S IMMO AG acquires office properties in Budapest from CPI Property Group
The listed S IMMO AG has contracted the acquisition of a total of 8 properties and one plot of land from its new parent company and majority shareholder CPI Property Group in the Hungarian capital. The purchase of around 109,000 m² of lettable space is expected to increase the annual rental income by around EUR 16m.
Following the letters of intent signed in September for the purchase of office properties in Budapest, S IMMO is acquiring 8 properties and one plot of land (Gateway Office Park, Arena Corner, Andrássy Palace and the five-part BC99 Office Park) from CPI Property Group in the Hungarian capital. The transaction volume amounts to EUR 238.3m. The excellently managed buildings comprise a total lettable area of around 109,000 m² and are in outstanding condition. The purchase is expected to increase annual rental income by around EUR 16m.
Herwig Teufelsdorfer, Member of the Management Board of S IMMO AG, comments: "It is our declared goal to position S IMMO as a major player in its markets with regard to office properties. With this purchase, we have taken a major step in this direction and added high-quality properties to our portfolio. This will strengthen the company's earning power and secure cash flow for the coming years. At the same time, it utilizes the operational synergies in Hungary and thus increases the long-term value of S IMMO AG as an important member of CPI Property Group."