SA Property Agency Redefine Properties Acquires Poland’s Largest Retail Landlord EPP. SA Property Agency Redefine Properties Acquires Poland’s Largest Retail Landlord EPP. South African property agency Redefine Properties has announced that it has acquired Poland’s largest retail landlord called EPP.
According to Redefine Properties, the deal, which is still subject to finalisation and regulatory requirements, amounts to an estimated R7.2 billion in additional equity for Redefine and adds around R19.7 billion of total assets onto its balance sheet. “I was very pleased and encouraged by the high level of Redefine’s shareholder support, with an approval of 78.3% being achieved. We have always been bullish on the Polish retail market and all indications are the Polish economy will grow in excess of 4% this year. Retail sales are on the rise and we are excited to now have a single entry point into this market via Redefine.” said Redefine CEO Andrew Konig in a statement.
Tomasz Trzoslo, CEO of EPP said in a statement, “I am glad that our investors supported EPP delisting and restructuring proposals with a large majority. It was not an easy decision to make. I believe that once the company’s reorganisation is completed, EPP will be in a position to return to the growth path, as well as to regularly deliver dividends to its shareholders.”
With EPP unable to pay dividends for the past two years and facing significant loan maturities in 2022 and 2023, the deal’s core objective is to significantly reduce EPP’s debt through a liquidity generating restructure, which will restore it to a dividend paying position. Konig also explained as the controlling shareholder of EPP that Redefine will be in a stronger position to drive initiatives to return EPP to a dividend paying position in the short term, thereby delivering improved distributions to Redefine shareholders.
“Redefine’s shareholders will obtain additional exposure to prime Polish retail assets directly held through EPP and there will no longer be two listed entry points to EPP, providing Redefine with a differentiated investment proposition on the JSE and potentially enhanced liquidity. This is a win-win and I believe this is why the results of the shareholder votes were so overwhelming,” Konig concluded.