Acquisition will provide capital to fund future growth and strengthen balance sheet of leading retail and office platform in Central Europe. Transaction includes TriGranit’s development and asset management platform and portfolio of high-quality assets located primarily in Poland
TPG Real Estate, the real estate platform of global private investment firm TPG, announced today that it has reached an agreement to purchase TriGranit, one of Europe’s largest, privately owned developers and managers of retail and office assets. As part of the acquisition, TPG Real Estate intends to commit additional capital to fund future growth and to strengthen TriGranit’s balance sheet to create a leading real estate investment, development and management platform in central Europe. Under the terms of the agreement, TPG Real Estate will acquire TriGranit’s development and asset management platform as well as a portfolio of high-quality assets located primarily in Poland. TriGranit’s existing management team will remain in place.
“We founded TriGranit twenty years ago and it has grown into the region’s leading real estate company,” said Sándor Demján, the Founder and Chairman of TriGranit. “I believe TPG Real Estate is a perfect buyer, as its extensive experience can carry on the TriGranit legacy. It is a great honor that one of the world’s largest investors has selected our company and its management in Europe.”
“TPG Real Estate’s expertise and global presence makes it the ideal partner to further strengthen and expand our business through the development and management of office and retail projects in key strategic locations, as well as through strategic acquisitions in the future,” said Árpád Török, CEO of TriGranit. “I look forward to working with TPG Real Estate to achieve TriGranit’s next successful chapter of growth.”
“TriGranit is an excellent business with a strong track record. Its highly experienced management team with deep local market knowledge and a high-quality real estate portfolio position the company well for future growth,” said Anand Tejani of TPG Real Estate. “With the favorable macro and real estate trends in the region, coupled with TPG Real Estate’s expertise and financial resources, we see a number of opportunities to expand the TriGranit platform. We look forward to working together with the TriGranit management team to continue to grow the business.”
Completion of the transaction is subject to customary closing conditions and is expect to close before the end of the 2015. Additional terms of the transaction were not disclosed.
Certain assets, the WestEnd City Center in Budapest, and some other TriGranit related projects have been carved out of this transaction. The company managing and supervising these projects will continue its operations under the name Gránit Management. TriGranit is currently owned by Sándor Demján, Sándor Csányi, Peter Munk, and Vienna Stock Exchange listed Immofinanz AG, upon completion of the transaction, Sándor Demján and Sándor Csányi will acquire the shares of Peter Munk and Immofinanz AG.
TriGranit is one of the largest fully integrated, privately owned regional real estate investment, development and management companies in Central Europe. The company’s primary focus is on mixed-use “City Center” projects and office and retail developments in strategic urban locations. TriGranit is able to provide a full spectrum of development, construction, property and asset management and operations services.
About TPG Real Estate
TPG Real Estate (“TPGRE”) is the real estate platform of TPG, a leading global private investment firm with approximately $75 billion of assets under management and 17 offices around the world. TPGRE includes both TPG Real Estate Partners, its equity investment platform, and TPG Real Estate Finance Trust, its debt origination and acquisition platform. Collectively, the two platforms have in excess of $6 billion of assets under management across TPGRE and other TPG-sponsored vehicles. TPG Real Estate Partners has invested approximately $3 billion of equity in North America and Europe since 2009 and focuses primarily on investments in property-rich platforms and companies. TPG Real Estate Partners leverages the full resources of TPG in its value-added approach to investing to optimize property performance and enhance platform capabilities. TPG Real Estate Finance Trust manages a $2.5 billion commercial real estate loan portfolio and originates and acquires senior and mezzanine real estate loans across a broad spectrum of asset classes in North America.
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