Polonia II acquires Polish outlet centers

An €800m fund managed by Allied Irish Bank has bought two further assets in Poland.

Polonia Property Fund II has acquired the Fashion House Outlet Centre in Sosnowiec and Gdansk in Poland from The Outlet Company.

The purchase comes six months after Polonia II bought the Fashion House Outlet Centre in Warsaw – the largest outlet center in Poland from the same British, Flemish developer.

Under the terms of the deal, The Outlet Company will retain ownership of the center brand and, together with strategic partner, GVA Grimley Outlet Services, will retain the operational management of the assets for at least another three years.

Polonia Property Fund II is an €800 million ($1.2 billion) closed-end vehicle managed by a subsidiary of AIB Capital Markets, itself part of Allied Irish Bank.

The fund’s target is commercial property in Poland, with an allocation of up to 30 percent to other countries in Central and Eastern Europe.

According to Polonoia, The Fashion House Outlet Centre in Gdansk resembles a “traditional fishing village” complete with an unusual feature in the shape of a 25-meter lighthouse.

Miroslaw Januszko, Polonia's chief investment officer, said the fund was actively pursuing additional property investments while Rob Bould, a director at property services firm GVA Grimley, said the deal was indicative of the market. “'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,” he said.