Budimex Nieruchomosci for sale for PLN 1.5bn
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Budimex sells Budimex Nieruchomosci for PLN 1.5bn. It will be taken over by a Polish-Czech company.
On 22 February 2021, a conditional sale agreement was signed for Budimex Nieruchomosci. The company will be acquired by the Warsaw-based fund Cornerstone Partners and the Czech developer Crestyl Group, through a specially formed company CP Developer S.ar.l The sale is subject to approval by the President of UOKiK (Office of Competition and Consumer Protection). The sale of Budimex Nieruchomości is the largest transaction in the pandemic period in Central and Eastern Europe. The transaction value in the conditional share purchase agreement was estimated at PLN 1.513bn.
A several-month strategic options review process, preceding the sale decision, started in July 2020. The entire stake in the company will be acquired by selected investors. Budimex will not give up other strategic options until the transfer of ownership in Budimex Nieruchomosci. The finalization of the deal is expected to take place within six months.
Budimex is primarily known for building road and railroad infrastructure. The company also has a housing division, Budimex Nieruchomości, which has just gone up for sale. So far, the company has built over 17,500 apartments, and it is currently working on over a dozen more projects in 5 Polish cities.
Crestyl is currently carrying out 15 investments in the Czech Republic, worth over EUR 1.2bn. Budimex Nieruchomosci is the first foreign investment of the company specializing in the development of multifunctional residential properties. Cornerstone Partners manages private equity investments.