JLL says Eiffel Square sale was biggest such deal this year
JLL announced today that it was the advisor for German asset and investment manager KGAL when it purchased Budapest’s Eiffel Square office building in a transaction that was reported Tuesday. Although the price of the transaction has not been published, JLL said this is the largest transaction of its of its kind in Hungary this year.
The Eiffel Square building completed in 2010 through a development joint-venture between Europa Capital, ConvergenCE and DVM, consists of 17,600 sqm of office space complemented by some 5,000 sqm of retail amenities on the lower levels including restaurants, cafés, a medical center and a supermarket, the press statement noted.
The asset is one of the leading office properties in Budapest and received the CIJ’s Best Office Development Award and the FIABCI Prix d´Excellence runner up for Office Development Award worldwide in 2010.
Tenants of the building include Cetelem Bank (BNP Paribas Group), Dealogic, Medicover, Givaudan, Grundfos and AXN (Sony Group).
“The acquisition by KGAL of the Eiffel Square asset marks the return of core buyers to Budapest and we are proud of our instrumental involvement in this development. Similar to our sale of the AEW portfolio back in 2015, the transaction signals a change of gear for international investors’ interest in the Budapest commercial real estate investment market,” said Benjamin Perez-Ellischewitz, head of Capital Markets, JLL Hungary.
Hungary was one of the countries worst-hit by the financial crisis in 2008, and has struggled to regain momentum in the years that followed, but the market picked up in 2014 and 2015 with transaction volumes reaching some €800 million, JLL said. JLL anticipates a dramatic increase of activity in 2016 with transaction figures expected to reach more than €1.2 billion.
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