A significant consolidation is underway in the Hungarian real estate market, as MBH Bank, backed by businessman Lorinc Meszaros, has agreed to acquire Otthon Centrum, one of the country’s largest real estate brokerage networks. The deal,estimated to be worth tens of billions of forints,reflects a growing trend of financial institutions expanding beyond customary banking services to control more of the property transaction process. This acquisition positions MBH to compete more directly with industry leader OTP,which already offers integrated financial and real estate services.
A major deal in the Hungarian corporate landscape has seen MBH Bank, backed by the financial strength of Lorinc Meszaros, significantly expand its presence in the real estate market with the acquisition of Otthon Centrum.
Tibor Nagygyorgy founded the predecessor to Otthon Centrum, originally named Új Otthon Centrum, 25 years ago. Over the years, it grew into one of Hungary’s largest real estate brokerage networks. The sale to MBH Bank, the financial arm of businessman Lorinc Meszaros, is estimated to be worth tens of billions of forints, according to Forbes.hu. This move reflects a broader global trend of banks building comprehensive ecosystems beyond traditional banking services.
The acquisition is part of a growing strategy among financial institutions to create integrated services for customers, particularly around major life events like home purchases. By securing a customer with a mortgage, banks aim to build long-term relationships and cross-sell additional financial products.
Capturing and Retaining Customers
MBH’s strategy mirrors that of its major competitor, OTP, which previously had its own consumer lending activities alongside Otthon Centrum’s mortgage brokerage services. The acquisition of Otthon Centrum positions MBH to increase the likelihood that homebuyers will secure their mortgages through the bank, and subsequently consider other MBH financial products. As highlighted during the deal’s announcement, the purchase echoes the rationale behind the 2024 acquisition of Fundamenta Lakáskassza.
“This model is followed by MBH’s major competitor, OTP, and previously the Biggeorge group also had its own consumer lending activity alongside Otthon Centrum’s mortgage brokerage service.”
Otthon Centrum facilitates approximately 9,000 transactions annually, representing around 6.7% of the Hungarian market. This deal isn’t just a significant financial asset for MBH; it’s a key element of their overall strategic direction.
“Through the Otthon Centrum network, approximately nine thousand transactions take place annually, which is about 6.7 percent of the market. The deal thus represents not only a significant financial value in MBH’s portfolio, but also a key element of their strategy.”
Valuation and Deal Terms
Sources familiar with the transaction, speaking on condition of anonymity, suggest that Tibor Nagygyorgy secured a favorable deal. Rather than focusing solely on the company’s current financial performance, the valuation incorporated future synergistic value, and a higher-than-usual multiple was applied.
