TPG Grabs TriGranit

The leading global private investment firm is buying a European company.

By Scott Baltic, Contributing Editor

National Theatre, Budapest
National Theatre, Budapest, part of TriGanit’s portfolio

TPG Real Estate has agreed to acquire TriGranit, one of Europe’s largest privately owned retail and office developers and managers, it was announced Monday by the buyer, the real estate platform of global private investment firm TPG. Financial terms were not disclosed.

As part of the purchase, TPG Real Estate announced, it intends to “commit additional capital to fund future growth and to strengthen TriGranit’s balance sheet to create a leading real estate investment, development and management platform in central Europe.”

TriGranit reportedly is one of central Europe’s largest fully integrated, privately owned regional real estate investment, development and management companies and focuses primarily on mixed-use city-center projects and office and retail developments in strategic urban locations.

TPG Real Estate will acquire TriGranit’s development and asset management platform, as well as TriGranit’s CRE portfolio. That €2.5 billion ($2.74 billion) portfolio seems quite varied, spanning office, residential, retail and hospitality assets in Zagreb, Croatia; Budapest; Bratislava, Slovakia; Ljubljana, Slovenia; Cluj, Romania; and Krakow, Katowice and Poznan, Poland.

The acquisition is expected to close before the year’s end. TriGranit’s existing management team, including founder & chairman Sándor Demján and CEO Árpád Török, will remain in place.

TriGranit is currently owned by Demján, Sándor Csányi, Peter Munk and Immofinanz AG.

“TriGranit is an excellent business with a strong track record,” Anand Tejani, a London-based partner with TPG Real Estate, said in a prepared statement. “Its highly experienced management team with deep local market knowledge and a high-quality real estate portfolio position the company well for future growth. 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.”

Certain assets (the WestEnd City Center in Budapest and some other TriGranit-related projects) will be excluded from this transaction, and the company managing and supervising them will continue its operations under the name Gránit Management.

“From its Hungarian early years as a local developer, TriGranit developed into the leading integrated CEE [Central and Eastern Europe] real estate group active in development and property and asset management,” Benjamin Perez-Ellischewitz , director & head of capital markets/Hungary for JLL, told Commercial Property Executive. “More recently, the company started to be active beyond the CEE region with consulting and property management services in the Caucasus region, China and the Middle East.TriGranit’s primary focus has been on the development of dominant, mixed-use ‘city center’ projects in strategic urban locations: WestEnd City Centre and Millennium City Centre in Budapest, Bonarka City Centre in Krakow, Silesia City Centre in Katowice or Arena Centar in Zagreb.”