Allianz snaps up k3 office project in Hungary

Hungarian real estate developer Wing has sold the k3 green office building in Budapest to German investor Allianz, a Wing spokesperson confirmed to PropertyEU on Thursday. Allianz plans to use the complex with 17,400 m² of office space as its new head office in Hungary.

The transaction is one of the large office deals in the Budapest office market over the past 12 months. Although the investment volume was not disclosed, market experts indicate that the transaction volume amounted to around EUR 40-45 mln. The transaction reflects a yield below 7.5%.

The energy-efficient office building located on the Könyves Kálmán körút will be handed over at the end of May to Allianz. With this move the insurance company will bring together its several office locations in the city to just one head office. Designed by architectural firm Lukács & Vikár Architects, the new scheme consists of four office towers and 360 parking spaces.

Noah M. Steinberg, chairman and CEO of Wing said: 'the recently completed transaction underlines that the market is running and there is a need for good quality at all times and at any circumstances.'

According to Tim O'Sullivan at CBRE's Hungarian investment department, the transaction is a 'great result for the Hungarian market and continues a trend in the Budapest office market which has seen several occupiers acquire their own assets'. In 2009, energy group MVM and local banks K&H Bank and OTP Bank each acquired their own offices. 'The transaction is also one of the first high-profile green investment deals in the city,' added O'Sullivan. He expects the investment market to pick up gradually over the next few months with the second half of the year likely to witness more activity than H1.