Hungarian developer Futureal aims to invest EUR 100 mln of equity through development partnerships over the next two years to jumpstart stalled projects in Central and Eastern Europe (CEE).

The company is targeting the best potential projects that with help can become the dominant schemes in their target areas.

The strategy - adopted in January 2011 - has led to Futureal teaming up with Irish investment group Caelum Development on the EUR 120 mln Nova Park shopping and entertainment centre development in Gorzów Wielkopolski, Poland. The partners recently secured a EUR 50 mln construction and investment loan for the project from BZ WBK Bank.

Futureal CEO Gábor Futó told PropertyEU that a tie-up with another partnership for an office project is to be announced later this year when the preliminary arrangements have been finalised.

Futureal is one of the leading developers on the Central and Eastern European property market, with EUR 1.6 bn of projects under development. 'Last year we handed over 270,000 m2 of developed space after having sold most of our buildings at the height of the market in 2006-07,' Futó said. He claims the EUR 400 mln of sales left the company with a very strong balance sheet.

'We realised we needed to have a different strategy going forward: partnerships,' Futó said. 'We believe there are a number of great projects out there that lack either equity or a little bit of development energy or capability, which Futureal can provide.'

Futó noted that Futureal has some 120 real estate professionals in Hungary, Poland and Romania - one of the largest development teams in the region. The company has previously partnered Immofinanz and French firm Klépierre as well as a number of developers and municipalities.

Futó said his company had completed 20 projects across CEE during the course of the recent financial crisis. 'Projects, which have all died a number of times and we have had revived them. We have suffered and learned through the crisis. This knowledge as well as equity is now available for our partners.'