Erste sells land to JYSK for a major warehouse development near Budapest

This article was originally published on EuropaProperty.com.

Erste Ingatlan Kft, a subsidiary of Erste Bank Hungary, has signed an agreement to sell 57 hectares of a 170-hectare plot in Ecser, next to Budapest, to an international furniture and home retail chain that intends to build a 100,000 sqm high-bay regional distribution center on the plot.

“The successful closing of the transaction is a result of a nearly 1-year long negotiation process. We are very pleased that our land site, which has exceptional parameters, was chosen by the buyer for this unique investment. To support the investment, we have launched infrastructural developments in the area, with the hope to help the further sales process,” said dr. Andrea Gégény who is the managing director of Erste Ingatlan Kft.

“The land sale was preceded by a series of long negotiations, with the investor choosing our plot from several other potential locations. Erste Ingatlan Kft owns additional development land in the Ecser area that is also for sale,” added Melitta Molnár, Asset Manager at Erste Ingatlan Kft.

“Within a short period of time, this is the second land sale of a similar magnitude concluded with the help of Cresa Hungary. The nearly 100,000 sqm Pepco logistics and distribution centre in Gyál has recently been handed over and the building is already in test operation, while Jysk plans to build an even larger regional logistics centre on the 57-hectare land site now sold by Erste. Based on the comparison of the conditions of the two very similar transactions, we can say that land prices in the catchment area of Budapest have not decreased drastically, which can provide a sign of slight optimism even in these difficult times,” said Valter Kalaus, Managing Director of Cresa Hungary.

“The transaction is a positive story for us as well, which proves that in case of advanced negotiations, we can close a sale process even in these unfavourable market conditions.” – said Péter Takács, Partner at Cresa Hungary.