Dentons has advised Santander Bank Polska S.A., Erste Group Bank AG and Rand Merchant Bank, a division of FirstRand Bank Limited, on a €145.2 million loan extended to EPP and Echo Investment for the refinancing of the Galeria Młociny shopping center in Warsaw. It is the first such large-scale transaction on the Polish retail property market since the pandemic.
The financing banks were the arrangers of the new credit facility and Santander Bank Polska also acted as facility agent, security agent and account bank. The financing was classified as meeting the EU taxonomy for sustainable activities, because Galeria Młociny complies with the environmental objective of adapting to climate change.
“It was with great satisfaction that we advised on the refinancing of Galeria Młociny – a prestigious project – after having advised on its construction financing in 2017. We are also pleased that once again, we had the opportunity to support banks financing investment projects that contribute to the achievement of sustainable development goals in Poland. We hope that the success of this multi-faceted transaction will lead to greater involvement of foreign financial institutions in projects implemented in Poland”, said Bartosz Nojek, partner in Dentons’ Warsaw office and Co-Head of the Banking and Finance practice team.
One of the newest shopping centers in Warsaw, Galeria Młociny holds the BREEAM In-Use certificate at the Excellent level. This multifunctional building offers about 81,000 sqm of retail and office space with more than 200 shops and 50 cafes. It is owned by EPP (70 percent stake), the largest asset manager of retail real estate located in Poland in terms of gross leasable area, and Echo Investment (30 percent stake), the biggest Polish developer.
Dentons supported the lenders in preparing, negotiating and signing the finance documents and securities as well as advised on related real estate matters.
Counsel Patrycja Polasz led the project, supervised by partner Bartosz Nojek, with support from Katarzyna Kaptur (associate) and Aleksandra Grześkowiak (associate) from the Banking and Finance practice as well as Paweł Długoborski (counsel), who was responsible for the ISDA documentation. The transaction team also included partner Bartłomiej Kordeczka, Poland Co-Managing Partner and Deputy Head of the Real Estate practice, and Karolina Kordulska (associate).
