Listen to the audio version of this article (generated by AI).
Listen to the audio version of this article (generated by AI).
The transaction closed in October, with Frey continuing as operator and Futureal taking over asset management.
The acquisition marks a shift for the group, primarily known in Hungary for property development, toward established commercial assets offering opportunities to increase value through active management.
Futureal plans to strengthen the center’s tenant mix and visitor experience while exploring synergies with Etele Plaza, its shopping center in Budapest’s District XI.
“Premier Outlet Budapest is the first major step in this direction, and we also see synergies with our Etele Plaza, the market leading shopping centre on the Buda side,” said Gábor Futó, co-founder and owner of Futureal Group. “The two destinations offer complementary shopping experiences, giving us an opportunity to build on our retail expertise and strengthen their appeal to both visitors and tenants.”
Futó said Hungary’s appeal to international investors had increased sharply since the April elections. He pointed to a 50-basis-point decline in credit default swap spreads and a 10% strengthening of the forint, adding that he expected a substantial increase in market liquidity.
Olivér Treiber, Futureal’s chief investment officer, said the election outcome had changed the company’s assessment of the Hungarian property market and prompted it to accelerate direct investments.
“As the market environment becomes more predictable, the pricing of income-producing properties can at times offer a more attractive risk-return profile than a new development,” Treiber said.
He added that retail properties were attracting greater investor interest and described Premier Outlet Budapest as an asset with exceptional competitive advantages.
“With the return of international investors, we expect significantly greater liquidity in the Hungarian investment market, which will also have a positive effect on the pricing of quality assets,” Treiber said. “Premier Outlet Budapest is the first major step in our investment strategy, and we expect further acquisitions to follow.”
HG Business Advisory advised Futureal on financial matters, CMS provided legal advice, and TOMLIN Kft. conducted technical due diligence. Financial terms were not disclosed in the announcement.
Opened in 2004, Premier Outlet Budapest is located in Biatorbágy, near the junction of the M1 and M0 highways. It offers 23,000 sqm of lettable space across more than 90 stores, with an occupancy rate of 99.7%.
Tenants include Nike, Adidas, Hugo Boss, Tommy Hilfiger, Lacoste, GANT, GAP, Karl Lagerfeld, Samsonite and Calvin Klein. According to Futureal, the center houses Nike’s largest outlet unit in Central Europe and Adidas’s largest outlet store in Eastern Europe.
Futureal said it would draw on its experience developing Corvin Plaza and Etele Plaza, alongside retail investments elsewhere in the region, to improve the property’s offering.
As a long-term owner, the company plans to expand the tenant mix and enhance the shopping experience. Frey’s continued role as operator will provide continuity in day-to-day management.
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.
