M7 Real Estate has sold Aerozone Logistics Park in Budapest, Hungary, to a South African investor, JTRoss Group. The purchase price was not disclosed.
M7 acquired the asset, which comprises 50,000m² of multi-let logistics space across three main units with an additional 15,000m² of office accommodation, in March 2017. Having implemented a comprehensive asset management strategy, the company has let 10,000m² of vacant space, increasing the occupancy of the logistics and office space to 100% (up from 80%) and 75% (up from 50%) respectively since acquisition.
New occupiers include a global financial and retail technology business and a logistics provider. Over 50% of existing leases on the park have also been renewed and extended on improved terms over the period.
Balazs Magyar, Managing Director M7 Hungary, said: “Within a short period of time we have significantly improved the performance of Aerozone Logistics Park and, with our initial asset management strategy now concluded, have crystallised value for our investors. We remain very active in Central Europe, including in Hungary where we manage c.€100m of office and industrial assets. We are seeking new investments in all sectors where we can use our asset management skills to enhance value.“
Paul Betts, Managing Director M7 CEE, commented: “We have now disposed of nine of the 21 assets in M7 CEREF I, with a further six assets under offer. We expect to dispose of the remainder before the year-end. These disposals are happening in tandem with an acquisition programme where we have added €120m of assets to the M7 POLAF I fund in the last three months. The Central European markets continue to grow and offer attractive returns for our investors.”
