Erste Real Estate acquires Mill Park office for €100m (HU)

Erste Real Estate Fund acquires Mill Park office scheme for €100m (HU)

Skanska has sold Mill Park, a two-building office project in Budapest, to the Erste Alapkezelo Zrt, a subsidiary of Erste Asset Management for €100m. The transaction marks the second Budapest deal between the partiesLocated in the 9th district of Budapest, Mill Park offers over 36,000m² of GLA and benefits from a close proximity to some of the city’s prominent cultural and academic institutions. The property is already 80% leased to multiple tenants, including IT Services Hungary. Mill Park will be completed in Q3 2018 and is expected to receive LEED Gold certification.


Apart from office space Mill Park will offer a 5,500m² multifunctional garden with a spacious green area, an outside gym, table tennis and table football as well as outdoor workspaces with plug-ins and WiFi, communal areas and restaurants. All these solutions focus on the wellbeing and working environment of the tenants and their guests.


Adrian Karczewics, Head of Divestments at Skansa's Commercial Development unit in CEE said: "This is our second office deal with Erste in Budapest in two years. Such long-term cooperation with a trustworthy partner is of a great importance to us. Mill Park is an eighth office project developed by Skanska in Budapest."


Balazs Pazmany, Head of the Board at Erste Asset Management, commented: "The acquisition of Mill Park is in line with our desire to increase the fund’s real estate portfolio with newly built “A” category office buildings. This transaction provides a defensive, long-term sustainable income for the fund so it serves well the interests of our investors."


Skanska was advised by Cushman & Wakefield. Legal advisers for the transaction were NGYL Partners for the purchaser and Dentons for the seller.

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