Adventum Group, a CEE focused real estate investment manager, has reached a significant milestone in its history with the approval of the co-investment by the European Bank for Reconstruction and Development. The closing of the partnership is expected to complete by the end of May 2022.
“The commitment of EBRD, a highly regarded global investor, is a testament to the expertise of Adventum’s team and the feasibility of its investment strategy. Adventum’s fifth Fund, Adventum PENTA, including its related JV structures attracted capital commitments of €240 million including significant amounts made by Western European and global investors,” commented Gergely Koós-Hutás on behalf of Adventum Group.
Kristóf Bárány, Founding Partner of Adventum also emphasized: “The rigorous ESG requirements of EBRD have been adopted by Adventum. The ESG strategy of the fund now goes beyond the requirements of SFDR Article 8 whilst it focuses on the lifetime reduction of the CO2 footprint achieved by energy savings, utilisation of recycled construction materials, and investing in sustainable infrastructure. Instead of the typically heavily CO2 emitting new developments, the strategy is to focus on refurbishment of existing buildings. Moreover, with diligent planning the refurbishment works targeting emission reduction can be completed while the buildings are fully operational and generate income. Accordingly, the return on equity is not only supported by the inflation-indexed steady cash flow throughout the hold period but also by the value creation via enhanced tenant retention capabilities of the properties following the completion of the ESG focused Capex works.”
The EBRD’s Board approved a co-investment of up to €50 million alongside Adventum Penta in countries of the CEE region, including Hungary, Poland, and the Czech Republic. The first two joint investments are scheduled to be completed by the end of May. With this investment, the assets under management by Adventum Group are expected to grow to ca. €1 billion by Q2 2022, with 700,000 sqm of commercial real estate managed in the core CEE countries including Poland, Hungary and the Czech Republic.
Clifford Chance is acting as legal advisor for Adventum regarding the structuring of the co-investment vehicle while Deloitte is supporting the implementation of ESG matters.
