Property developer Indotek Group has signed an agreement with Auchan Magyarország Kft, majority owned by the French Mulliez family.
Indotek will acquire 47% of the shares of the company operating the Hungarian Auchan hypermarkets and one and a half dozen associated petrol stations, as well as 100% of the shares of the associated commercial units in the Auchan hypermarket buildings. The Indotek Group acts as a financial investor, while the retail operations of the chain will continue to be managed by the current management of Auchan.
Indotek is offering the retail properties in its portfolio in exchange for the expansion of the Auchan chain, particularly in the larger Hungarian cities.
The Auchan retail chain currently has a market share of around 6% with 19 hypermarkets and 5 supermarkets totalling 250,000 square meters of retail space. The Indotek Group owns more than 350 properties. Some 4,000 partners rent space totalling more than 2.5 million square meters.