News Article Skanska sells Budapest office project to Erste fund
by Property Forum | Investment

Skanska has sold Mill Park, a two-building office project in Budapest, to the real estate fund of Erste Alapkezelő Zrt., one of the subsidiaries of Erste Asset Management GmbH, for €100 million. This is the second acquisition from Skanska in Budapest that the purchaser has made following the Nordic Light transaction in 2016.

Mill Park offers over 36,000 sqm GLA. It is located in the 9th district of Budapest – an established office location within the Central Pest submarket, and in close proximity to some of the city’s a cultural and academic institutions. The property is already 80% leased to multiple tenants, including IT Services Hungary. Mill Park will be completed in Q3 2018 and is expected to receive LEED Gold certification.
 
“This is our second office deal with Erste in Budapest in two years. Such long-term cooperation with a trustworthy partner is of a great importance to us. Mill Park is the eighth office project developed by Skanska in Budapest. As with Budapest and other cities, we respond to specific local office demands by building, leasing and selling offices,” says Adrian Karczewicz, Head of Divestments at Skanska’s Commercial Development Unit in CEE.
Adrian Karczewicz

Adrian Karczewicz

Head of Divestments CEE
Skanska Commercial Development Europe

As Head of Divestments for Skanska CDE, Adrian Karczewicz is responsible for sourcing buyers and conducting the deal process in four CEE markets: Poland, the Czech Republic, Hungary and Romania. In 2015, Skanska CDE concluded final sales agreements for 11 office buildings, achieving a total transaction volume of nearly EUR 500m for the year. As a result, the company’s sales activity accounted for over 20% of the total transaction volume in the office sectors of the Czech Republic, Hungary, Poland and Romania, maintaining Skanska CDE’s leading position in the CEE office market. Adrian conducted the company’s first office portfolio transaction in the region – a sale of four buildings located in two Polish regional cities. This was 2015's biggest office divestment realized in CEE and the company's biggest ever transaction in the region. In 2014 Adrian was responsible for sourcing buyers for seven office buildings in Central and Eastern Europe and executing the transaction process. Adrian started his professional career in 1997 as an analyst at Gerald Eve International, going on to work for Knight Frank in Warsaw, and GE Capital Golub Real Estate. Prior to joining Skanska in 2013, he worked for Echo Investment as the director responsible for the company’s asset divestments.  More »
“The acquisition of Mill Park is in line with our desire to increase the Fund’s real estate portfolio with newly built Class A office buildings. This transaction provides a defensive, long-term sustainable income for the Fund so it serves well the interests of our investors,” adds Balázs Pázmány, Head of the Board at Erste Asset Management Ltd.
Balázs Pázmány

Balázs Pázmány

Chairman of the Board
Erste Alapkezelő Zrt.

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Mill Park will offer a 5,500 sqm multifunctional garden with a spacious green area, an outside gym, table tennis and table football as well as outdoor workspaces with plug-ins and WiFi, communal areas and restaurants. All these solutions focus on the wellbeing and working environment of the tenants and their guests. Mill Park is aimed to function as a vibrant meeting point that enhances creativity and collaboration.
 
During the sales process, Skanska was advised by Cushman&Wakefield. Legal advisers for the transaction were NGYL Partners for the purchaser and Dentons for the seller.