has bought the Terrapark office complex in Budapest, Hungary, on behalf of the M7 CEREF II fund.
The pan-European investor and asset manager specialising in multi-tenanted properties said the acquisition is in line with the fund鈥檚 strategy of targeting value-add and core-plus office, logistics and industrial investments in the key Central European markets of Hungary, Croatia and Poland.
The asset provides a total of 28,500sqm of space across two buildings and is currently occupied by multi-national tenants including Invitech, Tchibo, Continental and Turk Telekom.
M7 said it plans to improve the on-site services and improve the asset鈥檚 sustainability credentials.
The M7 CEREF II fund has so far acquired eight assets totalling 110,000sqm across Hungary, Croatia and Poland.
The manager said the fund is now almost fully invested following a first close in 2020. The target size of the fund is 鈧�100m, with leverage.
Bal谩zs Magyar, managing director of M7 Real Estate in Hungary, said: 鈥淭he acquisition of Terrapark is another strong addition to M7 CEREF II. We remain active in our core markets of Hungary, Croatia and Poland where we continue to look for further opportunities for the Fund, whilst completing our asset management programme for our M7 CEREF I portfolio.
鈥淲ith the addition of this new 28,500sqm office complex, M7 becomes a significant player in the Buda枚rs office market. Despite being close to Budapest, the Buda枚rs area has a limited supply of good quality office space, which places Terrapark in a strong position to achieve high occupancy rates. Our aim is to build partnerships with existing and new occupiers by providing flexibility and turnkey solutions.鈥�
Tibor R谩duly, transactions and asset manager at M7 Real Estate, said: 鈥淎s COVID-19 restrictions begin to ease, we believe Terrapark will appeal to a broad range of occupiers looking for high-quality offices, with green space, near Budapest.
鈥淥ur active asset management programme provides great potential to generate additional income from Terrapark, as we continue to target attractive returns for our investors over the coming years.鈥�
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