Nanette Real Estate has bought a 38 acre site in Hungary for a mixed use development.
The AIM-listed company has bought the land, which is three miles from Budapest city centre, in a joint venture with the local authority.
Nanette, which already has eight other projects in the country, owns 90% of the joint venture with the municipality owning the rest.
Change of use
The land is designated for public buildings and facilities but the joint venture is working to change the land use to residential, commercial and hotel.
As a part of the agreement the local authority has an option to sell its share in the project for E2.2m (£1.7m) once the change in planning has been approved.
The company said the move highlights its belief that Hungarian economy will continue – which will sustain the demand for new housing aimed at the urban middle class.
In March a joint venture between Nanette and Lehman Brothers bought a 236,000 sq ft residential development site in Gdansk, Poland.