German asset and investment manager KGAL has acquired the Eiffel Square office building in Budapest, in the largest office transaction in Hungary so far this year.
The transaction marks the return of core investors to Hungary, according JLL, which advised the buyer.
'Similar to our sale of the AEW portfolio back in 2015, this transaction signals a change of gear for international investors’ interest in the Budapest commercial real estate investment market,' said Benjamin Perez-Ellischewitz, head of Capital Markets, JLL Hungary.
Financial details were kept confidential.
The Eiffel Square building was developed in 2010 by a joint venture between Europa Capital, ConvergenCE and DVM. It consists of 17,600 m2 of office space complemented by some 5,000 m2 of retail amenities on lower levels including restaurants, cafés, a medical centre and a supermarket.
Major tenants include Cetelem Bank (BNP Paribas Group), Dealogic, Medicover, Givaudan, Grundfos and AXN (Sony Group).
Hungary was one of the worst-hit countries by the financial crisis in 2008, and has struggled to regain momentum in the following years. However, the market has recently picked up with transaction volumes reaching some €800 mln in 2015. JLL is anticipating a 'dramatic increase' of activity in 2016 with transaction figures expected to exceed €1.2 bn.
