Commercial real estate firm IMMOFINANZ signed lease agreements in H1 2018 accounting for more than 14,000 sqm of its Hungarian portfolio, equivalent to 9% of its current overall leasable office space in Budapest, the company has told the Budapest Business Journal.
Of the total, new and expanded leases cover 5,800 sqm, while prolongations account for more than 9,000 sqm.
“More than 14,000 sqm of new leases and prolongations in the last six months is a truly remarkable number for the Budapest office market,” said Viktor Nagy, country manager operations Hungary, IMMOFINANZ.
“The strength of our portfolio is its diversity both in terms of location but also in the range of services provided in buildings. Additionally, the introduction of our myhive office brand in Budapest was very well received on the market and among our tenants.”
Both in the terms of lease prolongations and new leases and extensions, IMMOFINANZ says its Office Campus property has been particularly successful and is now fully leased. Among the new tenants is the U.S. company Flowserve Corporation, a leading global provider of industrial equipment design and manufacturing. The company will establish its new Flowserve Global Technology Engineering Center in the Office Campus’ offices.
The commercial real estate company says the office and retail properties in Hungary represent 12.3% of the IMMOFINANZ’ total portfolio, including 31 properties (25 standing investments and six pipeline projects) worth EUR 513 million.
The standing investment portfolio splits into 11 office buildings (13.5% of the total office portfolio) and 14 retail properties (14.4% of the total retail portfolio).During the first quarter of the 2018 financial year, the occupancy rate of the Hungarian portfolio increased to 94.3% (December 31, 2017: 93.8%).
Its activities are focused on the retail and office segments of seven markets: Austria, Germany, Czech Republic, Slovakia, Hungary, Romania and Poland.
The core business covers the management and development of properties, and includes the STOP SHOP and VIVO! brands (both retail) as well as myhive (office). The group’s real estate portfolio has a total value of approximately EUR 4.2 billion and covers more than 230 properties. IMMOFINANZ is listed on the stock exchanges in Vienna and Warsaw.