Meridian Properties has begun process of the first public offering on Warsaw Stock Exchange. If the IPO will be successful then before the end of this year the company will buy two real properties located in Warsaw. The estimated income from the spread amounts approximately 170 M. Euro.
Keeping in mind the size of Polish capital market, its liquidity as well as the positive perception of Polish stock market in the region and the entire European Union we decided to introduce our offer and shares on GP. For this reason, in our opinion, it goes without saying that the regional company in CEE, Meridian Properties wants to be listed on Warsaw Stock Exchange. Seeing that some of the potential acquisition which we are currently concerned with, are situated in Poland, we can say that Poland becomes an important direction of our development plans – comments Yannis Delikanakis, President of the Board of Meridian Properties.
Transactions associated with the Polish office market are in advanced stages of negotiations. The class A space is available in both buildings. The space in the first building, built in 2013, equals to 16 500 sqm, and at the moment is rented 100 per cent. The second of them was commissioned in 2012 and introduced 16 000 sqm into the market and is commercialized in 85 per cent. In the future Meridian Properties plans to buy the third office real property in Warsaw.
The funds gained via IPO are planned to be used for purchase the prime real estate portfolio consisting of 9 real properties (6 office buildings and 3 shopping centres) in Bulgaria, Czech Republic, Hungary and Romania. In order to do this Meridian Properties plans to spend 87.7 M. Euro. The company plans to use those funds for the partial loan repayment associated with the aforementioned prime portfolio (17 M. Euro) as well as completion of successive real property acquisitions (57.4 M. Euro). The IPO costs are estimated at 8 M. Euro.