EPP is taking over the management of nine M1 shopping centres and three Power Parks from Metro Properties Polska. Some of Metro Properties Polska's employees, including local property management teams will join EPP. The company plans to develop the properties through leasing activities and space rearrangements and upgrades.
EPP's acquisition of a portfolio of twelve retail properties (shopping centres and retail parks) with a total area of more than 470,000 sqm, was one of the largest transactions in the history of the Polish commercial real estate market. It was divided into three stages, the first of which was completed in January 2018, the second in June 2019, and the third was finalised in March 2021. The portfolio consists of twelve retail assets, including nine regional M1 shopping centres: M1 Marki, M1 Czeladź, M1 Kraków, M1 Łódź, M1 Zabrze, M1 Bytom, M1 Częstochowa, M1 Radom, M1 Poznań, and three Power Parks: Power Park Kielce, Power Park Olsztyn and Power Park Tychy. The entire portfolio is covered by a property management (master lease) agreement with Metro AG, which expires at the end of April 2024. Due to its termination, as of 1 May this year, management of the properties is transferred to EPP.
“The M1 shopping centres and Power Parks are a diverse portfolio of properties with a long-standing presence on the market. Our aim is to develop the potential of these assets by strengthening their offer and enriching it with new, attractive tenants. We are also planning space rearrangements and upgrades resulting from changes in tenant mix, the age of the properties or ESG requirements. Together with the experienced team of employees of MMetro Properties Polska, who will continue to look after the properties, but from May onwards under EPP's wing, we will successively implement these changes", says Tomasz Trzósło, CEO at EPP.
“M1 is a popular and well-recognised shopping centre brand on the Polish market, firmly established in customers’ minds in central and southern Poland, which started the year with an impressive 99.3% occupancy rate. Last year, 35.5 million customers visited us and tenants recorded an increase in turnover. Power Parks, on the other hand, are strong local retail properties, accompanying customers in their daily shopping. We are handing over the management of this unique portfolio with a very good set of brands and stable, partner relationships with tenants, which are also positively evaluated by industry organisations. Despite their many years on the market, these are centres with high BREEAM certification ratings, consistently upgraded over the years and managed to the best ESG standards. I believe that EPP will successfully develop their potential on the commercial map of the country," says Renata Kinde-Czyż, CEO at Metro Properties Polska.
Thanks to investments and the implementation of a package of innovative measures, the M1 shopping centres have achieved nearly 20% savings in electricity consumption compared to the average consumption between 2018 and 2022. The properties have BREEAM In-Use certificates at Outstanding and Excellent levels.
