S IMMO AG acquires high-quality office property BudaPart Gate in Budapest
The listed S IMMO AG has expanded its portfolio in the Hungarian capital with the BudaPart Gate, a LEED Gold certified Class A office building. The lettable area measures around 20,000 m², the building is fully let. The office property is located at the entrance to the BudaPart area, the largest urban development area in Budapest with an attractive mix of office, residential, retail, gastronomy, entertainment and local recreation. Generous green and recreational areas in the immediate vicinity of the Danube contribute to the special quality of the location. The seller is Market Asset Management Zrt, a subsidiary of one of the largest construction companies in Hungary.
Herwig Teufelsdorfer, Member of S IMMO AG´s Management Board, commented: "BudaPart Gate exactly matches our vision of a high-quality, modern and sustainable office building. We are very pleased to have expanded our portfolio in Budapest with a property that is ESG-compliant across the board. With this purchase, we have followed our strategy of reinvesting the proceeds from the sale of our CA Immo shares. The property's high occupancy rate and earning power will have an immediate positive impact on our cash flow." The annual rental income of the BudaPart Gate is currently around EUR 4m.
BudaPart Gate is located in the South Buda office submarket, about 5 km south of the city centre. It is easily accessible both publicly and individually. The entire office complex is barrier-free and comprises 11 floors and more than 400 parking spaces. The largest tenants include SEMCON , a Swedish company specialising in product development in the automotive, energy and telecommunication sectors, Serviced Office Belbuda (DBH), a provider of serviced offices, DoTerra Europe, a US company specialising in the distribution of essential oils, IFUA Horváth & Partners, an independent, international management consulting firm and Novo Nordisk, a listed Danish pharmaceutical company.
The closing of the share deal is expected for the end of 2021. On the advisory side, S IMMO was supported by Schönherr, TPA, Colliers and Drees & Sommer. Roland Ebenhoch, head of the transaction team in Vienna, commented: "The transaction was characterised by highly professional, efficient and trusting cooperation. We are proud of this acquisition and are already looking at further purchase options.
The two parties have agreed not to disclose the purchase price.