Hungary’s Indotek Group has agreed to acquire the majority ownership of local investor Diófa Asset Management. As one of the leading investment management and real estate development groups of Hungary, Indotek Group – as a professional long-term investor – intends to provide the ownership background Diófa Asset Management is in need of, in order to strengthen its market position and to develop its portfolio of services on the markets of property management and investment products.
Holding Zrt., an exclusive subsidiary of Indotek Group, has acquired 89.86 percent of the ownership of Diófa Asset Management, consequently transferring 98.89 percent of total voting rights to the new owner. The project company created by Indotek Group and the former majority owner MTB Magyar Takarékszövetkezeti Bank Zrt. have signed the transaction agreement on 30 December 2019. The representatives of Indotek Group are currently in the process of negotiating the terms of acquiring the remaining minority ownership from the minority owners of Diófa Asset Management. The transaction is scheduled to be concluded by March 2020.
The sale of Diófa Asset Management is part of the reform process of Takarék Csoport. However, Takarékbank Zrt. will remain as distributor and manager of the investment units of Diófa Asset Management; furthermore, Takarékbank will provide complete banking background for Diófa Asset Management and its clients.
Accordingly, the change of ownership will not be directly noticeable for the clients of Diófa Asset Management. The investment management company will continue to operate as usual and will provide its services for institutional and retail clients. Therefore, investment units of the investment management company will be distributed by the branches of Takarékbank, which operates the largest network in Hungary. Retail clients will be able to handle transactions the same way, in the same branches with the same experts as before. Through the new ownership, other financial providers and banks will have the opportunity to distribute the products of Diófa Asset Management, introducing those to a wider range of customers.
By signing the agreement on 30 December, Indotek acquired significant ownership in one of the most dynamically developing fund management of the sector, since Diófa Asset Management handles institutional and retail funds worth more than €1 billion (HUF 340 billion). The real estate portfolio managed by Diófa Asset Management includes exclusive Class A office buildings such as Alkotás Point, Green House, V17 or the buildings A, E and G of Infopark.
„The acquisition provides new, mutual development opportunities for both participants. As a professional investor thinking for the long-term, our aim is to let Diófa Asset Management and Indotek Group proceed with their work independently whilst supporting each other, in order to achieve better business results. Besides the fact that Indotek Group is investing in the funds of Diófa Asset Management, I will personally invest in them, too, representing our trust in this investment,” said Dániel Jellinek, CEO and majority owner of Indotek Group.
Dániel Jellinek
Founder & CEO
Indotek
Indotek Group is ready to deliver two decades of professional knowledge and experience in the Hungarian and regional real estate market for Diófa Asset Management. At the same time, the goal of the company is to operate transparently, with professional and financial aspects in mind, so that Diófa Asset Management can operate separately from the new owner and its successfully operating investment fund management, Indotek Investments Asset Management Zrt.
„As a professional investor, we wish to support Diófa Asset Management in the development of its portfolio of services in order to let the company provide even more attractive investment opportunities and yields for its clients. We see numerous targets on the market with great potential for yields and appreciation, and it is our future aim for Diófa Asset Management to involve its retail investors – besides its institutional and foreign equity partners – in investing in these opportunities. For example, we have discussed creating new funds in which, in spite of a fixed yield, the management of the fund as well as investors are able to realize yields based on their success. We intend to provide a competitive alternative for retail and institutional investors, so that they may have access to tangible investments with better yields on the real estate market through the funds of Diófa Asset Management,” stated Dániel Jellinek, CEO and majority owner of Indotek Group.
