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Appeninn buys office building in Zugló

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Real estate firm Appeninn has purchased a 3,200 square-meter class “B” office building in Zugló, in a recent move that continues its Hungarian expansion, according to a press statement sent to the Budapest Business Journal on Wednesday.

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.

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