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CMS advises PZU on the financing of one of the biggest transactions in the Polish real estate market

11/06/2015

CMS has successfully advised PZU on the financing of one of the biggest transactions on the Polish real estate market – Echo BV’s acquisition of Echo Investment.

A 41.55% stake in real estate developer Echo Investment was acquired by Echo BV, indirectly owned by Griffin Topco III (controlled by funds managed by Oaktree Capital Management, L.P.) and Bravo II (fund managed by Pacific Investment Management Corporation). The main stakeholder of Echo Investment – one of the largest Polish-financed development companies in the CEE region – was Michal Solowow, a Polish businessman.

The Echo Investment acquisition was one of the largest transactions on the Polish real estate market, and was approved by the European Committee on 22 May 2015.

The transaction was financed by the Universum Specialized Open-end Investment Fund, a subsidiary of PZU, Poland’s largest insurance company.

The acquisition of the 41.55 per cent stake in Echo Investment was financed from a five-year loan granted by the PZU fund. The total value of liabilities under agreements concluded with the companies acquiring Echo and the guarantee agreement concluded by PZU is not to exceed PLN 1.665 bln.

The CMS team included: Beata Barwińska, Of Counsel, Paula Hryckowiak and Anna Wawrzyńczak, Senior Associate.

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Beata Barwinska - Piotrowska