News Article German asset manager KGAL buys office building in Budapest
by Ákos Budai | Investment

German asset and investment manager KGAL has purchased the Eiffel Square office building located in Budapest, representing the largest office transaction in Hungary in 2016 and marking the return of core investors in Hungary. 

The Eiffel Square building completed in 2010 by a development joint-venture between Europa Capital, ConvergenCE and DVM consists of 17,600 sqm of office space complemented by some 5,000 sqm of retail amenities on lower levels including restaurants, cafés, a medical centre and a supermarket. Cetelem Bank (BNP Paribas Group), Dealogic, Medicover, Givaudan, Grundfos and AXN (Sony Group) are among the main tenants in the building. 

‘The acquisition by KGAL of the Eiffel Square asset marks the return of core buyers to Budapest and we are proud of our instrumental involvement in this development. Similar to our sale of the AEW portfolio back in 2015, the transaction signals a change of gear for international investors’ interest in the Budapest commercial real estate investment market’, commented Benjamin Perez-Ellischewitz, Head of Capital Markets at JLL Hungary.
 
JLL, which advised the buyer on this deal, anticipates a dramatic increase of activity in 2016 with transaction figures expected to reach more than €1.2 billion.