Fudan effect? Chinese capital pushing the Budapest office market
Another office building has changed hands: an investor has been spectacularly active in the Hungarian real estate market in the recent period. Is the Fudan University the cause of the sudden rise in activity?
At first glance, Resolution Property is a British real estate investor who has now bought the third office building in Budapest. The company has its headquarters in London, but most of the capital they manage comes from China and are critical partners with Fosun, China’s leading investor. But why is a London-based Chinese capital management company interested in Budapest? Portfolio.hu elaborated on the topic in an article.
The Hungarian government has been working on its relations with the East and has been conducting negotiations, discussions, and financial agreements with China. Recently, the Hungarian government invited one of the best universities in the world, the renowned Fudan University, to build a new campus in Budapest.
An office building in Váci út, a 16,270 square meter property, was sold. The buyer is Resolution Property, who are seemingly London-based investors.
Resolution Property is present in several western countries. In addition to Hungary, various commercial and residential buildings have been purchased in the Polish and Romanian markets. They have a total of 5 funds, £ 2 billion in real estate on their portfolio, including the Margit Palace and Buda Square office buildings in Budapest, which were bought last year. Among their key partners is Fosun, one of China’s most prominent investors.
Resolution Property’s interest in the Budapest market is growing, supported by their third purchase in Hungary.
According to Portfolio.hu’s market information, the active interest is because Chinese relations are strengthening in Hungary. They continue to be interested in value-add properties.
The buyer side was represented by CBRE in the office purchase transaction, while the seller – DWS – was represented by another consultant, Cushman & Wakefield.
According to the latest March report, the seller’s Hungarian portfolio also included the offices of MOM Park (12,000 square meters) and the Akademia Business Center 13,500 square meter office building, in addition to the property now sold.
Source: portfolio.hu, 444.hu