Kochanski Zieba & Partners has advised Echo Polska Properties N.V. (EPP) — a leading fund operating as a REIT — and Echo Investment S.A., the largest Polish developer, on their joint agreement to buy a real property at ul. Towarowa 22 in Warsaw from Griffin Real Estate group, Poland’s leading real estate fund, and to jointly execute an investment project on the property. Echo Investment S.A. was represented by Weil Gotshal & Manges, while Griffin Real Estate was supported by Hogan Lovells.
According to KZP, "the buyers will pay a total price of up to EUR 120 million, EUR 78 million of which will be paid upon signing of the final sale agreement, while the remaining amount will be paid after certain binding planning conditions are met."
The transaction is conditional on the satisfaction of certain conditions, including the obtaining of consent from Poland’s anti-monopoly office.
Towarowa 22 consists of a number of plots acquired in a series of five transactions. KZP describes the property as "the largest commercial area located in the center of Warsaw, with a total area of about 6.5 hectares and a development capacity of over 100,000 square meters of GLA."
Echo Polska Properties is a real estate investment fund that follows the REIT formula and invests in commercial office, retail, and industrial properties throughout Poland. EPP, established by Echo Investment S.A. and Redefine Properties of South Africa, is publicly traded on exchanges in Luxembourg and Johannesburg. According to KZP, "with a current portfolio that includes six office and ten retail projects totaling 446,400 square meters of GLA, its initial portfolio is highly diversified: the buildings are located in eleven major cities across the country characterized by their strong economies and purchasing power as well as their ability to attract international investment interests. The goal of EPP is to create Poland’s leading, cash-generating platform of well-performing retail, office and warehouse assets that will deliver consistently high returns to its shareholders."
The Kochanski Zieba & Partners team was led by Andrzej Zajac and included Kamil Osinski, Marcin Rzysko, Aleksandra Polak, Szymon Galkowski, Edyta Rekawek, and Klaudia Szymanska-Rutkowska.
Previously, KZP, acting as Polish counsel, advised Redefine Properties Limited on its acquisition of a majority stake in Echo Prime Properties B.V. (as reported by CEE Legal Matters on March 2, 2016). "Having represented Redefine Properties on the EUR 1.2 billion transaction that formed Echo Polska Properties earlier in the year, it is very pleasing to have been retained by EPP on this excellent real estate transaction," commented Rafal Zieba, KZP Co-Managing Partner, referring to the Towarowa 22 acquisition.
The Weil team consisted of Partner Pawel Zdort and Associates Filip Uzieblo, Piotr Fedorowicz, Tomasz Bakowski, and Karolina Janus.
The Hogan Lovells team was led by Partner Jolanta Nowakowska-Zimoch, supported by Zuzanna Bafia.