Appeninn expands its strategy with tourism development projects

2020
March
09
News

Appeninn Plc. is continuing the implementation of its growth strategy, which besides the dynamic increase of financial results, aims at significant expansion of the property portfolio in the coming years. Along the lines of the strategic directions specified in 2018, tourism property development projects are going to be highlighted, and the company will also enforce the principle of value saving and value creation with greater emphasis.


Further growth at the property market company

Appeninn Plc. aims to further the growth specified in its business strategy approved in June 2018, which is to be implemented by way of the purchase of mostly quality office buildings. Furthermore, the company included new areas and goals into its already published strategy, in accordance with which the company intends to put great emphasis on tourism property development, and expand its portfolio in this field. Another new strategic direction for Appeninn Plc. is value saving, and the enforcement of the principle of value creation. The goals disclosed, by the company listed on the stock exchange, on the website of the Budapest Stock Exchange in an investment presentation further strengthen the future vision of Appeninn Plc., further increasing shareholder value, and the company’s investment value proposition, and market position.

Out of the new goals, tourism property developments will have a significant role within the company’s activities. Appeninn Plc. entered the field of tourism in 2019, when by way of Pro-Mot Hungária Ltd., Club Aliga, which had been neglected for decades, was transferred to the company, and in January 2020, 76% of the company operating the Balatonfüred port was also purchased. By way of the tourism developments – which primarily aim at the development of ports and the construction of hotels by Lake Balaton – Appeninn Plc. aims at participating in the transformation of the Balaton region into one of the main attraction points in Central Europe. At the same time, the company also keeps an eye on other regions with regard to potential tourism development projects.

Another new strategic direction set by the company is the even more highlighted presentation of the principle of value saving and value creation in the scope of its activities. Because Appeninn Plc. aims at the search and identification of properties, which are unused and in need of renovation due to their deteriorated condition. In the scope of the development of outdated and deteriorated, but valuable properties, the company will try to preserve these values and add new contents. These development projects will also have to comply with the principle of sustainability, with special attention to the outstanding Hungarian natural values, just like Balaton and its surroundings, thus the company plans to apply green approach, as well as sustainable and energy efficient solutions in all of its property segments.

In accordance with the Central European expansion specified in the business strategy accepted in 2018, the company will actively watch the surrounding markets and examine market entry possibilities. Poland and Serbia are also amongst the target markets to be considered. Thorough selection and market research are the preconditions of the entry to foreign markets, just as the selection of the right local expert partners, which is expected to take place in 2021, the earliest.

Appeninn Plc. is growing further in the future with an even more comprehensive strategy. Besides tourism development projects, quality office buildings and the retail portfolio will also remain focus areas. At present, the company’s property portfolio is worth more than EUR 150 million, including leasable offices of more than 55 thousand square metres, which are to be significantly increased by way of the achievement of the new goals. Even though the company’s business strategy was not fundamentally changed, the update of certain elements was a necessary step in order to further the growth in 2020 and beyond in line with the market trends.