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JLL advises AEW Europe on the largest commercial real estate investment transaction in Hungary since the global financial crisis


  • Deal represents the largest sale in Hungary since 2010
  • Hungarian real estate assets are back as a target for international investors after years of limited activity

Leading European real estate investment manager AEW Europe has today announced the disposal of its Hungarian real estate portfolio to a joint venture between Morgan Stanley (MSREF VIII), local developer Wing and Austrian retail developer CC Real. JLL acted as the sole advisor to the vendor.

The agreed price for the portfolio remains confidential; however JLL can reveal that this deal represents the largest sale in Hungary since the 50% sale of Budapest's Allee shopping centre to Allianz Real Estate Germany for around €100m in 2010.

The portfolio consists of the 44,000 sq m MOM Park shopping centre1 and office building located in Budapest's affluent 12th district; the 27,400 sq m West End Business Centre located next to the city centre on Váci corridor2, Budapest's largest office submarket; and the 13,300 sq m EMKE office building located on the Pest side of the Danube river, in the heart of the city's lively business district.

Hungary was hit hard during the global financial crisis and struggled to regain momentum in the following years. The country's total commercial real estate transaction volumes fell steeply from €2bn in 2007 to a low of €146m in 2012. The pace picked up in 2014 with annual volumes of €580 million and in H1 2015 total transaction volumes reached some €280 million. Annual investment volumes in 2015 are expected to exceed 2014 volumes by 20-30%.

Benjamin Perez-Ellischewitz, Head of Capital Markets, JLL Hungary commented: "The sale of the AEW portfolio is of outstanding importance for the Budapest commercial real estate investment market as it is a clear sign of renewed interest from international investors, particularly from the USA, for large deals and portfolio transactions. This transaction is a clear signal for the investment community of the return of international institutional equity, along with attractive debt terms to Hungary."

Richard Bloxam, Head of EMEA Capital Markets, JLL said: "The Hungarian market is recovering sharply off the back of improving national indicators and a good economic momentum and this deal is a milestone that further proves that the investment market is getting stronger. With its strong leasing market, the country's real estate assets will no doubt continue to pique the interest of many international investors well into the second half of 2015."

 

Notes to editors:

1The MOM Park shopping centre is one of Budapest's top 6 shopping centres

2 The Váci corridor is Budapest's largest office submarket with 25% of the city's total office stock

Attached is a photo of the façade of the MOM Park shopping centre and office building

Click here to read more about renewed investor appetite for Hungary on The Investor