London-listed residential property developer Nanette said it has sold 50% of its stake in the special purpose vehicle Taltoring that acquired a 151,000 m[sup]2[/sup] plot of land in Budapest last April. The land is currently designated for military use but Taltoring is working to have the zoning changed to allow commercial, retail and residential development.
London-listed residential property developer Nanette said it has sold 50% of its stake in the special purpose vehicle Taltoring that acquired a 151,000 m2 plot of land in Budapest last April. The land is currently designated for military use but Taltoring is working to have the zoning changed to allow commercial, retail and residential development.
Taltoring intends to sell a portion of the land once the zoning change has been approved. Nanette said the stake in Taltoring was bought by AI Property Holdings (Hungary) - known as Access - a limited partnership based in Delaware.
Nanette said Access will both invest in equity and provide shareholders with a total consideration of EUR 16.2mln. Nanette will realise a profit of EUR 750,000 from the transaction. In addition, Amsterdam-registered Nanette will be entitled to 30% of Access' share in total profits, once several conditions have been fulfilled, including an Internal Rate of Return above 25%.
The deal is subject to the approval of the local municipality, Nanette's original partner in the special purpose vehicle (10%). Nanette is in talks with additional potential partners regarding further investment in Taltoring.
