Prior to completion IMMOFINANZ Immobilien Anlagen AG has sold its flagship in Hungary, Budapest's Europe Tower, to Erste Bank Hungary's real estate fund Erste Nyíltvégű Ingatlan Alap. Confidentiality with regard to the sales price was agreed. At the same time the Europe Tower was rented in full to Erste Bank Hungary.
- Erste Bank Hungary rents total space of 41,000 m²
- Biggest real estate deal of the year in Budapest
- Perfect result for buyers, tenants and sellers
As one of the few office high rises in the Hungarian capital, the Europe Tower is considered the absolute top location in Budapest due to its prominent location on the Arpad Bridge. The 17-story tower has space of 41,000 m², thus providing Erste Bank outstanding opportunities to concentrate its units, settled until now in numerous smaller properties, in one location. The Europe Tower will be completed in spring 2006. Erste's move is scheduled for May.
"The sale of the Europe Tower is truly exemplary of a real estate transaction in which all sides profit," says IMMOFINANZ Chairman Karl Petrikovics. "As one of the leading credit institutions of Hungary, Erste Bank Hungary has obtained an outstanding location for its company headquarters with this modern and efficient office building, while the new owner, Erste Nyíltvégű Ingatlan Alap, has acquired prime real estate in the Hungarian capital. Moreover, as seller our subsidiary IMMOEAST finalised its investment with highly profitable results."
The letting and sale of the Europe Tower is the biggest real estate transaction of the year in Budapest. Moreover, it is a purely "Austrian deal", for it involves Austrian companies on the part of the buyers as well as sellers. The transaction was also handled by CPB Hungaria, the subsidiary of the Austrian brokerage firm CPB Immobilientreuhand. At present the office market in the Hungarian capital is experiencing a considerable upswing. The occupancy rate has noticeably increased and vacancy rates have noticeably declined.
In addition to the Czech Republic, Hungary is one of the two most important markets of the IMMOFINANZ Group in Central Europe, even after the sale. It has holdings in 28 properties with total space of 790.000 m², with the bulk of the assets in office buildings in Budapest as well as in retail properties. The discount market chain "Stop Shop", which now has 61,500 m² at six locations, was taken over only in spring.
IMMOFINANZ recently showed excellent development on the stock exchange and its shareholders were rewarded with satisfying returns. At the end of October year-on-year performance was 19.94 percent.