OTP Real Estate Fund Buys Corvin Technology Park
Futureal Group has sold the Corvin Technology Park, the fifth office block at the Corvin Promenade complex, to the OTP Prime Real Estate Investment Fund. Following the latest deal between the two groups, funds managed by OTP now own almost 100,000 sqm of office space in the area.
Corvin 5, sold by Futureal to OTP Real Estate.
The 27,300 sqm Corvin Technology Park consists of two phases: 14,000 sqm and 13,000 sqm (the latter due to be completed by the end of the year).
“The acquisition of the state-of-the-art Corvin Technology Park is further proof that Futureal’s outstanding office developments on the Corvin Promenade represent a valuable long-term investment for our partners. This transaction further strengthens our solid partnership with OTP Prime Real Estate Investment Fund,” said Tibor Tatár, CEO of Futureal.
OTP Real Estate Investment Fund Management launched the OTP Prime Real Estate Investment Fund in 2017 with the aim of investing in class “A” developments.
Last November, the fund purchased all of the operating office buildings at the Corvin Promenade urban regeneration project plus two offices centers that were under construction at the time. The eight buildings have a total gross leasable area of circa 80,000 sqm. At the time, OTP Prime Real Estate Investment Fund also entered a preliminary agreement to purchase Corvin Technology Park.
Leading domestic funds and developers have established long-term business relationships at the top end of the market in recent years.
Domestic Capital
“One of the most interesting aspects of the CEE markets has been the growth of domestic capital in Hungary and the Czech Republic with more than 50% of investment volumes coming from domestic capital sources,” commented Mike Atwell, head of capital markets for CEE at JLL.
The acquisition represents a valuable investment opportunity due to the high occupancy rate, stable income-generating ability and the location and accessibility of a wide range of services for tenants in the Corvin Quarter, according to Alexa Schlosser, director of acquisitions and asset management at OTP Real Estate Investment Fund Management.
The BREEAM “Very Good” accredited and WELL pre-certified Corvin Technology Park includes an inner garden on the ground floor and a rooftop terrace. It will also be equipped with a mechanical heat recovery system, bike storage, showers and electric car chargers.
Features that are crucial for tech companies, such as higher electrical capacity and a power supply providing continuous, uninterrupted operation have been implemented in the planning of the development, according to Futureal.
Corvin Promenade includes half a million sqm of above ground office, retail, leisure and residential space on a 22 hectare site that provides direct access to metro, bus and road links. Futureal is looking to extend the urban rehabilitation project south towards the area around the Semmelweis Klinikák metro station on the M3 (north-south) line.
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