ING Real Estate Development sells 50% share in Budapests Allee Shopping Center (DE/HU)

Allianz Real Estate Germany GmbH and ING Real Estate Development have reached agreement on the sale of a 50% share in the Allee Shopping Center in Budapest to Allianz for approximately €100 million. ING Real Estate Development will keep the remaining 50% ownership of Allee and will be responsible for the day to day management of the center.

Allee exterior

Exterior view of the Allee Shopping Center in Budapest.

Allee opened in November 2009 with all retail units fully leased. Allee offers 47,000 m² of retail space and 7,000 m² of office space in Budapest's fast growing 11th district in the Buda part of the city. Allee serves a catchment area with over 500,000 inhabitants with above average purchasing power.

Based on a master plan by the internationally renowned shopping center architects Chapman Taylor, it was designed by the leading Hungarian architects Finta Studio. Allee features over 140 businesses, including restaurants, cafes and bars. Anchor tenants include strong international retailers Inditex Group, Van Graaf, H&M, C&A, Zara, Electroworld, Interspar and others. A 13-screen cinema, a casino and a fitness club which is open 24/7 make up an attractive leisure offer. The underground parking has a capacity for 1,280 cars.

Stefan Brendgen, CEO Allianz Real Estate Germany GmbH: "After the acquisition of a building complex in Munich, an investment in the Allee Shopping Center in Budapest has now also been finalized. This joint venture in Budapest fully corresponds to our current investment strategy with which we are focusing amongst others on investments in cities in eastern European countries and also developing the retail volume in our portfolio. Our investments in December 2009 are the prelude for a period of intense acquisition in 2010. We are currently assessing the acquisition of further retail and office properties in our market region."

Maarten de Jong, CFO ING Real Estate Development: "We are very pleased to welcome our long-term partner Allianz as co-investor in Allee. The transaction – the first major real estate investment in Hungary and the CEE region in more than a year – confirms our original investment decision and the successful execution of the scheme culminating in the opening on plan and with all retail space leased. Allee is a fine example of our ability to create innovative and sustainable retail destinations in European cities that attract, inspire and connect people."

Allianz was advised by Jones Lang LaSalle and ING Real Estate Development by Cushman & Wakefield.

Source: ING Real Estate Development and Allianz Real Estate Germany

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