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CHSH and Dentons Advise on CA Immo Acquisition of Budapest Office Complex

CHSH and Dentons Advise on CA Immo Acquisition of Budapest Office Complex

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CHSH Cerha Hempel Spiegelfeld Hlawati has advised CA Immo on the acquisition of Budapest's Millennium Towers office complex, containing some 70,400 square meters of gross leasable area, from TriGranit and an affiliate of Heitman LLC. Dentons advised the sellers on the deal.

The transaction value of the fully let office complex — which consists of four buildings located on the bank of the Danube with an annual rental income of EUR 12 million — was approximately EUR 175 million. CHSH describes the transaction, which is financed from the existing liquidity of CA Immo and which is expected to close in the next weeks, as "the biggest standalone acquisition by CA Immo of existing properties [in] several years and at the same time one of the biggest real estate transactions in Hungary this year."

Founded in 1987, CA Immo specializes in office properties in Central European capitals and operates in the core markets of Austria, Germany, Poland, Hungary, the Czech Republic, and Romania. CA Immo is listed on the Vienna Stock Exchange and included in the ATX index and controls property assets of around EUR 3.7 billion. According to CHSH, "with this transaction, CA Immo expands its presence in the core market Hungary, where it currently holds the largest property portfolio following Germany and Austria." The firm reports that the Millennium Towers office complex "is located at a prestigious site on the banks of the Danube, offering a panoramic view of the Buda hills south of CBD in the 9th district. The overall project consists of four buildings (Towers I., II., III and Building H of the K&H Headquarters) with a gross floor space of approximately 70,400 square meters and 1,200 parking spaces surrounded by parks and perfectly connected to the public transport network. The property has received the LEED sustainability certificate and was completed in several construction phases from 2006 to 2011. The Class-A complex is nearly fully let with an occupancy rate of 99.7%, with a well-diversified tenant roster including top international tenants such as Vodafone, Morgan Stanley and Lexmark." 

The CHSH team advising CA Immo was led by Vienna-based Partner Mark Krenn, who was supported by Vienna-based Partner Thomas Trettnak and Associates Lukas Moser, Christoph Reiter, Jakob Hartig, and Paralegal Irina Stokic, as well as CHSH Budapest Partner Wilhelm Stettner, Attorneys Laszlo Krupl, Andras Fenyohazi, Andras Kauten, and Gabriella Klotz, and Associate Judit Ferenczy.

Ingo Steinwender, the Group Head of Legal at CA Immo, was impressed with the CHSH team, saying: "Mark Krenn and his team have proved again to be an outstanding partner for complex and high-volume transactions in CEE. We appreciate the excellent quality of his advice, the most proactive and targeted approach as well as his years of experience and industry knowledge as a very valuable addition to our in-house transaction team; we highly recommend him and his team."

Also advising CA Immo on the deal were a London-based Hogan Lovells team consisting of Partner Helen Chapman, Attorney Clare Douglas, and Associate James Richardson, and a team from Cypriot law firm Patrikious Pavlou & Associates consisting of Partner Lia Iordanu and Attorney Elena Georgio. 

The Dentons team advising Heitman/TriGranit and instructed by TriGranit Head of Legal Klara Budjoso was led by Prague-based Partner Stewart Middleman, supported by Prague-based Counsel Eleanor Johnson and Budapest-based Partner Judit Kovari and Of Counsel Adam Kaplonyi. 

Image Source: millenniumcitycenter.hu

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