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.
Name of the deal
Kalvin Office Portfolio
The date of closing the deal
July 2017
Value of the transaction (in EUR)
60 million
Yield
n/a
Seller, plus brief information about the company
Europa Capital is an established real estate fund management group operating across Europe adding value through risk-based acquisition strategies and active asset management on behalf of its investors. Since 1995, Europa Capital has collectively raised 9 real estate funds and committed to over 105 transactions totalling more than €9.5 billion across 19 European countries. The Europa Funds benefit from Europa Capital’s established network of partners across Europe who co-invest in acquisitions made by the Europa Funds. These country and joint venture partner relationships in some cases extend back more than 20 years. Europa Capital is a member of Rockefeller Group International, Inc. (“RGI”). RGI is a strategic investor alongside Management. Europa Capital Partners LLP and Europa Capital LLP are authorised and regulated by the Financial Conduct Authority.
Consultancy which advised Seller
Convergence
Purchaser, plus brief information about the company
KGAL GmbH & Co. KG, a German based asset and investment manager, with registered offices in Grünwald near Munich (Germany) has been initiating and managing long-term real capital investments with sustainable and stable yields since 1968. The company's portfolio of services comprises the design and management of funds for institutional investors. The quality of KGAL products in the main asset categories of real estate, aviation and infrastructure is based on the experience of its in-house experts. As of December 31st 2015, the KGAL Group manages an investment volume of EUR 21.7 billion. KGAL currently manages capital for 99,000 investors (incl. multiple subscriptions) with equity investments in a total of 116 active limited partnership funds. Investors have entrusted EUR 7.3 billion in equity capital to KGAL for these funds. The KGAL Group has 337 employees (as of 31.12.2015).
Consultancy which advised Purchaser
KGAL
Financing institution
n/a
Current occupancy level
90%
Please say why this deal should be considered for the award
This deal was a great example of entering the market ahead of the curve, executing our asset management plan and exiting when the Budapest office market has begun to attract significant interest from investors.
