• Hungarian forint
  • Budapest
  • Police news
  • HelloMagyar
dnh_logo_feher2dnh_logo_feher2dnh_logo_feher2dnh_logo_feher2
  • Politics
  • Business
  • Society
  • Sport
  • Culture
  • Special Hungary
  • News To Go
  • World
  • Contact Us
  • About us
  • About us
  • Contact Us
  • Privacy Policy
✕
Breaking News
Support us
Eszter Vass Eszter Vass · 02/07/2016
· Business

The Pallas Athena Foundations: Real estate investments

economy money National Bank of Hungary
National Bank of Hungary

Photo: DNH

The Pallas Athena Foundations were established by the National Bank of Hungary (MNB) to “contribute to the common good” by funding a variety of educational programmes in different fields. Recently, the six foundations have begun to shift their capital from government bonds to real estate.

“As far as our activities on the real estate market are concerned, it is not advisable to make fast moves in this field and we also move forward prudently and make well though-out investments. We have purchased four real estate properties: three office buildings in Budapest and one in Debrecen. Our aim is to make these investments increase the value of the properties in the hands of the foundations,” says Zoltán Fekete, CEO of Optima Plc., the asset management company of the foundations.

The properties in the care of the foundations, supervised by Optima Plc., are of two kinds: some properties have been purchased by the foundations, and some have been donated to them by the MNB. The majority of these properties were buildings in need of renovation. These have been restored and modernized, and they will serve as community spaces such as PhD schools, auditoriums, or libraries.

“Properties we have recently purchased are managed by us to make profit. The tenants in these properties are totally independent of the foundations, they pay the market price for renting space.” Fekete says.

The properties purchased so far are the following: two office buildings in Millenáris Park (Millenáris Classic and Millenáris Avantgarde), the Buda Palace at Széll Kálmán Square, and an office building in Debrecen, East Hungary. The properties are intended to be long-term investments, and they will function as offices to be rented, in the hope of producing annual returns of 7-8%.

After the transactions, the foundations’ assets will amount to the following: HUF 174.5 bn in government securities; HUF 49.67 bn in real estate; HUF 27.7 bn in company shares; HUF 10 bn in corporate bonds; and HUF 5.85 bn of bank deposits. The current transactions are expected to be completed soon, but the foundations may purchase further real estate in the future.

Copy editor: bm

Source: Daily News Hungary

Related Posts
Holiday house at Lake Balaton for 50 euros! What’s the trick?
Property prices are skyrocketing at lake Balaton 2
Is this the turnaround in the Hungarian property market? Experts are positive!
budapest_property_market
Hungarian economy is weak in the EU, but is it considered weak outside of it?
Car Factory Economy Industrial
Two Hungarian banks are merging: look out if you have an account with them!
MKB Bank Budapest
economy money National Bank of Hungary
Share

Leave a Reply

Your email address will not be published. Required fields are marked *

SUPPORT US

Must read

Subscribe to our newsletter

Sign up to receive daily updates, news & stories about Hungary!

Select your location below or enter your country so we can deliver our morning newsletters to you in time.


Thank you!

You have successfully joined our subscriber list.


.


About us

Contact us

Copyright rules

© 2023 DailyNewsHungary. All rights reserved! | Server and development by Svigelj Levente E.V
Daily News Hungary
Manage Cookie Consent
Like all websites, Daily News Hungary uses cookies to provide you with a more pleasant experience when you visit our Website. Because we are committed to keeping your information secure, this Notice explains exactly what cookies we use, for what purposes, under what conditions and for how long.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}