Resolution Property has completed the acquisition of a 37,200 m2 office portfolio in Budapest, Hungary in an all equity deal estimated to be around €85 mln.
The portfolio is comprised of two fully let, recently refurbished, class-A office buildings, Margit Palace and Buda Square, acquired from CEE focused Hungarian fund manager Adventum.
The transaction represents Resolution’s first investment in Hungary and its second office investment in the CEE region after the acquisition of Floreasca Park, a 40.000 m2 class-A office asset located in Bucharest, Romania.
The buildings are centrally located in the Central Buda and North Buda sub-markets of Hungary’s capital, both submarkets with some of the lowest vacancy rates in Budapest and limited future supply. The buildings are multi-let to a variety of national and international tenants.
Hans Peter Gaber, head of Investment DACH/CEE at Resolution Property, which is partially owned by China’s Fosun International commented: ‘The Buda portfolio offers a highly attractive mix of secure, long-term income paired with some future upside potential. During these challenging times, we are very pleased we could continue our investment programme in CEE and to complement our recent acquisition of Floreasca Park in Bucharest with this portfolio. Our focus remains on well-located, well-fitted-out assets that provide the needed flexibility to adapt to changing working practices as we look to expand our presence in Central and Eastern Europe.’
Resolution Property was advised by Kinstellar, Cushman & Wakefield, KPMG and Gleeds. Adventum was advised by Hümpfner Law Firm, Eston International and Savills.
Adorjan Salamon, CEO of Eston International said: ‘Closing the largest on-market office investment transaction in Budapest in 2020 to date was a successful achievement of a complex assignment. We are grateful for the opportunity to prove our professionalism to our key client, Adventum and look forward to cooperating with Savills again to exploit regional market coverage and local knowledge.’
