TPG completes TriGranit deal

The US private investment firm has closed the acquisition of the central European developer and most of its real estate assets.

TPG Real Estate, the real estate platform of global private investment firm TPG, has closed on the acquisition of TriGranit, one of Europe’s largest, privately owned developers and managers of retail and office assets.

It is understood that as part of the transaction, TPG Real Estate acquired nearly 30 vehicles invested in four countries, including TriGranit’s entire development and asset management portfolios in Poland and Slovakia, as well as selected assets in Hungary and Croatia, giving TPG Real Estate a total property portfolio worth approximately €2.5 billion.

TPG Real Estate intends to commit additional capital to help drive future growth at TriGranit and bolster the company’s balance sheet, with the intention of building a dominant real estate investment and development business in central Europe.

“The new TriGranit will manage a much wider scope of activities than before. As an integrated real estate platform, we will not only focus on development and management of retail and office projects, but also acquisitions of high quality assets,” commented Árpád Török, chief executive of TriGranit.

The TriGranit transaction will further expand TPG's real estate footprint in central Europe. In 2013, the firm, in partnership with Ivanhoé Cambridge, acquired PointPark Properties, an investor, developer and manager of warehouse properties in Europe, including the Czech Republic, Poland and Slovakia.

TriGranit’s WestEnd City Center in Budapest and some other TriGranit projects will not be included in the transaction. Instead, those projects will be managed by a new entity that will be called Gránit Management. TriGranit is currently owned by Sándor Demján, Sándor Csányi, Peter Munk, and listed European property company Immofinanz AG, but after the close of the deal, Demján and Csányi will buy out the interests of Munk and Immofinanz.