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.”
