Colliers International completes second logistics transaction selling inNove Business Park
Increasing investment activity coupled with easing pressure on rents and a sharp drop in vacancy rates on the Budapest industrial and logistics market have been the main observations from experts recently. The long awaited recovery is finally visible and momentum is building on the back of strong leasing activity pushing vacancy rates to a record low level since 2008.
Following strong leasing activity in 2014 (net absorption of 128,000 sqm was registered), vacancies in the Budapest logistics market dropped further to 14.5 percent by the end of Q1 2015, which today are even below those of the office market.
2014 was the first year in which investment grade logistics assets changed ownership after a 5-year long dormant period, and now the asset class appears to be on an upward curve.
“Early in Q2 2015, Colliers International has already registered three investment transactions, more than during the course of 2014. Colliers International recently completed its second logistics transaction this year, advising a private developer on the sale of an 18,000 sqm fully-let prime city logistics asset inNove Business Park in Budapest; a deal that establishes a new benchmark for prime assets within this class,” commented Bence Vécsey, Head of Investment Services at Colliers International Hungary. The new owner of the building is an open-ended retail fund managed by Diófa Fund Management.
“We are pleased to have been involved in this transaction as well as supporting CA Immo and Union Investment in selling one of the largest logistics facilities in Hungary to Prologis a few months ago,” added Vécsey.
On the development side of the logistics market, there are some rather large current BTS requirements and some experienced developers; in addition, new market entrants are considering investing in land for future projects.