Information on the Target

TriGranit is a leading privately-owned real estate development platform in Central Europe, boasting over 20 years of operational experience. The company has successfully completed nearly 50 landmark projects, contributing 1.7 million square meters of Gross Leasable Area (GLA) across seven countries in the region. Recently, it was announced that Revetas Group has successfully divested its interests in TriGranit to DRFG Investment Group, marking a new chapter for the firm, which will continue to operate under its established brand.

Under the guidance of Revetas Group since its acquisition from TPG in 2018, TriGranit thrived, managing significant projects such as the award-winning Millennium Gardens office complex in Budapest and the B4B mixed-use development in Krakow. The company has also been actively repositioning its portfolio to enhance residential capacities by converting over 90,000 square meters of office development land into apartments, showcasing its adaptability in the competitive real estate market.

Industry Overview in Central Europe

The real estate sector in Central Europe has exhibited robust growth over the past decade, becoming increasingly attractive to domestic and international investors. Economic stability, coupled with urbanization and rising consumer demand, has fostered a fertile environment for real estate development across the region. Countries such as Poland, Hungary, and the Czech Republic have witnessed an influx of foreign investments, particularly in commercial and residential sectors.

In recent years, the logistics and office segments have become crucial growth drivers in the Central European market. The demand for modern office spaces has surged, propelled by an increase in remote work and the need for flexible working environments. Moreover, the logistics sector is booming, spurred by e-commerce growth and the ongoing need for efficient supply chain solutions.

Despite geopolitical challenges and market fluctuations, the Central European real estate market has shown resilience. Developers are increasingly focusing on sustainable projects that align with global environmental standards, thereby enhancing their market position and appealing to socially conscious investors. This strategic pivot towards sustainability is expected to solidify the region's standing in the global real estate industry.

Consequently, Central Europe is becoming a key player in the European real estate landscape, supported by favorable demographic trends, an educated workforce, and ongoing infrastructure development efforts. The region's property market is anticipated to grow further, drawing continued interest from global investors seeking opportunities in diverse segments.

The Rationale Behind the Deal

The acquisition of TriGranit by DRFG Investment Group represents a strategic move aimed at expanding DRFG's footprint in the Central European real estate landscape. The synergy of the two companies will enable the continuation of existing projects while spearheading new development initiatives. Given TriGranit’s robust experience and proven track record, DRFG is well-positioned to harness its operational expertise and further enhance its portfolio.

This transaction also reflects Revetas Group’s commitment to focusing on new investment opportunities and development projects. The management team at Revetas has played a pivotal role in steering TriGranit through challenging times, including the COVID-19 pandemic, and is confident that DRFG will foster an innovative and growth-oriented environment for the company moving forward.

Information About the Investor

DRFG Investment Group is a prominent player in the European investment landscape, specializing in various sectors, including real estate, energy, and infrastructure. With a strategic focus on value creation, DRFG has expanded its portfolio through targeted acquisitions and partnerships across Europe. The firm has a strong reputation for delivering sustainable and innovative projects that cater to the evolving needs of the market.

By acquiring TriGranit, DRFG aims to leverage the strengths of its new subsidiary to enhance its operational capabilities and broaden its market presence. This investment aligns with the group’s strategic ambition to capitalize on growth opportunities within the European real estate market, particularly in the thriving Central European segment.

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The acquisition of TriGranit by DRFG Investment Group is an astute move, positioned to yield long-term benefits for both parties involved. For DRFG, gaining access to TriGranit’s established project portfolio and expertise in real estate development can facilitate significant growth and competitive advantage in the region. Given TriGranit’s history of delivering award-winning projects, the acquisition aligns well with DRFG's strategy of enhancing their value proposition within the real estate sector.

Moreover, the existing collaboration between DRFG and TriGranit on a logistics park in western Poland paves the way for a seamless integration process. This foundation minimizes operational disruptions and allows both entities to efficiently continue their ongoing developments, including the highly regarded Millennium Gardens in Budapest.

From Revetas Group’s perspective, the successful transition of TriGranit to DRFG marks the culmination of a productive partnership, highlighting their ability to enhance value through strategic management and innovative project delivery. The divestment permits Revetas to pivot towards new endeavors while ensuring TriGranit’s continued legacy under capable stewardship.

Overall, the deal not only represents a promising investment landscape for DRFG but fosters optimism regarding the future performance of TriGranit as part of a larger group that prioritizes growth and sustainable development in Central Europe.

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