South African Real Estate Investment Trust (REIT) Redefine Properties purchased a majority stake of Polish group for 1.2 billion euro ($1.3 billion) to boost international expansion.Redefine Properties agreed to buy 75% of real estate company Echo Prime Properties.
The deal, which will be financed via debt and equity at a proposed 60% gearing at the property level, is the largest ever real estate investment transaction in Poland. It is also the largest ever single transaction of income generating real estate assets in Central Eastern Europe.
Echo Investment is a recognized market leader in the Polish and Central and Eastern Europe commercial and residential property development and investment space, having completed over 115 real estate projects in 37 cities and 4 countries.
Redefine’s executive Chairman Marc Wainer calls the deal “a game-changer” for Redefine.
“It significantly advances our international strategy – it has the scale, the right partners and the ability for growth to take a major part of our business to the next level. The 18 properties tick all the boxes from an investment perspective and allows us to take advantage of what will be positive yield carry,” he says.
Apart from the Polish deal, the company is also in the process of establishing an investment presence in Spain and diversification into student accommodation in Australia.