Subsidiaries of Allianz-owned Pimco and Oaktree Capital Management have confirmed the joint purchase of a 41.55% stake in Polish property developer Echo Investment in what is reported to be one of the largest ever real estate deals in Poland.
The European Commission has approved the transaction by Luxemburg-based Griffin Topco III and LVS II Lux XX. Griffin belongs to Oaktree and LVS II Lux to Pimco. Oaktree and Pimco are both headquartered in California.
Oaktree Capital and Pimco said they would launch a tender offer to raise their stake in Echo to 66%.
Echo, capitalised at $775m, has been listed on the Polish stock exchange since 1996 and was formerly controlled by Polish billionaire Michal Solowow.
The tender offer will be guaranteed by PZU, Poland's leading insurer.