Real Estate Investment Slovakia

A smaller Central European Investment Fund wanted to divest a land development project in Slovakia.
Total size of the project was ca 7 hectares of land with a residential zoning.

Situation

Investment fund aims to divest a residential land-development project in Slovakia

A smaller Central European investment fund looked to divest a land development project in Slovakia. Total size of the project was ca 7 hectares of land with residential zoning. After the lands were acquired some years ago, the fund organised all relevant building permissions for the construction of infrastructural works. The fund itself had no interest to implement construction of the infrastructure and subsequently organising the sales of the individual land parcels and aimed to sell the complete project. In order to realise this, the fund looked for a reliable partner not only advise on the best sales strategy, but also coordinate the actual sales of the project. An important factor for the fund was to realise the selloff within a short period of time to the highest bidder. A minimum sales price was also indicated. Due to its long term experience in Slovakia, the fund decided to partner with Pro4CE in this project.

Pro4CE consulting and brokerage role

Developing and implementing a strategy to secure land for planting fast growing trees

By working closely together with senior management, Pro4CE was able to define a clear sales strategy for the fund. Based on market knowhow and extensive valuation experience Pro4CE was also able to advise on a realistic exit price. Following approval by the fund, Pro4CE presented the project to a group of selected investors and developers. It provided project background information and supported potential buyers to speed up the sales process for the fund. Pro4CE was as such involved in all aspects of the deal, including contracting and handling of the finances.

Outcome

Successful sale of the project

Within the set time, Pro4CE was able to organise a full sale of the project and the project company. By using a bidding process among the final interested buyers, a selling price was agreed upon that exceeded the set minimum and was on the higher end of the price range originally provided by Pro4CE.

“Working with Pro4CE, we were able to execute a fast sale of our project and receive a sum that was higher than the minimum price we initially expected. Pro4CE provided us with transparent and practical advice and support during all phases of the sales process.”

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