Erste buys office project in Budapest for €100m

Erste Alapkezelo, a subsidiary of Erste Asset Management, has acquired Mill Park, a two-building office project in Budapest, from Nordic developer Skanska for €100 mln.

The project will be completed in Q3 2018 and it is expected to receive LEED Gold certification. The surface area consists of 36,000 m2 and the building is located in the 9th district of the Hungarian capital.

‘The acquisition of Mill Park is in line with our desire to increase the fund’s real estate portfolio with newly built “A” category office buildings,’ explained Balazs Pazmany, head of the board at Erste Asset Management.

Mill Park, already 80% let to multiple tenants including IT Services Hungary, is the second property purchased by Erste from Skanska in the last two years. ‘Such long-term cooperation with a trustworthy partner is of a great importance to us,’ said Adrian Karczewicz, head of disvestments at Skanska’s commercial development unit in CEE.

‘Mill Park is an eighth office project developed by Skanska in Budapest. As with Budapest and other cities, we respond to specific local office demands by building, leasing and selling offices,’ he added.

During the sales process, Skanska was advised by Cushman&Wakefield. Legal advisers for the transaction were NGYL Partners for the purchaser, and Dentons for the seller.


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