pbb and HSBC have jointly underwritten an investment and development facility totalling €117m for the Valad Polish Retail Fund, which is managed by Valad Europe, part of Cromwell Property Group.
The proceeds will be utilised for the refinancing of existing loans and for the 20,000m² extension of the prominent Janki Shopping Centre in Warsaw, Poland. pbb is acting as arranger, facilitator and security agent of this transaction, with the underwriting of the facility being jointly provided by pbb and HSBC. The transaction closed in April 2016.
With gross lettable area of over 46,000m², Janki Shopping Centre, is one of the most prominent shopping centres in the southern Warsaw region, benefiting from a catchment area of approximately 350,000 inhabitants; it has no direct local competitor.
The centre was built in 1999 and is currently fully let to a diverse tenant mix, including retailers such as an Auchan hypermarket, H&M, C&A, Nike/ Adidas, CCC and Go Sport. To build on its market position and provide an even more compelling retail experience, the centre is undergoing a significant extension, which will result in around 20,000m² of additional lettable space along with 2,843 new car parking spaces.
Karol Pilniewicz, Valad Europe’s head of CEE, said: “Centrum Janki occupies a prime location in an established retail destination, south of Warsaw. The decision to invest in Centrum Janki was based on its dominance of the local market as well as the improved accessibility provided by new infrastructure.”
Charles Balch, head of international clients, UK & CEE at pbb Deutsche Pfandbriefbank said: "We are pleased to have worked with our partner HSBC to support the financing of this dominant shopping centre. The planned extension will further contribute to the success of this scheme. This is another transaction we have been able to complete with Valad, an important client whom we have been supporting across Europe for many years.”
Martin Reichel, head of wholesale, HSBC Bank Poland said: “Valad has been successfully managing commercial properties across Poland. We’re happy to support Valad in their latest undertaking in Warsaw area – extension of one of the city’s key shopping centres with many prominent tenants, including top international and Polish brands. Valad’s planned investment demonstrates continued interest of international corporates in tapping into the opportunity resulting from strengthening purchasing power of local consumers as the country’s economy continues rapid development. We are also happy to work with our new partner, pbb, on this transaction and are hoping to continue this successfully started collaboration in the future”.
