August 1, 2019

by Lynda Kiernan

China’s CEE Equity Partners announced an investment of  €60 million (US$67 million) through China’s Central and Eastern Europe Investment Cooperation Fund II for the acquisition of 15 grain silos and logistics hubs in Romania, from the Brise Group, held by Bristol Logistics SA. 

As one of the largest agribusinesses in Romania, the Brise Group will use the funds to modernize and upgrade its business, with €25 million (US$28 million) being allocated to establish a new company in partnership with CEE Equity Partners, and the remaining €35 million (US$39 million) going to Brise Group itself, reports Romania Insider. 

Romania is emerging as an important actor in international grain trade, serving as a channel connecting southeastern European producers with destination markets, particularly in the Mediterranean, the Middle East, and across the EU. Additionally, the country saw record breaking production for wheat, maize, and sunflower last year, with a total grain harvest of 31 million tons. 

Registered in Luxembourg under The China Central and Eastern European Investment Co-operation Fund II SCS SICAV-SIF, the China CEE Fund II was formed in November 2017, and saw its first close three months later at $800 million with commitments from CEE Equity Partners Ltd., Silk Road Fund, the Hungarian EXIM  Bank, and the China EXIM Bank. 

The assets touched by the deal are strategically located throughout the most agriculturally productive regions of Romania, and are situated such to offer multimodal shipment connections by road, rail, and water. These assets will be upgraded and modernized to strengthen their loading and discharge rates, and to improve their storage capacity, traceability, and treatment related services. 

Through this investment CEE Equity Partners will be investing in a purposely structured Romanian company for the modernization, integration, development, and construction of open access grain hubs and terminals. 

Meanwhile, the deal will enable the Brise Group to focus solely on its grain origination and trading business once the divestment of its logistics hubs to Fund II is complete. From this point on, the company will be a grain origination client of Bristol Logistics’ infrastructure platform – a pioneer for Romania, as it is open to all farmers and traders operating within the catchment areas served by Bristol Logistics’ network, according to a statement announcing the deal. 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.