CA Immo signed a Sales and Purchase Agreement to acquire the centrally located Millennium Towers Class-A office complex comprising of 70,400 sqm GLA in Budapest, Hungary. The transaction volume of the fully rented asset amounts to € 175 m, the annual rental income reaches € 12 m. 

The sellers are TriGranit and an affiliate of Heitman LLC. With this transaction, CA Immo expands its presence in the core market Hungary, where it currently holds the largest property portfolio following Germany and Austria. The closing of the transaction, which is subject to standard closing conditions, is expected to take place within the next weeks; therefore, the acquisition will already contribute to recurring earnings (FFO) of CA Immo in the fourth quarter of 2016. The transaction is financed from the existing liquidity of CA Immo. Law firm CHSH acted as advisor to the buyer.

Frank Nickel, CEO of CA Immo: "What we see at the moment is an extremely positive dynamic in the Budapest real estate market, which is one of the core markets for the CA Immo Group. We are confident that this is a good time in the real estate cycle to make long-term investments in this region. Expanding our Hungarian property portfolio by acquiring this modern office complex with a strong cash-flow will make an important contribution to the recurring earnings of CA Immo. The acquisition will further strengthen our income producing portfolio which already has a high occupancy rate of 92% and is a perfect addition to our high-growth development activities in Germany."

Gordon Black, Senior Managing Director – European Private Equity of Heitman: “Heitman is pleased to have completed this transaction with CA Immo and with the overall success of our joint venture with TriGranit. Heitman is one of the early institutional investors in Hungry and made this investment in late 2011 when there was limited capital being invested into the Budapest market. Through active asset management, the property has achieved full stabilization and has generated strong results for our investors.”

Millennium Towers – Location and features 

Millennium Towers, on a former brownfield site, were developed between 2006 and 2011 by TriGranit. In 2011, an affiliate of Heitman LLC acquired 74% interest in the portfolio, with TriGranit remaining co-owner and property manager of the assets. The office complex is located at a prestigious site on the banks of the Danube, offering a panoramic view of the Buda hills south of CBD in the 9th district. The overall project consists of four buildings (Towers I., II., III and Building H of the K&H Headquarters) with a gross floor space of approx. 70,400 sqm and 1,200 parking spaces surrounded by parks and perfectly connected to the public transport network. The Class-A office buildings represent an outstanding level of quality on the Hungarian office market. The property has received the LEED sustainability certificate, making it among the first LEED® registered buildings in Hungary, and was completed in several construction phases from 2006 to 2011. The ground floor of the buildings provides 6,600 sqm of space for retail tenants. The complex is fully let with an occupancy rate of 99,7%; with a well-diversified tenant roster including top international tenants such as Vodafone, Morgan Stanley and Lexmark; the weighted average unexpired lease term (WAULT) is more than four years.

CA Immo in Hungary 

The Hungarian asset portfolio, which accounted for approximately 8% of the total portfolio of CA Immo as at 30 June 2016, consists of eight office buildings in Budapest and a shopping center in Györ. Seven Hungarian office buildings have been awarded LEED sustainability certification in gold. The book value of the rentable area comprising around 203,000 sqm was approximately EUR 314 m as at 30 June 2016. Following this transaction, it will increase to a rentable area of around 273,400 sqm worth approximately € 490 m.

About CA Immo 

CA Immo specialises in office properties in Central European capitals. The company was founded in 1987 and operates today in the core markets of Austria, Germany, Poland, Hungary, Czechia and Romania. CA Immo is listed on the Vienna Stock Exchange and included in the ATX index and holds property assets of around EUR 3.7 billion.

About TriGranit 

TriGranit is one of the largest fully integrated, privately owned real estate platforms in Central Europe, focusing primarily on quality retail and Class “A” office buildings in strategic urban locations. TriGranit conducts a full spectrum of real estate activities including acquisition, development, construction, and property and asset management. In its two decades of operation, TriGranit has developed nearly 50 landmark projects, creating 1 million square meters of GLA in 7 CEE countries, and has won more than 40 highly prestigious international awards. 

www.trigranit.com  

About Heitman 

Founded in 1966, Heitman LLC is a global real estate investment management firm with nearly $37 billion in assets under management.  Heitman’s real estate investment strategies include direct investments in the equity or debt capitalization of a property or in the securities of listed and publicly traded real estate companies.   Heitman serves a global client base with clients from North American, European, Middle Eastern and Asia-Pacific institutions, pension plans, foundations and corporations and individual investors. Headquartered in Chicago, with offices in Los Angeles, London, Luxembourg, Dusseldorf, Frankfurt, Munich, Warsaw, Hong Kong, Seoul, Tokyo, and Melbourne, Heitman’s over 300 employees offer specialized expertise – from a specific discipline to local insight.