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Karol Pilniewicz. Credit: Futureal Group

Futureal issues a EUR 150 m 10-year green bond to reinforce its investment business line

Futureal Development Holding has successfully auctioned its 10-years amortising green bonds at the Budapest Stock Exchange. Hungary’s leading real estate developer raised HUF 55 bn (ca. EUR 150 m) in the transaction, which was heavily oversubscribed by financial institutions.

Futureal Group, including its residential business Cordia, has over 2 million gross sqm of developments in the pipeline across Europe and it will continue investing in opportunistic transactions and platform deals. Futureal accepted bids for a total face value of HUF 55 bn and received HUF 57.32 bn proceeds representing an average yield of 3.47%. 

“Despite the market challenges caused by the pandemic, Futureal Group and Cordia Group will be able to actively participate in the relaunch of the economy in Europe, as we are currently working on over 2 million square metres of developments on the continent,” said Gábor Futó, founder and co-owner of Futureal and Cordia.

Following the transaction, Futureal has also announced the appointment of Karol Pilniewicz, the former regional head of Cromwell Group to lead Futureal’s investment activities in CEE

Karol Pilniewicz and his team will focus on repositioning opportunities and platform deals in major cities across the region. Their expansion strategy can rely on Futureal Group’s decades-long real estate development and investment experience as well as design and engineering know-how. The new investment business line will be tasked with deploying a significant portion of the proceeds of the bond issuance. 

“The fresh funds give us even more opportunities for a dynamic international expansion. Futureal has already made significant achievements in countries such as Poland and the UK, which provides a solid base to further strengthen our market presence in Europe. The company will also boost its position by inviting co-investors to join forces on new acquisitions,” said Karol Pilniewicz, Chief Investment Officer of Futureal.

The firm will also continue deploying capital in Western Europe as part of its strategic diversification and growth plan.