In 2018, the gross leasable area of Appeninn Nyrt.'s portfolio of commercial properties increased nearly one and a half times to 93,000 square metres. The number of properties owned by the company increased from 18 to 41 last year. In line with the five-year strategy announced in June 2018, the Budapest Stock Exchange-listed company expects to grow at an even faster pace this year.

Last summer, in June 2018, Appeninn Asset Management Holding Plc. published its strategy for the period until 2022. According to the plan, the company would create a real estate portfolio providing significant returns and stable cash flow for investors in the long term through dynamic expansion in the coming years, primarily through the acquisition and development of "A" class, premium office buildings and retail properties.

The implementation of the strategy progressed well in the second half of last year, with the number of properties owned by Appeninn more than doubling in 2018 from 18 to 41. At the same time, gross leasable area increased by 47 percent, from nearly 63,000 square meters to 93,000 square meters for the year.

Among others, the company acquired 18 retail properties from ERSTE Fund Management Ltd. for EUR 14.5 million, which are leased by SPAR Magyarország Kereskedelmi Kft. It also acquired a 75 percent stake in PRO-MOT HUNGÁRIA Kft., which gave the company indirect ownership of around 37 hectares of Club Aliga in Balatonvilágos and the right to manage the remaining 10 hectares. The transaction was valued at over EUR 14.1 million and closed on 28 January 2019.

The rental income from real estate is forecast to grow significantly in 2019, according to the strategy.

According to the CEO of Appeninn Nyrt., the growth of the Budapest office market, the expansion of retail sales and the favourable financing environment offer great opportunities for the company to build a profitable real estate portfolio in the coming years, both in terms of size and quality. The company is well on track to meet the time-bound targets set this summer and expects to meet them in fiscal 2018 and 2019.