Acquisition of 18 retail park assets anchored by Tesco in The Czech Republic and Hungary
CATEGORY
Investment Deal of the Year, CEE
Adventum Group, the CEE focused Real Estate Investment Manager, have recently acquired the fourth investment of its PENTA Fund, namely 18 retail parks in the Czech Republic and Hungary anchored by TESCO. The app. 360,000 sq. metres portfolio is a significant addition to Adventum's growing portfolio of assets across the core CEE countries including Poland, the Czech Republic and Hungary.
Name of the deal
Acquisition of 18 retail park assets anchored by Tesco in The Czech Republic and Hungary
The date of closing the deal
15th June 2022
Value of the transaction (in EUR)
EUR 280 million
Yield
8%
Seller, plus brief information about the company
Tesco Holdings B.V., TESCO-GLOBAL Zrt.
Consultancy which advised Seller
Wilsons, Baker McKenzie
Purchaser, plus brief information about the company
Adventum Group, a fund manager focused on CEE real estate investments was founded in 2016 and is entirely owned by management. It has been operating under the Alternative Investment Fund Managers Directive with fund management companies established in Hungary and Malta. On behalf of its funds the Group now owns and manages over 700,000 sq. metres of commercial real estate in the core CEE countries. Adventum’s ESG strategy is focused on the reduction of lifetime CO2 emission and guided by international sustainability agenda and conventions such as the Paris Agreement. The Group’s personnel include highly experienced real estate professionals with CFA, NRW and MRICS qualifications and proven track record in the CEE region. The management team has so far executed investments in the CEE region over a total value of EUR 2 billion.
Consultancy which advised Purchaser
Deloitte Legal and Deloitte Advisory teams assisted Adventum Group during the transaction by providing structuring, legal, financial and tax due diligence services. Hümpfner Law Firm advised in corporate legal matters while ESTON and Savills supported Adventum Group in the commercial brokerage and underwrite and CBRE in the ESG and technical due diligence.
Financing institution
A banking consortium of OTP Bank Plc. and Erste Group (Erste Group Bank AG and Erste Bank Hungary Zrt.) has entered into a new €150 million Acquisition Facility to finance the acquisition of the portfolio.
Current occupancy level
96.9%
Please say why this deal should be considered for the award
Despite the uncertainty on the global capital markets over the past months Adventum's commitment to complete the transaction has always been supported by our investors and financing banks alike which is a testament to the investment strategy and the core acquisition and asset management skills of Adventum as well as the resilience of this food anchored retail park portfolio. In unprecedented times of market turbulence this food anchored retail park portfolio offers safe haven for Adventum’s investors seeking inflation adjusted returns and robust cash flow. By executing Adventum's ESG focused refurbishment program and by the planned further diversification of the tenant mix with local and international tenants, we believe this retail park portfolio will serve the needs of local Hungarian and Czech consumers even better.
