News Article brokerage Duna House Hungary investment Poland residential
by Property Forum | Investment

Hungarian real estate brokerage firm Duna House has bought a loan broker in Poland for €1 million (PLN 4.3 million) and expect the deal to increase the volume of brokered loans in Poland by approximately 60%, the company announced on the Budapest Stock Exchange website.

Metrohouse Franchise S.A., the 100% subsidiary of Hungary's Duna House Group, has signed an agreement in Warsaw on Tuesday to acquire 100% ownership in Alex T. Great Sp. z o.o. The acquisition allows the company to strengthen its position on the Polish market and increase its volume of brokered loans by approximately 60% in Poland, Duna House said in a statement.

Duna House, listed on the Budapest Stock Exchange, is the largest residential real estate broker of Central Eastern Europe and has business operations in three countries. ATG is a significant loan broker on the Polish market, with volumes totalling PLN 676 million in the first three quarters of 2019. The acquired company specializes in financial brokerage including a wide range of products, from mortgage loans to business services and insurance. The purchase price was PLN 4.3 million (HUF 339.8 million). The transaction has successfully been completed on the same day, according to the statement.

Duna House entered the Polish market with the acquisition of Metrohouse Franchise S.A. in 2016 and subsequently enhanced its presence with the purchase of GoldFinance in November 2018. The merger with ATG means a significant next step in strengthening its position on the Polish loan market, the statement said. After the transaction, over 700 credit experts will operate under the group in Poland, who will continue cooperation with the group’s local real estate broker network, Metrohouse. Duna House Group will now have over 120 Metrohouse and Gold Finance offices and more than 1,300 credit experts and real estate agents in Poland.

"We have closed the year 2019 with profits in Poland and we remain committed to the Polish market, so the acquisition of ATG is a logical next step for us. We expect a positive impact on profit after tax from the first quarter. Overall, management plans with a payback period of 4 to 5 years and trusts that the stronger market position will support the group’s further organic growth in Poland," Duna House chairman of the board Guy Dymschiz said, adding that the group was planning further acquisitions.