Polish developer Develia has signed a preliminary deal with French real estate developer Nexity for the takeover of its Polish operations for €100 mln.
Develila will acquire 100% of shares in 19 Polish subsidiaries of Nexity and take over control of more than 10 limited partnerships conducting real estate development activities in Poland.
Since 2011, Nexity has delivered more than 3,500 apartments across 12 projects (28 investment stages) in Poland.
At the end of 2022, the Paris-listed company had around 1,400 apartments at various stages of construction and the land bank of around 2,200 units, mostly in Warsaw (65% of the total usable area of apartments), Krakow (25%) and Poznan (10%).
In addition, Nexity signed preliminary agreements for the purchase of land for the construction of another 2,300 units.
Andrzej Oslizlo, CEO of Develia, said: ‘The acquisition of Nexity will allow us to increase the development potential of the company on the real estate market. First of all, we will expand significantly our offer on two very important markets in Poland - Warsaw and Krakow. We will also enter on Poznan market, where we have not been present so far. The transaction will bring us closer to the achievement of one of our strategic goals, which is to increase the scale of operations in the residential segment to the level of sales of over 3,000 apartments.’
Pawel Ruszczak, deputy CEO of Develia, added: ‘The high level of advancement of many Nexity investments will already have a positive impact on Develia's financial results in 2023. The acquisition of Nexity will allow us to significantly increase Develia's sales potential in the short term, because large number of projects from the land bank have already the administrative approvals enabling the groundbreaking. At the same time, we can achieve a higher return on equity on the transaction than assumed in the strategy. We will finance the transaction partly with our own funds and partly with a bank loan.’
The agreement should be finalized by 30 September 2023, provided that approval is obtained from the president of Poland's Office of Competition and Consumer Protection.
The transaction is in line with the French real estate group's decision, announced in February 2023, to suspend its global expansion while reducing its net debt.