Broadcast Type: Interview; Emira Property Fund announces second tranche investment in DL Invests Group, increasing its stake from 25% to 45% in the Luxembourg-headquartered Polish property developer.
edition of the show let's turn our focus to this now emira property fund has announced the second tranche of investment its strategic in d l invests group a luxembourg headquartered polish property developer and investor now this move helps or builds rather on emirates initial twenty five percent stake acquired in august twenty twenty four with the second tranche increase set to its shareholding to forty five percent well jeff janet c e o at emira property fund joins us us on the line to tell more jeff a thank very good evening and you so much for joining us thanks to sipho nice yeah to be on show thank you right so emirates first investment in then die al invests group received that was well talk to us about what specific factors then made the second tranche an attractive opportunity so we always had the opportunity to increase our first trans by entering into the second chance and the second chance is a size of forty five million euros trans whereas our first was fifty five million euros was and it always a plans that we would to take this up want to a collective hundred million euros a a so that we would have forty-five percent stake in invest detail in the which as you said headquartered is a luxembourg polish property company and we've been on this working we needed to get shareholder because approval this is what's called transaction a category one where once you cross size over a certain of your market cap basically being thirty percent you need to get your shareholders to approve and good news was did that the shareholders make did approve today with an overwhelming vote of ninety-seven point eight percent of shareholders that voted were in favour of it it was it so was great to receive such validation and support from our shareholders us to and for then enter into the which second trans is really company good for us as a improves our diversification and a really it's a it's good investment ja certainly us also about talk to what makes in the polish market and specifically dl invest group such attractive investment an opportunity then for emira so first thing is in terms the of the economy the polish economy is has been growing significantly over the last twenty years in fact g d p the p per capita has been second only to basically china and close now pretty india's following suit so the economy certainly been growing has it's a open economy services it central eastern and a bit of western europe the sector that we are particularly in on focus is the logistics sector companies that's where have got warehouses and they are busy utilising those distribution centres and our our partner deal invest build them and they own and they operate them them and we we unfortunately met the d o invest team two years probably about ago took us a long time to make sure we understood each other got the principles right and and they're an organization that's been around since two thousand and seven it's about two hundred and forty hundred and fifty people to two that make up invest now deal it's owned by predominantly a gentleman owned by by the name of dominic licensee and they've there's many characteristics of invest this deal that emira property fund have important and so for us to enter into transactions people that we know with and understand similar have a culture to us hard they like to work they they a good product were and they in there for the long term it was a that so was a marriage was we thought that was was well made certainly ja jeff talk to us in also because mirrors then also a significant investor in united states the how does this in poland new stake then impact mirrors geographical sort of diversification strategy ja so so uptake pointed because now it out after the second chance we've now got thirty seven percent of our total base invested asset offshore whereas our us investments comprised now sixteen percent of our total assets and our polish investments now twenty was one percent this always a longer term to get to goal for us between thirty and forty percent level which we think is of diversification the right level that we wanted and but two investments those stand separately from each other the one could be just by itself and collectively but it actually works quite nicely because got us dollar you've exposure and you've got euro exposure and then we're out balance assets here of our in south africa so good diversification it's a mix and certainly lot of comfort gives us a in terms of participating the different cycles in that are u s there in the in poland and in south africa in closing jeff with a mirror has committed then you know to an investment five term of to six years what are the key talk to us about milestones then hope to achieve that you during this period guess what will and i define then this success then of this investment so the investment is structured on the basis that we get paid a keep on or a yield on an annual basis of seven point two percent in euro and then at the end of between and six five years there's a redemption event that redemption and event allows us shares to sell our to the back back to the company or to the controlling shareholder and receive a healthy payment for that at a fixed price and so so that's a different type investment in terms of of in comparison equity to normal where you don't really have event a redemption but some of the signs that sort of see that we that will define it's been a success whether or not is the a ability to redeem first of all but secondly the company company has just over seven hundred million euros of assets at the moment and they are certainly on target to a billion exceeding seven hundred million euros in assets and their on target to achieve a billion euros and and to have a majority exposure in the logistics sector and to be profitable and we know a lot that we can of the things actually bring to the table to help them actually continue and in terms perform well of their roll out of new developments their so there'll operational be a number of measures that we'll see but essentially be able to we'll see that in the nearer financials in terms of the servicing of our coupon of our yield and the the growth up to the redemption value so i those will be think the signs that you can see ja certainly leave it we're going to have to there jeff but pleasure speaking it's been a to you this evening thank so much you thank you ms eva alright that was jeff janet c e o at emira property fund of course taking us through that acquisition by emira property fund of a further interest in in die al invest group and that taking us to just pass six here on power thirty business let's turn our focus