EPP and HENDERSON PARK form a new property joint venture
HENDERSON PARK ENTERS POLISH MARKET WITH ACQUISITION OF 70% STAKE IN 105,000 SQM OFFICE PORTFOLIO AND FORMS NEW JOINT VENTURE WITH EPP5
Henderson Park, (the ‘Company’), the pan-European private equity real estate platform, announces that it has completed the acquisition of a 70% interest in a portfolio of 11 newly built office buildings located in tier one cities in Poland from EPP, a leading Polish real estate investor which is listed on the Johannesburg Stock Exchange (JSE). EPP will retain a 30% stake in the portfolio and continue to manage the assets, in partnership with Henderson Park’s experienced asset management team.
This transaction provides Henderson Park with strategic exposure to the Polish market at an attractive entry price, via an established local platform with a strong track record of operating in the country.
The fully-let portfolio comprises 105,000 sqm of primarily brand new Grade A office space across 11 buildings, which are located in three of Poland’s top five largest cities:
O3 Business Campus in Kraków, Poland’s second largest city, comprising three 11-storey buildings totalling 55,765 sqm and 1,205 parking spaces;
Malta Office Park in Poznań, Poland’s fifth largest city, comprising six individual buildings of five to six storeys totalling 29,065 sqm and 599 parking spaces, and;
Symetris Business Park in Łódź, Poland’s third largest city, comprising two ten-storey buildings totalling 19,287 sqm and 383 parking spaces.
All the assets hold a BREEAM Very Good rating, offering flexible floor plates and high-quality finishes. The portfolio benefits from a diversified income base from more than 40 international and domestic tenants dominated by strong covenants such as McKinsey, Philips, Nordea Bank and Grant Thornton, with an average office area of 2,500 sqm per occupier. Each asset occupies a strategic city centre location within its respective regional market and benefits from excellent visibility and access to a range of public transportation options.
While continuing to deliver solid growth, with GDP rising 5.1%(1) in 2018, Poland is also one of Europe’s most stable economies and presents compelling macro fundamentals with strong prospects. Coupled with a low unemployment rate and high levels of disposable income, Poland is attracting rising investment volumes while the growing presence of major international corporates has contributed towards establishing the market as a high-performing service-driven economy.
Nick Weber, Founding Partner of Henderson Park, commented: “This transaction marks our entry into the Polish market, where we see great potential, and at an attractive entry level. Structuring this deal alongside a listed company fits well with our ethos of finding unique and innovative ways to access real estate investment opportunities on behalf of our investors. We look forward to both working alongside EPP, an experienced blue chip company, to manage these institutional quality office assets, and expanding our partnership in the years to come.”
Hadley Dean, CEO of EPP, said: “This partnership will allow Henderson Park and our office tenants to benefit from our know-how and experience as they continue to enjoy office management services of unparalleled quality. At the same time, it allows us to focus on our stated strategic goals involving developing and populating our retail portfolio in one of Europe’s most dynamic markets. We believe this is the best solution for our tenants and our shareholders”.
The legal advisers involved in the transaction included Linklaters (Henderson Park) and Dentons (EPP), while EPP’s commercial adviser was Colliers.