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Hili Properties examines acquisitions in Lithuania, Poland
Aim is to grow €115m portfolio
October 9, 2021|
4 min read
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Hili Properties’ portfolio, a strong asset base currently valued at more than €115 million, includes real estate housing a renowned private hospital in Romania’s capital Bucharest.
Hili Properties, the international real estate investment subsidiary of Hili Ventures, is pursuing two major acquisitions in Lithuania and Poland to further diversify its €115 million portfolio and extend its footprint.
The company, which currently owns and manages commercial real estate in the Baltic states, Romania and Malta, is in advanced discussions to acquire a newly built industrial property in Lithuania. With its excellent location allowing access to key cargo routes, the property is entirely tenanted to an international brand with a 20-year lease agreement. It also exhibits potential for expansion.
In tandem, Hili Properties is in negotiations to acquire landmark real estate hosting an international DIY retail operator in Warsaw. Strategically located on one of the main exit arteries of the Polish capital, close to residential areas and easily accessible by car and public transportation, the newly constructed property has a long lease duration of nine years and extension options. Its single tenant is a leader in its industry.
Hili Properties chairman Pier Luca Demajo (left) and managing director George Kakouras: “Hili Properties has an unwavering commitment to investment to expand and enrich its portfolio through acquisition and rejuvenation.”
Hili Properties’ first acquisition in Poland will support its strategy to extend its footprint to more EU countries that present stable economic growth and potential. Poland is one of the more attractive territories for investment in Europe, with stable economic growth, strong internal and international demand, proximity to major continental markets, access to qualified human capital and ever-increasing quality of infrastructure.
This activity at Hili Properties will sit well within its current portfolio, which comprises six grocery-anchored shopping centres across Latvia’s capital Riga, a private hospital in Bucharest, 11 properties housing restaurants in key commercial districts in Estonia, Latvia, Lithuania, Romania and Malta, and three dedicated business blocks and office space in Sliema, Marsa and Floriana. Its tenants include Premier Restaurants, the operator of McDonald’s in these markets, Swedish-owned supermarket giant Rimi, and Norwegian newsagent/convenience chain Narvesen.
The properties accommodate more than 80 business tenants across 75,500 square metres of rentable real estate, enjoying an occupancy level of 99 per cent with a favourable weighted average unexpired lease term of 8.8 years. In its entirety, the portfolio has been amassed by design to generate income and capital growth through active asset management to maximise operating efficiency and profitability. 
The property group, established in 2012 with a dedicated senior executive team reporting to its own board of directors, is focused on tapping investment opportunities in markets where its parent Hili Ventures already has a strong presence with major commercial and retail operations.
“Over the past few years, Hili Properties has invested heavily in assets outside Malta following a clearly defined strategy to identify assets with attractive commercial potential and reposition them on their respective markets,” Hili Properties chairman Pier Luca Demajo explains. 
“As Hili Ventures has considerable operations in the Baltics and Romania, Hili Properties taps the wider group’s extensive knowledge and understanding of market dynamics, the economic landscape, the requirements of the commercial communities and the financial outlook of these territories. This market intelligence, coupled with a determination and the muscle to invest significantly, allows Hili Properties to take business decisions with a long-term vision. We are now looking to expand our footprint into neighbouring markets to those where we are currently present.”
As it pursues sustained growth, Hili Properties is working to identify investment opportunities in retail properties in city centres and suburban areas including shopping centres and high street retail outlets, warehousing, industrial and distribution facilities, and office properties situated in sought-after prime locations with a high potential of attracting interest from tenants.
Following acquisition, Hili Properties often injects a second round of investment in each property to remodel or upgrade the real estate and satisfy the requirements of current and future tenants and those of the wider community. The company partners trusted professionals and specialists who act decisively and ethically to deliver outcomes that become highly desirable business addresses and realise attractive return on investment.
“Hili Properties has an unwavering commitment to investment to realise its vision to expand and enrich its portfolio through acquisition and rejuvenation,” Hili Properties managing director George Kakouras adds. “We share our parent Hili Ventures’ ambition for growth, and we follow its footprint as we build a pipeline of opportunities. In this way, we target territories where the wider group possesses extensive market knowledge, enabling us to focus on locations with the most favourable outlook and the assets that demonstrate the best potential.”
During the first six months to June 2021, Hili Properties registered stable total revenues of €3.8 million. Profitability between January and June 2021 improved over the preceding period thanks to improved cost management. The company’s profitability will be strengthened further thanks to its planned investments in the short- and medium-term.
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