Austrian Real Estate Giant Pulls Out of Hungary

CA Immo is to liquidate its Hungarian interests, with 180,000 square meters of office buildings, including Bartók House and Millennium Towers, being put on the market.

Earlier this week, Hungary was classified as a non-core market from a strategic point of view by the supervisory board of Austrian real estate company CA Immobilien Anlagen, which decided to withdraw the company from the Hungarian market, the financial website portfolio.hu reports. According to the website, the company, which still had nine office buildings in Hungary at the end of last year, sold one of its office buildings in Buda, the 14, 200-square-meter Víziváros Office Center in the District II, at the beginning of May.

CA Immo has indicated that its aim is to have a share of over 80% in its portfolio in its core markets of Germany and Austria, and to this end it is divesting its Hungarian interests either through platform sales, sub-portfolio sales or individual asset sales.

In addition to the properties already sold, these further comprise eight office buildings with a total floor area of approximately 180,000 sqm: Bartók Ház (17,600 sqm); Capital Square (34,000 sqm); City Gate (25,800 sqm); IP West (32,100 sqm); Millennium Towers 4 Office Building and K&H Headquarters Building H in between (70,600 sqm).

The website recalls that the company, founded in 1987 and with real estate assets of EUR 5.9 billion, wound up its Romanian operations last fall.