The company is to spend €100 million of its own funds for the purpose over the next one or two years. With the partners’ funds added and the bank financing that could thus be secured, the overall investment volume could reach €500-600 million, the company’s CEO Gábor Futó told reporters.
Futureal decided on the structure seeing the state of affairs in Romania, where there are several projects that hit a snag, but due to the changes in the overall environment, only a few of them, the first ones to enter the market, will have any chance of becoming successful, Futó said.
“We represent what can be deemed smart capital compared to equity. What this means is that we become involved in a given project and stay committed to making it successful, whereas capital investors are only looking at the financial aspects and have no real estate-based expertise to contribute,” he added.
To date, Futureal has concluded one agreement, involving €120 million with Caelum Devolvement on continued devolvement of the Nova Park shopping complex in Poland.
As Futó noted, the company is expecting to announce another deal shortly. This would be a so-called corporate solution provider arrangement, under which the developer seeks out the best opportunity for larger tenants that have difficulties finding suitable leases.
He stressed that although Futureal has recently expanded its scope to a regional level, it is also keeping its eyes on the Hungarian market, where there are “good projects in hiding”.
However, he stressed that the local mentality prohibits partnerships with developers looking at each other as rivals, opposed to mutual prospective beneficiaries of cooperation.