FLE GmbH, a company of the LFPI group, has acquired its first property in CEE from an international institutional seller. The acquisition relates to the office building Office Garden I in the Southern Buda area of Budapest, that is 93 percent leased and offers 16,000 square meters of leasable space. The seller was represented by JLL.
The tenancy structure of Office Garden I is dominated by international tenants, the most important among which are Tata, Hewlett Packard, and Sophos. The building was constructed in 2008 and is situated in an upcoming office location that has continuously been enjoying the lowest vacancy rates in Budapest. The parties to the transaction have agreed not to disclose the purchase price and other details.
Dr. Alexander Klafsky, managing director of FLE GmbH, illustrates: „We have been and still are very active on the German and Austrian market. However, following an active portfolio strategy we are about to enter new markets and most particularly the CEE area. Our investment targets are modern office properties in inner-city locations with very good infrastructure, high occupancy, strong tenants, and sustainable cash flows. All of these criteria are perfectly matched with our new property, Office Garden I. We see a multitude of interesting opportunities in the market and are negotiating several new acquisitions in the region.“
FLE GmbH with its seat in Vienna was founded in 2007 and is part of the French LFPI group. LFPI is an independent international multi asset manager with more than €3 billion of assets under management in private equity, real estate, debt and other fields of asset management. The real estate funds managed by LFPI group are owners of approx. 200 real properties with an estimated net value of more than €2 billion. FLE GmbH is investment advisor of several real estate funds. These funds target office and retail assets as well as low budget hotels with a purchase price from €2 to €50 million per asset in Germany, Austria, and CEE.
Apollo-Rida, the owner and manager of the Equal Business Park office complex in Kraków, has extended some of its lease agreements, covering a total of more than 5,000 sqm of office space. Companies that have decided to continue their cooperation include Assa Abloy, Kimberly Clark, Endava and the law firm Kochański & Partners.
A C&A chain store has joined the tenants of the Blue City shopping centre in Warsaw. This will be the brand's seventh shop in the capital. The store, with an area of over 2,200 sq m, will open on level 0.
Media Markt has announced the opening of a new shop in Olsztyn. The outlet, located in the Aviator Retail Park and occupying an area of 577 sqm, operates in the modern Xpress format.
New appointments
Krisztina Enzsöl has joined Knight Frank Hungary as Associate Director in the office division. She has over 24 years’ worth of experience in real estate, being specialised in office leasing. In addition, Enzsöl has extensive knowledge in both tenant and landlord representation.
Beginning of September this year, the Management Board at Avison Young's Polish branch underwent a change, with Monika Bronicka, Director, Head of Valuation and Advisory, Business Development, becoming a Member of the Board.
In September 2024, Ewa Andrzejewska took on the role of Chief Operating Officer of the Polish Chamber of Commercial Real Estate (PINK). In her new role, she will be responsible for co-creating and implementing PINK's strategy and further developing the organisation.
Recently, there has been significantly more activity in the Warsaw office market compared to regional markets, both in terms of demand and new investments. As of last year, the demand for office space in Warsaw has increased, while overall demand has decreased in the region. There are also more vacancies in the regional markets, says Walter Herz.
Investors returned to the Central and Eastern Europe (CEE) markets. Their activity exceeded the volume of €3.3 billion in H1 2024 translating into 41% growth year on year and reaching almost the full-year volume of 2023. JLL experts, in cooperation with iO Partners, present an analysis of the trends observed in the investment market in Poland against the background of countries in the CEE region.
Banks and building societies have provided mortgage loans for more than CZK 32 billion (€1.2billion) within August, reports the Czech Banking Association in its newest Hypomonitor. Compared to July, mortgage activity has increased by a third.
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