EPP closes €323.9 million refinancing of its core retail portfolio

EPP, one of Poland’s largest asset managers of retail real estate, has secured a €323.9 million loan to refinance existing debt on its fully-owned shopping centre portfolio. The financing covers four prime retail assets: King Cross Marcelin in Poznań, two assets in Szczecin (Galaxy and Outlet Park), and Pasaż Grunwaldzki in Wrocław.

The loan was provided by Santander Bank Polska S.A. (Poland), Erste Group Bank AG (Austria), and Helaba Landesbank Hessen-Thüringen (Germany). The Polish bank also acts as a facility agent, security agent and account bank. The loan has a five-year term with a balloon payment at maturity and no amortisation requirement.

“Securing financing of this scale in the current geopolitical environment is a clear signal of financial institutions’ confidence in the Polish retail real estate market – in the sector’s fundamentals, and above all in the quality of our assets and the strength of our asset management. For EPP, this is another non-amortising facility, bringing us consistently closer to a REIT operating model,” said Tomasz Trzósło, CEO of EPP.

The refinanced portfolio comprises nearly 180,000 sqm of modern retail space, certified BREEAM In-Use at the “Very Good” level or higher, and located in key cities across Poland. Its diversified tenant mix includes leading international and Polish brands such as Auchan, CCC, HalfPrice, Helios, H&M, MediaMarkt, Multikino, Peek & Cloppenburg, Reserved, Smyk, Zdrofit, McDonald’s, Starbucks, Popeyes®, and others.

Dentons advised and provided legal services to the lenders, while the borrower was represented by Greenberg Traurig.