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Due to its continuing expansion in Hungary, Raiffeisen Bank has chosen to move its new offices to Arena Corner, owned by Endurance Fund and managed by ORCO Property Group. By leasing over 8,000m2 from summer 2008, Raiffeisen Bank will become a major tenant in the building. With the arrival of the new tenant, the occupancy level of Arena Corner will increase from 13% at the acquisition to now over 80% which is comparable to the success story of Orco Tower in Poland.
Arena Corner is a 28.000m2 category “A” office complex which was acquired by the Endurance Office & Retail Fund I in June 2007. This Office Sub-fund grew significantly with many commercial properties across CEE and reached a portfolio value of more than EUR 400 M.
Arena Corner was an ideal choice for Raiffeisen Bank as it provides a modern working environment with a high level technical specification, underground parking and easy access by car and public transportation. The flexible leasing terms and economic operation of the property were also considered as major factors in choosing the building.
“We are glad to welcome such a prestigious tenant as Raiffeisen Bank to Arena Corner. This transaction proves that Arena Corner is highly appreciated among the biggest international tenants such as Vodafone or Citibank. Further negotiations are underway with further potential tenants and we plan to reach almost 100% occupancy by the end of the year.” – said András Kovács, Regional Leasing Director of Orco.
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Arena Corner, located at the junction of Hungária körút and Kerepesi út, was also favoured for the high-quality services provided in the building. Several major banks have branches on the ground floor of the office complex. A restaurant of 800 m2 and café is opening in the near future. It is also planned for a drugstore and a dry-cleaner to open in the building further enhancing the building’s level of service provision for tenants.
The striking and attractive appearance of Arena Corner has not only raised the profiles of the tenants but also the architectural profession. István Lukács, the architect of the building (Lukács & Vikár Építésziroda) was awarded with an Ybl prize earlier this year for his stunning modern-approach buildings, which are realised in a way that promotes the integration of new buildings into the city landscape.
The very first sub-fund established under The Endurance Real Estate Fund umbrella, the Office Sub-fund I, has been fully and successfully invested with EUR 150 M equity and 17.5% IRR target. Following the success with the first sub-fund, Orco Property Group as a manager of The Endurance Real Estate Fund has launched several new sub-funds. Currently opened for equity subscription are: Office II Sub-fund, Industrial and Logistic and Health Care Sub-Fund.
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