GalCap acquires Rumbach Center for German pension fund

Pharma

Bence Gaál/BBJ

GalCap Europe, a real estate asset and investment manager specializing in Austria and Central Europe, has acquired Rumbach Center in Budapest for a German pension fund’s portfolio, according to a press release sent to the Budapest Business Journal. 

Rumbach Center now belongs to the existing CEE portfolio within the investorʼs specialized fund structure, which is under the administration of 2IP Institutional Investment Partners.

The building was sold by the Dubai-based Al Habtoor Group. The deal was brokered by Colliers in Hungary.

The development is located in District VII of the Hungarian capital, in the vicinity of Deák Ferenc tér, the main junction of the cityʼs metro lines.

Offering approximately 7,600 sqm of gross leasable area 72 underground parking spaces, the property is entirely leased to the Budapest Public Transport Authority BKÜ/BKK, which is headquartered there.

"Rumbach Center provides a stable cash flow on the one hand and offers high potential for value appreciation on the other," GalCap Europe managing partner Marco Kohla, responsible for the transaction, said. "As the rent of the current single tenant is very moderate, there is room for rental growth in the midterm. The acquisition perfectly matches our value-driven investment strategy and is an ideal addition to the inner-city palace Merkúr Palota and Central Udvar, a mixed-use scheme in the heart of Budapest, both cornerstones of the fund."

Manfred Wiltschnigg, managing partner of GalCap Europe, added: "Closing this acquisition in the current environment shows that there are great opportunities even during times of uncertainty. Identifying these and executing them promptly needs market expertise and the right people on the ground. COVID-19 has further reinforced our approach."

Bence Vécsey, director and head of capital markets at Colliers in Hungary adds, "Our client, the leading private investment company from the MENA region, Al Habtoor Group, has flawlessly executed its investment strategy on trading Rumbach Center to a very respected strategic investment manager of office buildings in the most defensive locations across the Capitals in the CEE region. Rumbach Center has delivered excellent returns to the Al Habtoor Group and the new landlord is expected to capitalize on this investment in the near term by putting their asset management plans in place." 

ADVERTISEMENT

Wizz Air issues EUR 500 mln bond Transport

Wizz Air issues EUR 500 mln bond

1,438 new COVID-19 cases registered in Hungary Figures

1,438 new COVID-19 cases registered in Hungary

Gov't to roll out PIT exemption for Hungarians under 25 Government

Gov't to roll out PIT exemption for Hungarians under 25

Tourism nights down 85% y.o.y. in November 2020 Tourism

Tourism nights down 85% y.o.y. in November 2020

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 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.