Pivotal Global Proprietary Limited (a wholly-owned subsidiary of Pivotal) (“Pivotal Global”) has acquired approximately 6.1% of Echo Prime Properties B.V. (“EPP”) from Redefine Properties Limited, who hold a 50% interest in EPP.
EPP owns a €1.19 billion portfolio of prime real estate assets throughout Poland. The EPP portfolio has a 77% retail basis, by value, with the balance of 23% in offices. EPP has development pipeline with a value of completion in excess of €500 million, given EPP’s right to share in the profit derived from the sale of certain assets currently being developed by subsidiaries of Echo Investments S.A. (“Echo”), the current shareholder of EPP, and in respect of which EPP has a right of first offer to acquire.
Pivotal’s investment in EPP is in keeping with the strategy of investing 15% of its assets in mature emerging markets, offering the company an opportunity to invest in a number of high-quality properties with attractive yield spreads. The transaction in addition offers participation in EPP’s substantial development pipeline.