The CEO of TriGranit is still optimistic for 2017 on the Budapest property market, but he expects some kind of correction in the coming years. The question is: will this correction take place in the form of a market stabilisation or will it bring on a significant downturn? Árpád Török talked to Property Forum about TriGranit’s plans for new developments and acquisitions.

Delta Holding subsidiary Delta Real Estate, in cooperation with AP investments, has finalised the acquisition of a shopping mall in Varna, Bulgaria. The project is worth €120 million and it will be completed in May 2018.

The GTC Group has acquired a modern A-class office building in Belgrade, Serbia for an undisclosed sum. Belgrade Business Center offers 17,900 sqm of GLA and 307 parking places. The acquisition will increase GTC’s Serbian portfolio to 98,400 sqm GLA.

South African fund Hystead has acquired of The Mall, one of the largest shopping centres in Bulgaria, located in the capital city Sofia. The acquisition, upwards of €156 million, represents the fourth investment in the region by Hystead Limited, a joint venture between Hyprop Investments and Homestead Limited, who previously acquired the Delta City shopping centres in Podgorica and Belgrade alongside Skopje City Mall in Macedonia at the end of 2016. 

Erste Group officially opened the Sirius Offices business complex in Belgrade for tenants who are expected to enter the building soon. Erste Bank Serbia is the first tenant to move into the new business complex, which will become its main business centre in Belgrade. Beside Erste Bank, Strabag d.o.o Beograd has been secured as a second large anchor tenant, renting 4,000 square meters office space. The first phase of the investment is worth €40 million and the complex occupies an area of 18,500 square meters gross of office space. Besides office premises, Sirius Offices includes a restaurant, a shop and 230 parking places.

Through its subsidiary NEPI has concluded agreements to acquire the Serdika Center and Serdika Office buildings in Sofia, Bulgaria for €207.4 million.

Occupier and investment sentiment continues to be positive across Central and Eastern Europe according to the RICS Commercial Property Monitor for Q1 2017. Similarly to last quarter, Hungary remains the most upbeat market globally with the Czech Republic also performing remarkably well. The picture is slightly more mixed in Croatia and Romania, still, near term momentum remains positive in the two markets.

"The aggregate value of the investment involving several different investors is estimated at €150 million", said Marcus Wild, CEO of SES Spar European Shopping Centers, which will manage and own the newest shopping centre in Slovenia. This will grow in Šiška, the most densely populated district of Ljubljana, by the autumn of 2019. The construction work is already starting in June 2017.

According to a summary of Q1 2017 results, NEPI made progress with planning and permitting for several developments and extensions, including those in Galati, Novi Sad and Ramnicu Valcea. Further to the receipt of certain approvals, Victoriei Office in Bucharest is expected to receive permitting for the internal fit-out during the next quarter, enabling tenants to start operations in the fourth quarter of 2017. Zoning and permitting for the Promenada Mall extension continue to experience delays. 

Swissôtel, part of AccorHotels, has entered into a franchise agreement with Al Shiddi International for the development of a new 218-room urban resort scheduled to open in early 2018. Situated next to Bosnian Parliament, within the mixed-use Sarajevo City Center project, consisting of shopping mall and office tower, Swissôtel Sarajevo will be located in the Bosnian capital’s centre.