Case Study
Mechwart Park
The Hungarian economy, and specifically its real estate market, reacted very severely to the 2008 global credit crises, and remained depressed throughout the years 2008 till 2014
Pre-condition for the acquisition, which was achieved, was the securing and extension for long term of the rental agreements in the retail ground floor, forming the base for the income of the project and serving its debt financing
Prime was one of the early movers in the market, identifying the first signs of the upcoming recovery
Immediately post acquisition, Prime launched a full re-design to convert the upper six floors into 48 Beautifully crafted premium residential units, including six penthouse units
A complete building adjacent to a beautiful park was identified for acquisition in late 2013, containing circa 6,000 sqm of a ground retail floor along with additional 6 upper floors that were used as offices and were circa 50% vacant
The full scale internal demolition and reconstruction commenced in mid-2015 and finalized in late-2016
The transaction was pre-signed in mid-2014 and was officially closed and financed in December 2014. The acquisition was done in a mix of own equity and bank project financing, which was rare during such days as the banking system was not yet fully open to financings of real estates
By 2017, vast majority of the residential units were successfully sold to a variety of local and international buyers, while the ground retail floor continues to serve as a yielding asset with long term income with solid tenants
Video
Renderings
Building
Flats
Construction photos
