The agreement constitutes the second step in the acquisition of the Kraków-based group. BUMA’s properties are being acquired as part of the first step, conducted nearly simultaneously. They are being purchased by the Polish-Australian fund REINO RF CEE Real Estate. This Luxembourg-based fund and other investment vehicles created and managed as part of a strategic partnership between REINO Capital and RF CorVal will constitute the main source of revenue for the operating companies being the subject of this transaction. This business model will ensure a large and growing scale of revenue without having to commit significant capital to acquire assets, while retaining full control over them. The strategy does not rule out external contracts which – especially in the general contractor’s case – will ultimately account for at least 30% of revenue.
For REINO Capital, the companies being acquired will supplement the group and considerably increase business scale, in line with the strategy adopted over a year ago.
“The companies being acquired have been on the market for over 25 years. They are highly regarded, have multiannual contracts and, most importantly, experienced teams that underwrite BUMA Group’s success. From REINO Capital’s perspective, this is the best scenario to build up a group in a way that is the most beneficial and safest for shareholders. Also because of the investment platform that is being built in parallel, which constitutes a natural source of orders and the scale of which will grow along with successive acquisitions of properties financed by passive investors,” said Radosław Świątkowski, CEO and co-founder of REINO Capital.
The acquisition of BUMA Group’s operating companies also represents a major stage in the European expansion of RF CorVal and Roberts Constructions. The Australian group’s extensive experience in implementing complex large-scale property development, construction and engineering projects around the world will support the acquired companies – and in particular the general contractor – in terms of both competences and development of the entire business.
On the other hand, REINO’s excellent knowledge of the local market and industry will make it possible to increase operational scale by accessing a larger number of external contracts and will strengthen and develop them operationally.
“Together with Buma’s experienced team and our partners at REINO, we will build a strong player on the property market in the Central and Eastern Europe region, involved in all stages of the property life-cycle: from investment through development and construction to facility management. We are very excited about the possibilities offered by this partnership and this acquisition for our firm in the region. Considerable investments on the Polish market in the transaction’s first stage, covering the acquisition of Buma’s assets, and second stage, involving the acquisition of its operating businesses, create real opportunities for us to develop on this market and allow us to systematically grow the value of our assets under management,” said Graeme Robson, CEO of Roberts Constructions.
The transactions are expected to be finalised when final agreements on the acquisition by REINO RF CEE Real Estate Fund of the special purpose vehicles and properties are executed, i.e. by 30 June 2020.
Greenberg Traurig is the main adviser to the buyers in the acquisition of BUMA Group. The vendors are being advised by Clifford Chance.
REINO Capital is a listed group of companies operating on the commercial real estate market. By combining competences and experience gained in real estate, investments and capital markets, we create solutions for investors on the basis of the best Polish assets in line with the highest standards.
REINO Capital is a leader in investment products for Polish investors based on income-generating commercial properties. For years, we have been involved in activities intended to bring REIT-type solutions to the Polish market.
REINO Capital is the first business project in Poland pursuing vertical and horizontal consolidation of the market by combining traditional and alternative asset classes with our own distribution capabilities.
RF CorVal is an Australian investor and property fund manager that manages funds on behalf of the largest Australian institutions, family offices and high net worth individuals. Founded in 2009, the investment firm currently manages approx. USD 2 billion in assets, making it one of the largest players on the Australian financial and property market. Its business roots trace back to the construction industry and the exchange-listed Multiplex Group, which has completed construction contracts worth approx. USD 80 billion in total. Roberts Construction builds upon these traditions. RF CorVal is currently implementing a global growth plan with ambitions to establish a strong presence in Europe.
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