News

Redefine Europe concludes purchase of M1 Marki in Poland

Redefine CEO Andrew Konig.
Andrew Konig, CEO of Redefine Properties.

Redefine Europe has completed its purchase of M1 Marki Commercial Centre in Marki near Warsaw.

A wholly owned subsidiary of JSE-listed REIT Redefine Properties, Redefine Europe will acquire M1 Marki from the Chariot Group for €58.9 million. As part of the transaction, Redefine will sell its 25% equity interest in Chariot Top Group B.V. the sole shareholder of Chariot Group back to the company for €55.2 million.

M1 Marki has a gross lettable area (GLA) of approximately 47 444m2 and it comprises of two main retail buildings (Norauto, Burger King and a Shell petrol station). The centre and its neighbouring properties – IKEA, Decathlon, Agata Meble and Homepark Targowek retail park – forms one of the biggest retail clusters in Warsaw.

The transaction simplifies our offshore platform, and it facilitates the exit of a minority held investment yielding non-recurring income in exchange for a wholly-owned asset generating a recurring income stream” comments CEO of Redefine Properties, Andrew Konig.

Poland is an attractive market for us due to its size and scale and M1 Marki is in Warsaw’s premier retail node. The transaction aligns to our strategic intent of buying into assets which offer good long value appreciation prospects”.

Redefine Europe was set up by Redefine in 2018 for the purpose of holding the company’s European property assets.

The sale of Redefine’s Australian student accommodation portfolio comprising of Uni Place, Leicester Street and Central Swanston Street, has now received the greenlight from the Treasurer of the Commonwealth of Australia. Accordingly, settlement of the Uni Place and Leicester Street sale agreement is expected to be completed on or before the 11th of December 2020.

The settlement of Central, Swanston Street remains subject to Covid-19 pandemic travel restrictions and carries a long stop date of 30 June 2021.  

Our asset platform has been significantly readjusted for prevailing conditions and we are now more focused on a single external geography offshore in Poland. This simplifies our asset platform, improves our risk profile, bolsters our liquidity position and eases our loan to value ratio, which has been under a lot of pressure,” concludes Konig.