Investor Echo Polska Properties (EPP) is to acquire twelve M1 shopping centers and retail parks across Poland from an entity owned by PIMCO, Oaktree and Redefine Properties for a total of €692 million. The company will buy the assets in three tranches with the transaction expected to be closed in mid-2020.
In January 2018, EPP will buy the M1 Czeladź, M1 Kraków, M1 Łódź and M1 Zabrze centers for €358.7 million. In June 2019, it will buy the M1 Bytom, M1 Częstochowa and M1 Radom centers, and the PP Kielce, PP Olsztyn and PP Opole retail parks for €222.5 million. One year later, it will buy the M1 Poznań center and the PP Tychy retail park for €110.9 million.
The assets in the M1 portfolio comprise a total of 446,500 sqm of leasable space and house over 620 stores. They are currently fully leased out with all the shopping centers being anchored by Auchan hypermarkets. The acquisition will bring the number of shopping centers in EPP’s portfolio to at least 27; their combined GLA will amount to almost one million sqm.
“This acquisition fits perfectly with our strategy. The M1 portfolio has substantial expansion opportunities which we will develop over time and which will serve to further grow the NOI and strengthen each property’s competitive position,” commented Hadley Dean, the CEO at EPP.