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Acquisition of Ericsson Headquarters and the evosoft Headquarters office buildings in Budapest.

CATEGORY
Investment Deal of the Year, CEE
GTC complemented the existing portfolio of modern, eco-friendly office properties in the Hungarian capital with two A-class office projects, confirming the company’s dedication to operate green, quality projects on the CEE markets. Both buildings are conveniently located in the southern part of Buda on the Danube riverbank. One of the most modern office buildings in Hungary, the Ericsson Headquarters (Ericsson) comprises 21,100 sq m of A-class lettable space, including high-tech and high-end finishes and solutions contained in offices, laboratory, canteen and 500 underground parking places. This fully leased building is home to one of the Swedish company’s largest R&D centres. It was also awarded the LEED ‘Gold’ certification confirming pro-environmental solutions applied to meet various needs of the tenant. the evosoft Headquarters (Univerzum) office building is WING’s newest property development project delivered in late 2020. It brings 20,700 sq m of modern space housing research and development functions and providing employees with a sustainable 21st-century working environment. It is fully leased and LEED Gold certified.
Name of the deal
Acquisition of Ericsson Headquarters and the evosoft Headquarters office buildings in Budapest.
The date of closing the deal
Q2 2021
Value of the transaction (in EUR)
160 million
Yield
-
Seller, plus brief information about the company
Winmark Ingatlanfejlesztő Kft (WING) is one of Hungary’s biggest real estate development and investment companies as well as a key player in the regional real estate market. As a privately owned Hungarian real estate company, WING is committed to creating value through projects of high architectural quality, which contribute to the development of the built environment. WING is active in all segments of the real estate market, including offices, industrial and logistics properties, retail projects, hotels and residential developments. WING is the majority owner of Poland’s largest real estate developer, Echo Investment. WING accounts for 1.6 billion EUR worth of investment, over 52 completed buildings, 730 000 sq m of developed area (GLA) and 1 080 000 sq m (GBA).
Consultancy which advised Seller
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Purchaser, plus brief information about the company
The GTC Group is a leading real estate investor and developer focusing on Poland and capital cities in Central and Eastern Europe. During 25 years of its activity, GTC has developed 77 high standard, modern office and retail properties with a total area of approx. 1.4 million sq m through Central and Eastern Europe. GTC now actively manages a commercial real estate portfolio of 45 commercial buildings providing ca. 763 ths. sq m of lettable office and retail space in Poland, Hungary, Bucharest, Belgrade, Zagreb and Sofia. In addition, GTC has a development pipeline of approx. 460 ths. sq m retail and office properties in capital cities of Central and Eastern Europe, 51 ths. sq m under construction. GTC S.A. is listed on the Warsaw Stock Exchange and inward listed on the Johannesburg Stock Exchange. Currently, 88% of GTC properties have environmental certification, valued at EUR 1.7 billion.
Consultancy which advised Purchaser
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Financing institution
The purchase of two office buildings was financed by GTC's own funds, including funds generated from the green bonds issues in 2020 and 2021, combined with bank loan in the amount of approximately EUR 80,000,000.00, provided by OTP Bank.
Current occupancy level
98%
Please say why this deal should be considered for the award
The acquisition of two unique A-class office buildings occupied by triple-A tenants is an excellent opportunity for GTC’s growth. Both buildings have LEED Gold green certification. The transaction is in line with GTC’s strategy of refreshing its portfolio to newer, more modern buildings and focus exposure on office developments in the CEE region as well as f investing in projects which comply with eco-friendly standards. The company strives to develop and acquire buildings that meet the highest environmental criteria while blending seamlessly into the urban fabric and creating local landmarks. The two properties with a combined NOI of EUR 8.9 million will contribute significantly to the company’s FFO generation. The acquisition was partially financed with GTC’s own funds combined with bank financing and green bonds issued in late 2020 and early 2021.