Austrian office specialist CA Immo has bought out its minority partner Union Investment to become sole owner of two office buildings in Prague and Budapest.
Hamburg-based Union Investment owned a 49% share in each building, Danube House in Prague (pictured) and Infopark in Budapest, both of which were included in the jointly held open-ended property fund UniImmo: Europe.
CA Immo said the deal would add €80 mln of investment properties to its balance sheet and increase the group's rental income by around €6 mln a year.
Danube House has a total area of 21,400 m2, while the Infopark spans 13,700 m2. The two buildings have a combined occupancy rate of 97.5% and the gross yield was 7.0% at the last balance sheet date. The LTV of the portfolio is around 40%, with liabilities being repaid through equity in the wake of the purchase process.
Frank Nickel, CEO of CA Immo: 'This further reduction of our minority shareholdings increases the efficiency of our portfolio management, strengthens our long-term profitability and represents another major step towards expanding the core office property portfolio in our core cities.'
