Budapest, 22 May 2014.
A significant transaction has been completed on the investment market in Hungary. The buyer, a German private equity investor, represented by Colliers International purchased StefániaPark office building located in the 14th district of Budapest. The seller, IVG was represented by JLL. The parties have agreed not to disclose the exact purchase price.
The buyer of the property is a German originated private equity firm, who completed their first investment transaction in Hungary following other successful deals in the region recently. The new owner has enlarged its real estate portfolio with a class ‘A’ office building this time.
”StefániaPark is one of our most popular office buildings. Modern interior and exterior, green solution, as well as aesthetic appearance - all are well represented in this property. We are proud that the new owner also saw these qualities in the building. I believe that our high-quality solutions have played an important role in succeeding with this transaction, even though the Hungarian property market is not very much favoured recently among international investors.” - said Attila Madler, asset manager of IVG Hungary.
The buyer commented that Budapest is an attractive market for investors and since pricing has probably reached bottom, it may be now the best time to purchase. The volume remains confidential, but it is an important transaction taking all aspects into consideration.
“The high-quality property at the edge of Városliget, the central park of Budapest, sits in a quiet, yet centrally located diplomatic area of the city, I am definite it will turn out to be an excellent investment. Budapest represents a great buying opportunity for investors seeking quality products at a yield premium compared to other core CEE markets. We have seen an increased level of investor interest in Hungary, targeting mostly offices and retail assets, and are certain that the currently low overall transaction volumes will be on the rise again.” – added Bence Vécsey, Director, Head of Investment Services at Colliers International Hungary.
“This transaction, the first office investment deal to close in 2014, marks a real turn in the Hungarian real estate capital market. We have not seen open tender format investment deals for years and this transaction opens a new phase. We are pleased to have worked along IVG in this successful process.” - commented Benjamin Perez-Ellischewitz, Director and Head of Capital Markets at JLL.
About the building
IVG Group acquired the property – located in the centre of the diplomat and villa district of Zugló - in 2007, before that the building had accommodated the Embassy of the Federal Republic of Germany for decades. The building offering of about 5,320 sqm office space to let, with an underground garage, a ground-level parking lot and an exclusive inner garden claims a prestigious let-out rate of 95%. In 2012 StefániaPark received the EuropaProperty CEE Green Building Award.