Real estate private equity investment manager Cornerstone Partners has teamed up with Czech developer Crestyl Group to acquire Budimex Nieruchomosci, one of the largest Polish residential developers for over PLN 1,5 bn (€330 mln).
The deal is by far the largest transaction in Poland and Central and Eastern Europe in the last twelve months.
’This acquisition is a first step to build a leading player in both residential for sale, as well as the PRS sector,’ said Pawel Debowski, managing partner at Cornerstone Partners. ‘Together with Crestyl Group, we plan to turn it into a major player in CEE.’
Cornerstone and Crestyl plan to transform the company into a major private rented sector specialist in central and Eastern Europe.
Budimex Nieruchomosci is a subsidiary of Poland's largest construction and engineering group, Budimex SA. The parent company is listed on the Warsaw Stock Exchange and operates on the construction market. Budimex Nieruchomosci is one of Poland’s largest residential developers, having built over 17,500 residential units since the beginning of its operations in 1999, with a record of 1,672 units sold last year.
Omar Koleilat, CEO at Crestyl Group, said: ‘Poland’s residential sector, still very fragmented, presents us with enormous opportunities. This partnership together with the existing leadership team will allow us to make the best of it.’
Crestyl actively deals with the development of more than fifteen sites all over the Czech Republic with a total investment value exceeding €1.2 bn. The acquisition of Budimex Nieruchomosci marks the company’s first foray outside its domestic market.
‘As for Budimex Nieruchomosci, we believe the synergy of the three companies will give excellent business results, as well as will effectively support the company's growth and will secure further expansion,’ commented Damian Kapitan, CEO at Budimex Nieruchomosci. ‘We hope that the buyers’ combined experience will enable us to increase the scope of our operations and to diversify our business.’