Wing sells V17 office building, deal to be completed in the second half of the year


At the end of 2015 Wing Zrt. agreed with Magyar Posta Takarék Real Estate Investment Fund, which is in the portfolio of Diófa Fund Management, that upon completion it would purchase the 12 700 m2 V17 Office Building under construction in the “Váci út corridor” business district. V17 is an office building with a “Very Good” BREEAM environmental rating, in which most of the space, 80%, is already leased out to E.ON Magyarország Zrt. from August 2016. The transaction will be fully completed once E.ON has fully taken occupancy, in October 2016.

The new V17 Office Building will set the standard as one of Budapest’s most efficient and sustainable office buildings, showcasing the latest technology.

Noah Steinberg, CEO of the developer Wing Zrt, added the following comments to the announcement:  “Our project at Váci út 17 is the first corner building after the WestEnd Shopping Centre, right next to the Lehel tér underground station. From the moment of purchasing the land, we knew the project was going to be a success. Even before the construction had started, in a negotiation-based tender we signed an agreement with one of Hungary’s leading energy service providers, E.ON, for the letting of most of the space in the building, so we were able to implement the whole development in full knowledge of the tenant’s needs. This is our first agreement with the leading Hungarian real estate investment funds, managed by Diófa Fund Management; but I am confident there will be opportunities for further collaboration going forward.”

E.ON’s approximately 600 Budapest-based employees will move into the V17 Office Building in the second half of 2016. E.ON aims for the parts that it leases to incorporate, in the fullest possible extent, the innovative sustainability, energy-efficiency and other energy-related solutions that are of key importance to the company. A great deal of interest is also being shown in the remaining, smaller office areas and ground-floor commercial premises.

The designs for the V17 Office Building were drawn up by Aspectus Architect, and the general contractor is Market Építő. The project is being financed by K&H Bank.

“This outstanding concept, combined with the dynamism of the Váci út business district, has already proven its worth to Diófa Fund Management. We are delighted to have forged such a successful partnership with Wing Zrt, enabling us to add another excellent office building to our portfolio in this segment of the market,” highlighted Gergely Bíró, CEO of Diófa Fund Management.

The building in numbers:
Rental area: 12,700 m2
Smallest available rental area: 300 m2
Office area per floor: 1,800 m2
Floors: ground floor + 7 office floors
Lifts: 8
Multi-storey underground garage: 209 parking spaces
Bicycle storage facility: 90 spaces with a changing room and showers
Efficient design: 4.76% Common Area Multiplier

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About the V17 Office Building 

The V17 Office Building is a world-class office complex incorporating special architectural solutions, which showcases the latest technology and is a prime example of environmentally friendly architecture. V17 is easy to approach both by car and by public transport, and there are numerous convenience services in the immediate neighbourhood – the building is located next to Lehel Market, and is also within easy reach of the WestEnd Shopping Centre. The complex offers cost-effective category “A” offices on 12,700 square metres and seven floors. The hi-tech appearance is accompanied by outstanding visibility. The building's imposing lobby, with its 18-metre high atrium and circular reception area, provides a well-appointed setting worthy of a company’s headquarters. Workers will be able to do their jobs in a friendly atmosphere and efficient offices, with convenient access to the ground-floor café and restaurant, and the opportunity to take time out to relax in the approximately 900 m2 green internal courtyard.

V17 is constructed in compliance with the standards of the BREEAM “Very Good” environmental rating, which means particular emphasis is placed on the quality of life of the people who will work in the building. A particularly beneficial feature is the solution for the natural ventilation of the building, through the induction of fresh air, which means that workers here will become less fatigued at the end of the day than they would in other office buildings. Natural sunlight will be maximised by large glazed surfaces that can be shaded as necessary. Durable recyclable materials with a minimal environmental burden are being used for construction – for example, tropical wood is not used – and the complex will be energy-efficient in its operation. Hot water is provided using solar collectors, and the building’s mechanical systems will be individually regulated and environmentally friendly. In order to reduce CO2 emissions the underground car park houses a large bicycle storage facility with capacity for 90 bikes, with showers and changing rooms, as well as a system for the charging of electric cars.

The Developer

WING is the leading Hungarian-owned business in the domestic property market, with a considerable project portfolio and subsidiaries that specialise in investment activity and the provision of property-related services. The company develops offices, industrial properties, commercial facilities and special properties, and is Hungary’s largest office developer. Since its establishment, the company has developed more than 400 000 square metres of property, and has its own portfolio of more than 300 000 square metres, valued at over HUF 150 billion. ITs portfolio of developments made over the fifteen years of its operation to date include, among others, the Millenáris Office Buildings, Átrium Park, Máriássy Ház, the East Gate Business Park, the South Pest Business Park, the Agria Park Shopping Centre in Eger, and the Hegyvidék Shopping Centre. Its large-scale build-to-suit developments include the new Allianz headquarters building, the new Corvinus University building with the Studium Office Building, the new production centre of Hungarian State Television, and the headquarters buildings of Philip Morris and General Electric. WING has an ownership stake in the MOM Park Shopping Centre and the adjoining MOM Park Offices, as well as in the Westend Business Centre Office Building located at the beginning of Váci út. The latter two buildings are also part-owned, together with Wing, by Morgan Stanley Real Estate Investing, property investment wing of US financial services company Morgan Stanley, and the Austrian shopping centre specialist CC Real.

The buyer

Diófa Fund Management Zrt has been active in the domestic real estate investment market since its launch, and has increased its role continuously in recent years. The combined value of its real estate investments implemented successfully since the beginning of 2014 approaches EUR 200 million, making it one of the most active participants in the domestic real estate market. Diófa Fund Management manages a total of four real estate funds, as besides the Magyar Posta Takarék Real Estate Investment Fund, which is Hungary's second largest domestic open-ended fund, it also maintains three private real estate funds established for institutional investors.

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