Echo Investment signed a preliminary agreement to sell to Echo Polska Properties (EPP) the third building of A4 Business Park. The property was sold with six other office buildings totaling 112 000 sq. meters of gross leasing area.
Total value of the properties amounts to almost EUR 264 million. The value of the third stage of A4 Business Park was PLN 67,3 million at the end of June 2016. The building offers 12 000 sq. meters of leasable office space. Its anchor tenant is Rockwell Automation, which occupies 7 500 sq. meters. EPP already owns two former stages of the office park in the city.
Apart from the Katowice facility, the sold properties are: O3 Business Campus in Kraków (phase I, II and III), Tryton Business House in Gdańsk and Symetris Business Park in Łódź (phase I and II).
“We are expanding our platform by new properties that guarantee stable flow of revenue and, as a result, good returns for our shareholders” – said Hadley Dean, CEO at EPP.
The transactions are a part of EPP executing its right of the first offer (ROFO) to purchase from Echo Investment 10 properties developed by Echo Investment. Closure of the deal is conditional, on the satisfaction of certain conditions, including obtaining consent from Poland’s anti-monopoly office, the President of UOKiK.
“This is another deal that demonstrates synergy resulting from Echo Investment and EPP partnership. All the buildings are well-located and well-designed and thanks to that they attract high interest from potential tenants” – added Nicklas Lindberg, CEO at Echo Investment. “I do hope this fruitful cooperation will continue.”
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 and Redefine Properties of South Africa, is publicly traded on exchanges in Luxembourg and Johannesburg. With a current portfolio that includes six office and ten retail projects totaling 446 400 sq. meters of gross leasable area, its initial portfolio is highly diversified: the buildings are located in eleven major cities across the country characterized by their strong economy 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.