BUILDING LONG-TERM VALUE
Eastbridge Group - general information
Eastbridge Group is a Luxembourg private investment company which has been active since 1990, managing over €1.5 billion in assets related to the consumer goods market and commercial property with over 11,000 employees in the real estate and consumer sectors in North America and Europe. It is also a family fund organized as Luxembourg-based LLC (Sarl). Its main investor is the Monaco-based Bruckner family and the minority investors are the both the current and the former managing partners.
Eastbridge has been active for 20 years in Europe and for 12 years in the US. Since then the group has made investments in over 50 companies and business ventures, of which over 30 have already been completed.
Operations of the Group are associated with specific business segments in which the Group has a wide expertise in, namely: consumer goods, commercial and residential real estate, electronic media, digital content and multimedia, publishing and brand distribution.
Eastbridge expands its consumer services in Germany, Poland, Russia, Ukraine, Turkey, Romania and the Czech Republic. It is also active in real estate development in USA (New York City), Belgium, Luxembourg and Poland.
In Europe, Eastbridge is focused on funding of new development projects mainly in the fast-growing Polish market and opportunistic investments in Belgium and Luxembourg.
Company’s profile - our distinctive advantage
STRONG DEAL SOURCING CAPABILITY
• • • • •
• active for 20 years, investment in 50 companies • strong expertise in investing in internationally proven business concepts and expanding them within Eastbridge target markets gained through extensive history of deal making • ability to locate and initiate new investments in each region • deal origination through a deep and long-standing relationship with industry partners on the markets and through existing assets under management allowing to recognize and assess attractive investment opportunities
majority of assets held on average over 5-6 years balanced approach to market risk and portfolio diversification focus on sustainable profitable growth close alignment with the management team proven ability to achieve growth through add-ons, buy-and-build integrate acquired businesses
HIGHLY EXPERIENCED INVESTMENT TEAM
• Eastbridge managing directors have been on board for the last 15 years, contributing their extensive strategic oversight experience, sector knowledge, operational expertise, M&A and financial structuring skills KNOWLEDGEABLE AND SKILLED OPERATIONAL TEAM
• Eastbridge’ s portfolio companies have been managed by over 50 top-class managers representing 27 nationalities and therefore substantial experience on various markets
DYNAMIC EXIT MANAGEMENT
• over 30 exits completed • return targeting a range of 20-30% p.a. depending on the nature of the project • number of exits to the same partner
Strategy of Eastbridge Group CONSUMER GOODS SECTOR
Funding further organic growth of EM&F in Russia, Ukraine, Turkey, Poland, Germany and Romania
EM&F’s acquisitions in fashion, children, publishing and E-commerce sector
New acquisitions in consumer goods and services markets independent of EM&F
CONSUMER SERVICES SECTOR
Invest in internationally proven consumer / financial services projects
Invest in retail financial companies with international presence and know how, helping them to expand in Eastbridge geographical markets
REAL ESTATE BELGIUM & LUXEMBOURG
Expand business to achieve synergies by deploying the technical know-how from Belgium and Luxembourg to the faster growing Polish market
Funding of new development projects pre-dominantly in fast growing Polish market
Opportunistic investments in Belgium and Luxembourg
REAL ESTATE U.S.A. (MANHATTAN)
Further investments in conversion projects in Manhattan
MACIEJ DYJAS Managing Director and CEO of the Eastbridge Group, as well as Chairman of Empik Media & Fashion SA
Maciej Dyjas joined Eastbridge Group in 1994, and became a partner in 1998. Currently, he has held the position of Managing Director and CEO of the Eastbridge Group and Chairman of Empik Media & Fashion SA. (EM&F Group), responsible for the overall growth strategy of the Group, managing its operations in Europe and U.S.A., and maintaining relationships with its business partners and investors. From 2004 until 2010 he was President of EM&F Group, responsible for developing and implementing its strategy in Poland and on foreign markets. In this period, EM&F Group developed to become the regional leader in distribution of lifestyle consumer goods (operating over 650 stores and language schools in Poland, Germany, Russia, Ukraine, the Czech Republic, Slovakia, Turkey and Romania) and is listed on the Warsaw Stock Exchange. Previously Maciej worked in various consulting firms in Europe and U.S.A. He is the Member of the Polish Business Club, the German-Polish Chamber of Commerce and the Association of Germans in Poland. Maciej has a degree in IT and business administration from the University of Warsaw and University of Stuttgart.
