Global real estate investment manager Heitman has formed a joint venture with CEE developer Trigranit to own and operate four class-A office properties totaling 70,000 m² in Budapest. The assets, known as The Millennium Portfolio, were developed by Trigranit, who will also act as asset manager.
Heitman is making the investment on behalf of Heitman European Property Partners IV (HEPP IV).
"We developed the Millennium City Center during a difficult time for the Hungarian real estate markets. The success of the entire project however - including the office portfolio - is further proof that there is significant demand for quality projects in the region," added Árpád Török, CEO of Trigranit Development Corporation.
Launched in 2008 by Heitman, HEPP IV has 505 million in equity commitments and is entering its final year of deploying capital in value-added property assets across Central and Eastern Europe. To date, it is 60% committed.
Heitman was advised by Cushman & Wakefield.
Commenting on the transaction, Charles Taylor, Partner, Cushman and Wakefield said: "Heitman has bought into Millennium Portfolio, an award winning development that has consistently outperformed the wider Budapest office market, attracting global blue chip tenants such as Morgan Stanley, Vodafone, Nestle, Lufthansa, Oracle and K&H Bank.
"This is a classic transaction for an opportunistic investor, identifying an asset with strong investment credentials that is located in a market that is currently out of favor with certain property investors."
Source: Cushman & Wakefield