25 Apr 2023
M7 agrees c. 6,500 sq m letting with TRAHT Innovations at Pallag 43 in Budapest, Hungary, increasing occupancy to 100%
M7 Real Estate. the pan-European investor and asset manager, announces that it has agreed a new letting with TRAHT Innovations, a manufacturer of world leading sterilizer, for a total of c. 6,500 sq m at Pallag 43, a multi-let industrial warehouse asset in the north of Budapest, Hungary.
Having acquired Pallag 43 in September 2021 for €9.6 million on behalf of M7 CEREF II (the “Fund”), M7 identified an opportunity to subdivide the c. 11,150 sq m of warehouse space, converting the property to multi-let. TRAHT Innovations will occupy c. 5,650 sq m of industrial warehouse space as well as c. 900 sq m of office space, bringing the overall occupancy of the property to 100%. The remaining 40% of the asset is let to Autonet, a multi-national supplier of automotive parts.
The property is situated in Dunakeszi, an established industrial and distribution location in the north of Budapest with a growing population and manufacturing sector. Located near the M0 and M2 motorways, it benefits from excellent arterial connectivity, with direct links to Hungary’s wider motorway network.
M7 CEREF II, which was launched in 2020, closed with a portfolio of nine assets acquired for €91 million and located across Poland (40% by valuation), Hungary (40% by valuation) and Croatia (20% by valuation), with an even split between logistics and office space.
Balazs Magyar, Managing Director – Hungary, at M7 Real Estate commented: “When AutoNet decided to downsize its operations at Pallag 43, we identified an opportunity to invest in the asset, leveraging our local asset management expertise to create a high quality multi-let property, which would work better for potential occupiers. As a result, we have been able to fully let the space at Pallag 43 within a relatively short timeframe, reflecting the robust demand we are seeing from occupiers for well-located industrial assets in urban areas, such as Budapest, where supply remains constrained.”
M7 was advised by 108 Agency.