FM newsroom – Budapest, office. In a strategic move to streamline its portfolio and focus on residential development, Atenor has sold its fully leased BakerStreet I project in Budapest’s Újbuda district, achieving a major debt reduction despite ongoing market headwinds.
Successful Sale Amid Market Challenges
Atenor (BSE: ATEB) has announced the completed sale of BakerStreet I, a prime office and retail property in Budapest. Sold to an international investor, the deal reduces Atenor’s consolidated debt by more than €50 million. Although the transaction comes at a time of challenging investment conditions across Central Europe, it aligns with the company’s long-term strategic goals. According to the official announcement, Atenor noted that the sale is expected to have a slight negative impact on its 2025 financial results.
This sale marks a significant milestone in Atenor’s three-year strategy, which focuses on expanding its residential and mixed-use development pipeline. The plan involves a gradual retreat from office developments in Central Europe while reinforcing the company’s core assets in key urban hubs. BakerStreet I was one of five remaining office buildings in the region marked for divestment under this strategy.
Sustainable Design and Long-Term Tenancy
BakerStreet I features 16,666 sqm of office space and 2,013 sqm of retail, fully leased to E.ON Hungária under an eight-year agreement that began on June 1, 2024. Designed to meet and exceed NZEB (Nearly Zero-Energy Building) standards, the building incorporates advanced ESG principles, including solar panels, rainwater reuse systems, and green roofs. These elements reflect Atenor’s commitment to sustainable urban development.
“E.ON’s new headquarters developed by Atenor represents one of the first next-generation post-COVID office buildings in Budapest, focusing on flexible workspaces, personal well-being, and fostering collaboration,” commented Norbert Schömer, Country Director of Atenor Hungary.
BakerStreet II: The Next Phase
In parallel, Atenor is preparing for the transformation of the neighboring BakerStreet II project. A permit application is expected later this year for a mixed-use development comprising approximately 20,420 sqm. The future project will include high-quality residential units along with limited retail and office components, contributing to the revitalization of Újbuda and reflecting Atenor’s focus on mixed-use urban regeneration.
