Akropolis Group is growing and diversifying its real estate portfolio: It plans to acquire Galio Group company

Core Insights - Akropolis Group has signed a credit agreement with Swedbank for EUR 110 million to acquire 100% of shares in Galio Group, with the credit accounting for slightly less than half of the transaction price [1] - The share purchase agreement has been signed, and the transaction is expected to close soon, with both companies having the same ultimate beneficial owners [2] - The acquisition will significantly increase and diversify Akropolis Group's real estate portfolio, enhancing its project management and development capabilities [3] Financial Impact - After the transaction, Akropolis Group's real estate portfolio value will increase by approximately 30%, from EUR 1.1 billion to EUR 1.4 billion, and the number of income-producing properties will rise from 5 to 60 [5] - The concentration of shopping centers in the portfolio will decrease from 96% to 73% of the portfolio value, indicating a diversification strategy [5] Company Background - Akropolis Group currently manages five shopping and entertainment centers in Lithuania and Latvia [4] - Galio Group has been involved in the development and management of commercial and residential real estate projects in the Baltic region for nearly 20 years, with managed assets exceeding EUR 300 million [4] - In 2024, Galio Group reported consolidated income of EUR 31 million and EBITDA of EUR 17 million, while Akropolis Group reported consolidated income of EUR 125 million and EBITDA of EUR 88 million [7] Future Plans - No changes are planned in the governance structure or management of Galio Group post-transaction, and the company will continue to develop real estate projects, including ongoing residential projects in Vilnius [6]