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Skanska sells Mill Park to Erste Real Estate Fund

Office Market

Skanska has sold Mill Park, a two-building office project in Budapest, to the real estate fund of Erste Alapkezelő Zrt., a subsidiary of Erste Asset Management GmbH. This is the second acquisition from Skanska in Budapest the purchaser has made following the Nordic Light transaction in 2016.

Mill Park offers over 36,000 sqm GLA. It is located in Budapestʼs District IX , an established office location within the Central Pest submarket, and in close proximity to some of the city’s a cultural and academic institutions, a press release sent to Budapest Business Journal says. The property is already 80% leased to tenants, including IT Services Hungary. Mill Park will be completed in Q3 2018 and is expected to receive LEED Gold certification.

"The acquisition of Mill Park is in line with our desire to increase the fund’s real estate portfolio with newly built "A" category office buildings. This transaction provides a defensive, long-term sustainable income for the fund so it serves well the interests of our investors," Balázs Pázmány, head of the board of Erste Asset Management Ltd. said.

During the sales process, Skanska was advised by Cushman & Wakefield. Legal advisers for the transaction were NGYL Partners for the purchaser and Dentons for the seller. Erste Real Estate Fund also recently acquired the Promenade Gardens office building from its developer Horizon Development.

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