Cornerstone Partners, a corporate and real estate private equity investment manager, together with Crestyl Group, a Czech leader in developing multi-purpose real estate projects, have entered into a contract to buy Polish residential developer Budimex Nieruchomości. Other partners participating in the deal include blue-chip financial investors. The conclusion of the transaction is subject to approval from Poland's Anti-Monopoly Office.
Budimex Nieruchomości is a subsidiary of Poland's largest construction and engineering group, Budimex SA. The parent company is listed on the Warsaw Stock Exchange and operates on the construction market. Budimex Nieruchomości is one of Poland’s leading residential developers. Since the beginning of its operations in 1999, the company has built over 17,500 units in five major cities in Poland.
"This acquisition is a first step to build a leading player in both residential for sale, as well as the PRS sector," says Paweł Dębowski, Managing Partner at Cornerstone Partners. "Together with Crestyl Group, we plan to turn it into a major player in CEE." The long-term outlook for Poland's housing market is very positive. Despite consistent growth, the number of apartments in Poland per 1,000 inhabitants is still significantly lower than EU average. Omar Koleilat, CEO at Crestyl Group, adds: "It is why we are very excited to enter the Polish market. Its residential sector, still very fragmented, presents us with enormous opportunities. This partnership together with the existing leadership team will allow us to make the best of it."
Crestyl actively deals with the development of more than fifteen sites all over the Czech Republic with a total investment value exceeding €1.2 billion. The acquisition of Budimex Nieruchomości is its first investment outside its domestic market. Crestyl is a Czech, market-leader developing multipurpose residential, retail, and commercial properties.
"As for Budimex Nieruchomości, we believe the synergy of the three companies will give excellent business results, as well as will effectively support the company's growth and will secure further expansion," says Damian Kapitan, CEO at Budimex Nieruchomości. "We hope that the buyers’ combined experience will enable us to increase the scope of our operations and to diversify our business.”
The Warsaw Real Estate practice group at Dentons, led by Partner and deputy head Bartłomiej Kordeczka, and managing counsel Marceli Kasperkiewicz, acted as a legal advisor on the deal. Colliers International provided commercial advice, Warsaw-based MDDP was financial and tax advisor, while Europtima conducted technical due diligence. BCLA Bisiorek Cieśliński i Wspólnicy sp.k. did all real estate due diligence.
