The Three Seas Initiative Investment Fund S.A. SICAV-RAIF (‘3SIIF’, ‘the Fund’) has acquired a significant interest in BMF Port Burgas EAD (‘BMF Port Burgas’, ‘the Port’), a major port operator in the Port of Burgas in Bulgaria, from Advance Properties OOD, who will retain a majority interest. The investment is subject to merger control approval.
BMF Port Burgas, which comprises Port Terminal Burgas East II and Port Terminal Burgas West, operates under two long-term concessions granted by the Bulgarian government.
The investment in BMF Port Burgas, is well aligned with the Fund’s objective to improve connectivity within the Three Seas Region. The Port of Burgas is an important infrastructure asset connecting the Three Seas Region with Central Asia and the Middle East, strategically located on the Black Sea coast and is the closest European Union port to the Bosphorus. The Port of Burgas also acts as the primary maritime gateway to Sofia and Plovdiv, Bulgaria’s most developed and industrialised cities, through direct rail and road connections. The investment will strengthen EU integration by decreasing infrastructural gaps and delivering broader economic benefits to the Region by improving connectivity and increasing the Port’s capacity.
BMF Port Burgas offers a significant opportunity for the Fund to support the long-term growth of the port with substantial follow-on investments to expand capacity and capabilities. These investments include the extension of existing berths, the construction of new berths, the further modernisation of facilities, and the ability to handle new types of cargo. The long-term growth of BMF Port Burgas will support existing and create new industrial production capabilities in Bulgaria and the region, with producers and exporters benefitting from the port’s wide range of activities and service excellence.
The investment in BMF Port Burgas represents 3SIIF’s fourth investment and its first direct investment in Bulgaria. Since March 2020, the Fund has made a number of investments: the acquisition of Cargounit, Poland’s leading locomotive leasing business; the financing of the construction of the most advanced Tier3/Tier 4 data centre in the Baltics, through its investment in Greenergy Data Centers in Estonia; and the acquisition of a majority interest in Enery, a renewables developer in the region with a pipeline of over 3GW of renewable generation projects.
Christian Roy, Investment Director at Amber Infrastructure, noted: “The investment in BMF Port Burgas is an exciting opportunity to support the further growth of the Port in accordance with the Fund’s objectives. It also marks the first port sector investment of the Fund and the first direct investment in Bulgaria. The further development and continued modernisation of the Port will play a key role in filling the transport infrastructure gap in the southeast part of the Three Seas Region while delivering broader economic benefits to Bulgaria and the Region.”
Georgi Domuschiev, Founder and Managing Director of Advance Properties OOD, said: “We are very pleased with the transaction, which is a great success and an excellent opportunity for the Port. For more than 10 years now, BMF Port Burgas has been substantially investing in the modernisation of the port terminals in pursuance of its growth objectives. The continuing development of modern concepts for port activities and services through sustainable and responsible investments in partnership with 3SIIF, will make a meaningful contribution to the transport integration and diversification in the region.”
Amber Infrastructure Group
Amber Infrastructure (‘Amber’) is a specialist international investment manager, focused on investment origination, asset management and fund management. Amber’s core business focuses on sourcing, developing, advising, investing in and managing infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors that support the lives of people, homes and businesses internationally.
Amber is headquartered in London with offices in Europe, North America and Australia and employs over 160 infrastructure professionals.
The Three Seas Initiative Investment Fund
3SIIF is a dedicated commercial fund targeting infrastructure investments in Central and Eastern Europe (‘CEE’). The Fund will invest in energy, transport and digital infrastructure in European Union (‘EU’) CEE member states which border the Baltic, Adriatic and Black Seas where the demand for long-term commercial investment into national infrastructure is among the highest in the EU. The Three Seas Region is comprised of 12 EU CEE member states which border the Baltic, Adriatic and Black Seas.
The Fund’s investments comprise: Cargounit, Poland’s largest locomotive leasing business which is currently expanding within the Three Seas Region; Enery, a renewable generation company developing assets in the Three Seas Region, with a portfolio of operating solar generation assets in Bulgaria, Czech Republic and Slovakia; Greenergy, a data centre platform aiming to service the compute and storage needs of the Three Seas Region and BMF Port Burgas, a major port operator in Bulgaria.
Amber Infrastructure Group is the exclusive investment adviser to the Fund and is responsible for origination, asset management and capital raising services.
Advance Properties OOD
Advance Properties OOD is one of the largest private companies in Bulgaria in terms of revenue with investments in Bulgaria and around the globe. Its diversified portfolio comprises investments primarily in pharmaceuticals, shipping, port operations and management, and real estate.
Advance Properties is headquartered in Sofia, Bulgaria, with investments in more than 100 subsidiary companies in 26 countries around the world.