Indotek Group acquires Diófa Alapkezelő

The company handling the third largest real estate funds of Hungary has been added to the portfolio of the Hungarian-American investment management group

Indotek Group has agreed to acquire the majority ownership of Diófa Alapkezelő Zrt. As one of the leading investment management and real estate development group of Hungary, Indotek Group – as a professional long-term investor – intends to provide the ownership background Diófa Alapkezelő is in need of, in order to strengthen its market position and to develop its portfolio of services on the markets of property management and investment products.

Budapest, 7 January 2020 – Tarragona Holding Zrt., an exclusive subsidiary of Indotek Group, has acquired 89,86 percent of the ownership of Diófa Alapkezelő Zrt, consequently transferring 98,89 percent of total voting rights to the new owner. The project company created by Indotek Group and the former majority owner MTB Magyar Takarékszövetkezeti Bank Zrt. have signed the transaction agreement on 30 December 2019. The representatives of Indotek Group are currently in the process of negotiating the terms of acquiring the remaining minority ownership from the minority owners of Diófa Alapkezelő. The transaction is scheduled to be concluded by March 2020.

The sale of Diófa Alapkezelő is part of the reform process of Takarék Csoport. However, Takarékbank Zrt. will remain as distributor and manager of the investment units of Diófa Alapkezelő; furthermore, Takarékbank will provide complete banking background for Diófa Alapkezelő and its clients.

Accordingly, the change of ownership will not be directly noticeable for the clients of Diófa Alapkezelő. The investment management company will continue to operate as usual and will provide its services for institutional and retail clients. Therefore, investment units of the investment management company will be distributed by the branches of Takarékbank, which operates the largest network in Hungary. Retail clients will be able to handle transactions the same way, in the same branches with the same experts as before. Through the new ownership, other financial providers and banks will have the opportunity to distribute the products of Diófa Alapkezelő, introducing those to a wider range of customers.

By signing the agreement on 30 December, Indotek acquired significant ownership in one of the most dynamically developing fund management of the sector, since Diófa Alapkezelő handles institutional and retail funds worth more than HUF 340 billion. The real estate portfolio managed by Diófa Alapkezelő includes exclusive Class A office buildings such as Alkotás Point, Green House, V17 or the buildings A, E and G of Infopark.

„The acquisition provides new, mutual development opportunities for both participants. As a professional investor thinking for the long-term, our aim is to let Diófa Alapkezelő and Indotek Group proceed with their work independently whilst supporting each other, in order to achieve better business results. Besides the fact that Indotek Group is investing in the funds of Diófa Alapkezelő, I will personally invest in them, too, representing our trust in this investment,” said Dániel Jellinek, CEO and majority owner of Indotek Group.

Indotek Group is ready to deliver two decades of professional knowledge and experience in the Hungarian and regional real estate market for Diófa Alapkezelő. At the same time, the goal of the company is to operate transparently, with professional and financial aspects in mind, so that Diófa Alapkezelő can operate separately from the new owner and its successfully operating investment fund management, Indotek Investments Alapkezelő Zrt.

„As a professional investor, we wish to support Diófa Alapkezelő in the development of its portfolio of services in order to let the company provide even more attractive investment opportunities and yields for its clients. We see numerous targets on the market with great potential for yields and appreciation, and it is our future aim for Diófa Alapkezelő to involve its retail investors – beside its institutional and foreign equity partners – in investing in these opportunities. For example, we have discussed creating new funds in which, in spite of a fixed yield, the management of the fund as well as investors are able to realize yields based on their success. We intend to provide a competitive alternative for retail and institutional investors, so that they may have access to tangible investments with better yields on the real estate market through the funds of Diófa Alapkezelő,” stated Dániel Jellinek, CEO and majority owner of Indotek Group.

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About Indotek Group

Indotek Group is one of the leading investment management groups of Hungary. The Hungarian-American owned company group uses the assets entrusted to their care principally to purchase real estates and loans, with the portfolios positioning the Group among the most important market players in Hungary. The key to the Group’s activity is calculated risk-taking and professional risk management besides long-term thinking, both of which can provide outstanding returns.

Indotek Group is currently a market leader on the market of commercial real estates Class B and C. It employs approximately 240 workers and manages over 300 real estates. The constructed and rentable territory is over 1.5 million square meters, which is divided between 2500 renters.

The portfolio of the Indotek Group consists of over 20 office buildings, including EMKE building or the Focus Point building on Dohány Street, and over 20 shopping malls in the capital and the countryside including Duna Plaza, Corvin Plaza and Promenada Targ Mures in Romania. Moreover, Indotek Group owns many hotels and numerous storage and industrial buildings. Indotek Group is also present on the market of the residential real estate market with several self-developed residential projects.