News Article Budapest development Erste Ingatlan Hungary investment office Skanska
by Ákos Budai | Office

Skanska has sold the Nordic Light office building in Budapest, Hungary, to the real estate funds of Erste Alapkezelő Zrt. – one of the subsidiaries of Erste Asset Management GmbH. The value of the transaction is €67 million. The transaction has been recorded in December, with the transfer of the property scheduled for the first quarter of 2017. Skanska has also started its newest office development in the Hungarian capital.

Nordic Light is Skanska’s seventh office development in Hungary. The project, situated on Váci Road in the 13th district of Budapest, offers 26,200 square meters of total leasable space and underground parking floors. The first phase comprises 6,600 square meters and was commissioned for use in May 2016, while the second phase comprises 19,600 square meters and was commissioned for use in September 2016. The LEED Gold certified office complex is already 86 percent leased to well-established international tenants.
During the sales process, Skanska was advised by Colliers International, while Erste was advised by CBRE. Legal advisers for the transaction were NGYL Partners for the purchaser, and Dentons for the seller.
Skanska has also recently announced an investment of €32 million in phase I of Mill Park, an office complex in Budapest, Hungary. The first phase will offer a total leasable area of around 18,400 square meters on 7 stories above ground. About 45 percent of phase I is currently pre-leased.

The Mill Park complex, located in the 9th district of Budapest, will comprise two office buildings with a total leasable area of over 36,000 square meters. The project is expected to receive LEED Gold certification. Construction work has already started and is scheduled for completion in the third quarter of 2018.