Futureal has completed the acquisition of Premier Outlet Budapest, Hungary’s dominant outlet centre. The transaction marks a strategic shift for the European real estate company’s Hungarian operations towards direct investments in income-producing properties. Futureal aims to grow the centre’s value through active asset management, a stronger tenant mix and an enhanced visitor experience.
The transaction closed in October marks a milestone in Futureal’s strategy, as the European group, primarily known in Hungary for property development, places greater emphasis on acquiring established, income-producing commercial assets and focuses on value-add strategies. Premier Outlet Budapest complements its existing retail portfolio, creating opportunities for synergies with Futureal’s Etele Plaza in the 11th district of Budapest. FREY will continue to operate the outlet centre, while Futureal is taking over asset management.
“Futureal’s Hungarian operations have historically focused on property development, where we have been market leaders for two decades. Since the elections in April, Hungary’s appeal for international investors has skyrocketed. This has already decreased the CDS spreads by 50bps, strengthened the forint by 10% and will bring about a major increase in liquidity. We are excited to be ahead of the curve, focus on investment properties in Hungary also and be a catalyst for regime change in the Hungarian real estate market,” said Gábor Futó, Co-founder and owner of Futureal Group. “Premier Outlet Budapest is the first major step in this direction, and we also see synergies with our Etele Plaza, the market-leading shopping centre on the Buda side. The two destinations offer complementary shopping experiences, allowing us to build on our retail expertise and strengthen their appeal to both visitors and tenants.”
Olivér Treiber, Chief Investment Officer of Futureal, commented, “The election outcome has fundamentally changed our view of the Hungarian real estate market. As the market environment becomes more predictable, the pricing of income-producing properties can at times offer a more attractive risk-return profile than a new development. That is why we decided to accelerate our direct investments. The retail asset class is increasingly sought after, which is why we wanted to acquire this unique property with exceptional competitive advantages. With the return of international investors, we expect significantly greater liquidity in the Hungarian investment market, which will also have a positive effect on the pricing of quality assets. Premier Outlet Budapest is the first major step in our investment strategy, and we expect further acquisitions to follow.”
Opened in 2004, Premier Outlet Budapest is located in Biatorbágy, close to the junction of the M1 and M0 motorways. It offers 23,000 sqm of lettable space across more than 90 stores and has an occupancy rate of 99.7%. Its tenant line-up includes Nike, Adidas, Hugo Boss, Tommy Hilfiger, Lacoste, GANT, GAP, Karl Lagerfeld, Samsonite and Calvin Klein. The centre is home to Nike’s largest outlet unit in Central Europe and Adidas’s largest outlet store in Eastern Europe.
Futureal plans to build on Premier Outlet Budapest’s established strengths and unlock its further potential through active asset management. Having developed Corvin Plaza and Etele Plaza and undertaken numerous retail investments across the region, the company brings extensive experience to this next chapter. Drawing on this expertise, as a long-term owner, Futureal aims to enrich the tenant mix and enhance the visitor experience, reinforcing the centre’s appeal as a leading outlet shopping destination and creating lasting value for both customers and retail partners. FREY’s continued role as operator will ensure continuity in the centre’s day-to-day management.
