Buwog acquires APA tower for 11.5 million euros-what is coming now?

Buwog acquires APA tower for 11.5 million euros-what is coming now?

In the heart of Döbling there is exciting news: The former seat of the Austria press agency (APA), better known as APA tower, is faced with a change of ownership. The Buwog Group has acquired the 13-story high-rise in Gunoldstrasse, which has been empty since 2005, for 11.5 million euros net. According to [MeinDzeirzkirk] (https://www.meinbezirk.at/doebling/c-wirtschaft/buwog-kauf-apt-apa-turm-fuer- Meillion-Euro_a7460464), the ownership of the building has been changed several times since its acquisition.

The 82 meter high building, which was the APA home from 1980 to 2005, was used by various owners over the years. It is particularly noteworthy that the high -rise has been orphaned in the past 13 years despite its central location. Before it was closed, it temporarily served as a playground for young people and as a backdrop for various film productions, reports today.

asbestos problem and new building plans

Despite the high purchase price amount, the Buwog Group has to deal with challenges. The building is heavily asbestos, which makes the demolition and renovation plans complicated and expensive. Planned new buildings, which should include four skyscrapers and a hotel, were hindered by this problem. City planners want a mixed use of the area, in which half for commercial purposes and the other for living space, including subsidized apartments.

The Buwog Group, which is already active in the Muthgasse urban development area, sees this project an ideal way to expand its existing portfolio. In the long term, the company strives to create sustainable, high -quality and affordable living space. However, concrete plans remain to be seen as long as the ownership of the planning area is still unclear. Talks with relevant stakeholders should follow the situation.

real estate market in change

Brickwise , the city is currently experiencing a dramatic decline in new freed-financed rental apartments. Of the 11,000 rental apartments offered in 2020, only 5,000 are available. Therefore, the pressure on the rental market grows, which led to an increase in rental prices by up to 11 % in the first quarter of 2024.

The Buwog Group is aware of the market developments and will concentrate on the requirements of the market. The oversupply and the reluctance of institutional investors in new living properties offer both opportunities and challenges. The goal of developing energetically efficient residential projects could prove as a key to success in this changing real estate landscape.