INTRODUCTION
As announced on 12 August 2016, Rockcastle concluded the preliminary agreements to acquire the shopping centres known as Focus Park Zielona Góra (“Focus Park”) and Focus Mall Piotrków Trybunalski (“Focus Mall”) in Poland from Focus Park Zielona Góra Sp. z.o.o. and Focus Park Piotrków Trybunalski Sp. z.o.o respectively (“the transaction”). Rockcastle is pleased to announce that all conditions precedent have been met and the transaction was concluded effective as of 30 November 2016.
FOCUS PARK – ZIELONA GÓRA, POLAND
The shopping centre, with a GLA of 26,800m2 opened for trading in 2008 and is the largest retail destination in the city of Zielona Góra with a population of 138 000 inhabitants.
With an annual footfall of over 5.2 million, Focus Park has the highest footfall in the region. The shopping centre is tenanted by strong retailers including Bershka, C&A, CCC, Cinema City, Deichmann, Empik, H&M, KFC, McDonalds, New Yorker, Reserved, Rossmann and Smyk.
The site allows for a shopping centre GLA extension of at least 12,000m2 and it is Rockcastle’s intention to apply for the necessary permits approvals to undertake the extension which is being driven by high tenant demand.
FOCUS MALL – PIOTRKÓW TRYBUNALSKI, POLAND
Situated in central Poland, Piotrków Trybunalski with 75 608 inhabitants, Focus Mall was opened in 2009 and remains the only modern 3rd generation retail destination in town. The centre offers 35,168m2 GLA divided across two retail levels.
With an annual footfall of over 4.2 million, Focus Mall is located on the western fringe of the city in the centre of a dense residential area comprising high-rise blocks of flats.
Key tenants in the centre include CCC, C&A, H&M, Helios Cinema, KFC, Martes Sport, New Yorker, Pepco, Reserved, Rossmann and Smyk. In addition, a new lease has been signed with Carrefour to open a 3,444m2 supermarket which will strengthen the current retail offering.
PURCHASE CONSIDERATION
The aggregate purchase price for the transaction was EUR160 million which was settled from Rockcastle’s existing cash resources and represents an average acquisition yield of approximately 6.5%.
CATEGORISATION
The transaction is categorised as a category 2 transaction in terms of the JSE Listings Requirements and accordingly all the relevant information relating to the transaction was announced in the reviewed summarised consolidated interim financial statements released on 12 August 2016. The transaction has been undertaken in the ordinary course of business of Rockcastle and therefore did not trigger the provisions of Chapter 13 of the Listing Rules of the Stock Exchange of Mauritius Ltd (“SEM”).