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EPP CEO Hadley Dean on why he remains bullish on Poland
JSE-traded EPP is a pure Polish retail property fund which achieved a total return of 21 per cent in 2018. EPP outperformed the property market with a significant difference from the benchmark index on the JSE property index SAPY, set at a total return of 25 per cent. Hadley Dean, CEO of EPP joins CNBC Africa for more.
Thu, 31 Jan 2019 11:15:11 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Strength of the Polish economy with favorable wage growth, low unemployment, and a growing middle class driving market opportunities
- Focus on exclusive Polish market position for strategic advantage in capitalizing on economic conditions
- Emphasis on large, dominant shopping centers in Poland's retail landscape for sustainable investments
EPP, a JSE-traded pure Polish retail property fund, has been making waves in the market with a total return of 21% in 2018, outperforming the benchmark index on the JSE property index SAPY by 4%. Hadley Dean, the CEO of EPP, recently sat down with CNBC Africa to discuss the reasons behind his bullish stance on the Polish market. Dean pointed out that the key to their success lies in the strength of the Polish economy. With double the wage growth of the EU average, record low unemployment rates, and a burgeoning middle class with Western European consumption patterns, Poland presents a ripe opportunity for growth. EPP's exclusive focus on the Polish market allows them to capitalize on these favorable economic conditions. Dean emphasized the importance of focusing on one asset class and being the best in that market, which aligns with EPP's strategy. Despite potential risks such as political uncertainties surrounding the ruling party in Poland, Dean remains confident in the resilience of the economy. He highlighted the government's efforts to maintain a stable economic environment, reflected in decreasing GDP to debt ratio. When asked about the potential impact of Brexit on the Polish market, Dean acknowledged the uncertainty but expressed optimism about the positive effects of Polish communities returning to their homeland. However, he underscored the need for an amicable resolution to the Brexit situation for the benefit of all parties involved. In terms of EPP's investment strategy, Dean explained that the company focuses on large, dominant shopping centers with an average size of over 30,000 square meters. Unlike Western Europe, Poland has a unique retail landscape with minimal high streets, leading to 70% of retail transactions occurring in shopping centers. Dean believes that this trend sets Poland apart from other markets and creates a sustainable environment for EPP's investments. Overall, Dean's positive outlook on Poland's retail property market reflects EPP's commitment to leveraging the country's economic strengths and unique market dynamics for continued success.
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