Appeninn Purchases Office Building in Budapest

The real estate firm Appeninn is planning to expand its property portfolio in the Hungarian office market. It has just purchased a 3,200 square-meter class “B” office building in Zugló, in a recent move that continues its Hungarian expansion, according to a press statement.

The Appeninn Holding Asset Management Plc. was founded at the end of the year 2009 and by now one of the most dynamically developing real estate investment company of Hungary. The Appeninn focuses on several segments of the real estate market such as office properties (among others Pávapoint Offices, Rózsaházak, Hattyúház), city-logistic elements, and high-yield production potentional assets with investment use.The real estate portfolio has been expanded dynamically with good positioned properties which are continuously leasable and get high profitability potentials. As a result of the effectively management of the properties the original 7 billion capital asset has been increased to 22 billion HUF. The portfolio of the firm that is also listed on the Budapest Stock Exchangeincludes metropolitan and rural properties which are in all 65 thousand square and the utilization of the properties are 95%.

The Appeninn’s purpose is to expand their portfolio in the Hungarian office market this year even more. The recently acquired office building in Zugló has favorable capabilities offering more than 3,200 sqm of office space and is in 95 percent leased. The purchase price was HUF 440 million. Appeninn’s HUF 160 million down payment was financed by the company’s own shares, while the remaining part of the purchase price is covered by a 12-year forint-based loan from OTP Bank, with an interest rate of BUBOR +2.5%. The investment will thus provide a 10% yield for Appeninn, the company expects.

Gábor Székely, Appeninn Nyrt.’s chief operating officer, explained about the acquisition that this year the company wishes to accelerate the expansion of its real estate portfolio, with advanced negotiations currently in progress regarding several potential real estate targets. 

Source: http://cijeurope.com/en