Futureal have concluded a EUR 150 million (about HUF 48 billion) loan agreement with UniCredit Bank and Erste Group for its Etele Plaza retail project.
Construction of the Etele Plaza is already in progress and the view among analysts is that this is the right time for the development of new shopping centers to freshen the market, after a gap of several years since the delivery of the last shopping center. The fact that long-term pipeline retail projects are now going ahead reflects the confidence of developers, retailers and financers in the Budapest market.
Etele Plaza is located at a transport hub with access to the Kelenföld Railway Station, the Metro 4 underground line and the approach section of the M1 and M7 motorways. The hub is used by 165,000 people daily, according to Futureal, and the 55,000 sqm project will consist of around 180 retail outlets. The development project also includes the 65,000 sqm Budapest ONE office park, the first phase of which will deliver 25,000 sqm of office space in addition to 2,600 sqm of commercial and service units according to the development plans.
Under the Etele Plaza financing package around EUR 150 mln will be available for ten years for the development and long-term operation of the shopping center. UniCredit are acting as bookrunner and facility agent and the two banks are providing project finance on a 50-50 basis.
“Our goal is to satisfy our clients’ financing needs with competitive project and syndicated loans tailored to their individual needs, thereby contributing to the implementation of their major projects. We kept this in mind also in the case of Etele Plaza,” says Gábor Vörös, head of financing at UniCredit Bank Hungary.
“Erste Group and Futureal Group have been in a close business partnership for more than a decade. In the course of our cooperation, our bank has participated in the financing of several successful office development projects, underlining our strong commitment to financial partnership and value creation,” adds Zoltán Balázs, head of real estate and structured finance at Erste Bank Hungary.
The Futureal Group portfolio has been involved in more than 90 real estate projects with a total value of EUR 3 bln and over two million sqm of development space. Those development projects have continued to attract investors.