Adventum Penta Co-Investment

Location:

Regional

Project number:

52967

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

FI

Approval date:

06 Apr 2022

Status:

Signed

PSD disclosed:

11 Apr 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

Up to EUR 50.0 million equity investment in Adventum Penta Co-Investment SCSp (the "Company"), a closed-end limited partnership to be incorporated in Luxembourg to co-invest with Adventum Penta Fund SCA SICAV-RAIF (the "Fund") in acquiring and operating commercial real estate, including mix-used and retail assets, in Central and Eastern Europe ("CEE").

Project Objectives

The Bank's participation will be used towards the acquisition of two portfolio assets, Sky Tower located in Poland, and a chain of grocery-anchored retail parks (the "Retail Portfolio") located in Hungary and Czech Republic, with potential follow-on investments in Slovak Republic and other CEE markets.

Transition Impact

ETI score: 66

The expected Transition Impact will contribute to the "Green" and "Well-Governed" qualities.

Green: The Company will adopt an ESG strategy to systematically assess, manage and report on its sustainability achievements. EBRD participation will be allocated towards green assets, with Sky Tower envisaged to achieve green certification of at least BREEAM "Very Good" (or equivalent), and with the assets in the Retail Portfolio to either achieve BREEAM "Very Good" certification or 30% energy savings. 

Well-Governed: The Company will report annually on the environmental and sustainability performance of its portfolio in a specific sustainability section of the regular reports and in line with industry standards on sustainability reporting.

Client Information

ADVENTUM PENTA FUND SCA SICAF-RAIF

Adventum Penta Co-Investment SCSp is an entity to be established in Luxembourg for the purpose of co-investing with the Fund in a portfolio of operating commercial real estate in CEE. Adventum Penta Co-Investment SCSp will be managed by affiliates of Adventum Investment Fund Management Ltd ("Adventum"), a specialist real estate investment group focusing on the CEE region.

EBRD Finance Summary

EUR 50,000,000.00

Total Project Cost

EUR 250,000,000.00

Additionality

The additionality stems from (i) supporting a Hungarian-based fund manager expand further into the CEE region and the development of the local private equity market, and (ii) guiding the client in the preparation and adoption of an ESG policy, as well as in defining the sustainability criteria. While CEE markets have attracted significant investment over the last few years, the private equity market and the pool of experienced fund managers operating in CEE is still very limited.

Environmental and Social Summary

Categorised FI (ESP 2019). The ESDD has confirmed that Adventum has relevant capacity and systems to comply with the Performance Requirements 2, 4 and 9 and implement the EBRD's Environmental and Social Risk Management Procedures for Active Equity Funds and submit annual environmental and social reports to the Bank. The review of the Co-Investment Portfolio highlighted the need to agree a number of actions in regards to Life and Fire safety and these are covenanted under Environmental and Social  Management Plan (ESMP). Aligned with the "Management Approach for Solar Supply Chain Risk Management" explicit prevailing E&S safeguards are considered under ESMP and the client was advised to use whenever possible solar panels included in the "Green Technology Selector" (GTS). The EBRD GTS is an open list of pre-approved small-scale technologies, which can be used as a screening tool. In association with OCCO, companies/suppliers with credible links to forced labour allegations in solar PV supply chains are temporarily not accessible via the EBRD Green Technology Selector.

Technical Cooperation and Grant Financing

Not applicable

Company Contact Information

Kristóf BÁRÁNY
kristof.barany@adventum.hu
+3612669441
https://adventum.hu/en/

PSD last updated

19 Apr 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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