South African REIT invests in €1b Polish portfolio

Redefine Income Fund, a South Africa–based REIT, has purchased a majority stake in a 4.6 million-square-foot portfolio of properties in Poland from Echo Investment and Griffin Real Estate.

The Polish portfolio has a property value of €1.1 billion ($1.29 billion). For a 75 percent stake, Redefine Income will pay approximately €825 million ($968 million). The sellers will retain the remaining stake.

Redefine Income Fund’s strategic goal is to continue expanding its portfolio of attractive commercial spaces. The deal opens the company to new investment opportunities in both the Polish and other foreign real estate markets.

The firms will create the first real estate investment fund with a formula based on the type of properties in Poland in which the REIT has invested. The company will be managed by Griffin Real Estate.

According to the agreement, Redefine Income Fund also will have, over the next three years, the right of