Diófa closes HUF 9 bln business park transaction
Diófa Asset Management has closed the transaction for the South Pest Business Park for HUF 9 billion, with Wing Zrt. being the vendor and the new owner being Magyar Posta Takarék Real Estate Investment Fund, which is Hungaryʼs second largest domestic open-ended fund, according to a press statement sent to the Budapest Business Journal today.
The purchaser, represented by Diófa Asset Management, currently owns property totaling HUF 64 bln in value. The latest city logistics scheme is located in District 9, totaling 34,400 sqm gross leasable area (GLA), and the modern warehouse area is 90% occupied.
With this new deal, the industrial share of Diófa’s property portfolio has increased from 9% to 20%.
Diófa Asset Management, which represents four property investment funds and is committed to building a diversified portfolio in Hungary, started to build a retail portfolio in 2016, and claims a one-third share of annual retail investment transactions in Hungary, besides what it describes as a strong modern office stock.
By representing one open-ended and three private real estate funds, Diófa has carried out a total of EUR 320 million in property investment over less than three years. Due to its asset management strategy, the 270,000 sqm property portfolio is 95% occupied, Diófa claims.
“Record volume levels, last seen in 2007, define the market that causes changes in the market’s dynamics and put pressure on yield levels. Our company grew with our portfolio; with qualified colleagues we ensure that Diófa Asset Management’s services stay above average for the investment funds we represent to our 250 tenants. We plan to remain active on the property investment market, while 2017 will be a new milestone, as we plan to turn our energy to major developments and hope to publish details about these in the near future,” said László Vas, head of real estate investments at Diófa.
According to commercial real estate agencies, international investors have put Hungary back on their investment map and have started to be active again. In addition, local investors are also active and they represent nearly 30% of the total transaction volume closed in the past two years. Diófa Asset Management claims to be among the largest local investors, with around 40% market share.
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