AutoWallis will gain possession of one of the largest and most modern BMW dealerships in Central and Eastern Europe, housed in a building boasting unparalleled architectural solutions. The salon operating at 95 Hungária körút has already been rented by a subsidiary of the Budapest Stock Exchange listed group, selling BMW and MINI vehicles on the premises.
Having concluded an agreement on the acquisition of DALP Kft., the company owning the property at 95 Hungária körút, AutoWallis Plc., listed in the Premium category of the Budapest Stock Exchange, will be further expanding its self-owned real estate portfolio. The property has already been in use by a subsidiary of the group, as Wallis Motor Pest has been renting it since 2016 when it opened one of the largest and most modern dealerships for BMW and MINI vehicles in Central and Eastern Europe, housed in a building with a floor area of more than 5000 square meters and boasting unparalleled architectural solutions. Commenting on the transaction, AutoWallis CEO Gábor Ormosy emphasized that one of the important goals of the move was to increase shareholder value, given that the further expansion of the group’s real estate portfolio with a strategically located site will support the corporation’s automotive retail and related services. The CEO added that since the majority of dealerships operated by the group were self-owned, the development and resulting increase in value of such properties would be realized within AutoWallis.
The purchase price of HUF 1.54 billion for DALP Kft., whose sole property is the one in question, was determined by an independent appraiser, and will be paid by AutoWallis relying exclusively on its own shares. Based on the earlier authorization of the corporation’s shareholders, the rate per share of the 15,400,000 shares to be newly issued as part of the contribution in kind is the stock exchange closing rate on the trading day preceding the decision, that is, HUF 100. The new shares will be acquired by Wallis Asset Management Zrt. (WAM), which is the seller of DALP Kft., as well as the main owner of AutoWallis. This step is in line with an earlier statement released by the WAM Board of Directors, in which they asserted that AutoWallis remained a strategic investment for them, and assured the group’s management of their continued support for future plans, as well as of their intention to preserve majority interest in the corporation in the long run. As is known, AutoWallis announced in December its plans to triple its 2018 revenue in 2021. In addition to organic development, the stock exchange automotive company intends to achieve this substantial growth through the six acquisitions and business developments announced last year. For the purpose of financing its growth plans, at the end of last year the company carried out a capital increase of HUF 1.4 billion with the participation of three renowned Hungarian institutional investors.
Interesting facts about the dealership located at 95 Hungária körút: