Futureal, one of the top 20 real estate developers in Europe and Gant Development S.A., one of the leading Polish property developers, have agreed to jointly invest in the development of some of Gant's residential projects with up to 1,200 homes in three cities, representing PLN 360 million (approx. 87 million) of total investment value.
Pursuant to the framework agreement signed on December 5, 2012, Futureal Group shall invest up to PLN 42 million (approx. 10 million) of fresh equity capital in development projects run by Gant Development S.A.
The first project to be completed under the joint venture is AMBER PARK residential project in Krakow with 388 apartments, currently under construction. Futureal has already injected its part of the equity capital into this PLN 100 million development project, financed by BZ WBK and expected to be completed in 2013.
In addition to participating in Gant's development projects, one of Futureal Group's investment funds subscribed to 1,250,000 newly issued shares of Gant Development S.A. and will hold over 5% of Gant voting rights after the share issuance.
"Gant Development and Futureal have created a powerful business partnership. With our know-how about the Polish market and valuable assets together we are able to profit from the Polish housing market very well" - emphasizes Andrzej Szornak, Vice Chairman of Gant Development SA.
"As part of our 100 million equity partnership program launched last year, we have been actively searching for the right way to make our debut on the Polish residential market. We have been genuinely impressed by the professionalism and track record of Gant's development team, by the strong fundamentals of Gant's projects and most importantly, we feel that we have found a great partner to work with", said Gabor Futo, founder and co-owner of Futureal Group.
"We believe that with the experience of our residential team and a position of leading residential developer in Hungary, we will be able to add value to our joint projects."
The joint venture with Gant is a part of Futureal's 'Partnership Program' in the context of which the group plans to invest 100 million in partnerships with other developers, investors and banking partners to run perspective projects in Central Europe. This is Futureal's second JV project in Poland after NoVa Park, the regional shopping and entertainment center in Gorzów Wielkopolski, developed jointly with Caelum Development.