SEB Immobilien-Investment GmbH is continuing its involvement in Central and Eastern Europe. It acquired the Europeum Business Centre in the Slovakian capital of Bratislava for its SEB ImmoPortfolio Target Return Fund mutual fund. The fully let office building with a current market value of €37.1 million was acquired through a holding company whose previous joint owners were ImmoConsult Wien, a wholly owned subsidiary of the Austrian Volksbanken Gruppe, and Mayfield, a British venture capital group.
Europeum Business Centre
The Europeum Business Centre is located in the central business district of Bratislava 150 metres from the presidential palace and 250 metres from the most important shopping area in the city center. Due to its central location, it has excellent links to the motorways to Prague, Budapest and Vienna. There are local public transportation stops directly in front of the building.
This seven-story class A building was built in 2004 to the newest standards and has a total of 10,351 m² of office, commercial and archive space and 183 parking spaces in the underground car park. Its main tenants include Logica (15%), Oriflame, Ouimonde and Kone SSC (each around 10%). In total, the schedule of tenants comprises 25 companies representing a wide range of sectors. The lease structure is balanced and ranges until 2014. Annual rental income amounts to approximately €2.1 million. The property meets the open-ended real estate fund's most important requirement of long-term stable income and offers additional potential for rental increases in the coming years.
Slovakia the fastest-growing national economy among the larger accession states
Bratislava is located in southwest Slovakia, not far from the borders with the Czech Republic, Austria and Hungary. The short 60-km distance from Bratislava to Vienna allows easy access to Vienna's international airport. This young country has one of the fastest-growth national economies in Europe. Its gross domestic product rose by 6% in 2005 and 8.3% in 2006.
The Bratislava region produces almost one-quarter of the national product and is in excess of the current EU average. Over 50% of foreign direct investment flows into Bratislava, where unemployment is under 3%, compared to 10% nationally. Low labour costs and a flat tax rate of 19% contribute to the attractiveness of the location. In addition, Slovakia plans to pin the eurozone in 2009. It offers a springboard to other new CEE countries.