CA Immo has completed negotiations with Union Investment Real Estate GmbH on acquiring 49% of shares each in the office buildings Danube House in Prague and Building A of Infopark in Budapest, both so far part of the open-ended property fund UniImmo: Europe. The deal, which has already been closed, will make an immediate positive contribution to long-term profitability by around €3 million.
Frank Nickel, CEO of CA Immo: "This further reduction of our minority shareholdings increases the efficiency of our portfolio management, strengthens our long-term profitability and represents another major step towards expanding the core office property portfolio in our core cities.“
With an occupancy rate of 97.5% (as at 30 September 2016), both the Danube House office building in Prague with an area of 21,400 sqm and Building A of Infopark located in Budapest covering 13,700 sqm are almost fully let; the gross yield of the portfolio was 7.0% as at the last balance sheet date. The loan-to-value ratio of the portfolio comes to around 40%, liabilities will be fully repaid with equity in the wake of the purchase process.
This is the second purchase made by CA Immo in Budapest in the past few months. In fall 2016 CA Immo acquired the Millennium Towers Class A office complex from TriGranit and an affiliate of Heitman LLC for €175 million.
