Last summer, in June 2018, Appeninn Vagyonkezelő Holding Plc. disclosed its strategy for the period until 2022. Based on the plans, the company will establish a property portfolio in the coming years by way of dynamic expansion, offering great returns for investors on the long run and stable cash flow by way of the acquisition and development of category “A”, premium office buildings and retail properties.
The implementation of the strategy went well in the second half of the year. In 2018, the number of properties owned by Appeninn more than doubled, from 18 to 41. At the same time, the gross leasable area increased by 47%, from almost 63,000 square metres to 93,000 square metres.
Amongst others, the company acquired 18 retail properties from ERSTE Alapkezelő Plc. for EUR 14.5 million, which are rented by SPAR Magyarország Kereskedelmi Ltd. The company also acquired 75% of PRO-MOT HUNGÁRIA Ltd., by way of which the indirect ownership rights of Club Aliga of almost 37 hectares as well as the asset management rights of almost 10 hectares were transferred to the company. The value of the sale and purchase increased EUR 14.1 million; and the transaction was completed on 28 January 2019.
The purchase price coming from property lease may significantly increase in 2019 in line with the prognosis specified in the strategy.
According to the Chief Executive Officer of Appeninn Plc., the growth of the Budapest office market, the expansion of retail traffic as well as the beneficial financing environment contribute to the company establishing a property portfolio, which can be profitable on the long run, with regard to both size and quality. The company is doing well with the pro-rata achievement of the targets set in the summer, and is expected to do so in the financial years of 2018 and 2019 as well.