S IMMO AG expands office portfolio in Budapest
Listed S IMMO AG has signed the purchase of six office properties of IMMOFINANZ AG in the Hungarian capital. Signing and closing have taken place today. The purchase comprises around 124,000 m² of main usable space, with rental income of around EUR 18.9m per year.
The purchase price is based on the valuation of the property portfolio carried out by an external expert, with a value of EUR 244.1m as of 22 December 2022. The acquisition includes the following six buildings: Thirteen Globe, Thirteen Xenter, Greenpoint 7, Atrium Park, Haller Gardens and Szepvölgyi Business Park. Most of the properties are located in the strong office submarkets "Vaci Corridor" and "Central Pest".
The acquisition results in an increase in lettable space of around 124,000 m² and rental income of around EUR 18.9m per year. S IMMO is thus further expanding its portfolio on the attractive Budapest office market in line with its strategy.
The seller, Immofinanz Services Hungary Kft, is a related party of S IMMO AG within the meaning of section 95a (2) of the Austrian Stock Corporation Act (AktG). Further information on the transaction concluded between Váci 113 Offices B Hungary Kft, a subsidiary of S IMMO AG, and Immofinanz Services Hungary Kft on 28 December 2022 is available on the company's website at https://www.simmoag.at/fileadmin/redakteur/Investor_Relations/Corporate_Governance/Related_Party_Transaction_EN.pdf.
Herwig Teufelsdorfer, member of S IMMO AG’s Management Board, comments: "Having already acquired eight properties in Budapest in November, we are now adding a further six properties to our portfolio and reinforcing our position as a major office property player. At the same time, we are strengthening S IMMO's earnings sustainably and expect significantly positive effects on cash flow and other key figures. Furthermore, the acquisition enables additional, profitable synergies within the CPI Property Group."