AEW acquires €18m retail-led property in Budapest (HU)

AEW’s Europe City Retail Fund makes first acquisition in Hungary for c.€18m

AEW has acquired a prime, retail-led asset in Budapest, Hungary on behalf of the Europe City Retail Fund for c. €18m. 3 Vorosmarty Square is the Fund’s first acquisition in Hungary. The landmark property is 3,163m² in total and provides 3,072m² of retail and office space and is the former Luxus department store, giving AEW ownership of one of the most significant and well-positioned retail sites in central Budapest.

 

The first two floors of the property are anchored by the capital’s recently renovated Berskha flagship store and the Italian style restaurant chain Vapiano. The second floor is vacant and will be renovated and let as office space, further increasing returns. The rest of the building is residential. The seven-story building is positioned in the heart of Budapest’s pedestrianised shopping district and directly on Vorosmarty Square, which is home to a number of well-known brands in the adjacent streets including Zara, Nike and Moncler, and also comprises hotels and high-end residential and office assets.

 

Nikos Koulouras, Co-Head of Investments - Private Equity Funds at AEW said: “This is one of the best retail assets in Hungary, reflecting our highly selective acquisition strategy that, in the CEE region, will focus predominantly on Hungary, Poland and the Czech Republic. These core regional economies have benefited from high GDP growth, with falling unemployment and strong retail sales, underpinning our decision to broaden the portfolio into these geographies.”

 

Christina Ofschonka, Fund Manager Europe City Retail at AEW added: “We continue to leverage AEW’s extensive network to identify prime assets that are supported by positive fundamentals, across Europe’s major cities as we work to assemble a high-quality portfolio that will deliver value to our investors.”

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