Bucking the negative mood on the Budapest office market, IVG Immobilien AG has succeeded in leasing 11,000 m² of office space at its three properties in the city within a relatively short space of time.
The IVG RiverPark on the Pest side of the Danube is now 70% leased following its completion in May. Five new tenants have been acquired for the property with an inner garden and a spectacular panoramic view of the Danube, including Lufthansa Systems and Auditpoint Accounting as well as the Hungarian brokerage firm SCK-Invest Kft. and Via One Europa Holding.
IVG has obtained Ukrail Trade and Logistic Kft. as a tenant for the project StefaniaPark Office, the reconstruction of the building that was formerly home to the German Embassy. The property, which was completed last November, is now already 70% leased.
Infopark, the first center for innovation and technology in Central Europe, has also enjoyed remarkable success. The European Union led the way, selecting the IVG building (Infopark Building E) which is currently under construction: from December 1, 2009, the European Institute of Innovation and Technology (EIT) will occupy 3,000 m² of office space under a 20-year rental agreement. Kraft Foods was also acquired as a tenant for the entire fourth floor, including roof terraces, and will move into the building upon completion in August. The current occupancy level prior to the completion of Building E being the last phase of Infopark is 65%.
IVG-Budapest has also assumed responsibility for asset management for four different commercial properties held by IVG Funds, including the Art'otel and the Stock Exchange building on Andrassy Avenue. In the future IVG Budapest is planning to amplify its asset management activities by also receiving tasks from outside the IVG group.
Kay-Uwe Blandow, Managing Director of IVG Development Hungary, believes that IVG is well on track in Budapest, proving that letting results can be obtained with high-quality office space in excellent locations despite the difficult situation on the Hungarian market. He added that demand for office space has intensified over recent weeks in response to the stabilization of the Hungarian currency, which has a huge impact on euro-denominated office rents.