Indotek Strengthens Retail Presence with 47% Stake in Auchan Hungary

MTI-Hungary Today 2024.12.05.

Over the weekend, the Indotek Group completed the acquisition of Auchan Hungary. In addition to the 47 percent stake in the retailer, the real estate investor will also take over the operational management of the Auchan chain of stores.

Auchan Hungary and its domestic interests involved in the acquisition employ around 6,000 people, and in 2023, they achieved an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of HUF 27 billion (EUR 65 million) on sales of HUF 460 billion (EUR 1 billion).

The acquisition has already been approved by the Hungarian Competition Authority,

Indotek stressed. “With the experience gained from operating more than 50 domestic and international shopping centers and retail units, we can make Auchan’s operations in Hungary more efficient and effective, and with our retail real estate portfolio we can accelerate the domestic expansion of the well-known and popular brand. This requires us to take a meaningful role in the management of the company as a minority owner,” said Dániel Jellinek, CEO and majority owner of Indotek Group.

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He added that with the cooperation of the Indotek Group, Auchan can open new stores in Indotek’s existing retail properties and even become an unavoidable player in the lower floor area segment.

By expanding the store network, the chain’s low-priced, high-quality products will be available to a significantly wider range of customers in new rural settlements,

the CEO noted.

Auchan, currently owning about 6.8 percent of the Hungarian retail sales, has 19 hypermarkets and five supermarkets with a total floor area of more than 250,000 square meters in Hungary. The chain also has 19 petrol stations.

A year ago, Indotek Group announced that it would acquire a 47% stake in Auchan Hungary, and through the acquisition of Ceetrus Hungary and Nhood Services Hungary, would become the sole owner of the retail premises on the floors of Auchan stores.

The parties did not disclose the value of the transaction and said that their cooperation is exclusive.

Fact

The Indotek Group, established over two decades ago, is a leading investment manager in Hungary, primarily focusing on real estate and non-performing corporate loans secured by real estate. With a diversified portfolio exceeding 1.7 million square meters, it operates over 30 office buildings, 100 warehouses, and 20 shopping centers across Hungary. Indotek’s strategy emphasizes practical solutions, calculated risk-taking, and creating value through property refurbishment and flexible market management. While active mainly in Hungary, Indotek is expanding across Central, Eastern, and Southern Europe, currently exploring opportunities in 14 countries. Its investments prioritize profitability and sustainable development, aiming to enhance both the market and the environment.

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Via MTI; Featured image via Wikipedia/Lionel Allorge