Futureal Group has sold its portfolio of Corvin office buildings in Budapest, Hungary to real estate funds managed by OTP Real Estate Investment Fund Management. The recently closed transaction involves all of the operating office buildings built as part of Corvin Promenade, as well as two currently being constructed. The total of eight class A buildings offers a combined GLA of nearly 80,000m². The purchase price was not disclosed.
Corvin ONE was built in the first construction phase of the Corvin Promenade and opened in 2008. This building was the start of the largest ever office development project in the city centre, the Corvin Quarter. Corvin Towers was realized in the second phase of the office development project. The complex features four Class A towers. The next building was Corvin Corner that combines the highest quality with efficient business operations. These office buildings were purchased by OTP Real Estate Investment Fund. Corvin One, Corvin Towers and Corvin Corner all have balanced long-term tenant mixes and are fully occupied.
At the beginning of 2017 OTP Real Estate Investment Fund Management has launched its OTP PRIME Real Estate Investment Fund, which aims to invest in category „A” real estate properties. In April 2017, the fund has acquired Futureal Group’s 25,000m² Skypark office building development, the first element of the eastern closing block of Corvin Promenade. The A+ Category Skypark achieved BREEAM Very Good certification. The OTP PRIME Real Estate Investment Fund has also entered a preliminary agreement to purchase Corvin Technology Park, currently being constructed adjacent to the Skypark building. Futureal Group is focused on prime real estate projects and will continue developing the Corvin Technology Park office building, as well as the project known as “Corvin 7”.
“This transaction is a significant milestone in the development of Futureal Group and in the 15-year-old history of Corvin Promenade. The promenade, a symbol of Budapest’s development continues to act as a bridge between the successful past and promising future of our group. We are certain that the Corvin Offices are in competent hands and the agreement now concluded will further strengthen our excellent professional relationship with OTP Group. The resources released will provide a solid basis for further development of Futureal Group. Over the years the company has become a leading real estate developer and investor in Central and Eastern Europe. Currently, we are managing over 30 projects simultaneously, with a total value of €1bn and a gross area of over 700 000m²,” said Gabor Futo, founder of Futureal Group.
“Due to its ongoing balanced performance and stable returns, the OTP Real Estate Investment Fund is very popular with investors, and there’s a constant stream of new capital that we invest in high-quality real estate that will keep its value for the long. The OTP Real Estate Investment Fund’s net asset value increased dynamically over the last year, to almost €1.17bn (HUF 380bn), up by €0.53bn (HUF 170bn),” said Zsolt Perlaky, director of real estate management of OTP Real Estate Investment Fund Management Ltd.
Alexa Schlosser, deputy director of real estate management of OTP Real Estate Investment Fund Management Ltd. added: “These assets - due to their excellent location, diversified tenant mix, long-term rental contracts and the neighbouring high-level infrastructure serving the Corvin Office buildings - perfectly fit into the portfolio and business strategy of our funds and are likely to provide long-term yields to our investors”.
