CA IMMO is a leading real estate company in Hungary. Ede Gulyás, Managing Director of CA Immo Hungary Kft, answers questions about the firm’s activities.
Can you say something about CA Immo’s portfolio in offices? How many properties are you managing in Budapest? In the region?
As an office specialist, CA Immo owns eight office buildings in Budapest besides and one logistics park. CAI also has a retail center in Győr. All of our office buildings are located in key and central areas of Budapest and each is of class “A” technical standards and is also managed at a high level, which is proven by the LEED Gold certifications already possessed by seven of the eight office buildings. Certification for the eighth building is on the way.
What about your logistics portfolio? Can you say something about that?
Our single logistic property is located at the airport, and includes an office scheme within the industrial park, which makes it a unique complex. Our tenants enjoy the synergies of having business activities present in the park as well as the closeness of the airport. Our tenants’ appreciation of the property and our management is shown by their long-term commitment throughout the past several years.
What do see as the main challenges to asset management in Hungary and CEE?
As there has been no considerable development in the commercial real-estate market in Budapest in the past few years, and in spite of this fact the occupancy ratio has increased very slowly, the main tasks and challenges have been to keep the existing tenants in the portfolio. Tough pricing battles, tight layout planning and fierce competition have accompanied every leasing transaction.
What are your projections for the property market here in Hungary? And in the region?
Even though the investment sentiment towards Hungary is changing, and we experience willingness from both the buyer and the seller side, we are still missing the final commitments from the wide investor society. Only a few, mainly local players are active in this respect so far, however, we are confident that this will change. The availability of financing, a more stable political and economical climate, economic growth, and the charm of Budapest will all play a role in further investments.
Developments are not yet happening on a large scale; we foresee this in the mid-term at earliest.