EPP Poland along with Echo Investment have successfully secured a loan worth €145.2m for the new financing of the Galeria Mlociny shopping centre located in Warsaw. The five-year financing was classified as meeting the EU Taxonomy. Galeria Mlociny, owned by EPP (70% stake) and Echo Investment (30% stake), complies with the environmental objective of the EU Taxonomy on climate change adaptation.
Erste Bank Group AG (Austria), Rand Merchant Bank (RMB), a division of FirstRand Bank Limited (Republic of South Africa) and Santander Bank Polska (Poland) acted as arrangers of the new credit facility, with Santander Bank Polska also acting as Facility Agent, Security Agent and Account Bank. The credit facility has a term of five years with a payment at the end of that period and no amortisation requirement.
"The new financing for Galeria Mlociny is the first such large-scale transaction on the Polish retail real estate market after the pandemic. It demonstrates the quality of the building and marks the rebirth of the retail market for investors and providers of capital. The refinancing will have a positive impact on the EPP's balance sheet. It was a complex process due to the value of the loan and the expectations of the lenders, but we concluded it on good financing terms. It was important for the banks that Galeria Mlociny is a green asset that meets the criteria of the EU Taxonomy, and is compliant with the technical screening criteria to prove substantial contribution to climate adaptation and minimum safeguards indicated in the EU Taxonomy delegated acts," said Jacek Baginski, CFO at EPP.
"Galeria Mlociny stands out as a vital component of Echo Investment's portfolio, notable for its green features and strong operational performance. The centre saw both a solid boost in turnover and rise in footfall in 2023, underscoring its appeal to consumers. As a co-owner, we are pleased that Galeria Młociny has also earned the confidence of lenders through successful refinancing. This endorsement serves as a compelling indicator to prospective investors, who are once again seeking out properties that can enhance their portfolios of sustainable real estate," remarks Grzegorz Iwanski, Financing Director at Echo Investment.
Galeria Mlociny is one of the youngest shopping centres in Warsaw. It has quickly become one of the leading retail destinations on the map of the Polish capital with a growing number of customers. The shopping centre is compliant with the environmental objective of adapting to climate change as defined within the EU Taxonomy and is among the 30% most energy-efficient non-residential buildings built before the end of 2020. Galeria Mlociny has the BREEAM In-Use certificate at the Excellent level.
Dentons advised and provided legal services for lenders, while the borrower was represented by Clifford Chance.
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