CA Immo secures financing for City Gate office building in Budapest
The property, which offers rentable office space of 24,000 sqm, has been part of the asset portfolio of CA Immo since early 2011 as a result of the Europolis acquisition.
Refinancing of the building for around € 27 m has now been agreed with UniCredit Bank Austria AG.
According to Dr. Bruno Ettenauer, Chief Executive Officer of CA Immobilien Anlagen AG, “Financing conditions on the Hungarian real estate market are particularly tough at present. However, a fully let office property in a prime location in central Budapest is still a stable investment, even in this challenging market climate. We believe the refinancing agreement sends out an important message – that quality criteria such as a good location, a good quality building and good quality tenants still matter in Budapest.”
High volume of lease contract extensions at City Gate in 2011
The main tenants of the City Gate office building were successfully retained in 2011: The two companies, one of them is Nokia Siemens Networks, extended their lease agreements. With Nokia Siemens Networks renting 13,600 sqm of floor space and the other tenant renting 8,600 sqm, nearly all of the usable space at City Gate is now let.
CA Immo in Hungary
The Group's Hungarian portfolio comprises 12 investment properties with roughly 300,000 sqm of rentable effective area and an approximate value of € 413 m. Nine of the 12 investment properties are office buildings in Budapest: these include Capital Square (32,000 sqm), Bartok Haz (17,000 sqm) and IP West (31,000 sqm). Elsewhere, two logistical properties and a retail shopping centre in Györ complete CA Immo's Hungarian portfolio.