UK lender HSBC has emerged as the financier of one of Poland’s largest-ever real estate portfolio transactions by providing a €635 mln investment loan to Chariot Top Group, a special purpose vehicle owned by an equity consortium including funds managed by Oaktree Capital Management and Redefine Properties.
The finance has been used to acquire a retail portfolio from Ares Management, AXA Investment Managers – Real Assets and Apollo Rida. The deal is valued at around €1 bn.
The acquired portfolio includes 28 real estate assets consisting of nine M1 shopping centres, twelve hypermarkets, four power parks and three standalone DIY stores.
At the same time as the portfolio acquisition, and under a separate agreement, Chariot Top Group resold a part of the portfolio to Echo Polska Properties group (EPP), which has become one of the largest retail property owners in the region.
The deal with EPP has been divided into three phases, with EPP acquiring four M1 shopping centres in January 2018, with acquisitions of four M1 centres and four power parks to complete between now and the middle of 2020.
The aggregate value of the transactions amounts to €1.7 bn and represents one of the largest-ever real estate portfolio transactions in Poland.
James Irvine, Dentons Banking and Finance partner who, together with Mateusz Toczyski, advised HSBC on the financing deal said: 'We are delighted to have advised our key client, HSBC Bank plc, on this landmark deal. Reaching completion was a great way to start the new year, and the transaction was a rewarding and exciting experience for all those involved.'
'This deal, which is one of our largest real estate financings in Poland, showcases our ability to deliver large multi-jurisdictional transactions across our global firm, where three Dentons offices were involved in the UK, the Netherlands and Poland,' added Mateusz Toczyski.
