Emira Property Fund has entered into multiple agreements with DL Invest Group and its fully owned subsidiary, DL Invest Group SA, that will see Emira acquiring a 25% managing interest in the issued shares of the Polish property company.
DL Invest, headquartered in Luxembourg, operates through its subsidiaries, collectively called the DL Group, which focuses on developing and managing logistics centres, mixed-use and office buildings, and retail parks across Poland.
The DL Group’s business model, supported by its roughly 232 employees, involves managing the entire investment process and overseeing projects over the long term. To facilitate the proposed transaction, DL Invest has introduced class B redeemable ordinary shares, while converting the existing ordinary shares into class A shares.
Under the subscription agreement with DL Invest Group and DL Invest, Emira will invest about €55m (R1.05bn). This investment includes subscribing to 141 new B shares and 141 9% loan note instruments. Each note is linked to one B share.
Some of the terms for the B shares outlined in the investment agreement and DL Invest’s articles of association include that Emira, as the holder of the B shares, is entitled to receive notice of, attend and vote at any general meeting of shareholders of DL Invest.
In addition, reserved matters will require the written approval of Emira for as long as it holds at least 25% of the DL Invest shares. It will also have the right to appoint one director and one observer to the DL Invest board.
Emira CEO Geoff Jennett said recently interest rate cuts would be beneficial to the property sector as a whole.
The SA Reserve Bank is widely expected to deliver its first rate cut since the early part of the Covid-19 pandemic at its next meeting ending on September 19.
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