JOHANNESBURG - Listed Echo Polska Properties (EPP), the Polish property group in which JSE-listed Redefine Properties holds a 44.9% stake, has agreed to sell a portfolio of office properties in Poland for 160m (R2.56bn) as part of its strategy to become a pure retail property fund.
Hadley Dean, EPP chief executive, said yesterday that the disposal was in line with the company’s strategy.
Proceeds from the disposal would be used to fund further retail acquisitions. “We are planning to become a pure retail property fund within the next three years and this transaction helps fuel our growth in retail acquisitions,” he said.
The assets are being sold to Griffin Premium RE and include Tryton Business House in Gdask, A4 Business Park in Katowice and West Gate in Wrocaw. The transaction is still subject to certain conditions.
Dean said Poland was one of the fastest growing economies in Europe and its encouraging macroeconomic situation supported the further growth in consumer spending, which in turn was driving the retail market.
He said EPP’s goal was to consolidate the fragmented Polish retail market “by building EPP into a Polish national champion”. “This sale provides us with additional capital to invest in expanding our retail portfolio and negates the need of a public capital raise,” he said.
- BUSINESS REPORT