The companies managed by Centerra corresponded to four distinct opportunities
Centerra identified several high-growth asset purchase opportunities in Romania. With access to management skills, development expertise and financial capabilities that were scarce in Romania, Centerra was able to capitalise on these opportunities. It formed a bespoke company structure for each asset, funded by dedicated investors.
Centerra attracted international institutional investors and family offices who invested over €120 million in aggregate to acquire and develop the assets. The Centerra principals personally invested alongside these external investors, ensuring a full alignment of interests in the equity of the managed businesses.
The nature of the value creation was different for each company it managed:
- Flavus Ltd (Tractorul Braşov) — Centerra created value by acquiring the assets at a lower price than their development value. The assets were poorly marketed and the complexity and size of the industrial assets and the large site dissuaded other investors who were looking for quick gains.
- Azureway Ltd and Atrox Ltd (Fondul Proprietatea) — the lack of liquidity and clarity on the value of the numerous underlying stakes in unlisted companies meant a price that was significantly below the intrinsic value of the shares.
- Zoilos Ltd (Bucharest development) — Centerra solved complex legal, developmental and operational issues between the feuding owners and created a clean, developable retail site in the heart of the capital.
- Jomrita Ltd (Timişoara development) — the value created came from Centerra’s ability to aggregate many small plots of land from individual owners in order to create a large, developable site.