S Immo AG has expanded its portfolio in the Hungarian capital with the BudaPart Gate, a LEED Gold certified Class A office building. The lettable area measures around 20,000 sqm, the building is fully let. The office property is located at the entrance to the BudaPart area, the largest ongoing urban development project in Budapest with a mix of office, residential, retail, gastronomy, entertainment and local recreation. The seller is Market Asset Management Zrt, a subsidiary of one of the largest construction companies in Hungary. The two parties have agreed not to disclose the purchase price.
Herwig Teufelsdorfer, Member of S Immo AG´s Management Board, commented: "BudaPart Gate exactly matches our vision of a high-quality, modern and sustainable office building. We are very pleased to have expanded our portfolio in Budapest with a property that is ESG-compliant across the board. With this purchase, we have followed our strategy of reinvesting the proceeds from the sale of our CA Immo shares. The property's high occupancy rate and earning power will have an immediate positive impact on our cash flow."
BudaPart Gate is located in the South Buda office submarket, about 5 km south of the city centre. The largest tenants include SEMCON , a Swedish company specialising in product development in the automotive, energy and telecommunication sectors, Serviced Office Belbuda (DBH), a provider of serviced offices, DoTerra Europe, a US company specialising in the distribution of essential oils, IFUA Horváth & Partners, an independent, international management consulting firm and Novo Nordisk, a listed Danish pharmaceutical company. The annual rental income of the BudaPart Gate is currently around €4 million.
The closing of the share deal is expected for the end of 2021. On the advisory side, S Immo was supported by Schönherr, TPA, Colliers and Drees & Sommer.
