Hold 17

In Q4/2015, Prime acquired a prominent old office building which comprised a major development site either for a new class A luxury office complex or a newly built downtown premium Hotel. The site is situated in the heart of Budapest’s 5th District, adjacent to the Hungarian National Bank (MNB) and the American Embassy. Over the holding period Prime engaged in several asset management initiatives which included the issuance of building permits, demolition of the former office building on site, working alongside the municipality to improve construction rights/capacity for the site and also enable the connection of the future building to a new sport center which was being built on the back of it by the municipality. As well, negotiations with major international hotel chain operators were advanced and a very strong demand was achieved for them to act as operators/lessors of the future development. During February 2019, and following the major value-add initiatives implemented and together with the achieved permits and agreements with the municipality, the site was sold to a major international Development & Construction group, resulting in significant return achieved over the holding period.