TUP takeover

TUP Property, part of the listed Grupa TUP, has signed a letter of intent to acquire 12 office and retail properties located across Poland. The value of the transaction was set at around zł.90 million. The final contract is to be signed within the next couple of months.

"Apart from working on the current project and starting new investment projects, we are going to create a portfolio of properties for lease. This part of our operation will provide Grupa TUP with stable and foreseeable income," says Robert Jacek Moritz, president of TUP.

"The deal with Concorde Investissement is just another step, apart from last year's acquisition of PHC, in the implementation part of Grupa TUP's development strategy. We intend to take over 12 properties along with the tenants' contracts. For us the investment is a long-term one," adds Moritz.

The properties are located in Będzin, Gdańsk, Katowice, Kołobrzeg, Łańcut, Ostrzeszów, Nowy Sàcz, Syców, Tychy, Warsaw and Zabrze. All but one are leased. They host supermarkets, discount chains, offices and shopping centers such as the 8,000-sqm City Point in Tychy.

TUP plans to finance the acquisition by issuing new shares and a bank loan. The public offering is expected to take place in 2007.

Grupa TUP's 2006 results showed revenues of zł.12.7 million and a net profit of zł.12.8 million. The results were influenced by the sale of a 30-percent stake at CJ International, a company acquired by TUP in 2003. This year the company expects to make a net profit of zł.28 million thanks to the sale of Poznań-based Modena Park.