Rank Progress has just recently concluded a preliminary agreement with Austrian IMMOFINANZ Group regarding co-operation in the execution of a commercial retail project in Piła. According to the signed document, the Austrian company will take over the development project Galeria Piła and refinance the costs incurred in association with executing the investment in Piła up to the date of the final agreement’s signature.
Additionally, IMMOFINANZ will take-over the further financing up to the date of completion. The net amount which Rank Progress shall receive as a result is 56 million PLN (approx. €13.4 million). The acquired resources shall be allocated especially towards reduction of the Group’s debt. The transaction is subject to several closing conditions.
Furthermore, it has been established that the Legnica based company will resume the project management and carry out the lease process for the Pila project. For that work the company will receive market-based compensation which will depend on the achieved results. Based on an earn-out agreement, Rank Progress will participate in the development profit in a certain agreed percentage after two years.
— We are very happy that we have gained such a reliable and reputable partner. I hope that the concluded agreement will be the first step towards further co-operation with IMMOFINANZ – says Jan Mroczka, president of Rank Progress.
As both parties emphasize, a possible further co-operation is being examined and can involve the joint execution of investments already in development as well as the acquisition of investment projects with development potential on the market.
Construction of Galeria Piła commenced in mid September 2013. The center’s opening is planned to take place in Q4 of 2014. The shopping center’s leasable area is 23,800 m². Approximately 60 retail and service premises will be created. The structure will feature a car park with over 800 parking spots. The building’s total area will be 34,5000 m². Over 70 per cent of the Gallery’s area is already leased.
Besides Galeria Pila, this year Rank Progress plans to commission the Pogodne Centrum in Oleśnica, and most likely also the retail park in Krosno. At the same time the company is planning to move forward with the construction of the Aviator gallery in Mielec.
Source: Rank Progress