Raiffeisen Bank, a unit of Austria's RZB banking group, has agreed to lease over 8,000 m[sup]2[/sup] of space in the Arena Corner scheme in Budapest as part of the bank's expansion in Hungary. The deal increases the occupancy rate of the A-class office scheme, owned by the Endurance Fund and managed by Orco Property Group, from 13% to 80%.
Raiffeisen Bank, a unit of Austria's RZB banking group, has agreed to lease over 8,000 m2 of space in the Arena Corner scheme in Budapest as part of the bank's expansion in Hungary. The deal increases the occupancy rate of the A-class office scheme, owned by the Endurance Fund and managed by Orco Property Group, from 13% to 80%.
The 28,000 m2 Arena Corner was acquired by the Endurance Office & Retail Fund I in June 2007. Orco said that its Office sub-fund - the first sub-fund established under the Endurance Fund banner - has grown significantly across CEE and now has a portfolio valued at more than EUR 400mln. The sub-fund has been fully invested with EUR 150mln in equity and a internal rate of return target of 17.5%.
'This transaction proves that Arena Corner is highly appreciated among the biggest international tenants such as Vodafone or Citibank. Further negotiations are underway with further potential tenants and we plan to reach almost 100% occupancy by the end of the year,' said Andras Kovacs, Orco's regional leasing director. Several major banks have branches on the ground floor of the office complex, he added.
Orco said its new Office II, Industrial and Logistic and Health Care sub-funds are open for equity subscription.
