Europa Capital sells Eiffel Square office-park complex
Europa Capital and its local partner, ConvergenCE, announced today that they have completed the sale of the 23,000 sqm Eiffel square to the Germany-based asset and investment manager, KGAL for an undisclosed fee.
Eiffel Square (pictured) is located next to the Nyugati Railway Station and consists of office space and street front retail and services, in addition to a park area.
“The sale is completed at a time when the Budapest market, having recovered from the global financial crisis, is entering a period of strong growth,” commented Robert Martin, head of CE at Europa Capital.
Current prime Budapest office yields stand at roughly 7% and could soon fall below that. Investment demand is higher than the available product on the market, but the pipeline projects for the next 18-24 months could partly resolve this problem. Many consultants expect a record €1 billion+ in transactions for the year as more institutional investors are looking to acquire assets in Budapest.
Earlier in the year, Zeus Capital Management has purchased the 21,000 sqm Váci Corner in the Váci út business corridor from HB Reavis. The transaction was concluded at an estimated €55 million, the largest reported deal thus far this year.
Source: Budapest Business Journal website
A KGAL GmbH & Co. KG:
KGAL GmbH & Co. KG, a German based asset- and investment manager, with registered offices in Grünwald near Munich (Germany) has been initiating and managing long-term real capital investments with sustainable and stable yields since 1968. The company’s portfolio of services comprises the design and management of funds for institutional investors. The quality of KGAL products in the main asset categories of real estate, aviation and infrastructure is based on the experience of its in-house experts.
As of December 31st 2015, the KGAL Group manages an investment volume of EUR 21.7 billion. KGAL currently manages capital for 99,000 investors (incl. multiple subscriptions) with equity investments in a total of 116 active limited partnership funds. Investors have entrusted EUR 7.3 billion in equity capital to KGAL for these funds. The KGAL Group has 337 employees (as of 31.12.2015).