Redefine property company offices in Rosebank Johannesburg. Photo by Simphiwe Mbokazi
JOHANNESBURG -  Redefine Properties has further expanded its footprint in the Polish market through the acquisition of a 95percent share of a portfolio of nine operating logistics properties throughout the country for 185.8 million (R2.9billion).

Andrew Konig, the chief executive of Redefine, said yesterday that the portfolio was acquired from a fund managed by one of the largest US global asset management companies.

Griffin Real Estate, which sourced the transaction, would own the remaining 5percent of the portfolio.

Konig said Redefine had also entered into a five-year exclusive priority right for a pipeline of 24 new warehousing and logistics developments with Panattoni, a market leader in the leasing and development of logistics properties in Europe.

He said Panattoni had to date developed 35percent of the modern industrial facilities in Poland and developed the nine operating properties that had been acquired.

Konig said the development pipeline consisted of 24 identified development opportunities, which had a total gross lettable area of 1.9million square metres. He stressed that Redefine would have the right but not the obligation to acquire and develop these assets.

Konig said Panattoni would act as the developer of the development pipeline and, in conjunction with Griffin, would fulfil the role of portfolio asset manager, which included leasing. “This move into the rapidly expanding Polish logistics sector is an exciting opportunity to expand our European brand by building a significant logistics platform.

“This transaction enhances the geographic and sectoral diversification of our portfolio as we continue to invest strategically in exciting geographies, engage talent, optimise capital, operate efficiently and grow our reputation,” he said.

Redefine late last year acquired a strategic 25percent stake in Chariot Top Group for R907.9m, giving it direct access to a retail portfolio of 28 quality, established and well-located assets across Poland.

Prior to this, Redefine in June 2016 acquired a majority interest in EPP in what it claimed was the largest ever real estate investment transaction in Poland and the largest ever single South African transaction of income generating real estate assets in Central Eastern Europe.

Redefine shares closed 1.62percent higher on the JSE yesterday at R10.68.

-BUSINESS REPORT