Krisztina Palace is located in the heart of Buda, it is one of Budapest’s most iconic and modern Grade A office buildings and it welcomes two of its new tenants. Krisztina Palace was forward purchased by the Hamburg-based real estate investment manager Union Investment in 2009 shortly before it was completed by the developer. Union Investment has engaged AIG / Lincoln to take control of the property’s Asset Management and Leasing Management tasks in order to strengthen the building’s position in the growing office market as the occupancy continues to increase in Budapest.
The track record of AIG/Lincoln certainly speaks for itself, as they currently hold 340,000 sq m of properties under management in Hungary, and 1.2 million sq m globally.
Union Investment‘s real estate portfolio currently comprises some 300 assets worldwide with a value of 18.3 billion Euros. In 2011 the company has so far invested some 1.4 billion Euros in real estate. The targeted volume for 2012 is 1.7 to 2 billion Euros.
Matthias Gerloff at Union Investment comments: ‘’Our priority is to increase the occupancy of Krisztina Palace, which we are confident of achieving given the building’s high quality and modern technology. We are offering extremely flexible terms to tenants and are in discussions with a number of parties. We have enjoyed recent successes and are delighted to welcome Leroy, the well known Hungarian restaurant chain, and Flairspring, an interior design company to the building. Moving forward we expect the remaining office areas to be occupied by large companies due to the buildings profile and excellent location.‘’
According to Gergely Pados Partner, Head of Office Agency at Cushman & Wakefield ‘’The Budapest and mainly the Central Buda office market is continuously developing, and despite the difficult economic times more and more tenants are likely to move to this prime business area. The well developed infrastructure of the surroundings attracts more occupiers, and we can see all similar quality offices leasing up well in the submarket. The flexibility of the landlord and the building are incomparable. It can accommodate large multinationals as well as smaller tenants and is the perfect location for Headquarter offices. We hope that with the new streamlined management strategy and the input from our office professionals the building will lease up in record time and on top of that will serve its tenant’s real estate needs on the long term.”
The joint leasing agents for the building are Cushman & Wakefield and GVA Robertson.