Futureal sells Corvin offices portfolio to OTP Group
Property developer Futureal Group has sold its portfolio of Corvin office buildings to real estate funds managed by OTP Real Estate Investment Fund Management, according to a press release sent to the Budapest Business Journal. The eight class A buildings together represent a gross leasable area of almost 80,000 square meters.
Office building on the Corvin Promenade
Futureal says that the transaction involved all operating office buildings that represented a part of the Corvin Promenade, as well as two other buildings currently under construction.
"This transaction is a significant milestone in the development of Futureal Group and in the 15-year history of Corvin Promenade," said Gábor Futó, founder of the Futureal Group. "The promenade, a symbol of Budapest’s development, continues to act as a bridge between the successful past and promising future of our group."
Futó asserted that the agreement now concluded will further strengthen his companyʼs excellent professional relationship with the OTP Group, while the resources released will provide a solid basis for further development of the Futureal Group.
"Over the years the company has become a leading real estate developer and investor in Central and Eastern Europe," he recalled. "Currently, we are managing over 30 projects simultaneously, with a total value of EUR 1 billion and a gross area of over 700,000 sqm."
Of the buildings purchased by OTP Real Estate Investment Fund Management, Corvin One was built in the first construction phase of the Corvin Promenade and opened in 2008. The building was the start of the Corvin Quarter development project.
Corvin Towers was realized in the second phase of the project. The complex features four Class A towers. The next building was Corvin Corner, which the press releases claims was aimed at combining the highest quality with efficient business operations.
Corvin One, Corvin Towers and Corvin Corner all have balanced long-term tenant mixes and are fully occupied. Global real estate services firm JLL provided transaction advisory services to Futureal during the transaction process of the Corvin office buildings.
At the beginning of 2017, OTP Real Estate Investment Fund Management launched its OTP Prime Real Estate Investment Fund, which aims to invest in category "A" real estate.
Last April, the fund acquired Futureal Group’s 25,000 sqm Skypark office building development, the first element of the eastern closing block of Corvin Promenade. The "A+" category Skypark achieved BREEAM Very Good certification.
The OTP Prime Real Estate Investment Fund has also entered a preliminary agreement to purchase Corvin Technology Park, currently being constructed adjacent to the Skypark building.
Futureal Group is focused on prime real estate projects and will continue developing the Corvin Technology Park office building, as well as the project known as "Corvin 7," says the press release.
"Due to its ongoing balanced performance and stable returns, the OTP Real Estate Investment Fund is very popular with investors, and there’s a constant stream of new capital that we invest in high-quality real estate that will keep its value for long," said Zsolt Perlaky, director of real estate management at OTP Real Estate Investment Fund Management.
The real estate fund’s net asset value has increased dynamically over the last year, Perlaky added, up HUF 170 bln to almost HUF 380 bln.
"These assets - due to their excellent location, diversified tenant mix, long-term rental contracts, and the neighboring high-level infrastructure serving the Corvin Office buildings - perfectly fit into the portfolio and business strategy of our funds and are likely to provide long-term yields to our investors," noted Alexa Schlosser, the companyʼs deputy director of real estate management.
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