Allianz Real Estate has announced the 100% acquisition of Eiffel Square, a prime office building in Budapest, in an off-market transaction.
The 10-year-old complex is one of Budapest’s largest office buildings in the city’s central business district (CBD), offering a privileged location.
Allianz Real Estate made the off-market purchase on behalf of several Allianz group insurance companies.
The off-market office is at the border between the Central Business District and the Vaci Corridor, the city’s largest office subsector.
It has seven above-ground floors including 23,500 square meters in lettable space and is fully occupied by a diverse set of high-quality tenants including Medicover, Dealogic and BNP Paribas. It overlooks Western Railway Station.
Eiffel Square offers 5,000 square meters of retail, restaurant and services units on the lower levels and over 350 underground parking spaces.
Off-market buy strengthens portfolio
The off-market acquisition strengthens Allianz Real Estate’s growing portfolio of prime assets in the CEE region, having already acquired Bank Centre, a premium landmark office building, the Allee Shopping Centre, one of the top five shopping malls in Hungary, and Trimaran, an 18,233 square meter office building in Prague acquired in early 2019.
Thomas Villadsen, Head of Austria & CEE, Allianz Real Estate, says of the off-market deal, “We are pleased to have successfully completed this transaction despite the current environment. Eiffel Square is a very high-quality asset providing long-term, stable cash flows underpinned by strong tenants. This new deal fits well within Allianz Real Estate’s investment strategy as we expand our presence in Budapest.”
Annette Kröger, CEO North & Central Europe at Allianz Real Estate, says, “I am delighted that we can announce another equity deal in Budapest as we continue to build our CEE presence and further diversify our allocation in the CEE region. We remain focused on acquiring high-quality assets in key European metropolitan areas; Eiffel Square fully matches this strategy.”
Retail portfolio bought
Swedish Cibus Nordic Real Estate AB (publ) has acquired a property portfolio of 18 retail assets in Finland.
It was sold by two real estate funds, managed by Trevian Asset Management Oy, whose investors include Finnish pension insurance companies.
The portfolio consists of 18 grocery-anchored assets leased to S Group, Kesko and Tokmanni. They are located across Finland and have a total area of approximately 31,000 square meters. Trevian has been managing and developing this portfolio since 2013.
Sverker Källgården, Chief Executive Officer of Cibus, says, “We have had our eyes on this portfolio for a long time, and the fact that we can do this acquisition during these uncertain times shows the strength of the company.”
Reactivation of the economy
Reima Södervall, Chief Executive Office of Trevian, says, ”We are delighted to have completed the transaction during this exceptional period. Grocery stores have naturally been fully operational during the pandemic. I believe this transaction and other market signals indicate the reactivation of the economy. Both office space and retail property leases are expected to revive as businesses the latest after the summer holiday period. Transactions are also easier to complete when mobility restrictions are reduced.”
Cibus is a real estate company listed on Nasdaq First North Premier Growth Market. The company’s business idea is to acquire, develop and manage high-quality properties in the Nordics with daily goods store chains as anchor tenants. It currently owns more than 250 properties in the Nordics. The main tenants are Kesko, Tokmanni, Coop and S-Group.
Roschier and Cushman & Wakefield have acted as legal advisors in the transaction.
Trevian Asset Management Oy is a Finnish investment and asset management company specializing in commercial properties. The company was established in 2012 and is owned by its key personnel. The company produces actively managed real estate equity funds and asset management services optimized for its customers. The services are focused especially for institutional real estate investors, banks and other professional investors. Trevian’s assets under management near €1.0billion.
Logistics property acquired near Exeter for £4.65m
Oxenwood Real Estate, the UK and European real estate investment management firm, and its joint venture partner, Mulberry Property Developments, have acquired a logistics facility near Exeter for £4.65 million.
The property was acquired out of administration. The 390,000 square foot property is located on Heathfield Industrial Estate adjacent to the A38 Devon Expressway in Newton Abbot.
It was formerly occupied by British Ceramic Tiles before it went into administration at the end of January 2019.
Oxenwood and Mulberry are intending to refurbish and reconfigure the facility into three separate units, called Power Park, which, subject to planning consent, would be completed in the second half of 2020.
Stewart Little, co-founder of Oxenwood, which has acquired its share of the property for Oxenwood Catalina, says, “The transaction represents a superb value-add opportunity in a market which offers limited modern flexible logistics accommodation. The site will become the first in a series of parks, which we intend to create, where occupiers will have access to high power when this is key in location choice.”
Oxenwood Real Estate was established by its co-founders, Jeremy Bishop and Stewart Little as a real estate investment management firm in May 2014.
The group invests both directly and in joint venture with domestic and international institutions in the UK and European real estate markets.
The company is a multi-sector opportunistic investor but is currently focusing on the logistics sector. Its strategy is to deliver strong and growing income returns to investors, with capital upside derived from medium-term asset management and development opportunities. Jeremy and Stewart began working together 13 years ago. Andrew Walker is Chairman.