Hungarian family-owned property developer Faedra Group has disposed of the first phase of its brand-new logistics development in the Budapest logistics market.
Financial details were not disclosed.
The transaction was originally signed a few months ago in a forward deal, however closing only took place after recently securing the occupancy permit.
The 7,500 m2 warehouse facility is situated the development area in Szigetszentmiklós-Lakihegy, primarily preferred by light industries and international logistics companies.
Two subsequent phases will add another 20,000 m2 of warehouse space in the Southern logistics submarket in Budapest.
'We have successfully closed this development according to the underwriting of our initial business plans, thanks to the combined help of the continually strong fundamentals of logistics assets, our development expertise, the trust of our financing partners and Colliers’ professionalism,' said Bence Boronkay, owner and managing director of Faedra Group.
Colliers represented Faedra Group in the sale.
Said Bence Vécsey, Colliers head of capital markets, Hungary: 'The successful sale of Faedra Park again supports the fact that logistics properties are considered as the most defensive asset category globally, so in Hungary.
'We are happy that Faedra Group entrusted Colliers to sell this premium and sought-after development. According to our expectations, investors’ high demand for warehouses of similar attributes and quality will prevail.'
This disposal marks the fourth logistics transaction in 2022 in Hungary. The total area of warehouse deals has reached 75,000 m2 year-to-date, making logistics is responsible for 40% of the country's investment activity, significantly ahead of the long-term average of 10%.
