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Redefine Properties fulfills all conditions necessary to seal its 1.2 billion Euro investment into high-yielding commercial platform in Poland

1st June 2016
Contributor: Redefine Properties

Redefine Properties fulfills all conditions necessary to seal its 1.2 billion Euro investment into high-yielding commercial platform in Poland Today Redefine Properties has fulfilled all of the conditions necessary to finalise its 75% plus one share investment into a 1.2 billion Euro high-yielding commercial platform comprising 18 properties in the Polish market.

This sees the agreement with Echo Investment S.A. and Echo Prime Properties B.V. (EPP) in terms of which Redefine will acquire a majority interest in EPP, being officially implemented from June 1.

As we announced in March, this deal significantly advances our international strategy as it brings the right partners together and has the ability to take our international diversification to the next level.

The deal is the largest ever real estate investment transaction in Poland, as well as the largest ever single transaction of income generating real estate assets in Central Eastern Europe.

However, it was always Redefine's intention to reduce its shareholding in EPP to approximately 50% through the immediate on-sale of approximately 25% of EPP's total issued shares.

We have concluded agreements with a consortium of co-investors whereby they will acquire from Redefine a beneficial interest in 25% of EPP's total issued shares, which has the effect of reducing Redefine's beneficial shareholding in EPP upon implementation of the EPP transaction to around 50%.

The co-investment transactions are being implemented on a back-to-back basis with the EPP transaction with the co-investors effectively assuming the commercial rights and obligations associated with their shareholding in EPP on 1 June 2016.

The future expansion pipeline of this transaction is extremely exciting for us.

The deal is complemented by a right of first offer on over 500 million Euro worth of newly developed properties from the large retail and office development pipeline of Echo, with more than 80% of the projects expected to be delivered within the next two years.

Redefine's 25% participation right in these developments gives it access to the exciting growth potential of a pipeline of properties via profit share if these properties are sold to third parties.

Poland has a large, stable and liquid real estate market and it is a great opportunity for us to be able to diversify into an offshore growth region like this and for our shareholders to benefit from the returns that will emanate from high quality, modern and sizeable properties.

Andrew Konig
Chief Executive Officer

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