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TPG Real Estate to buy TriGranit

The US private investment firm has agreed to acquire 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 agreed to purchase TriGranit, one of Europe’s largest privately-owned developers and managers of retail and office assets. As part of the acquisition, 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. Terms of the transaction were not disclosed.

Under the terms of the agreement, TPG Real Estate will acquire TriGranit’s development and asset management platform as well as all of the company’s entire real estate portfolio in Poland and Slovakia, as well as some assets in Hungary and Croatia. TriGranit’s existing management team will remain in place. The assets that TPG is acquiring are worth more than €500 million, according to Reuters. The deal is expected to close before the end of the 2015.

“We founded TriGranit twenty years ago and it has grown into the region’s leading real estate company,” said Sándor Demján, TriGranit’s founder and chairman, in a statement. “I believe TPG Real Estate is a perfect buyer, as its extensive experience can carry on the TriGranit legacy. It is a great honor that one of the world’s largest investors has selected our company and its management in Europe.”

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.

“TPG Real Estate’s expertise and global presence makes it the ideal partner to further strengthen and expand our business through the development and management of office and retail projects in key strategic locations, as well as through strategic acquisitions in the future,” said Árpád Török, chief executive of TriGranit, in a statement. “I look forward to working with TPG Real Estate to achieve TriGranit’s next successful chapter of growth.”

“TriGranit is an excellent business with a strong track record. Its highly experienced management team with deep local market knowledge and a high-quality real estate portfolio position the company well for future growth,” added Anand Tejani of TPG Real Estate. “With the favorable macro and real estate trends in the region, coupled with TPG Real Estate’s expertise and financial resources, we see a number of opportunities to expand the TriGranit platform. We look forward to working together with the TriGranit management team to continue to grow the business.”

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.