Europa Capital has concluded the sale of a portfolio comprising two city centre office buildings in Budapest with a total floor area of approximately 26,000 sqm. KGAL, a European asset and investment manager, acquired the Kálvin Square and CityZen assets on behalf of institutional investors. The combined price for the portfolio is approximately €60 million. The property management will be carried out by KGAL´s local partner ConvergenCE.
“The portfolio was acquired out of a distressed position, when the buildings had a combined vacancy of around 45% and were capital-starved. We implemented an intensive active asset management strategy that involved a significant refurbishment and rebranding of the CityZen building, extended leases with existing tenants and marketed and leased the vacant space. A BREEAM ‘Very Good’ environmental rating was secured on both CityZen and Kálvin Square. Over the two-year period of Europa Capital’s ownership, the contracted rental income has increased from €1.4 million to €4.0 million, and the weighted average lease term has significantly increased from 1.5 years to 4.6 years”, commented James Pennington, Director of Asset Management for Europa Capital.
ConvergenCE Hungary provided investment acquisition, local asset, property and project management services to Europa Capital.
