The office building, which Appeninn claims has favorable capabilities, currently has a 95% occupancy rate. The purchase price was HUF 440 million. Appeninn’s HUF 160 mln down payment was financed by the company’s own shares, while the remaining part of the purchase price is covered by a 12-year forint-based loan from OTP Bank, with an interest rate of BUBOR +2.5%. The investment will thus provide a 10% yield for Appeninn, the company expects.
Gábor Székely, Appeninn Nyrt.’s chief operating officer, said in connection with the acquisition that the company wishes to accelerate the expansion of its real estate portfolio, with advanced negotiations currently in progress regarding several potential real estate targets.
The company, which is listed on the Budapest Stock Exchange, is planning to expand its property portfolio in 2017 at an even faster pace than last year, and to continue its operations as a real estate investment trust should legislation make this possible, the press statement notes.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
