Horizon Development sells Váci 1 to GLL
Munich-based real estate fund management group GLL Real Estate Partners has acquired the historic Váci 1 building from Horizon Development, according to a press release sent to the Budapest Business Journal today. The seller was legally advised on the transaction by Lakatos, Köves & Partners, while the buyer was represented in the deal by Dentons.
Váci 1 is a multipurpose heritage building that combines retail, office and service functions on 13,750 square meters at Vörösmarty Square, widely considered as the most prominent downtown location in Budapest. Seller Horizon Development recently finished a complete renovation of the building, which is also a UNESCO World Heritage-listed premium asset.
The current occupancy rate of the building, which has garnered multiple architectural and development awards, is 84%, with advanced negotiations for the rest of the available space. According to the press statement, the building has attracted premium tenants, while high occupancy rates have been reached in record time, along with an “intense wave of international investor interest.”
Váci 1 was H&M’s first choice for one of its largest and most exclusive flagship stores worldwide, as well as its headquarters and showroom. Restaurants in the building include the Hard Rock Cafe, Szamos Gourmet Palace and the St. Andrea Wine & Sky Bar on the 6th floor rooftop (to open in Spring 2017, offering the most spectacular views of Budapest). Office tenants are H&M, the DVM group (the company said to offer the most comprehensive range of integrated building services in Hungary) and international online game developer Play’n GO.
“We believe that this transaction was a true win-win for both parties. By choosing Váci 1, our investor partner enriched its portfolio with a rare jewel among prime Budapest properties, while the tenants gained a landlord whose reputation is only associated with customer-focus and a service-minded attitude. Our company, Horizon Development, continues to be trusted with the property management mandate of Váci 1,” said Horizon Development’s Managing Partner Attila Kovács MRICS.
Originally built in 1915 to serve as the headquarters of the first Hungarian bank, and later also hosting the Budapest Stock Exchange, Váci 1 underwent an architectural revitalization by Horizon Development this year, with an authentic restoration of the heritage elements of the neoclassicist palace, as well as the aesthetic, structural and functional optimization of its modern spaces. The building is a recipient of 2016 European Property Awards in two categories: Best Commercial Redevelopment and Best Mixed-Use Architecture, with a further nomination for the global prize, the press statement added.
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