Skanska sells Nordic Light office project to Erste Real Estate Funds

Press release 2/15/2017 1:13 PM CET

December is the month of opening and even the sale of Nordic Light, the most recent real estate development on the Váci road office corridor. The complex houses several international tenants and has outstanding technical content, was acquired by Erste Real Estate Funds at the end of 2016.

Nordic Light is Skanska’s seventh office investment in Hungary. The building is a special spot in Budapest due to its exciting LED light façade, representing the natural phenomenon of the Northern Light. The technologies applied in the building are a proof of the commitment to the energy-efficient, environmental friendly and healthy work Skanska is famous for.

“Within Skanska we develop green certified workplaces based on various sustainable and innovative features. The main purpose of this is serving the business goals of our tenants, and creating social, healthy, inspiring and comfortable working environment for their employees” - says Marcin Łapiński, Managing Director of Skanska Property Hungary and Romania. – “We are delighted to see that our approach is popular: the office complex has been already 80% leased to well-established international tenants, and two weeks after the official opening we signed the contract with the new owner of the building.”

The agreement with Erste Alapkezelő Zrt. is recorded in December, and the transfer of the property is scheduled for the first quarter of 2017. „The portfolio of Erste Real Estate Fund was expanded with another „A” category brand new office building in Váci út which offers highly efficient operational possibilities. The acquisition of Nordic Light fits well into our strategy, which focuses on property purchases from reliable developers that serve the interests of our investors in the long run and have an excellent sustainability” - Balázs Pázmány, Chairman of the Board at Erste Asset Management Ltd commented.

The newly-constructed project, situated in the 13th district in Budapest on the busy Váci office corridor, offers 26,200 square meters of total leasable area, in two phases. The first phase of the asset comprises 6 600 square meters with 6 floors above ground floors and was commissioned for use in May. The second phase comprises 7 above the ground floors with 19 600 square meters and it was commissioned for use in September 2016. Both phases benefit of three underground parking levels.

In Hungary, Skanska initiates and develops office projects through innovative, community-minded, sustainable solutions. The company is continuously expanding in Hungary, Skanska’s plans being ambitious when talking about local investments.

Erste Asset Management Ltd. has total assets under management of over HUF 1,000 billion, of which 920 billion is managed in investment funds and close to 400 billion in open-ended real estate funds. Nordic Light is already the third new office development acquired by the largest domestic real estate fund in recent years on the most popular part of Váci út.

Colliers International and CBRE are the two real estate consultancies, who supported Skanska and Erste throughout the Nordic Light transaction.

„Nordic Light is a prime quality, new office building in Budapest, which has longer than average lease agreements and tenants with a reliably strong background. Thus, the acquisition is an outstanding investment opportunity for the Fund, which seeks predictable and stable long term returns” added Lóránt Kibédi Varga, Managing Director of CBRE.

“We are delighted to have been involved in such an important sale for Skanska Hungary. The disposal of Nordic Light, underpins the Budapest market fundamentals and further demonstrates the appetite for well-managed, institutional opportunities in Budapest. This transaction truly represents the type of investment opportunities now sought by core investors with defensive investment strategy” – commented Bence Vécsey MRICS, Head of Capital Investment Services, Colliers Hungary.