Belgrade-based Beton Plus is undertaking a significant capital market initiative, launching a corporate bond offering valued at RSD 10 billion (approximately €85 million). This move aims to finance the acquisition of three Serbian companies and establish a newly consolidated Marera Group structure.
The bond issuance is notable within the context of the Belgrade Stock Exchange, as it combines acquisition financing with balance sheet restructuring. The funds raised will be directed towards the full acquisition of Brigate, City Road Group, and Marera Properties, which are currently not owned by Beton Plus. Each of these companies contributes to different segments of the construction and real estate sectors, enabling Beton Plus to create a vertically integrated platform that encompasses execution, infrastructure works, and property ownership.
Brigate is recognized for its involvement in high-profile construction projects in Belgrade, including developments like Ušće Tower 2 and various large residential-commercial complexes. City Road Group enhances Beton Plus’s capabilities in infrastructure and civil engineering, while Marera Properties adds value through its portfolio of office, retail, and industrial assets, including significant properties such as Beograđanka and the Kalemegdan Business Center.
This transaction aligns with a broader trend in Central and South-East Europe, where companies are consolidating fragmented assets in construction and real estate to form unified holding structures that can attract institutional investment. The allocation of the €85 million proceeds indicates a strong focus on acquisitions, with approximately €78.4 million earmarked for purchase consideration and around €6.6 million set aside for post-acquisition integration efforts.
In addition to expansion, Beton Plus aims to restructure its balance sheet as part of this initiative. A portion of the cash flow generated from these acquisitions will be utilized to reduce existing liabilities, including approximately €15.5 million owed to Erste Bank. This strategy reflects a dual objective of growth coupled with deleveraging to better position the company for larger-scale projects in infrastructure and commercial development.
The bonds will have a five-year term with a fixed annual coupon rate of 8%, paid quarterly. This offering is available to both institutional and retail investors, both domestic and international, with trading facilitated through a price auction mechanism on the Belgrade Stock Exchange. A critical aspect of this issuance is a minimum subscription threshold set at 70% of the total issuance amount, highlighting potential market risks associated with Serbia’s developing capital market.
Beton Plus operates under Marera Construction, which is linked to broader property and asset management systems associated with Cyprus-based holding entities. Following the completion of this transaction, Beton Plus is expected to transition into a holding company for the newly formed group, establishing an integrated platform that spans construction and real estate activities.
The structure resembles a roll-up strategy commonly seen in private equity but executed through public debt markets rather than equity financing. This approach combines construction execution capabilities with income-generating real estate assets, reflecting a hybrid business model that has been gaining traction among developers and contractors in the region.
The bond issuance also represents an effort to enhance Serbia’s domestic capital market, which remains underdeveloped relative to EU standards. Deals of this magnitude—particularly those that involve both mergers and acquisitions alongside restructuring—are still relatively uncommon.
For investors, the bond’s appeal lies in its higher yield environment; the 8% coupon offers an attractive return compared to eurozone benchmarks but comes with higher credit risks typical of emerging markets. The success of this bond issuance will be crucial for Beton Plus, as it hinges on securing adequate capital for the planned acquisitions.
If successful, this initiative could lead to the formation of a more structured Marera platform capable of competing for substantial urban development and infrastructure contracts within Serbia and potentially throughout the South-East European market.
