FLE GmbH, part of the French LFPI group, has acquired its first real estate in CEE from an international institutional seller.
The property is the Office Garden I building in Alíz utca 1, Budapest, which is 93% leased and offers 16,000 sqm of leasable space. The tenancy structure is dominated by international tenants, the most important of which are Tata, Hewlett Packard, and Sophos. JLL, which represented the seller, says the office center was built in 2008 and is in an “upcoming office location” that has been enjoying the lowest vacancy rates in Budapest. The purchase price and other details have not been disclosed.
At the time of writing, the Office Garden 1 website described Heitman, a multi-national real estate investment management firm with approximately, USD 18.4 billion in assets under management, as the owner.
“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,” explained Dr. Alexander Klafsky, managing director of FLE GmbH.
“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 in 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.”
Vienna-based FLE GmbH is an FLE GmbH is investment advisor for several real estate funds that target office and retail assets as well as low budget hotels in Germany, Austria, and CEE.