News Article Budimex Cornerstone Partners Crestyl Czech Republic investment Poland residential
by Property Forum | Investment

Czech real estate developer and investor Crestyl, together with investment management firm Cornerstone Partners, completed the acquisition of Polish residential developer Budimex Nieruchomości. Budimex Nieruchomości was a subsidiary of Poland's largest construction group, Budimex SA, owned by the Spanish infrastructure giant Ferrovial.

The €335 million (PLN 1.51 billion) transaction is one of the largest real estate deals in Central and Eastern Europe since the outbreak of the coronavirus pandemic. With this expansion, Crestyl will complement its large commercial development business by bringing up to six times the volume of residential sales each year than before. Crestyl also announces the signing of a strategic partnership with one of Europe’s leading residential real estate company, Heimstaden Bostad, to acquire 2,500 flats for rent over the next 5-year period.

"We are really pleased that the transaction was completed successfully and that we are able to enter the Polish market through a solid platform such as Budimex Nieruchomości. It really is a milestone for the evolution of Crestyl, we have become a key player in the Central European residential real estate market" said Omar Koleilat, Crestyl’s CEO. "There's a bright long-term future ahead for the Polish real estate market. Despite its constant growth, the number of dwellings per capita is still significantly lower than the EU average. Additionally, there's still a lack of cohesion in the Polish residential sector, and we really see great opportunities ahead. We are confident that our partnership with Cornerstone and Budimex Nieruchomości’s experienced team with Damian Kapitan at the helm will enable us to achieve great results."

"Together with Crestyl, we would like to establish the company as a major player in the area of residential real estate sales and rentals in the CEE region. This acquisition is the first step towards achieving that goal” says Paweł Dębowski, Managing Partner of Polish investment group Cornerstone Partners.

Budimex Nieruchomości is one of the leading Polish residential developers. Its previous parent company, Budimex SA, is listed on the Warsaw Stock Exchange. Since beginning operations in 1999, the company has built more than 18,600 housing units in five major Polish cities; Warsaw, Krakow, Poznan, Gdansk and Wroclaw. Last year alone, despite being negatively affected by the Coronavirus pandemic, it sold almost 1,700 apartments and it currently has 19 construction projects underway. Budimex Nieruchomości has approximately 150 employees and assets approaching €500 million.

The signing of a long-term partnership with the European leading residential real estate company Heimstaden Bostad that owns 43 000 flats in the Czech Republic also contributed to the successful completion of the acquisition. Heimstaden is going to buy 2,500 rental flats from Budimex Nieruchomości over the next 5-year period and (after two previous 2021 acquisitions in Poland) it will become the market leader in the country.  

Dentons and Linklaters acted as legal advisors on the deal. Colliers provided commercial advice, MDDP was financial and tax advisor, while Europtima conducted technical due diligence.