FM newsroom – office investment. CA Immo has completed the sale of Millennium Tower I, a prominent office building on the banks of the Danube in Budapest. The transaction marks another step in the company’s strategy to sharpen its focus on prime, modern offices in its core European markets.
A well-known Budapest office asset
Millennium Tower I is a multi-tenant office building offering around 18,800 sqm of lettable space and approximately 270 parking spaces. Completed in 2006, the property forms part of the Millennium Towers office park in Central Pest, set within a landscaped green area along the river.
As of November 2025, the building was around 87 per cent occupied, with a weighted average unexpired lease term of seven years. Annualised rental income stood at roughly €3.1 million.
Strategic shift away from Hungary
The sale reflects CA Immo’s decision to reclassify Hungary as a non-core market in 2023. The company is gradually exiting the country as part of its wider capital rotation programme, the official announcement writes.
Chief Executive Keegan Viscius said the move was driven by market conditions and more attractive opportunities elsewhere. Proceeds from the sale may be used for a range of purposes, including reinvestment in prime assets, debt reduction, share buybacks or other value-accretive investments.
Budapest market regains momentum
According to Group Head of Investment Management Hedwig Höfler, the Budapest investment market has shown a strong recovery in 2025 following two very quiet years.
She noted that three successful transactions over the past year underline renewed investor confidence and demonstrate the appeal of high-quality office assets in the city.
Focus on quality and sustainability
The transaction is in line with CA Immo’s long-term strategy of concentrating on large, Class A office buildings in prime inner-city locations. Properties that no longer fit this profile are being sold to continuously improve the quality and sustainability of the portfolio.
At the end of September 2025, CA Immo’s Hungarian portfolio comprised six office buildings in Budapest, totalling around 125,000 sqm, with a book value of approximately €246 million. All assets hold recognised sustainability certifications.