The largest transaction in years on the Budapest urban logistics market

CityOne Group announced today that it has acquired the Kőbánya production hall of the TIER 1 German automotive supplier WOCO Group. The acquisition of this modern property, which will in future operate under the name KőbányaOne Logistics Park, is one of the most significant logistics real estate transactions within Budapest in recent years.

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Located along Maglódi út, on Kőbánya's defining industrial axis, the 18,500-square-metre hall built in 2017 belongs to the premium category of the capital's logistics real estate market thanks to its central location and high technical standard.

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„The acquisition of KőbányaOne is a milestone for CityOne. Modern urban warehouses play a key role in the operation of efficient supply chains, yet there is remarkably little premium-quality logistics real estate available in Budapest," emphasised Zoltán Radnóty, majority owner and managing director of the CityOne Group.

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The parties did not disclose the business terms of the acquisition, but the managing director indicated that the purchase price is in line with the pricing of premium properties. As part of the deal - laying the foundations for a longer-term partnership - CityOne and WOCO signed a lease agreement for the continued use of the property.

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With the transaction signed in January and now closed, CityOne's portfolio has expanded to three logistics parks - ÚjbudaOne, BudafokOne and KőbányaOne - offering tenants a total of 45,000 square metres of lettable space.

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Increasingly valuable proximity

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The head of the CityOne Group pointed out that organising the transport of goods is becoming an ever greater challenge in large cities: growing e-commerce and fast home-delivery models are putting more and more vehicles on the roads. Urban logistics parks offer a solution to this, enabling both the efficient receipt of large volumes of goods and their swift and accurate onward distribution. This is why these properties have appreciated in value worldwide over the past decade.

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„A single lorry can deliver as much goods as 20 vans to an urban logistics park at once. The advantages can be well illustrated with a simple example: at rush hour it is not a long queue of vans waiting at the red light, but a single lorry. As a result, the likelihood of congestion decreases, emissions, dust and noise pollution are reduced, while the costs of transport are also significantly lower. This is why urban logistics is today no longer merely a real estate category, but a business operating model that serves economic and sustainability goals at the same time," Zoltán Radnóty highlighted.

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Direct urban connectivity represents a competitive advantage for e-commerce, fast delivery and industrial supply chains alike, while it is also more favourable for the local community, as it supports sustainability and improves the quality and price of services.

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A good place, in a good location

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The KőbányaOne Logistics Park is a modern industrial property built to international standards. The 14-metre clear height allows for efficient warehousing, and the 4.8 MVA electrical capacity - only available to a limited extent in Budapest - also enables specialised industrial activities.

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The property is located on one of the capital's most important industrial-logistics axes, with excellent transport connections. The M3 motorway, the M0 ring road, Main Road 4, and Budapest Liszt Ferenc International Airport can all be reached quickly. Access for freight traffic is ensured without weight restrictions.

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The urban location is also advantageous in terms of labour supply: Kőbánya is traditionally an industrial-logistics hub where experienced workers skilled in industrial activities are available, while the property's direct tram, bus and rail connections also make commuting easier for employees. For colleagues arriving by car, 149 surface parking spaces are available.

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In CityOne's parks, sustainability plays a prominent role: modern thermal insulation, LED lighting and efficient mechanical systems all contribute to reducing energy consumption and the carbon footprint.

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