in dominant, defensible and sustainable shopping centres. This tranche of the M1 opens three new markets as EPP expands its reach throughout Poland’s most lucrative locations. Over 100 million people visited EPP’s centres in 2018 and the company expects this upward trend to continue in 2019 with the closing of this deal. EPP took control of the last four M1 shopping centres in tranche 2, which means it now controls the full portfolio of 8 M1 properties. The third and final tranche of its M1 shopping centre and Power Park retail park transaction will add four Power Park properties.
