The Polonia Property Fund II Limited has acquired two additional leading designer outlet centers in Poland, the Fashion House Outlet Centre in both Sosnowiec and Gdansk, from The Outlet Company. The architectural theme of the Fashion House Outlet Centre in Sosnowiec is “Victorian”. The center is currently being extended and when completed in September 2008 will comprise 16,700 m² consisting of 956 parking places and 80 retail outlet stores. The Fashion House Outlet Centre in Gdansk resembles a “traditional fishing village”, complete with its own 25 meters high lighthouse. The Centre comprises 9,700 m² with more than 55 retail outlet stores and 685 parking places. Both Centres house top international brands including Mexx, Wrangler, Levi’s, Vero Moda, Reebok, Rossignol, Puma, Nike, Ecco and adidas together with many leading Polish companies such as Solar, Wittchen, Bytom, Vistula & Wólczanka, Monnari and Gino Rossi.

In September 2007 the Fund purchased the largest designer outlet center in Poland, Fashion House Outlet Centre, located in Warsaw. These acquisitions represent a major investment for the Fund making the Polonia Property Fund II Limited a leader in the Polish designer outlet center market.

The three existing Fashion House Outlet Centres in Poland were established and successfully developed by The Outlet Company, a British-Flemish specialist developer of outlet centres.

These Fashion House Outlet Centres, each with a brand-enhancing, distinctive architectural theme, are located in Warsaw (Capital of Poland), Gdansk (northern Poland’s only outlet centre) and Sosnowiec near Katowice (the first outlet in southern Poland), and account for the market-leading group of outlet centres in Poland.

The Outlet Company will retain ownership of the Fashion House Outlet Centre brand and, together with their strategic partner, GVA Grimley Outlet Services, will retain the operational management of Fashion House Outlet Centres at least for a further three years.

Eamonn Crowley, President of the Fund said: ”We are delighted to complete this strategic investment on behalf of investors. The acquisitions represent a major investment for the Fund with excellent leasing levels and good quality tenants."

Miroslaw Januszko, Chief Investment Officer of Polonia II added: “The Polonia Property Fund II Limited is a Euro 800m closed-end property fund managed by AIB PPM Sp. z o.o., a subsidiary of AIB Capital Markets. The Fund’s target is commercial property in Poland, with an allocation of up to 30% to other CEE countries. The fund is actively pursuing additional property investments."

Neil Thompson, CEO of The Outlet Company commented: “In AIB we know we have the ideal partner to continue the major success story of Fashion House Outlet Centres. Acquisition of Fashion Houses in Sosnowiec and Gdansk following on Fashion House Warsaw, is another step in the development of Outlet Centres in Poland. The Outlet Company retains the Fashion House brand and the operational management of all Fashion House Outlet Centres. We believe this alliance will be very rewarding for both parties."

Tom Dootson, founder and major shareholder of The Outlet Company, who began work on outlet centre projects in Poland 10 years ago and acquired their first land in 2001, said: “The Outlet Company has brought international standards to outlet shopping in Poland. When we decided to build here in Poland we wanted to create something special. Fashion House Outlet Centres provide a unique shopping experience that isn’t available anywhere else. Not only are the tenant stores offering bargains all year round, but the design theme within these malls makes for an enjoyable trip out with the family or friends. Now we know that AIB is the ideal partner to continue Fashion House Outlet Centres’ success and development.”

Patrick Van Den Bossche of Liebrecht & Wood, founder and shareholder in TOC said about the sale: “The Polish domestic economic market gives a lot of opportunities for profitable investments. The large market and one of the fastest growing economies in Central and Eastern Europe, where consumer demand for branded fashion is increasing daily, make Poland very special. Investing is profitable not only in the Polish capital but also in other regions that have been growing in economic power. The best proof of this is the sale of these two modern outlet centres in Sosnowiec and Gdansk”.

Rob Bould, Director at GVA Grimley said: ’’The turbulent financial markets are making investors far more selective in their acquisitions. Only those opportunities with a credible investment case for future performance are finding buyers. The Fashion House Outlet Centres in Poland are high quality real estate with a strong and growing brand which easily fulfill this criteria."

GVA Grimley advised The Outlet Company on the disposal and CB Richard Ellis acted as advisor during the transaction process for Polonia II Fund.

Source: GVA Grimley

Thursday 28 February 2008

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