Europa Capital, the private equity real estate firm, has sold Eiffel Square in Budapest to German investment management firm KGAL Group in a deal thought to be worth around €64 million. It is understood the deal was made on behalf of the firm’s Europa Fund II, which is now thought to be almost fully realized.
The seven-storey Eiffel Square building, which was completed in 2010, was developed by Europa and its local partner, Hungarian property services firm ConvergenCE.
The multi-tenant property, which has a total area of around 254,000 square feet, includes 20 office, retail and restaurant tenants as well as 365 underground parking spaces.
Eiffel Square is fully leased, with tenants including Cetelem Bank (BNP Paribas) and the Dealogic financial platform, and is situated next to one of Budapest’s most important transport hubs, the Nyugati railway station.
Gert Waltenbauer, chief executive office of the KGAL Group, said: “In purchasing the Eiffel Square office building, KGAL is consistently expanding its pan-European real estate portfolio. The prime property in Budapest is a perfect fit for our targeted investments in prosperous locations in Central Europe.”
Robert Martin, principal and head of Europa's Central Europe region, said: “This prime asset is widely considered to be one of the best prime office properties in the Budapest market, evidenced by the high retention rate of its occupiers. Since completing the development, we have stabilized the project into a high quality institutional grade investment. This sale is completed at a time when the Budapest capital market, having recovered from the global financial crisis, is entering a period of strong growth.”
Europa was advised by CBRE, KGAL was advised by the law firm Denton’s.