Colliers represented Hungarian developer Faedra Group, on an exclusive basis, in the disposal of the first phase of its brand-new logistics development in Budapest.
The 7,500 sqm warehouse facility, with its two upcoming phases, is going to fully utilise the development area in Szigetszentmiklós-Lakihegy, primarily preferred by light industries and international logistics companies.
The transaction was originally signed a few months ago in a forward deal, however closing only took place after securing the occupancy permit recently. The next two phases are going to add another 20,000 sq m of warehouse space in the Southern logistics submarket in Budapest.
“The successful sale of Faedra Park again supports the fact that logistics properties are considered as the most defensive asset category globally, so in Hungary. We are happy that Faedra Group entrusted Colliers to sell this premium and sought-after development. According to our expectations, investors’ high demand for warehouses of similar attributes and quality will prevail," added Bence Vécsey, Head of Capital Markets, Hungary.
“We have successfully closed this development according to the underwriting of our initial business plans, thanks to the combined help of the continued strong fundamentals of logistics assets, our development expertise, the trust of our financing partners and Colliers’ professionalism. In view of the above, we are going to continue our logistics developments in the next phases of this project as well as our other location, Faedra22 also in Budapest," commented Bence Boronkay, Owner and Managing Director of Faedra Group.
This disposal marks the fourth logistics transaction in 2022 in Hungary. The total area of warehouse deals reached 75,000 sqm year-to-date, of which 80% was transacted with the help of Colliers. Logistics assets are responsible for 40 % of the annual investment activity, significantly exceeding its long-term average of 10%. The number of deals in this asset category is expected to decrease towards year-end as the market is considerably under-supplied for investors.
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