According to nepszava.hu, Duna Tower changed hands by one of the year’s largest A-category office market transaction. The tallest office building of Budapest has been bought by GTC International Group – GTC Hungary announced on Friday.
The new owner aims the now 81%-occupancy rate of the A-category office building to reach the 100%. To this end, the new owner carries out a complete technical and interior refurbishment in the building in the coming months.
The company did not describe the purchase price; they just revealed that it reflects the 7% rental yield in the current occupancy.
By the transaction, GTC Hungary expanded its total office portfolio to more than 118 thousand sq m. The company owns several other premium category office buildings so the Center Point Office Building, the GTC Metro and Spiral. Robert Snow, CEO of GTC Hungary called the purchase of Duna Tower one of the most important milestones of the company’s 15 years of market presence. The acquisition, which was preceded by a multi-round tender process, was entirely financed from own resources, nepszava.hu wrote.
According to the expert, the biggest challenge is the shortage, and there is no such development with an order of magnitude which would satisfy the growing demand for prime offices. Since the market trends increasingly favor leasers – while renters are looking for the limited number and best-quality places – the increase of real rents is expected.
GTC Hungary is owned by the Warsaw Stock-listed Polish Globe Trade Centre S.A. group of companies. After the Lone Star Global Investment Fund’s acquisition of majority ownership, the core capital of the group was increased by EUR 140 million which significantly increased the financial strength and investment potential of GTC in Hungary and in the Eastern Central European region as well.
based on the article of nepszava.hu
translated by BA
Photo: Katonams / Wikimedia Commons