Pan-European real estate investment manager Europa Capital has partnered with developer ConvergenCE to acquire the Akadémia Business Center office building in Hungary’s capital.
Europa said the acquisition was done on behalf of Europa Fund VI, the manager’s latest value add fund.
The 12,500sqm Akadémia Business Center building in Budapest is located on the banks of the river Danube, on the corner of Akadémia and Arany János Street.
Akadémia Business Center has until recently served as the headquarters for Raiffeisen Bank, but with the bank now fully vacated it offers a significant opportunity for refurbishment and repositioning, Europa said.
ConvergenCE, which has acted as a local partner to Europa Capital in Hungary since 2005 will be responsible for the local asset management.
Robert Martin, partner and head of Investments at Europa Capital, said: “Akadémia Business Center is in a top location and is an asset with a lot of opportunity to undertake our usual high standard of refurbishment with a focus on NZC pathway, wellness and occupier requirements.
“Prime office availability in the heart of Budapest is scarce, underpinning the business case for the investment. On completion the property will be very attractive to those companies looking for a prestigious, downtown address with good wellness and sustainability credentials.”
Jason Oram, partner, fund manager at Europa Capital, said: “This investment demonstrates our conviction in a contrarian opportunity in the cycle for well-located office assets, as the market adjusts to the impact of the pandemic.
“The addition of Akadémia Business Center to our office portfolio offers another great opportunity to add value through extensive high-quality refurbishment, which we are confident of delivering through our well-established partnership with ConvergenCE.”
Csaba Zeley, managing director of ConvergenCE, said: “We are pleased to be partnering with Europa Capital again following the successful development of a number of projects including Eiffel Square, Kálvin Square, B52 and CityZen, all of which have since been sold.
“With its exceptional location and prominent façade, we believe Akadémia Business Center has the potential to be one of the most prestigious mixed-use commercial buildings in Budapest.”
To read the latest edition of the latest IPE Real Assets magazine click here.