Kochanski Zieba & Partners advise Echo Polska Properties on the acquisition of Galeria Młociny in northern Warsaw
Echo Polska Properties N.V. (EPP) – a leading investment company operating as a REIT and Echo Investment S.A. – the largest Polish developer, signed agreements to jointly buy Galeria Młociny, in northern Warsaw, from Rosehill Investments. EPP and Echo Investment will hold 70% and 30% stakes in the new project respectively. Furthermore, after the completion of the construction work EPP will be the asset manager of Galeria Młociny, while Echo Investment is to complete the construction work and will be responsible for the leasing and marketing of the mall. The buyers will pay almost EUR 42 million for the project, which is already under construction.
Galeria Młociny is a 81,900 sqm mixed-use development (of which 71,000 sqm is retail, restaurant and entertainment space). It will comprise a modern cinema, a fitness centre, an extensive food court area, as well as a medical centre. The construction of the first phase started in October 2016, and is on track for completion in 2019. The development is approximately 60% pre-leased, with most of this space accounted for by the food court, entertainment area and by key fashion groups and brands, including Inditex, Van Graaf and H&M.
“This has been our seventh retail acquisition since our entry onto the stock exchanges in Luxembourg and Johannesburg. Such a strategy enables EPP to leverage our scale and provide our clients with a comprehensive and varied offer on the Polish market,” stated Hadley Dean, CEO Echo Polska Properties.
Echo Polska Properties is a company that follows the REIT formula and invests in commercial office, retail and industrial properties throughout Poland. EPP is publicly traded on exchanges in Luxembourg and Johannesburg. The goal of EPP is to create Poland’s leading, cash-generating platform of well-performing retail, office and warehouse assets that will deliver consistently high returns to its shareholders.
“It’s great to have been able to assist Echo Polska Properties on yet another fantastic acquisition. EPP are cementing themselves as the leading investor in the Polish commercial real estate market and we take pride in being able to work closely with our Client in achieving its business objectives,” commented Rafał Zieba, K&P Managing Partner.
Kochanski Zieba & Partners’ team was led by Rafał Zieba (Managing Partner), and included Kamil Osiński (Partner), Paweł Mardas (Senior Associate), Piotr Ząbkiewicz (Associate), Szymon Gałkowski (Partner), Klaudia Szymańska-Rutkowska (Senior Associate).
Echo Investment S.A. were represented by Weil Gotshal & Manges, whilst Rosehill Investments were supported by Greenberg Traurig.
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