Johannesburg-listed Echo Polska Properties (EPP) is acquiring Zakopianka shopping centre in the southern Polish city of Krakow for €54 mln.
This is EPP's first bolt-on deal involving a third-party seller since it was formed earlier this year to own more than €1 bn of assets developed by Warsaw-based Echo Investments.
Tristan's European Property Investors Special Opportunities 3 (EPISO 3) fund is the vendor of the 27,470 m2 shopping centre. EPISO 3 has owned Zakopianka shopping centre since 2013, when it was part of a five-property portfolio acquired from Australia's Charter Hall Retail REIT as it exited the European market.
The shopping centre is located on a retail park in southern Krakow. The transaction excludes the Carrefour hypermarket and Castorama store, which border the shopping centre and are separately owned.
'This property is in an affluent part of Krakow and is trading well. We have strengthened its performance over the past few years and improved the tenant mix. The offer from EPP now provides us with an opportunity to crystallise value for the fund’s investors,' said Karol Bartos, executive director at Tristan Capital Partners.
EPP was created earlier this year as a spin out from Echo Investment after South Africa's Redefine International acquired a 75% stake in the developer's portfolio of standing assets.
Formed as a Dutch real estate investment company that follows the REIT formula, EPP debuted on Johannesburg and Luxembourg Stock Exchanges earlier this year as an investor in office, retail, and industrial properties throughout Poland. The Zakopianka transaction adds to EPP's current portfolio of 10 office and 11 retail projects, totalling 636,170 m2 and valued at €1.5 bn.
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