MACIEJ DROZD Managing Director and CFO of the Eastbridge Group
Maciej Drozd joined Eastbridge in 1995. Since June 2009, he has been Managing Director and Chief Financial Officer of the Eastbridge Group as well as a Member of the Supervisory Board of Empik Media & Fashion SA (EM&F Group). Since 2002, he has also been a Member of the Management Board and Financial Director of the Commercial Real Estate Division of Eastbridge. Previously he served as CFO in various firms in Poland. He graduated from the Faculty of Philosophy and Sociology and the Faculty of Management of the University of Warsaw and holds an MBA from the University of Illinois at Urbana-Champaign.
EWA PODGÓRSKA Managing Director and General Counsel of the Eastbridge Group
Since 2010, Ewa Podgórska has been Managing Director and General Counsel of the Eastbridge Group and a Member of the Supervisory Board of Empik Media & Fashion SA (EM&F Group). From 2004 to 2010 she was Director of the Legal Division of EM&F Group and from 2008 to 2010 she was also a Member of the Management Board of EM&F Group. Ewa was responsible for the coordination of legal services for EM&F Group and its subsidiaries, and also supervised the activities of the legal teams of EM&F Group. Between 2002 and 2004, Ewa was a Member of the Management Board and Chief Legal Counsel of Eastbridge Group, and prior to this, from 1998 to 2002, she was Legal Counsel and Head of the Legal Division of Domy Towarowe Centrum.
Eastbridge Group - consumer business CEE EM&F Group - overview
In 2004, as a result of contribution of 12 leading retail and wholesale companies and acquisition of the majority interest in EM&F in 2004 by Eastbridge Group, Empik Media & Fashion Group (EM&F Group) became one of the leading operators of consumer brands in the following categories: media, entertainment, clothing, shoes, children’s toys and accessories and language courses.
The Group is composed of operating and retail companies with Empik Media & Fashion SA as a holding company. Major shareholders of EM&F are funds: Eastbridge S.a.r.l., Penta Investments (an investment group active in the private equity and real estate sectors in Central Europe) and ING Pension Fund. EM&F Group has been listed on the Warsaw Stock Exchange for 15 years, since 1997.
EM&F target markets counting over 300 million consumers include Poland, Russia, Ukraine, the Czech Republic, Slovakia, Germany, Romania and Turkey. Its extensive portfolio comprises well-established and highly-recognized consumer brands. EM&F‘s vast sales network totals ca. 650 stores of 330 000 m² and 7,000 employees. The business model of EM&F Group is based upon activities in four divisions: Empik Group (Empik stores, e-commerce, digital content, publishers) Smyk Group (a network of children’s goods stores) Language Schools (the Empik Schools and Speak Up schools networks) Fashion and Beauty (a network of franchise stores and distribution).
EM&F Group - overview Empik Group
- a long-established and highly popular chain of stores in Poland which offers a compelling selection of national and international press, magazines, books, music, DVDs, PC and next-generation console games, educational software, stationery and tickets. For over 60 years of its existence Empik excelled in propagating arts, film, literature and culture, and through its many campaigns it supported cultural events and accomplished Polish artists. www.empikgroup.com
EM&F Group - overview E-commerce, Digital and Publishing segment
E-commerce, Digital and Publishing segment - a dynamically developing, diversified e-commerce and e-content arm of EM&F's consumer business. It includes: Empik.com (online shop among the top visited e-commerce sites in Poland) Smyk.com (an e-tailer with Smykâ€™s inventory on offer) Gandalf.com.pl (online bookstore) Virtualo (the biggest Polish e-book publisher and online retailer) eMuzyka (the largest B2B online content provider in CEE, digital music wholesaler) Gry-OnLine (an unquestionable leader among Polish media involved in video game market) Grupa Wydawnicza Foksal (a cluster of traditional book publishing houses, including W.A.B., Wilga and Buchmann). Other activities include photo printing services (empikfoto.pl), travel services (empiktravel.pl) and a website with song lyrics (teksty.org).
EM&F Group - overview Smyk Group
Smyk Group consists of an international network of Smyk stores and the Spiele Max chain in Germany. Both chains offer a wide selection of toys, school accessories, books, multimedia, accessories for infants, as well as clothes and shoes for children up to the age of 14. The Smyk store chain operates on the Polish, Russian, Ukrainian, Turkish and Romanian markets. The chain has two self-created, exclusive brands (COOL CLUB - clothing and SMIKI toys), available only in its own stores. Smyk is a cultstatus brand, immensely trusted by millions of customers, guaranteeing quality, origin and safety of the products offered. Spiele Max is the leader of its sector on the German market. www.smykgroup.com
EM&F Group - overview Language schools
- a network of language schools which operates in Poland, Russia, Ukraine and Turkey. The classes are conducted by qualified teachers and supervised by experienced linguistic methodologists. The educational process is widely based on modern technologies and innovative teaching methods and allows for a great time and place flexibility. The schools operate under the brands of empik school and Speak Up. www.speak-up.pl www.empikschool.com
EM&F Group - overview Fashion segment
This segment includes several fashion retail brands managed by Ultimate Fashion and Maratex. Ultimate Fashion is the Polish distributor and retail operator of fashion brands such as New Look, River Island, Esprit, Aldo and GAP. Maratex manages the Esprit, Aldo, River Island and Oviesse chains of apparel stores in Russia and Ukraine. www.ultimatefashion.pl www.maratex.ru
Eastbridge Group - real estate U.S.A. DTH Partners
Eastbridge's main investment vehicle in real estate market in the United States is DTH Partners in which Eastbridge holds 67% of equity and the remaining 33% is controlled by AG Real Estate, a subsidiary of Ageas SA. DTH Partners company has focused exclusively on multifamily residential property conversion projects in the Financial District in the Manhattan borough of New York City, US.
