Europa Capital refinances Eiffel Square, its prime Budapest office investment

Europa Capital LLP, on behalf of Europa Fund II, and ConvergenCE have concluded a significant new loan to refinance Eiffel Square in central Pest, with pbb Deutsche Pfandbriefbank. The EUR 33 million refinancing from pbb Deutsche Pfandbriefbank closed at the end of 2013.

Eiffel Square is considered to be one of the leading office investments in central Budapest, due to its excellent location, quality of construction and full occupancy. The blue-chip tenant line-up includes Cetelem Bank, Mastercard, Sony AXN, Medicover Health Care Center and Tesco. The leasing, property and asset management of Eiffel Square is undertaken by ConvergenCE, owned and run by Alan A. Vincent. ConvergenCE is Europa Capital’s local country partner.

The 23,500 m² building was developed by Europa Capital together with ConvergenCE and DVM in 2009 on land adjacent to the Gustave Eiffel designed Western Railway Station, Nyugati, on Teréz körút in central Pest. With excellent access to public and private transport networks, the office building also contains retail and restaurant units. The site also features a landscaped urban park, which has become a popular local attraction.

James Pennington, Senior Associate, Europa Capital added; “We are delighted to have concluded this new loan with pbb Deutsche Pfandbriefbank on Eiffel Square, based upon its sound property fundamentals. Having added significant value to the investment from leasing and management, we have now been able to return capital to our Fund Investors and joint-venture partners. This investment strategy is representative of Europa’s active asset management within its investments, working with ConvergenCE on the ground in Hungary and with its major banking relationships.”