Hungarian real estate firm with government ties acquires Spanish shopping centre for EUR 50 million

Budapest-based Indotek Group, a prominent European real estate investor and asset manager, has purchased the Espacio León shopping centre in Spain for nearly EUR 50 million. The property was previously owned by the American investment firm Blackstone Inc., according to a statement released by Indotek.

Government-close Indotek Group acquires Spanish shopping centre

The Espacio León shopping centre in Spain, acquired by the Indotek Group. Photo: espacioleon.es

The acquisition, located in the Castilla y León region of Spain, was financed by Banco Santander. Espacio León, originally opened in 2004 and refurbished in 2018, attracts approximately 4.1 million visitors annually, Telex reports. The shopping centre boasts 112 retail units, 1,277 parking spaces, and a leasable area of 36,914 square metres, currently operating at 93% occupancy.

Indotek Group, which already owns a portfolio of 1,600 hotel rooms on Spain’s coast, has been expanding its presence in the Iberian Peninsula. In addition to shopping centres, the group’s interests in the region include retail parks, supermarkets, and industrial properties. Last year, the company also acquired two shopping centres in Valencia and Barcelona.

With operations across 13 European countries, Indotek Group is owned by Dániel Jellinek, a businessman whose ventures have benefited from government-backed investments. In recent years, some of Jellinek’s interests have financially benefited István Tiborcz, the son-in-law of Hungarian Prime Minister Viktor Orbán, through preferential shares.

Jellinek’s notable success from government-backed investments

Dániel Jellinek, owner of Indotek Group. Photo: Indotek.hu

In 2023, Indotek acquired a 47% stake in the Hungarian operations of the French retailer Auchan, as well as 100% of the so-called “corridor” business, which manages the commercial spaces located outside supermarket checkout areas, including pharmacies, key-cutting services, and various other shops.

Jellinek’s companies have also had notable success in securing government support for projects, such as the Kisfaludy programme, which funds regional hotel development. Investigative reports by Válasz Online revealed that Jellinek’s interests were among the key beneficiaries of a state-funded capital programme managed by the Hungarian Development Bank (MFB), which allocated substantial resources to his ventures.

Jellinek is one of Hungary’s wealthiest individuals, with his business empire transferring approximately HUF 27 billion (about EUR 70 million) to István Tiborcz’s business circle between 2019 and 2022. This period also saw a similar amount mysteriously appear in Tiborcz’s most significant company, though the origin of these funds remains undisclosed, with Tiborcz refusing to provide an explanation when questioned.

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