Redefine Buys Stake in $1.3 Billion Polish Real Estate Companyby
South African buyer to pay 362 million euros after debt
Acquisition includes office space, shopping centers in Poland
Redefine Properties Ltd. agreed to buy a majority stake in Echo Prime Properties that values the real estate firm at 1.19 billion euros ($1.3 billion) and boosts the South African company’s international footprint in Poland.
Redefine will pay 362 million euros for a 75 percent stake in Echo once the target company’s debt is taken into account, the Johannesburg-based buyer said in a statement on Tuesday. The deal will be funded by offshore bridge financing to be settled by the sale of convertible bonds in Europe.
Echo owns a portfolio of office and retail space in Poland, with about 75 percent of the space comprising 10 shopping centers, Redefine Chairman Marc Wainer told reporters in Johannesburg. Tenants include technology companies Nokia OYJ and Samsung Electronics Co. The company’s offshore assets will increase to 25 percent of the total property portfolio following the deal, which is subject to regulatory approval by Oct. 31, the company said.
Redefine plans to reduce its Echo shareholding to about 50 percent through the sale of a 25 percent stake to selected co-investors, the company said. Its shares gained 0.1 percent to 10.30 rand as of 3:37 p.m. in Johannesburg, valuing the company at 50 billion rand ($3.2 billion).