Adventum Group, a fund manager focused on CEE real estate investments, has attracted a commitment of up to €50 mln from The European Bank For Reconstruction and Development (EBRD) alongside its comingled fund in market.
Adventum Group is Budapest-based company on the way to €1bn of assets. It has four funds already under management and the EBRD is co-investing alongside the fifth vehicle, called the Penta fund. This latest fund and related JV structures have already attracted a total of €240 mln in equity including from Western European and global investors.
Notably, the EBRD said the ESG strategy of Adventum’s Penta fund went beyond the requirements of SFDR Article 8 whilst it focuses on the lifetime reduction of the CO2 footprint achieved by energy savings, utilisation of recycled construction materials, and investing in sustainable infrastructure.
According to the parties, instead of the typically heavily CO2 emitting new developments, the strategy is to focus on refurbishment of existing buildings.
Moreover, with ‘diligent planning’, the refurbishment works targeting emission reduction can be completed while the buildings are fully operational and generating income.
Kristóf Barany, founding partner, explained: ‘Accordingly, the return on equity is not only supported by the inflation indexed steady cash flow throughout the hold period but also by the value creation via enhanced tenant retention capabilities of the properties following the completion of the ESG focused capex works.’
The fund focus is on countries including Poland, Hungary and the Czech Republic.
Clifford Chance is acting as legal advisor for Adventum regarding the structuring of the co-investment vehicle, while Deloitte is advising on the implementation of ESG matters.
The revelation that the EBRD is investing alongside the fifth fund came on the same day as Adventum exchanged contracts on a €180 mln portfolio of retail parks in the Czech Republic and Hungary anchored by Tesco.
