KWKR projects worth remembering: comprehensive advisory for PKO TFI
As part of our rebranding, we would like to share the most significant projects that showcase the strength and experience of KWKR. This time, we would like to present advisory projects carried out for PKO Towarzystwo Funduszy Inwestycyjnych S.A. – an investment fund focused on real estate and a member of the PKO Bank Group. Working with one of the largest financial institutions in Poland and a market leader in the Central and Eastern European region confirms our position as a trusted partner in the most demanding commercial real estate transactions.
Record transaction in the retail market – sale of a retail park portfolio
KWKR experts supported the sale process of six retail parks located across Poland: Głowno, Przemyśl, Puławy, Kalisz, and two properties in Świdnica. The buyer was the Lithuanian investment fund Tewox AB, managed by the London-based company Lords LB Asset Management. This was one of the largest retail market transactions in Poland in 2023.
The project required the commitment and mobilization of the entire real estate department due to the client’s profile as a public banking institution. Our support included comprehensive legal advisory in preparing the real estate asset sale process, including vendor due diligence and clearing of property titles, as well as drafting and negotiating transaction-related agreements – brokerage agreements, letters of intent, preliminary agreements, and sale agreements.
Multi-layered project complexity
The transaction was particularly complex due to its multi-party nature and the fact that it involved six properties simultaneously. Additional complexity arose from the buyer’s use of bank financing for the purchase and the need to repay the seller’s obligations, which required modifying the transaction structure to account for the interests of the financing banks on both sides. The harmonious cooperation of three law firms involved in the project enabled its efficient and timely closing in August 2023.
The real estate asset sale process covered a wide scope of highly specialized work
Due diligence and legal analysis: We conducted a comprehensive review of each property, providing recommendations and possible remedial measures. Particular attention was paid to the commercial use of the retail parks, which required meeting additional health and safety requirements due to large numbers of people in enclosed spaces.
Documentation audit: We audited the documentation of the special purpose vehicles (SPVs) for completeness and prepared a legal opinion on the taxation method for the planned transactions.
Negotiations and structuring: We led negotiations for the sale process with the party granted exclusivity, including participation in negotiations aimed at signing the sale agreement with the client.
Our due diligence work allowed us to eliminate potential future risks, enabling the client to proceed smoothly with the sale process of each retail park.
Significance for the market and KWKR’s position
This transaction was one of the largest in the retail market in 2023, enabling PKO FIZ to make a balanced exit from its investment and allowing Tewox AB to expand its extensive portfolio of commercial properties. Thanks to our experience in providing this type of service to clients in the banking sector, and despite time pressure and the responsibility arising from our client’s market position, the work was completed successfully.
The success of this project confirms KWKR’s ability to handle the most demanding multi-property transactions and strengthens our position as the preferred legal advisor for leading financial institutions in Poland.