M7 Real Estate has acquired the Terrapark office complex in Budaörs, Hungary, on behalf of M7 CEREF II. The purchase is in line with the Fund’s strategy of targeting value-add and core plus office, logistics and industrial investments in the key Central European markets of Hungary, Croatia and Poland.
The asset is situated to the southwest of Budapest, in the Budaörs office market, within easy access of the M1 and M7 motorways. It provides a total of 28,500 sqm of space across two buildings and is currently occupied by multi-national tenants including Invitech, Tchibo, Continental and Turk Telekom.
Terrapark provides short to medium-term opportunities to add value through the extension of existing tenant leases and the letting of vacant units. M7 will also seek to improve the on-site services and improve the asset’s sustainability credentials.
M7 CEREF II has so far acquired eight assets totalling c. 110,000 sqm across Hungary, Croatia and Poland. The Fund is now almost fully invested following the first close in 2020. The target size of the Fund is circa €100 million, with leverage.
Balázs Magyar, Managing Director of M7 Real Estate in Hungary, said: “The acquisition of Terrapark is another strong addition to M7 CEREF II. We remain active in our core markets of Hungary, Croatia and Poland where we continue to look for further opportunities for the Fund, whilst completing our asset management programme for our M7 CEREF I portfolio. With the addition of this new c. 28,500 sq m office complex, M7 becomes a significant player in the Budaörs office market. Despite being close to Budapest, the Budaörs area has a limited supply of good quality office space, which places Terrapark in a strong position to achieve high occupancy rates. Our aim is to build partnerships with existing and new occupiers by providing flexibility and turnkey solutions.”
Tibor Ráduly, Transactions & Asset Manager at M7 Real Estate, added: “As COVID-19 restrictions begin to ease, we believe Terrapark will appeal to a broad range of occupiers looking for high-quality offices, with green space, near Budapest. Our active asset management programme provides great potential to generate additional income from Terrapark, as we continue to target attractive returns for our investors over the coming years.”
