Resolution property makes first Budapest acquisitions
Savills, together with their local partner Eston International, have advised CEE focused Hungarian fund manager Adventum on the disposal of two office assets, Buda Square and Margit Palace, located in Budapest, Hungary.
The properties were sold to a fund managed by UK-based Resolution Property, who are partially owned by Chinese conglomerate Fosun International, in an all-equity transaction. The parties agreed to keep the volume of the transaction confidential, but it is estimated to be around EUR85 million.
Chris Gillum, Head of Offices for Savills Regional Investment Advisory says: "We are delighted to have been able to achieve, together with Eston, a positive result for our client Adventum. We were also pleased to be able to work with Resolution on their inaugural deal in Budapest”.
The two office properties, comprising a total GLA of 37,200 sq m, are located on the Buda side of the Danube, in the Central and North Buda submarkets. Both assets have been fully stabilised, having been refurbished and re-leased by Adventum. The buildings are multi-let to a variety of strong national and international tenants and have BREEAM very good in use certificates obtained by Adventum due to substantial investments in energy efficiency and other sustainable solutions to the properties in line with Adventum’s ESG policies.
Adorjan Salamon, CEO of ESTON International, says: “Closing the largest on-market office investment transaction in Budapest in 2020 to date was a successful achievement of a complex assignment. We are grateful for the opportunity to prove our professionalism to our key client, Adventum and look forward to cooperating with Savills again to exploit regional market coverage and local knowledge.”
Hans Peter Gaber, Head of Investment DACH/CEE at Resolution Property, says: “The Buda portfolio offers a highly attractive mix of secure, long-term income paired with some future upside potential. During these challenging times, we are very pleased we could continue our investment programme in CEE and to complement our recent acquisition of Floreasca Park in Bucharest with this portfolio. Our focus remains on well-located, well-fitted-out assets that provide the needed flexibility to adapt to changing working practices as we look to expand our presence in Central and Eastern Europe.”
The transaction marks Resolution Property’s second investment into CEE offices this quarter, and their first investment into the Budapest market.
This deal achieved in turbulent times also represents the largest exit to date by Adventum, one of the leading real estate focused fund managers in the CEE region