In the future the OTP Real Estate Investment Fund intends to further increase the ratio of logistics and commercial estates in its portfolio.
Another high-value, high-quality logistics property has been added to the portfolio of the OTP Real Estate Investment Fund. After the Citypoint9 urban logistics centre in Budapest, the Fund has again acquired a warehouse in Győr, in the neighborhood of the Audi factory and several other companies from the automotive, mechanical engineering, electronics, and trade industries. Only in Győr, this is already the second Category A logistics property of the Fund, thus synergies can be achieved to increase the efficiency of operations and management too. The 30-thousand-square-metre property is almost at full capacity and due to its well-capitalized Hungarian and multinational tenants the property has the ability to generate a stable revenue stream in the long term.
“The purchase of another high-end, strategically located property with a stable circle of tenants is part of our long term portfolio development, which primarily aims to increase the revenue-generating ability of our real estate portfolio and thus increase the yields of the OTP Real Estate Investment Fund” – said Balázs Tóth, chief executive officer of OTP Real Estate Investment Fund Management Ltd. He added: in the past months a significant amount of fresh capital was invested in the Real Estate Investment Fund. This incoming capital is reinvested by the Real Estate Investment Management Fund in the modernization of existing properties on the one hand, and in the purchases of further high-yield real estate with a stable tenant base on the other.
As part of this strategy the OTP Real Estate Investment Fund enlarged its portfolio in the past year with a commercial real estate-complex in Újpest and with the urban logistics centre “Citypoint9” with 23 thousand square meters of rentable offices and warehouses. The latter was considered to be one of the biggest transactions of the Hungarian industrial real estate market in 2015. The majority of the Fund’s portfolio still consists of office buildings, but there is a growing number of logistics and commercial estates within it as well. The OTP Real Estate Investment Fund Management intends to increase the ratio of these properties further in the future to diversify its portfolio.
„Our primary targets in the future will continue to be high-end logistics and commercial properties in Budapest and in its agglomeration. However, industrially developed areas, such as Győr with the lowest unemployment rate in the country, will also be of strategic importance” – said Balázs Tóth, chief executive officer of OTP Real Estate Investment Fund Management Ltd.
OTP Real Estate Investment Fund Management Ltd.
OTP Real Estate Investment Fund Management Ltd. is 100% owned by OTP Bank Nyrt. The OTP Real Estate Investment Fund managed by the company is an open-ended real estate investment fund, which has been existing for more than 13 years. It offers investors investment possibilities in a market segment which has a lower risk-level than corporate shares, a stable, long term yield-generating ability and a potential of a significant value increase. Besides its potential for growth, another benefit of the Real Estate Investment Fund is risk-sharing. The Fund’s wealth mainly consists of real estate that is rented out. A high ratio of the Fund’ tenants consists of multinational companies, the state and its organizations and diplomatic corps, which contributes to the outstanding stability of the OTP Real Estate Investment Fund. The shares of OTP Real Estate Investment Fund can be purchased throughout the country in the assigned OTP branches and online.
OTP Real Estate Investment Fund