Futureal has completed the acquisition of Premier Outlet Budapest, an outlet centre located in Biatorbágy, near the junction of the M1 and M0 motorways. The transaction, which closed in October, marks a strategic shift for the group towards direct investment in income-producing commercial assets in Hungary, complementing its existing retail portfolio that includes Etele Plaza in Budapest's 11th district. FREY will continue to operate the outlet centre, while Futureal takes over asset management.
Opened in 2004, Premier Outlet Budapest offers 23,000 sqm of lettable space across more than 90 stores, with an occupancy rate of 99.7%. Tenants include Nike, Adidas, Hugo Boss, Tommy Hilfiger, Lacoste, GANT, GAP, Karl Lagerfeld, Samsonite and Calvin Klein. The centre houses Nike's largest outlet unit in Central Europe and Adidas's largest outlet store in Eastern Europe.
"Futureal's Hungarian operations has historically focused on property development, where we have been market leaders for two decades. Since the elections in April, Hungary's appeal for international investors have skyrocketed. We are excited to be ahead of the curve, focus on investment properties in Hungary also and be a catalyst for regime change in the Hungarian real estate market," said Gábor Futó, co-founder and owner of Futureal Group. "Premier Outlet Budapest is the first major step in this direction, and we also see synergies with our Etele Plaza. The two destinations offer complementary shopping experiences, giving us an opportunity to build on our retail expertise and strengthen their appeal to both visitors and tenants."
"The election outcome has fundamentally changed our view of the Hungarian real estate market. As the market environment becomes more predictable, the pricing of income-producing properties can at times offer a more attractive risk-return profile than a new development. That is why we decided to accelerate our direct investments," said Olivér Treiber, Chief Investment Officer of Futureal. "With the return of international investors, we expect significantly greater liquidity in the Hungarian investment market, which will also have a positive effect on the pricing of quality assets. Premier Outlet Budapest is the first major step in our investment strategy, and we expect further acquisitions to follow."
Futureal plans to grow the centre's value through active asset management, an improved tenant mix and an enhanced visitor experience. The company was advised by HG Business Advisory on financial matters, CMS on legal matters and TOMLIN Kft. on technical due diligence. Futureal Group is active in Hungary, Poland and the United Kingdom, managing more than 500,000 sqm of property with an asset value exceeding €1 billion.
