AB Tewox Fuels CEE Expansion with €78M Deutsche Pfandbriefbank Deal

VILNIUS, LITHUANIA – January 30, 2026 – Lithuanian real estate investment company AB Tewox has capped off a robust 2025 by securing a major €78 million financing agreement with Deutsche Pfandbriefbank (pbb), signaling an aggressive expansion in the Central and Eastern European (CEE) retail park sector. The deal, announced alongside strong fourth-quarter results, will refinance a significant portion of the company's Polish portfolio and fund the acquisition of new assets, cementing its position as a formidable player in the regional market.

The Q4 factsheet reveals a company firing on all cylinders, marked by strategic acquisitions, successful development completions, and a notable increase in asset value, all of which underscore growing investor and lender confidence in its specialized business model.

A Strategic Push into Poland's Thriving Market

The cornerstone of Tewox's recent activity is the landmark €78 million financing package from Deutsche Pfandbriefbank, a leading European specialist in real estate finance. With pbb acting as the sole lender and arranger, the deal provides a powerful injection of capital that reshapes the company's Polish operations. The funds are earmarked to refinance six existing retail parks and acquire two new properties, expanding the firm's Polish portfolio to eight assets with a combined gross leasable area (GLA) of 64,000 square meters.

These properties are strategically dispersed across Poland in cities such as Wroclaw, Glowno, Kalisz, Swidnica, Pulawy, and Przemysl, targeting regions with strong consumer demand and limited competition from larger shopping centers. This focus on convenience-led retail parks has proven to be a resilient strategy. According to market analysts, the retail park format has flourished in Poland, attracting both investors and tenants due to its accessibility, lower operating costs, and a tenant mix centered on daily necessities like groceries, pharmacies, and value-oriented fashion.

Securing financing from a discerning lender like Deutsche Pfandbriefbank, known for its emphasis on sustainable property value over short-term market speculation, serves as a significant endorsement of Tewox's portfolio and its long-term strategy. While specific terms were not disclosed, such agreements typically reflect a lender's confidence in the borrower's operational stability and the underlying strength of the assets. As Paulius Nevinskas, Manager of the Investment Company, noted in the release, this refinancing effectively positions Tewox for its "next phase of growth and upcoming acquisitions," providing the financial flexibility needed to seize further opportunities in the CEE market.

The Resilient Retail Park Model in Action

While the Polish expansion captures headlines, the company's latest development in its home market of Lithuania provides a textbook example of its successful operational model. The fourth quarter saw the completion of a new 5,000 square meter retail park in the city of Utena. This development highlights the continued appeal of brick-and-mortar retail when executed correctly.

Demonstrating strong pre-leasing momentum, the Utena asset is already 64% leased. The anchor tenant, major supermarket chain Iki, opened its doors in December 2025, ensuring immediate and consistent foot traffic. Other prominent tenants, including the garden and home goods store Žalia stotelė and the popular fashion retailer Sinsay, are scheduled to open in the first quarter of 2026, further diversifying the park's offerings and enhancing its appeal to local consumers.

This project's success challenges the narrative of e-commerce rendering physical retail obsolete. Tewox's model focuses on a format that is largely insulated from online competition. By anchoring its parks with supermarkets and complementing them with stores offering everyday goods and services, the company creates essential community hubs. This strategy has proven particularly effective in smaller cities and suburban areas where convenience is paramount. The Utena project serves as a microcosm of this approach, validating the investment thesis that well-located, convenience-focused retail parks remain a durable and profitable asset class.

Bolstering Investor Confidence and Financial Health

Beyond strategic expansion, AB Tewox's Q4 report paints a picture of robust financial health and a commitment to its capital providers. The company successfully made a €1.5 million coupon payment to the holders of its €35 million public bond issuance, a crucial signal of its reliability and creditworthiness in the public debt markets. Consistent and timely payments are fundamental to maintaining investor trust and ensuring access to future capital.

This financial discipline is backed by a growing asset base. An independent valuation conducted as of October 31, 2025, resulted in a €2.5 million uplift in the value of its operating assets, which now stand at €158.2 million. This increase reflects not only the quality of the properties but also the firm's active asset management in securing strong tenants and maintaining high occupancy rates. Consequently, the total value of assets under management has swelled to an impressive €180.6 million.

This steady appreciation in asset value, combined with a proven ability to service debt, creates a virtuous cycle. It enhances the company's reputation among institutional lenders like pbb and reassures bondholders, making it easier and more cost-effective to fund future growth. In a competitive CEE real estate market, where capital is discerning, such a track record of financial stability and value creation is a key differentiator, setting Tewox apart from less disciplined operators. The company's performance demonstrates a clear ability to not only acquire and develop properties but also to manage them effectively to maximize long-term returns for all stakeholders.

The combination of a clear strategic vision for expansion, a proven and resilient operational model, and a foundation of solid financial management positions AB Tewox for continued success. The recent financing deal is not just a transaction but a catalyst that will likely accelerate its growth trajectory, allowing the company to further consolidate its influence in the CEE retail park landscape in the years to come.