Candidate’s name
Marian Herman
Company’s name
HB Reavis Group
Current position
Group CFO, Member of the Management Board
Work experience in this position
Marian joined HB Reavis in 2010 as Head of Investment Management & Divestments. In this role he was responsible for the Group’s M&A and divestment activities across all markets, having successfully concluded over €1bn of commercial real estate deals. He also ran the Group’s investment management business set-up in 2010 which raised its first €165m CEE fund in 2011 where he also acted as Managing Director of the fund management entity, HB Reavis Investment Management Luxembourg.
Description of business activity (profile, market sectors served, etc.)
HB Reavis is an international real estate developer. Its operations have so far yielded a total of 917,500 sq m of modern offices, shopping and entertainment spaces in addition to logistics facilities. Over 1 million sq m of developments are in the planning, permit or construction stages. HB Reavis relies on a fully integrated business model covering development, construction, property and investment management. The group has total assets of €2.1 billion, with a net asset value of almost €1.2 billion.
Size of the company managed by the candidate (headcount, regions of activity)
HB Reavis was founded in 1993 in Bratislava, Slovakia. It operates in the United Kingdom, Poland, the Czech Republic, Slovakia, Hungary and in Turkey. The Group is the only developer from the CEE succesefully operating in the London market. The Group currently employs over 500 professionals.
The y-o-y increase in profits/income generated last year
HB Reavis Group reported a remarkable 175% increase in consolidated net profit to nearly EUR 245 million in the year ended 31 December 2015. These robust business and financial results were driven by record leasing activity, sound progress of projects under development across all markets of activity and optimization of capital structure.
Key financial highlights:
• 175% increase in net profit to EUR 244.6 million from EUR 89.1 million in 2014;
• 128% growth in operating profit to EUR 302.5 million from EUR 132.6 million in 2014;
• Significant improvement in return on shareholders’ equity at 29.3% vs 10.8% in 2014;
• 16% growth in total assets to EUR 2.1 billion with Net Asset Value reaching almost EUR 1.2 billion;
• Increase in net debt to total assets ratio from 26.5% at the end of 2014 to 29.7% at the end of 2015, moving the Group closer to its target capital structure;
• Cash reserves as at the end of 2015 amounted to EUR 115.4 million, or 5.5% of the total balance sheet.
Career path (Previous employers, professional progress, when was the candidate promoted to the current position, etc.)
Marian has over 18 years of experience in investment management and investment banking. Prior to joining HB Reavis, he had been working for over 10 years in London for RREEF Infrastructure, Deutsche Bank and ING Group.
Biggest business achievements, especially those made last year
In 2016 HB Reavis, and the team led by Marian Herman, has divested 10 assets worth tover 800 million EUR. In September, it has signed preliminary agreement to sell two buildings (48,000 sqm GLA) within Gdański Business Center in Warsaw to Savills Investment Management on behalf of a Global Pension Fund. The transaction came only few days after HB Reavis completed the sale of Konstruktorska Business Center, Warsaw to Golden Star Estate B.V. Both deals were among the largest in Poland and CEE this year, and alllowed the company to scoop over 300m EUR from the market.
Contributions made to the improvement of the CEE commercial property market
HB Reavis strong transaction track record this year across number of markets, has demonstrated not only the quality and attractiveness of its assets, but also persisting confidence of institutional investors (including new players from Asia) in the European markets despite the recent uncertainties across Europe following the UK’s vote to leave the EU.
Other industry awards and prizes
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