OTP Real Estate Fund expands portfolio with prestigious office building

OTP Real Estate Fund has purchased the 26,000 sqm Class A Roosevelt Office Building on Széchenyi Square in Budapest from a fund managed by Munich-based real estate fund manager GLL Real Estate Partners (GLL), a member of Macquarie Group in one of the largest and most significant prime commercial real estate transactions in the CEE region. 

OTP Real Estate Fund has carried out large-scale real estate acquisitions in recent years to invest the outstanding volume of inflowing investor capital into high-quality and yield-generating real estates, maintaining the yield level that has made the Fund exceptionally popular among investors. During the excessive acquisition process of recent years, the Fund has shifted its main focus to the office market, acquiring – among others – the West End Business Centre in 2017 and the Corvin 1-3 office buildings in 2018. By purchasing MOM Park last year, the Fund has carved out also a major slice of the retail segment as well. Now, after closing another successful transaction, this portfolio was further expanded with the prestigious Roosevelt Office Building located on Széchenyi Square.

Roosevelt Office Building was initially constructed in 1980, and underwent complete reconstruction in 2006 in line with quality Class A requirements of the institutional office market, and was significantly refurbished by the former owner in 2016, ensuring the premium nature of the property.

The building comprises 24,200 sqm of Class A office space on the upper floors, and 1,800 sqm of ground floor retail and amenity space, and is leased to a broad range of sector-diverse tenants at a current occupancy rate of over 95%. The offices offer spectacular views of Széchenyi Square, the Chain Bridge, and the Buda Castle.

In relation to the transaction, OTP Real Estate Fund Management Ltd. CEO Dr. Nándor Tóth said: