Europa Capital has concluded the sale of the Kalvin Portfolio, Budapest. The Kalvin Portfolio comprises two City Centre office buildings in Budapest with a total floor area of approximately 26,000 sq. metres. KGAL, a leading independent European asset and investment manager, acquired the Kalvin Square and CityZen assets on behalf of institutional investors. The combined price for the portfolio is approximately €60.0 million. The portfolio was acquired out of a distressed position, when the buildings had a combined vacancy of around 45% and were capital-starved. Europa Capital implemented an intensive active asset management strategy that involved a significant refurbishment and rebranding of the CityZen building, extended leases with existing tenants and marketed and leased the vacant space. A BREEAM ‘very good’ environmental rating was secured on both CityZen and Kalvin Square. Over the two-year period of Europa Capital’s ownership, the contracted rental income has increased from €1.4 million to €4.0 million, and the weighted average lease term has significantly increased from 1.5 years to 4.6 years.
