GalCap Europe, acting on behalf of a German pension fund’s portfolio, has acquired the Rumbach Center in Budapest. The vendor is Dubai-based Al Habtoor Group, one of the MENA region’s most respected conglomerates with interests in hospitality, automotive, real estate and education. Built in 1992, and most recently renovated in 2014, Rumbach Center is located in the central VII. district of the Hungarian capital, within walking distance to Deak Ferenc ter, the main junction of the Budapest metro lines. With approx. 7,600m² of gross lettable space and 72 underground parking spaces, the property is entirely leased to the Budapest Public Transport Authority BKU/BKK. The purchase price was not disclosed.
Marco Kohla, Managing Partner of GalCap Europe and responsible for the transaction, said: "Rumbach Center provides a stable cash flow on the one hand and offers high potential for value appreciation on the other. As the rent of the current single tenant is very moderate, there is room for rental growth in the midterm. The acquisition perfectly matches our value-driven investment strategy and is an ideal addition to the inner-city palace Merkur Palota and Central Udvar, a mixed-use scheme in the heart of Budapest, both cornerstones of the fund."
Manfred Wiltschnigg, Managing Partner of GalCap Europe, added: "Closing this acquisition in the current environment shows that there are great opportunities even during times of uncertainty. Identifying these and executing them promptly needs market expertise and the right people on the ground. COVID-19 has further reinforced our approach."