DS Smith, a leader in sustainable packaging solutions, paper products and recycling services, today (9 January 2024) announced that it had entered into an agreement to purchase the land and building that is hosting our existing operations in Győr, Hungary.
The property, encompassing approximately 28,500 sqm is strategically located in an important industrial area of Győr. The building is well-suited for DS Smith's business needs offering the opportunity for future growth and support plastic replacement solutions.
Currently, DS Smith Hungary already occupies part of the property as a tenant. The seller is OTP Real Estate Investment Fund, a leading property investor in Hungary.
Reinier Schlatmann, Regional Managing Director, DS Smith East Europe said: “I am glad to announce a new DS Smith investment in East Europe, the acquisition of our location in Győr, Hungary. This strategic investment will add a state-of-the art facility to our existing footprint, which further strengthens our position in the region and provide a powerful platform for plastic replacement solutions for our customers.”
Dóra Kenéz, CEO of OTP Real Estate Investment fund management Ltd., said: "The sale of the property in Győr is part of the long-term strategy of OTP Real Estate Investment Fund. We maintain excellent relations with DS Smith, who is the largest tenant of the property, and we are pleased that as a result of our cooperation, they will become the owner of the property in the future.”
This strategic acquisition further strengthens DS Smith's presence in Hungary, where the company operates two conventional corrugated box plants in Füzesabony and Nagykáta and four service centers in Tiszaújváros, Nagykáta, Székesfehérvár, and Sárvár.
With this investment, DS Smith will secure greater operational control, optimize its cost structure, and establish a solid foundation for further growth in Hungary.
The transaction is expected to close in H1 2024.
About DS Smith
DS Smith is a leading provider of sustainable fiber-based packaging worldwide, which is supported by recycling and papermaking operations. It plays a central role in the value chain across sectors including e-commerce, fast moving consumer goods and industrials.
Through its purpose of ‘Redefining Packaging for a Changing World’ and its Now and Next sustainability strategy, DS Smith is committed to leading the transition to the circular economy, while delivering more circular solutions for its customers and wider society – replacing problem plastics, taking carbon out of supply chains and providing innovative recycling solutions. Its bespoke box-to-box in 14 days model, design capabilities and innovation strategy sits at the heart of this response.
Headquartered in London and a member of the FTSE 100, DS Smith operates in 34 countries employing around 30,000 people and is a Strategic Partner of the Ellen MacArthur Foundation. Its history can be traced back to the box-making businesses started in the 1940s by the Smith family.
DS Smith will report annually its progress across its climate targets in its Sustainability and Annual Reports.
About OTP Real Estate Investment Fund
OTP Real Estate Investment Fund is managed by OTP Real Estate Investment Fund Management Ltd., which primarily targets opportunities of real estate markets in Hungary and in the CEE region. The long term strategy of the Fund is to have stable cash flow producing prime assets and real estate developments to provide investors with stable returns in diversified segments of the real estate sector. The fund's portfolio is versatile and well-considered, including office buildings, shopping centers, industrial facilities and residential projects. The OTP Real Estate Fund Management's team of experts has extensive experience in the operation of the real estate market and in financial planning, which provides the fund with a comprehensive and conscious investment strategy. OTP Real Estate Investment Fund owns net asset value of more than 500 billion forint and its market share is above 30% among real estate funds of Hungary.
Source: DS Smith