GTC Acquires Ericsson and Evosoft Headquarters

Office Market

Wing CEO Noah Steinberg speaks at the official Evosoft opening on April 27.

Having purchased the 15,000 sqm Váci Greens D building from Atenor, the regional developer and investor GTC has dipped into the Hungarian office market again with the more than EUR 160 million acquisition of the 21,000 sqm Ericsson headquarters and the newly delivered 20,700 sqm Siemens Evosoft HQ in South Buda.

“The acquisition of two unique class ‘A’ office buildings occupied by triple-A tenants is an excellent opportunity to continue GTC’s growth,” GTC says of the deal.

“Both buildings have LEED ‘Gold’ green certification. The transaction is in line with GTC’s strategy of refreshing its portfolio with newer, more modern buildings and focusing exposure on office developments in the CEE region as well as fulfilling the policy of investing in projects which comply with eco-friendly standards,” it says.

“The acquisition of the Ericsson headquarters and the Siemens Evosoft headquarters will complement and further boost our green office portfolio in CEE,” adds Ariel Ferstman, CFO at GTC.

“Those two properties with a combined NOI [net operating income] of EUR 8.9 mln will contribute significantly to our FFO [funds from operation] generation. We aim to finance the acquisition with our own funds combined with bank financing and green bonds issued in late 2020 and early 2021,” he explains.   

The sale is part of developer Wing’s strategy of focusing on expanding its business operations, property development, and investment activities in the region, according to the company.

Long-term Value

“Wing aims to create world-class buildings that provide an inspiring environment for its partners while creating long-term value. The Ericsson headquarters, completed in 2018, and the adjacent Evosoft headquarters, handed over at the end of 2020 [and officially opened on April 27, 2021], are perfect examples of this ambition,” says Noah Steinberg, chairman and CEO of Wing.

“Both buildings are environmentally conscious and LEED ‘Gold’ certified; they are among the most innovative office buildings in Hungary and they are new landmarks on the banks of the Danube in Budapest,” he notes.

“The transaction of the Ericsson and Evosoft headquarters buildings is in line with our company’s growth strategy over recent years, which aims to become a significant market player in the international real estate market. Therefore, we focus our operation on regional expansion as well as on our property development and investment activities,” Steinberg explains.

GTC is an established office developer in its own right in Hungary and across the Central European region. Its current office portfolio in this country includes Duna Tower, Váci Greens D, Center Point I and II, and GTC Metro. The company is also developing the 29,000 sqm Pillar that is scheduled for completion in the first quarter of 2022 and will become the headquarters of ExxonMobil.

Colliers puts prime Budapest office yields at 5.25% compared to 4.25% in Prague and 4.7% in Warsaw as Budapest continues to offer attractive yields for high quality products.

The office sector dominated CEE investment for the first quarter of the year, representing 50% of total investment volume. Although the logistics and residential sectors continue to attract strong investor demand, they are being held back by a shortage of supply of products.

This article was first published in the Budapest Business Journal print issue of  May 7, 2021.

Number of Firms Working With Unis Doubles in 10 Years Figures

Number of Firms Working With Unis Doubles in 10 Years

Hungary Backs French Initiative for Cultured Meat Review EU

Hungary Backs French Initiative for Cultured Meat Review

Hungary R&D Spending Reaches HUF 1.032 tln in 2023 Science

Hungary R&D Spending Reaches HUF 1.032 tln in 2023

Budapest 14th in Sports Cities Ranking City

Budapest 14th in Sports Cities Ranking


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.