Europa Capital sells Eiffel Square office-park complex
Europa Capital and its local partner, ConvergenCE, announced today that they have completed the sale of the 23,000 sqm Eiffel square to the Germany-based asset and investment manager, KGAL for an undisclosed fee.
Eiffel Square (pictured) is located next to the Nyugati Railway Station and consists of office space and street front retail and services, in addition to a park area.
“The sale is completed at a time when the Budapest market, having recovered from the global financial crisis, is entering a period of strong growth,” commented Robert Martin, head of CE at Europa Capital.
Current prime Budapest office yields stand at roughly 7% and could soon fall below that. Investment demand is higher than the available product on the market, but the pipeline projects for the next 18-24 months could partly resolve this problem. Many consultants expect a record €1 billion+ in transactions for the year as more institutional investors are looking to acquire assets in Budapest.
Earlier in the year, Zeus Capital Management has purchased the 21,000 sqm Váci Corner in the Váci út business corridor from HB Reavis. The transaction was concluded at an estimated €55 million, the largest reported deal thus far this year.
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