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REAL ESTATE NEWS

Prologis launches 8,000 sqm development in Hungary

Prologis launched the development of an 8,000 sqm build-to-suit facility (called DC2) at Hungary’s Prologis Park Hegyeshalom (pictured) for Fiege, one of Europe’s leading logistics providers, the real estate developer said in a January 19 press release. Fiege signed a lease renewal for its existing 11,400 sqm space in DC1 at the same park, the press release said. The company already leases 126,000 sqm in five Prologis parks across Europe, Prologis said, adding that the new 8,000 sqm facility will include 100 sqm of state-of-the-art office space. “Fiege specializes in integrated supply chain solutions for many different industries, and the complex services we provide generate business opportunities. We are pleased with our existing facility at Prologis Park Hegyeshalom, and to accommodate our business growth we have decided to renew our current lease agreement and expand into another high-quality build-to-suit facility that will fulfill the specific requirements of our daily operations,” said Gergely Hepp, Fiege managing director. “With the Hungarian market consolidating, we see increased demand to expand partnerships with our existing customer base, and we are pleased to develop a new build-to-suit facility for Fiege,” said László Kemenes, senior vice president and country manager of Prologis Hungary. “Hegyeshalom, our only development in Hungary outside the greater Budapest area, has been fully occupied in the past few years and is becoming an important strategic hub for Fiege’s regional logistics activity with its reach to Austria, Hungary and Slovakia,” Kemenes added. Prologis Park Hegyeshalom currently comprises a 24,100 sqm facility that is fully leased to Fiege and SMR. It offers 120,000 sqm of additional development potential. The park is located in western Hungary in close proximity to Vienna, Bratislava and Győr, allowing for easy access to all three markets via the M1 and M15 motorways.

Vacancy rate in Budapest industrial property market falls to 10.6%

The vacancy rate on Budapestʼs industrial and logistics property market fell to 10.6% in the fourth quarter of 2015, down five percentage points from 12 months earlier, the Budapest Property Consultants Coordination Forum (BIEF) said on January 22. The vacancy rate has now reached its lowest level since 2007. There were 1,881,650 sqm of industrial and logistics space in the capital at the end of the period. Take-up in the fourth quarter was 81,190 sqm, around 30% higher than in the third quarter. BIEFʼs members are CB Richard Ellis, Colliers International, Cushman and Wakefield, DTZ, Eston International, Robertson Hungary and JLL.

HB Reavis closes successful year in Hungary, eyes new investment

The Hungarian operations of HB Reavis for 2015 have been deemed successful, after Váci Corner Offices – its first Hungarian project opened in 2014 – reached a rental ratio of 96%, according to a press release issued on January 21. The company noted that the renting of the 21,150 sqm building has been progressing at an “extraordinarily fast pace”, and this success was boosted by contracts signed in December, which involved the renting of the last vacant floors of the building. New tenants in the building include Magyar Földgáztároló Zrt. and Magyar Földgázkereskedő Zrt., who signed a contract for 2,500 sqm of space on floors five and six for five years, HB Reavis said. The company noted that it is working on a new project of more than 100,000 sqm on the corner of the office corridor at Váci út and Róbert Károly körút, which HB Reavis expects to be the start of a new era.