Wolf Theiss advised on the restructuring of Tesco’s real estate portfolio

Warsaw, 12 April 2022 – Tesco Group, one of the worldwide leading supermarket brands, relied on the legal expertise of Wolf Theiss in the sale of more than 25 shopping centres to various buyers such as major developers (ECHO group, other developers), DIY chains (Leroy Merlin, Castorama) or retail and logistic operators.

Our engagement considered the most attractive commercial locations in major Polish cities: Warszawa, Kraków, Łódź, Wrocław, Poznań and Gdynia. Most of the deals originated in the period before or at the beginning of COVID, and the negotiations were affected not only by the pandemic but also by material legal events, such as expropriations (development of national roads and an underground metro line) or changes in the legal environment. Despite the difficult market and legal conditions and the necessity to negotiate with various buyers, the commercial and legal risks were identified and managed to our client’s satisfaction.

This transaction marks a changing era in the commercial real estate industry, as many shopping centres built in the late 1990s will be completely redeveloped or will re-emerge as a new type of commercial property.

The whole process demonstrated that the Wolf Theiss team can structure transactions involving challenging or even distressed assets. The office was involved in all stages of the transaction, taking care of every legal aspect, such as conducting negotiations and preparing drafts.

The Wolf Theiss team in Warsaw was led by Tomasz Stasiak, co-managing partner and head of the Real Estate & Construction practice. Marcin Żak (Senior Associate) coordinated the project and communication. Senior Associates Iwona Huryn, Bartosz Kopik, Michał Zajączkowski and Marcin Żak managed the transactions and were supported by the Associates Piotr Gajzlerski, Anna Herbetko, Kamil Król and Bartłomiej Zatoński.