POLAND EPP seals M1 portfolio buy for EUR 106 mln

The transaction, which according to Griffin is the largest on the Polish market since the beginning of the pandemic, concerns four Power Park retail parks with a combed 110,000 sqm gla – in Olsztyn, Opole, Kielce and Tychy.

It completes the third and the final tranche of the acquisition of the M1 retail portfolio, consisting of the M1 Czeladź, M1 Kraków, M1 Łódź and M1 Zabrze shopping centre in the first tranche, totalling 194 400 sqm gla, which was concluded in January 2018 for EUR 692.1 mln. The second tranche eventually comprised M1 Radom, M1 Bytom, M1 Częstochowa and M1 Poznań with a combined 141,000 sqm gla and a GAV of EUR 224 mln, which was finalised at the end of June 2019. The final tranche was to have been transferred in June 2020, but due to the pandemic the closing of the deal was postponed until March 11th 2021 and the price reduced from EUR 111.5 mln to EUR 106 mln. The latest acquisition was financed from available cash reserves and new debt funding of EUR 45 mln (with a project LTV of 42.5 pct).

This highly diversified and attractive portfolio of assets that we purchased in 2018 has proved over time to continue to be well performing assets, thanks to their great locations and accessibility as well as attractive rent levels and long WAULTs. The properties can also boast key tenants from sectors that have proven to be resilient to the pandemic. Last year, we extended contracts with Auchan for another ten years, which is definitely a sign of long term confidence in the projects. The first transaction performed by Chariot was quickly followed by the acquisition of the remaining assets. The properties in our portfolio overall have a long history of good sales results, which translates into their resilience even in unusual times. This transaction proves that despite the turmoil on the market caused by the pandemic, retail has still a bright future ahead.
Piotr Fijołek, the senior partner at Griffin Real Estate responsible for the Chariot platform

Chariot Top Group was launched in 2018 as a joint venture between its manager Griffin Real Estate and a consortium of its strategic partners – Pimco, Oaktree and Redefine – when it finalised the acquisition of 28 retail assets. Chariot then agreed to sell part of this, the M1 portfolio, to EPP. Chariot’s portfolio now consists of the M1 Marki shopping centre and twelve hypermarkets, with a combined 230,000 sqm gla. Redefine is also a major shareholder in EPP.