Hungarian property developer Futureal is planning to put up €50-100 million to acquire projects in the CE region through partnership agreements, the company’s CEO Gábor Futó told the BBJ.
“We are promoting our company as not a competitor but a partner, which allows us to get involved in good projects,” Futó said. As he explained, the point of partnership agreements is to team up with others that have good projects in the making, but lack the financial or professional resources.
For this purpose, Futureal is looking to invest €50-100 million of its own capital in halted projects in Poland, Romania and Hungary, with other countries also on the possible agenda.“Considering that our partners will also invest, plus the financing from the banks, the aggregate value could be five times as large,” Futó said. The developer expressed interest in all types of commercial real estate.
However, he also noted that there are plenty of projects that are up for grabs, but only few of them are worth investing in. “We conduct an extensive audit of every venture we are considering,” Futó said, adding that the probes have already led to Futureal backtracking from an investment it was earlier interested in.
Elaborating on the benefits of partnerships, Futó highlighted that a project that is good on paper and can also show an established financing and professional partner on the team is way more likely to compel banks – still wary to finance projects – to get involved. He also stressed that his company already has a good track record in partnerships and as such will not be looking to take over the smaller companies but to cooperate with them to maximize profitability for both sides. “For Futureal, as well as our venture capital business Finext, this is a genuine strategy for the future which we are confident will help us succeed,” he concluded.