Develia has signed a preliminary agreement to acquire 100% of shares in Polish subsidiaries of Nexity, a French real estate development company. The price set in the preliminary agreement amounts to €100 million (approx. PLN 453 million). Develia will increase the number of units under construction by approx. 1,400 and will expand the land bank by approx. 2,200 units in Warsaw, Kraków and Poznań.
"The acquisition of Nexity will allow us to increase the development potential of the company in the real estate market. First of all, we will expand significantly our offer on two very important markets in Poland - Warsaw and Krakow. We will also enter on Poznań market, where we have not been present so far. The transaction will bring us closer to the achievement of one of our strategic goals, which is to increase the scale of operations in the residential segment to the level of sales of over 3,000 apartments", says Andrzej Oślizło, CEO of Develia. "Nexity is a real estate developer with an established position and many years of experience in European markets, including Polish. The Nexity team's competences - in the field of i.e., acquisition of land or implementation of investments - is a significant value for the further development of Develia and allow us to maximize the transaction’s potential in line with our strategy", adds Andrzej Oślizło.
Nexity Group is one of the leaders of the real estate development market in France. Since 2011, the company has also been present in Poland, where so far it has delivered over 3500 apartments in 12 projects (28 investment stages).
At the end of 2022, Nexity had approx. 1,400 apartments in Poland at various stages of construction and the land bank of approx. 2,200 units. The company's investments are located in Warsaw (approx. 65% of the total usable area of apartments), Krakow (25%) and Poznań (10%). Moreover, Nexity concluded preliminary agreements for the purchase of land, enabling the construction of another approx. 2,300 units.
"The high level of advancement of many Nexity investments will already have a positive impact on Develia's financial results in 2023. The acquisition of Nexity will allow us to significantly increase Develia's sales potential in the short term because large number of projects from the land bank have already the administrative approvals enabling the groundbreaking. At the same time, we can achieve a higher return on equity on the transaction than assumed in the strategy", says Paweł Ruszczak, Deputy CEO of Develia. "We will finance the transaction partly with our own funds and partly with a bank loan", adds Paweł Ruszczak.
The preliminary agreement signed by Develia concerns the acquisition of 100% of shares in 19 Polish subsidiaries of Nexity. Develia will also obtain control over 10 limited partnerships (whose limited partners and general partners are the acquired companies) conducting real estate development activities in Poland. The agreement will be finalized by September 30th 2023, provided the consent of the President of UOKIK (Office of Competition and Consumer Protection) for the concentration.
The price set in the preliminary agreement may be subjected to adjustments by the amounts of financial flows between the companies acquired by Develia and the seller after December 31st, 2022.
Currently, Nexity is implementing investments in Poland, such as Bemowo Line and Next Ursus in Warsaw, City Vibe in Krakow and Malta Point in Poznań.
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