Adventum Group, the CEE focused real estate investment manager, has signed contracts to acquire 18 retail park assets in the Czech Republic and Hungary anchored by Tesco in a €280 million transaction. The app. 360,000 sqm portfolio will be a significant addition to its growing portfolio of assets across the core CEE countries including Poland, the Czech Republic and Hungary. A banking consortium of OTP Bank Plc. and Erste Group (Erste Group Bank AG and Erste Bank Hungary Zrt.) has entered into a new €150 million acquisition facility to finance the acquisition of the portfolio. The acquisition facility was arranged by OTP Bank and Erste Bank.
Adventum’s fifth Fund, Adventum PENTA, including its related JV structures has now commitments of approx. €240 million including significant amounts made by Western European and global investors.
On behalf of its funds, the Group now owns and manages over 700,000 sqm of commercial real estate in the core CEE countries. With the completion of the transaction, Adventum’s assets under management are set to reach €1 billion.
From the buyer’s side, Gergely Koós-Hutás commented: “The pandemic has accelerated some of the trends in the way people carry out their shopping. The share of online sales in Europe is expected to increase from 18% in 2020 to almost 25% in 2025. However, retail parks have proven their resilience during the pandemic and are expected to play a pivotal role in the future as they are seen as a hybrid operation providing in-store retailing with last-mile delivery fulfilment options. With this in mind, our business plan foresees to strengthen the already strong cash flow profile of the portfolio which is secured over a well-diversified pool of 900 tenants. In addition, we intend to significantly enhance the ESG profile of the assets by reducing and diversifying their energy consumption and ultimately obtaining environmental accreditation. This will help us to create a portfolio which appeals to a wide range of institutional investors.”
Gergely Koós-Hutás
Partner
Adventum Investment Fund Management Ltd.
Kristóf Bárány, Founding Partner of Adventum commented: “This transaction is a prime example of Adventum’s sourcing and execution skills. Having been granted exclusivity to acquire this portfolio at the peak of the pandemic, our due diligence had to be undertaken during these unprecedented times. Despite the uncertainty in the global capital markets over the past six weeks our commitment to sign and complete this transaction has been always supported by our investors and financing banks alike which is a testament to the investment strategy and the core acquisition and asset management skills of Adventum as well as the resilience of this food anchored retail park portfolio. By executing our ESG focused refurbishment program and by the planned further diversification of the tenant mix with local and international tenants, we believe this retail park portfolio will serve the needs of local Hungarian and Czech consumers even better.”
Kristóf Bárány
Founding Partner, Chairman of the Board
Adventum International
Owner of Adventum Investment Fund Management Co. Ltd. (since 2016) and Adventum International Ltd. (2018). He has 15 years of experience in real estate (Adventum, GRW, DBH, Letterstone) and venture capital. In addition to being an experienced VC professional (Flashpoint Venture Capital, SmartWareTech, DBH, MFB), he has outstanding structuring and financing expertise. Kristóf graduated from the Budapest University of Economics with a degree in Economics in 2004, and in 2009 he became CFA Charterholder at the CFA Institute. More »
Deloitte Legal and Deloitte Advisory teams assisted Adventum Group during the transaction by providing structuring, legal, financial and tax due diligence services. Hümpfner Law Firm advised in corporate legal matters while ESTON and Savills supported Adventum Group in the commercial brokerage and underwrite and CBRE in the ESG and technical due diligence. The banks were advised by CMS on legal matters.
