Buwog acquires APA Tower: New life for Vienna's eyesore?

Buwog acquires APA Tower: New life for Vienna's eyesore?

In a significant step on the Vienna real estate market, the Buwog Group recently acquired the high-rise on Gunoldstrasse, formerly known as the “APA Tower,” from the Signa Development project company for 13.8 million euros. The net sales price is 11.5 million euros. This building was the headquarters of the Austria Press Agency (APA) until 2005 and has been empty since then. In recent years, the “eyesore” has served as a memorial for construction plans that were not implemented. The press reports that The building was acquired by Signa in 2018, which, due to its insolvency, has now sold it in bankruptcy proceedings.

The sale comes at a time when the Austrian real estate market is facing several challenges. Despite the closure of new rental apartments and increased demand, the situation for those interested in renting has become significantly worse due to the current tight supply. In 2024, only 2,500 new privately financed rental apartments were made available, which marks the lowest point in the last seven years. Brickwise reports that The competition for rental properties is intense, as many potential buyers are turning to the rental market due to high interest rates and economic uncertainty.

The future of the APA Tower

Buwog plans to revitalize the building in the long term and create sustainable and affordable living space. However, there are currently no concrete project plans as the ownership structure needs to be fully clarified. “It is very important to us to advance the development of this property,” said a Buwog spokesman. My district reports that The renovation plans for the high-rise building were hindered in the past by asbestos contamination and other obstacles.

A look at the neighborhood shows that the Buwog Group is already active in the Muthgasse urban development area. It becomes clear that there is not only a need for new living space in Vienna, but also innovative solutions. The city is constantly growing and demand for energy-efficient housing has increased, driving up prices. Brickwise adds that There was an increase in rental prices of up to 11% in the first quarter of 2024 compared to the previous year.

With the purchase of the APA Tower, the Buwog Group not only wants to revive an old “eyesore” but also contribute to a sustainable living concept. The door to a new quality of life in Vienna could soon be opened, and it remains exciting to see what plans the Buwog Group has for the future of this striking high-rise.