Shape-shifting Griffin

Echo Investment and Redefine, one of the largest REIT funds in South Africa and listed on the Johannesburg Stock Exchange, for the latter to buy a 75 pct stake in the company that holds all the commercial assets of the Echo Investment group. According to Griffin and Echo, the aim of the transaction is to establish the first property investment fund with a REIT-style format for properties located in Poland. On the basis of the agreement, Echo Investment will sell a 75 pct stake in Echo Prime Properties, which owns all its office buildings and shopping centres. The remaining 25 pct will remain with Echo Investment. The contract is to come into force subject to consent of the European Commission. The agreed transaction value for the assets amounts to EUR 1.188 bln. (The total value of all its properties, as published in Echo’s Q3 2015 report, comes to PLN 4.48 bln.) According to information disclosed by Redefine, it will be investing EUR 362 mln in the purchase of the 75 pct stake