HB Reavis Group and Zeus Capital Management have completed the sale and purchase of Váci Corner Offices. HB Reavis Group’ first development in Hungary, located in the heart of the Váci út office corridor in Budapest, has been purchased by a group of investors represented by Zeus Capital Management. This is the first major office transaction in the Hungarian real estate market in 2016, as well as a milestone in the business development of HB Reavis in Hungary. This acquisition is made by Zeus Capital Management in relation to its commercial properties investment platform dedicated to Central East and South East Europe.
Completed in 2014, Váci Corner Offices comprises of 21,150 sqm office space. The building is BREEAM “Excellent” certified and has reached almost full occupancy rate by the end of 2015. Tenants of Váci Corner Offices include companies such as 3 subsidiaries of MVM Group, CRH Hungary, Sony Europe, Mylan, Intrum Justitia as well as GlobeNet and Statlogics (both part of the Asseco Group). HB Reavis also relocated its own Hungarian headquarters to the building.
“The acquisition of Váci Corner Offices fits perfectly with the investment strategy of our newest investment platform targeting Central East and South East Europe. This is our first transaction in the Budapest market and we are pleased to have acquired one of the prime office buildings in the promising Vaci Corridor submarket” – said Lila Pateraki, Director of Investments at Zeus Capital Management.
“We are pleased, though not surprised, by the high levels of interest for Váci Corner Offices, which came from both renowned international and domestic investors, and we are delighted to ultimately divest the building to Zeus Capital Management. We take pride that our building has attracted new foreign equity to the Budapest market and we anticipate an exciting year in the region. Looking forward, we plan to launch a 130,000 sqm project in Budapest, continuing this new chapter of major commercial real estate developments in our CEE portfolio” – said Marian Herman, Chief Financial Officer of HB Reavis.
The transaction was advised by CBRE Hungary and was financed by UniCredit Bank Hungary.