German listed property company S Immo has agreed to buy six offices in Budapest, Hungary, for around €244 mln from related party, Immofinanz.
The assets in the Hungarian capital changed hands on Wednesday when signing and closing took place.
Immo is paying for 124,000 m² of lettable space, with rental income of close to €18.9 mln a year.
The acquisition includes Thirteen Globe, Thirteen Xenter, Greenpoint 7, Atrium Park, Haller Gardens, and Szepvölgyi Business Park.
The seller, Immofinanz Services Hungary is ultimately controlled by Immofinanz, which owns more than 50% of S Immo.
Immofinanz is in turn ultimately controlled by CPI Property Group, which on 19 December sold a batch of its shares in S Immo to Immofinanz for €337.5 mln to give the latter control.
Parties to the deal said the price agreed for the six Budapest offices had been based off an external valuer report who placed a figure of €244.1 mln on the portfolio some days ago.
Herwig Teufelsdorfer, member of S Immo management board, said: ‘Having already acquired eight properties in Budapest in November, we are now adding a further six properties to our portfolio and reinforcing our position as a major office property player.’
‘At the same time, we are strengthening S Immo’s earnings sustainably and expect significantly positive effects on cash flow and other key figures. Furthermore, the acquisition enables additional, profitable synergies within the CPI Property Group.’