Eastbridge began to invest into New York City properties following 2001. Its investment target was on lower Manhattan’s office buildings characterised by an outstanding 1920’s and 1930’s art-deco architecture and their unsuitability for modern office use. The business concept entails profit-yielding conversions and thorough modernisations of old-type office building into a multifamily residential function.
At present the company owns some 1.6 million gross square feet, including ca 1,600 residential units in Manhattan. DTH Partners’ current portfolio consists of four iconic landmark properties: 63 Wall Street, 67 Wall Street, 20 Exchange Place and 70 Pine Street (the former AIG building). DTH Partners anticipates further growth and strong returns from growing rents in the existing assets and new conversion projects.
DTH Partners currently works in partnership with Rose Associates, Inc. on development of the former AIG building, a famous Downtown Manhattan landmark. Rose Associates, Inc. is a renowned and well established New York development and property management company.
Eastbridge Group - real estate U.S.A. DTH Partners' investments in New York City
20 Exchange Place
63 Wall Street
70 Pine Street
Eastbridge Group - real estate Poland Centrum Development & Investments
Company established in 2007. Large scale trophy developments and re-developments have been performed in some of the key cities of Poland (Warsaw, Krakow and others). They involved central urban locations, high architectural standard and well-recognized tenants.
Company continues to acquire and develop, as well as further manage, some stabilized assets. Current CDI’s real estate portfolio comprises 5 properties located in city centers in Poland.
At present, in cooperation with its partners CDI is considering a number of real estate investments in Poland. The focus remains on properties in cites’ central locations, having strong retail potential and being leased to reputable tenants. Possibility of realization of high margin in well-defined and short-term perspective is considered as key factor influencing CDI’s involvement in given transaction.
Eastbridge Group - real estate Poland CD&Iâ€™s investment projects
CH Renoma, Wroclaw
Pasaz Victoria, Lublin
DT Wars & Sawa, Junior, Warszawa
Eastbridge Group - real estate Benelux & Poland Immobel
In 2010 Eastbridge acquired a 25% stake in the Belgian / Luxembourg developer Immobel (IMB). The investment was implemented through a purchase of shares from JER Europe, a US investor exiting the European market. Since then Immobel made several acquisitions on the Polish market, developing several properties in a partnership with Centrum Development & Investment. Now, Eastbridge holds 29,85% of the share capital of Immobel.
Established in 1863, with 150 years of immaculate track-record, Immobel is today the major and highly-regarded Belgian real estate developer specializing in top-end office and residential developments, and in land-banking investment with focus on three domestic markets: Belgium, Luxembourg and Poland.
Immobel is characterized by a far-sighted risk and a pragmatic approach towards new acquisitions, the development, the leasing and the prompt sale of projects upon their completion.
Following the Immobel Group strategy in terms of location, quality, risk versus return, size and environmental criteria, its Polish arm aims to focus on CBD (central business district) office market and prime non-central office destinations in Warsaw, as well as on promising residential, office and retail developments in best locations in major Polish cities.
Eastbridge Group - real estate Benelux & Poland Immobel's investment projects in Poland
Eastbridge Group - real estate Benelux & Poland Immobelâ€™s investments in Belgium (Brussels)
D1, D2, D3, Offices
Parliment French Community, Offices
Ellipse Building, Offices
Crown Avenue, Offices; Jardins de la Couronne, Residential
Eastbridge Group - real estate Benelux & Poland Immobelâ€™s investments
Sienna Center, Warsaw, Offices
Bella Vita, Waterloo, Residential
Wavre 4 Sapins, Landbanking
Green Hill, Luxembourg, Residential,
ChĂ˘teau Rempart, Tournai, Offices,
WestSide Village, Offices
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Published on Apr 9, 2013
Eastbridge Group: general information, company's profile, strategy, management team (Maciej Dyjas, Maciej Drozd, Ewa Podgórska), consumer bu...