Hungarian investor turns to Dutch office market

Hungarian property tycoon Gábor Várszegin has unveiled plans to invest EUR 100 mln this year in the purchase of office properties in the Netherlands. The investor, which operates through Budapest-listed property firm, Fotex, aims to take advantage of opportunities in the Dutch property market following recent corrections.

The Hungarian firm has hired Amsterdam-based APF International to put together a portfolio of assets with a market value of some EUR 100 mln. Wiggert Karreman, member of APF's management board, said this is not the first time that Fotex is considering investing in the Dutch commercial property market. 'But the initial yields were not so attractive at the time when compared to the Hungarian market,' he said.

APF has already carried out EUR 25 mln worth of acquisitions which were financed with own capital while the rest of the assets will be bought during the course of 2009. Acquisitions include the Salamanca office in Zoetermeer from Achmea. The newly developed property is leased to food concern Nutricia with a six-year rental contract. The company has also bought an office building in Gorinchem in a sale-and-leaseback deal with insurance company Univé. The asset is leased for a 15-year term.

APF will be responsible for the selection and acquisition of the assets as well and will retain the asset and portfolio management. The company said the move is part of its strategy to boost its full-service investment management business, which currently consists of a total of EUR 250 mln of assets. APF International hopes to double its investment management portfolio by end-2010.