Kochanski Zieba & Partners has advised Echo Polska Properties on its acquisition, made along with Echo Investment S.A., of the Galeria Mlociny shopping center in northern Warsaw currently under construction. Weil Gotshal & Manges advised Echo Investment on the deal, while Greenberg Traurig advised the seller, Rosehill Investments. The purchase price is approximately EUR 42 million.
Echo Polska Properties (EPP) and Echo Investment will hold 70% and 30% stakes in the new project, respectively. After construction is completed, EPP will be the asset manager of Galeria Mlociny, while Echo Investment is to complete the construction and assume responsibility for the leasing and marketing of the mall.
According to KZP, Galeria Mlociny is a 81,900 square meter mixed-use development (of which 71,000 square meters is allotted to retail, restaurant and entertainment space). It will include a modern cinema, a fitness center, and an extensive food court area, as well as a medical center. The firm reports that "the construction of the first phase started in October 2016, and is on track for completion in 2019," and that "the development is approximately 60% pre-leased, with most of this space accounted for by the food court, entertainment area, and key fashion groups and brands, including Inditex, Van Graaf, and H&M."
Also according to KZP, "Echo Polska Properties is a company that follows the REIT formula and invests in commercial office, retail and industrial properties throughout Poland. EPP is publicly traded on exchanges in Luxembourg and Johannesburg. 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."
“This has been our seventh retail acquisition since our entry onto the stock exchanges in Luxembourg and Johannesburg," stated Hadley Dean, CEO of Echo Polska Properties. "Such a strategy enables EPP to leverage our scale and provide our clients with a comprehensive and varied offer on the Polish market."
“It’s great to have been able to assist Echo Polska Properties on yet another fantastic acquisition," commented Rafal Zieba, KZP Managing Partner, who led the firm's team on the deal. "EPP are cementing themselves as the leading investor in the Polish commercial real estate market and we take pride in being able to work closely with our client in achieving its business objectives."
Zieba's team included Partners Kamil Osinski and Szymon Gałkowski, Senior Associates Pawel Mardas and Klaudia Szymanska-Rutkowska, and Associate Piotr Zabkiewicz.
The Weil team included Partner Pawel Zdort, Counsel Zofia Frydrychowicz, Senior Associate Filip Uzieblo, and Associates Maciej Czekanski, Piotr Fedorowicz, Jakub Krzemien, and Marcin Plonka.
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