by Ákos Budai | Investment

Within two months OTP Real Estate Investment Fund has already added the second logistics property to its portfolio. The 35,000 sqm warehouse complex is located in South-Pest, within the Gyál Business Park, near the M5 motorway and several multinational companies. The transaction is part of OTP Real Estate Investment Fund Management’s ongoing portfolio development, therefore further transactions can be expected in 2016.


Within two months two logistics properties have been added to OTP Real Estate Investment Fund’s portfolio. After the 30,000 sqm logistics center in Győr, the Fund now has acquired a 35,000 sqm property in Gyál, which became the biggest property in the portfolio in terms of gross floor area. The property is situated on a 16-hectare land and it is fully leased.
 
‘In the past 5 years the logistics map of Budapest has shifted. More and more tenants are choosing the South Pest region, because of the proximity of the motorway, the airport and several multinational companies; with the acquisition of the property in Gyál, we wanted to exploit the investment possibilities of this trend’, said Balázs Tóth, Deputy CEO of OTP Real Estate Investment Fund Management Ltd. ’There is a continuously growing demand for Hungarian logistics properties, thus the well-situated Category A logistics properties have the ability to generate a stable revenue stream on the long term’, he added.
 
At the end of April this year, OTP Real Estate Investment Fund bought a warehouse in Győr, in the neighborhood of the Audi factory and several other companies from the automotive, mechanical engineering, electronics, and trade industries. The 30,000 sqm property is fully utilized, most of its tenants are multinational companies. This is already the second Category A logistics property of the Fund in the provincial capital of the Western Transdanubia region, therefore besides portfolio development, the Fund has also considered the potential synergies of operations and management when buying the property.
 
“In the past months a record amount of capital has been invested in the Real Estate Investment Fund, which we would like to invest in properties with similar qualities in the future. As part of our portfolio development, we are currently working on preparing a transaction of a similar size, by which we aim to increase the profitability of the Fund” – added Balázs Tóth.