Redefine Properties is to expand its Polish property platform with the acquisition of a strategic 25% stake in a €1 billion retail portfolio of 28 assets in Poland. Redefine is co-investing with Pimco and Oaktree Capital Management who will each have 37.5% of the portfolio which is being acquired. Key locations in the portfolio stretch from Warsaw to growing regions across the country like Krakow and Silesia.
The 28 retail properties comprise a shopping centre portfolio of nine leading mid-market hypermarket anchored shopping centres with total gross leasable area of 383,000 sqm, the Power Park portfolio of four smaller hypermarket anchored big-box retail centres of 114,000 sqm and a Hypermarket portfolio of 12 hypermarkets with small line shop retail components comprising 181,000 sqm and a DIY portfolio of three standalone DIY stores of 26,000 sqm.
The portfolio was initially developed between 2004 and 2005. There are a number of value add opportunities in the portfolio including the redevelopment/extension of approximately 60,000 sqm.
The transaction prices has not been disclosed as of yet. However, Redefine anticipates a yield of app. 7.7%.