According to Hungary AM daily, quoting the latest report from CB Richard Ellis, the industrial real estate market experienced a significant decline in Hungary in 1H09. However, activity was much better in the segment in 2Q09, with take-up doubling versus 1Q09. The vacancy rate remains high at 24.4%. Our view:This is in line with our view that the decline in activity bottomed out in 1Q09 and that volumes started to recover in 2Q09. VGP is the only company in our coverage universe that is exposed to Hungarian logistics, although the firm’s exposure is small (6% including pipeline projects). We expect a neutral market reaction.