CA Immo divests office building in Budapest

CA Immo has sold Millennium Tower I, an office building located in the Central Pest office submarket of Budapest, Hungary.

Millenium Towers, Budapest

This sale marks a continuation of the company's strategic capital rotation program, which aims to concentrate its investment portfolio on high-quality, modern office properties within its core markets.
Completed in 2006, Millennium Tower I is part of the Millennium Towers office park, situated along the Danube's banks amidst a green park. The multi-tenant building offers approximately 18,800 m2 of gross leasable area and around 270 parking spaces. As of November 2025, the building had an occupancy rate of about 87%, a weighted average unexpired lease term (WAULT) of 7 years, and an annualised in-place gross rental income (GRI) of approximately €3.1 mln.
This divestment aligns with CA Immo's long-term investment strategy, which prioritises large, premium Class A office properties in prime urban locations. Through this strategy, CA Immo systematically sells properties that do not fit its core business criteria in terms of asset class, location, building quality, age, or value creation potential, thereby continuously enhancing the quality and sustainability of its property portfolio.
As of 30 September 2025, CA Immo's Hungarian portfolio comprised six office buildings in Budapest, totaling around 125,000 m2 of lettable area and an approximate book value of €246 mln. All of these Hungarian properties hold either BREEAM Very Good or LEED Gold sustainability certification.
Keegan Viscius, CEO of CA Immo, said: “Based on market fundamentals and attractive alternative capital allocation options, we have decided to reclassify Hungary to a non-core market in 2023. This transaction is a further step in the implementation of our strategic capital rotation programme and on the way to exiting the Hungarian market. The proceeds from the sale may be used in a number of ways, including general corporate purposes, accretive investment in our prime portfolio, repayment of debt, buyback of shares, and external investment should attractive opportunities arise.”
Hedwig Höfler, Group head of Investment Management of CA Immo, added: “After a period of extremely low transaction activity in 2023 and 2024, the Budapest investment market has caught up strongly in 2025. With three sales last year – the last of which has now been completed – we can confirm this positive market trend, and are confident that our quality portfolio will attract further investors.”
Cerha Hempel Rechtsanwälte and CBRE advised CA Immo on the sale.