German asset manager KGAL has acquired the 23,600 m2 Eiffel Square Office Building in the Hungarian capital Budapest.
The investment volume was not disclosed.
Europa Capital, together with local partner ConvergenCE, were the sellers of Eiffel Square Office Building. CBRE represented the vendors, while the real estate team of international law firm Dentons advised KGAL on the acquisition.
Eiffel Square Office Building was developed by Europa Capital together with its joint venture partners. The seven-storey property overlooks Budapest’s historic Nyugati railway station, which was designed by Gustave Eiffel, and is located at one of its most important transport hubs in the city. The multi-tenant property was completed in 2010 and has received multiple awards.
The fully leased building has an area of around 23,600 m2 and includes 365 underground parking spaces and 20 office, retail and restaurant tenants. Alongside its location, the property’s key attributes include the high build quality and the flexible configurability of the rental areas, which have had an occupancy rate of over 95 % for some years, KGAL said. The tenants are almost exclusively internationally established companies, the largest being Cetelem Bank (BNP Paribas) and the Dealogic financial platform.
Robert Martin, head of Europa's Central Europe region at Europa Capital, said: 'This prime asset is widely considered to be one of the best prime office properties in the Budapest market, evidenced by the high retention rate of its occupiers. Since completing the development, we have stabilised the project into a high quality institutional-grade investment. This sale is completed at a time when the Budapest capital market, having recovered from the global financial crisis, is entering a period of strong growth.'
Gert Waltenbauer, CEO of the KGAL Group, added: 'In purchasing the Eiffel Square Office Building, KGAL is consistently expanding its pan-European real estate portfolio. The prime property in Budapest is a perfect fit for our targeted investments in prosperous locations in Central Europe, said
