New financing of EUR 25 million will support infrastructure, public spaces and the next phases of a modern urban district
Bratislava has been attracting growing attention from international investors in recent years. The latest evidence is a transaction by developer Lucron, which has secured EUR 25 million in financing from investment firm CVI, one of the leading players in the private debt market in Central Europe.
Yet the amount alone does not tell the full story. What matters equally is the message this transaction sends – about confidence in the Slovak property market, in Bratislava as an investment destination, and in the ability of local developers to deliver projects that stand up to international scrutiny.
“We see the closing of this transaction as a confirmation of trust in our company, our projects, and in the potential of Bratislava. International investors set high standards for project quality and internal processes, which is why we value this recognition greatly,” says Zoltán Müller, CEO of Lucron.
When development goes beyond building homes
The way cities grow is changing. Modern projects are no longer defined solely by the number of apartments built – increasingly, they are about creating complete urban districts with their own infrastructure, public spaces and amenities.
This is precisely the direction Lucron is taking with the Nesto project in Bratislava’s Petržalka district. Spanning approximately 47 hectares, Nesto is planned as a new urban neighbourhood that will bring around 3,000 homes to the area while gradually creating a vibrant and fully-fledged urban environment. The project is designed to connect Bratislava’s city centre with neighbouring Austria and to combine residential living with retail, services, business spaces and community infrastructure.
The development also includes public spaces, sports facilities, a cycling route surrounding the entire district, as well as plans for a kindergarten and a school. At the same time, Nesto will introduce modern forms of living, including rental housing, reflecting the evolving needs of urban residents.
Projects of this scale and complexity naturally require a different approach to financing. For larger and more complex developments, developers are increasingly turning to international institutional investors – a well-established practice across Western Europe.
“In Slovakia, this is a less common financing instrument, typically used for larger-scale projects. A bond issuance structured as a private placement for a specific investor allows us to efficiently complement our existing funding sources and support the continued development of the Nesto project as it moves into its next phases,” explains Lukáš Dlugoš, Chief Financial Officer of Lucron.
Nesto: a district growing differently
The financing is primarily directed towards the further development of the Nesto project, one of the largest development undertakings in Bratislava. Its ambition is to create a fully-fledged urban district – not just new housing, but also the infrastructure, public spaces and civic amenities that make a neighbourhood function.
“Alongside shareholders’ equity, which forms the solid foundation of the Lucron Group, we typically finance our projects through project financing and secured publicly traded bonds. In the case of the Nesto project, we also identified an opportunity to bring in an investor through a quasi-equity financing structure, which is why we decided to partner with an international player, the investment firm CVI,” says Dlugoš.
Phase 3 of the Nesto project, source: Lucron
In the coming years, Lucron plans to invest in transport and technical infrastructure, new road connections and public spaces. These investments form the foundation on which a genuinely high-quality urban environment can be built.
“Developing large urban districts today is not just about building apartments – it is above all about creating a quality environment for living. That is why we are directing a significant share of our investment into infrastructure and public spaces,” adds Müller.
A positive signal for the broader market
The transaction is also significant in a broader context. It was assessed against the stringent criteria of the investment firm CVI, with the closing preceded by a comprehensive due diligence process and the preparation of transaction documentation involving teams from three countries – Slovakia, Poland and Luxembourg. From the initial contact to closing, the process took approximately six months, with the final phase completed within a matter of weeks at the turn of the year.
“Drawing on our experience and understanding of residential market dynamics, we conducted an in-depth analysis that confirmed both the strength of the company and the value of the Nesto project. As a result, we structured a sophisticated financing solution in the form of debt, while allowing the company to continue accessing additional funding through publicly traded bonds.
We are pleased to welcome Lucron to our investment portfolio and look forward to supporting the company in the further development of the Nesto project. We also see Nesto as one of the few truly comprehensive development projects – by which we mean not only the construction of buildings, but the creation of a well-functioning residential district from the ground up,” said Piotr Gocłowski, Partner and Head of Real Estate at CVI Dom Maklerski.
Collaboration across markets
The transaction was supported by a team of respected advisors: financial and transaction advisory was provided by KPMG, with legal counsel from law firm Ments. At the international level, the transaction involved law firms Kinstellar and Greenberg Traurig. A key role was also played by the internal teams of Lucron and its parent company, IKO Real Estate, who were responsible for the transaction from the outset through to its successful closing.
The result speaks for itself: a Slovak developer capable of meeting the most demanding international standards – and a city that has more to offer investors than just returns, but projects with lasting value.
