WING Group is strong and stable according to the rating agencies - Scope Ratings affirms B+/Stable issuer rating for WINGHOLDING Zrt.
In its rating review, Scope Ratings has affirmed WINGHOLDING Zrt’s B+/Stable issuer rating. The rating reflects the Group’s strong market position, balanced development pipeline, sound liquidity and its successful expansion into foreign markets. The affirmation of the ratings supports WING’s ongoing property development projects and the implementation of the Group’s growth plans.
Scope Ratings, following its review, has affirmed the B+/Stable issuer rating for WINGHOLDING Zrt, and it has also affirmed the senior unsecured debt rating of B+. The rating meets the requirements set in the Bonds for Growth Scheme (NKP) of the Central Bank of Hungary (MNB). Scope Rating’s assessment reflects the WING Group’s solid market position in Hungary and Poland, which is supported by a well-diversified portfolio and development pipeline across property asset classes.
One positive element highlighted by the rating experts was that WING Group’s investment portfolio in Hungary is predominantly oriented towards industrial and logistics properties, which have an attractive return profile due to sustained occupier demand and good rental growth prospects, even in the current property market environment. It was also established that, despite the uncertainties of financing in the Hungarian property development market, WING’s development activities have a solid basis, due to the high pre-sale rate on the company’s residential projects of and the high pre-lease rate on its commercial projects.
Recently, the company has significantly increased in size, which was mostly driven by the successful completion of its development projects and upscaling through acquisitions last year. A major recent milestone in acquisitions was the Group’s expansion to Germany through the purchase of a majority stake in Bauwert AG, a Berlin-based property developer. WING announced the conclusion of the transaction agreement in December 2022, and closing is expected in Q1 2023.
WING Group has become a major property developer in the Central European property market. The company is active in every segment of the property market in Hungary, including the development of offices, industrial and retail properties and hotels and residential projects. WING’s investment portfolio is primarily located in Budapest and its immediate vicinity, and it mostly consists of good-quality property projects, which helps to limit the company’s vulnerability in the current business environment. The majority stake in Echo Investment, Poland’s largest property developer, which is listed on the Warsaw Stock Exchange, and the stake purchased in Bauwert, a leading German residential and commercial property developer, strengthened the diversification of WING’s portfolio and contributed to its increasingly stable growth prospects.
Scope Ratings – listed as a leading European credit rating service provider – provides independent credit ratings, ESG and risk analysis in compliance with EU and UK CRA regulations. Founded in Berlin in 2002, Scope Group's 300-strong team of analysts provides regularly recurring assessments of financial and non-financial risks and ESG impacts across a broad range of asset classes, with a specifically European perspective in mind. The CRAs' activities focus on the ability and willingness of the entities under review to repay debt, translated into meaningful indicators.
New Tenants to Move into WING’s Liberty Building this Summer
Four new tenants will be moving into Liberty, WING’s mixed-use development, in summer 2024. Coop, FedEx, Praktiker and 3 Print have concluded lease agreements for a total of more than 3,500 square meters of office space. The new tenants will have access to a number of services in the complex, in which the occupancy rate of retail areas is now 100%.
LIVING delivers its 1000th apartment
With the completion of its 1,000th apartment, LIVING, WING’s umbrella brand for residential developments, has reached a major milestone. The residential developer currently has three ongoing projects in Budapest’s 13th District, and the total number of LIVING apartments delivered since the company was established and that are currently under development is close to 2,000. LIVING focuses on smart and sustainable solutions, energy and cost-efficiency, and the individual needs of its clients. It uses this approach in all of its developments.
Another tenant chooses WING’s East Gate Pro Business Park
WING Industrial has concluded a major agreement with a leading regional parcel logistics operator at East Gate Pro Business Park. The business park, the latest phase of the popular East Gate project, is located at the junction of the M3 and M0 motorways. The third hall of East Gate PRO Park was completed last year, and now there is a long-term pre-lease agreement for the fourth hall, B2. The 9,000-square-meter building, a build-to-suit (BTS) development with a pre-lease agreement, is to be completed by the end of 2024.