Allianz takes 50% stake in Budapest's Allee mall for EUR 100m

Allianz Real Estate Germany and ING Real Estate Development (ING RED) announced on Wednesday that they have reached agreement on the sale of a 50% share in the Allee Shopping Centre in Budapest to Allianz for about EUR 100 mln. ING Real Estate Development will keep the remaining 50% ownership of its Allee scheme and will be responsible for the day-to-day management of the centre.

ING RED opened Allee in November 2009 with all retail units fully leased. Allee offers 47,000 m² of retail space and 7,000 m² of office space in Budapest's fast growing 11th district in the Buda part of the city. Allee serves a catchment area with over 500,000 inhabitants with above average purchasing power. Based on a master plan by the internationally renowned shopping centre architects Chapman Taylor, it was designed by the leading Hungarian architects Finta Studio.

Allee features over 140 businesses, including restaurants, cafes and bars. Anchor tenants include strong international retailers Inditex Group, Van Graaf, H&M, C&A, Zara, Electroworld, Interspar and others. A 13-screen cinema, a casino and a fitness club which is open 24/7 make up an attractive leisure offer. The underground parking has a capacity for 1,280 cars.

Stefan Brendgen, CEO Allianz Real Estate Germany: 'After the acquisition of a building complex in Munich, an investment in the Allee Shopping Centre in Budapest has now also been finalised. This joint venture in Budapest fully corresponds to our current investment strategy with which we are focusing amongst others on investments in cities in eastern European countries and also developing the retail volume in our portfolio. Our investments in December 2009 are the prelude for a period of intense acquisition in 2010. We are currently assessing the acquisition of further retail and office properties in our market region.'

Maarten de Jong, chief financial officer of ING RED: 'We are very pleased to welcome our long-term partner Allianz as co-investor in Allee. The transaction - the first major real estate investment in Hungary and the CEE region in more than a year - confirms our original investment decision and the successful execution of the scheme culminating in the opening on plan and with all retail space leased. Allee is a fine example of our abiltiy to create innovative and sustainable retail destinations in European cities that attract, inspire and connect people.'

Allianz was advised by Jones Lang LaSalle and ING Real Estate Development by Cushman & Wakefield. Charles Taylor Partner, Managing Director at Cushman & Wakefield Budapest said: 'The acquisition of 50% of the Allee Shopping Centre by Allianz, a major core investor, is likely to be a turning point for the Budapest investment market. Allee is a best of class centre that ''ticks all the boxes" and possesses excellent investment credentials. I am confident that buying into such a dominant asset at this point of the cycle and at attractive pricing, will ensure strong investment performance going into the future.'