Atenor sells fourth building in Budapest complex
Atenor announced the forward sale of the fourth building on the Váci Greens complex in Budapest to a Hungarian private fund. Building D comprises 14,145 sqm of office space, 1,502 sqm of commercial units and underground parking for 260 vehicles. Scheduled for completion by the beginning of 2018, the building is already partially (25 percent) leased to Unilever and to retail traders. The purchase price is estimated to be around €44 million.
The sale will close with the delivery of the building early in 2018, but will already have a positive impact on Atenor’s results in terms of percentage completion in 2017. The total margin realised on building D will be lower than on the sale of the three previous buildings, because of the historically higher cost of the land for D. Nonetheless, with the sale of two other buildings on the Vaci Greens campus since the start of the year (the first building having been sold in 2016), these transactions will have a significant cumulative impact on 2017 results.
Building B of the complex was sold to Hungarian real estate fund OTP Prime Ingatlanbefektetesi Alap this spring, Building C was sold to ZFP Investments, the Czech subsidiary of IAD Investments at the end of last year, whereas Building A was acquired by a group of private Hungarian investors at the beginning of this year. On these four initial sales Atenor has realised total income of the order of €185 million.
Upon completion the Váci Greens campus in Budapest will consist of 6 buildings offering a total of 120,000 sqm of office space, 3 of which have been completed and the 4th of which (the subject of this sale) is under construction.
On the strength of what will soon be 10 years’ experience on this market, and with its coffers swelled by the sales made in recent months, Atenor is aiming to reinforce its role as a key player on this particularly buoyant market. With this aim firmly in mind, Atenor recently announced the acquisition of a new project in Budapest (the 80,000 sqm Arena Business Campus, formerly Hungaria 30).