CBank Foundations Buy Plots In Budapest Business District
- 6 Sep 2016 9:00 AM
Foundations run by Hungary’s central bank have purchased plots of land in a Budapest business district for 55 million euros. Fully 200,000sqm of office and residential space can be built on the combined seven-and-ahalf hectares, Zoltán Fekete, the head of Optima Befektetési, which manages the foundations’ assets, said. The plan is to build 150,000sqm of office space and complement it with stores and homes.
Optima aims to attract financial companies with headquarters in the United Kingdom looking for new European headquarters following the country’s vote to leave the European Union.
The properties were purchased from Redimmocorp and Soinginvest last week, Fekete said.
The acquisition is part of the process of moving the foundations’ assets out of government securities, in line with observations made earlier by the European Central Bank.
The foundations’ holdings of government securities have fallen from more than 200 billion forints (EUR 645m) to 155.3 billion, while their assets in real estate have risen from 6.8 billion to 70.8 billion.
The foundations have an additional 20.7 billion in bank deposits and 21 billion in equities. The foundations will borrow 120- 130 million euros to develop the Váci út properties as well as the recently acquired Buda Palace on Széll Kálmán Square. The consortium financing the projects may include banks that have not done business in Hungary until now.
Republished with permission of Hungary Matters, MTI’s daily newsletter.
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