Wood & Company, as transaction leader, together with its joint venture partner Tatra Asset Management, will initially acquire a 60% interest on the basis of an agreed Total Acquisition Cost (TAC) of €450 Mn (at 100%). The remaining 40% will be acquired through pre-agreed stakes in 2022, 2023 and 2024. The TAC is in line with the appraisal value. The joint venture formed by URW and the purchasers has also refinanced existing debt of Aupark Bratislava by obtaining non-recourse bank financing of €229.5 Mn.
In light of the impact of the on-going Covid-19 pandemic, URW has provided: a three-year rent guarantee equal to a maximum c. 2% of the Gross Market Value (“GMV”); and a participative loan including an earn-out mechanism, with a maximum amount at risk equal to c. 2% of the GMV, and a potential earn-out to URW, which applies should the returns to the purchasers be lower than or exceed the agreed levels.
Completion of the transaction is expected during the first half of the year and is subject to standard conditions precedent such as competition clearance. URW will continue to manage the property, together with Wood & Company, until the asset has been fully acquired by the purchasers and the earn-out mechanism settled, in return for market standard property and asset management fees.