Bbj 2517

HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU

HUF 1,250 | €5 | $6 | £3.5

BUSINESS JOURNAL BUDAPEST

VOL. 25. NUMBER 17

SEPTEMBER 22 – OCTOBER 5, 2017

.hu

3

www.bbj

Budapest Business

Journal | September

22 – October

5, 2017

ial Rsseport Spec Green Busine s myhive build at community All informations om/hu myhive-offices.c

st Offices14 for Budape 15 tation the Norm Sustainability Green Accredi Element of pment a Core Urban Develo Landmark16 a 21st Century 20 Developing LEED and BREEAM to Complement WELL Aims

SPECIAL REPORT

Green Business SPECIAL REPORT

WELL to Complement LEED and BREEAM The building certification market, dominated in CEE by BREEAM and LEED, has recently seen a new peer, WELL. The Budapest Business Journal discussed the European market with the New York-based system’s CEO. 20 SPECIAL REPORT

Developing a 21st Century Landmark The man behind the development of one of the most ambitious, and at times controversial projects in Budapest says BudaPart will deliver a modern, sustainable, mixed-use quarter.16

SOCIALITE

Beards and Barbers and Budapest Hipster beards may be all the rage, but good old-fashioned barber shops are also making a comeback in Budapest, as David Holzer discovers. 30

BBJ_2517_news.indd 1

Best M&A Barometer Reading Since 2011

ES BUSIN

S

Hungarian mergers and acquisitions produced their best returns in four years, driven in large part by the real estate sector. EY’s Margaret Dezse looks at the “robust growth” in BUSINESS Hungary and the positive signs BUD Handles Record for the future. 10

Cargo Volumes

Budapest Airport (BUD), the operator of the Ferenc Liszt International Airport says it processed a record 72,161 tonnes of cargo from January to July 2017, up 19.6% on the same period last year. 6

NEWS

Investment for the Year Could Reach EUR 2 bln The county is attracting a wider pool of institutional investors, even as Hungarian funds continue to be active. In this positive environment, annual investment volumes are expected to approach EUR 2 billion for 2017. 5

2017. 09. 20. 19:55

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

BBJ

THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL STAFF: Sonja Bencze, Zsófia Czifra,

David Holzer, Levente Hörömpöli-Tóth, Christian Keszthelyi, Gary J. Morrell, Claudia Patricolo, Rob Smyth.

LISTS: BBJ Research (research@bbj.hu) NEWS AND PRESS RELEASES:

Should be submitted in English to news@bbj.hu LAYOUT: Norbert Balázs PUBLISHER: Business Publishing Services Kft. CEO: Tamás Botka ADVERTISING: AMS Services Kft. CEO: Balázs Román SALES: sales@bbj.hu

CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu

Address: Madách Trade Center 1075 Budapest, Madách Imre út 13-14., Building A, 8th floor Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, www.bbj.hu SUBSCRIPTIONS: Budapest Business Journal 1 year 6 months 3 months

HUF 27,500+VAT HUF 13,750+VAT HUF 6,875+VAT

News Services Hungary A.M., Energy Today, Regional Today 1 year, from HUF 179,000+VAT 6 months, from HUF 104,900+VAT 3 months, from HUF 58,900+VAT Book of Lists 2016-2017: HUF 19,120+VAT DigiBOL HUF 39,900+VAT Call +36 1 398-0344 or email circulation@bbj.hu

WHAT PRICE INVESTING IN PEOPLE?

T

hose of you old enough may just remember a time before Corporate Social Responsibility (CSR) came along. You might also remember the deep suspicion that came with it.

CSR, it was argued by the cynics, was nothing but a form of window dressing, a means for a company with a poor public image to garner itself a bit of good publicity. And there were undoubtedly cases where that was the case; think of tobacco companies supplying public ashtrays (although you would also have to be old enough to remember a time when smoking in public did not leave one persona non-grata).

And yet, even if it was window dressing, there was still a public gain. An orphanage got its fences painted, an under-privileged area was given a garden makeover. Yes, these may have come with a corporate “sponsored by” plaque, or a few column inches in the local paper, but is that such a bad price to pay?

It was also doing something that few people at the time properly understood. Those employees who volunteered to paint that fence may not have been putting their skills to the best possible use (one reason why CSR has increasingly gone down the value-added route: “What can I do for you that would really help?”), but they did get to feel good about themselves, and possibly their company. That, we now understand, is a Very Important Thing.

Not just because we want our staff to be happy people, but because there is also a measurable bottom line in play here; happy BBJ-PARTNERS

What We Stand For: The Budapest Business Journal aspires to be the most trusted newspaper in Hungary. We believe that managers should work on behalf of their shareholders. We believe that among the most important contributions a government can make to society is improving the business and investment climate so that its citizens may realize their full potential.

The Budapest Business Journal, HU ISSN 1216-7304, is published bi-weekly on Friday, registration No. 0109069462. It is distributed by HungaroPress.

Reproduction or use without permission of editorial or graphic content in any manner is prohibited. ©2017 BUSINESS MEDIA SERVICES LLC with all rights reserved.

VISIT US ONLINE: WWW.BBJ.HU

workers, are more productive workers. And if they feel good about their company, they are more likely to stay. In Hungary today, that is an ever more valuable proposition.

Something similar seems to be going on with so-called green accreditation of office buildings. It has been around since the 1990s, and some, including those in the real estate business, have questioned whether it really does represent a desire to do anything more than ensure a ready supply of tenants. These skeptics point to the fact that at the lower end of the systems, the cost differential between going for a certificate or not is negligible; only at the very top levels does it become noticeably more expensive to go green, and that is based to a large extend on the building management technologies that are required.

Perhaps the most thoughtful criticism of the likes of BREEAM and LEED certification has been that it is all about the building, and not really about the people in the building. Which is where WELL, the New York-based accreditation system comes into play. Because that is all about the end users of the office, and how the building impacts on their health and ability to work. I have heard complaints about the cost of accreditation, but this human-centric approach is clearly also winning a lot of support.

Looking after your employees is nothing new. Between the 1890s and World War I, the Cadbury brothers, George and Richard, who took over their father’s eponymous chocolate business, went as far as building a model town for their workers in the United Kingdom at a place they called Bournville. Particularly concerned with the health and fitness of their workforce, they even went as far as incorporating parks and recreation areas, and encouraging all kinds of outdoor sports. They were driven by their religious believes (as Temperance Quakers, no pub was allowed in Bournville), but doubtless they, too, recognized that happy, relaxed and well-paid workers were also productive. It turns out the latest fad is, in fact, tried and tested.

ADVERTISEMENT

For flexible and fast solutions MINI LEASE from Budget!

Rent from 1 month up to 12!

Complete your fleet fast!

Fleet solutions & management

For further questions on Mini lease, contact our collegue: endre.papp@budget.hu For other solutions find us on: http://budgetflotta.hu/en

budgethu budget.hu rentacar@budget.hu +36 1 700 4864

Budget_renault_Mini_Lease_hirdetes_260x160.indd 1

BBJ_2517_news.indd 2

budgethu

An old companion for the long run

2017.04.10. 14:09:37

2017. 09. 20. 19:55

www.bbj.hu

1 News | 3

Budapest Business Journal | September 22 – October 5, 2017

Startup Hopes to Help Delivery Guys and Restaurants Ride and Roll A Budapest food delivery start-up offers services both to delivery people and restaurants.

RidRoll launched on September 18; initially, the service will be available only in Budapest, although the company has plans to expand its area of operation.

“We have our own developers, so that we can add new features really fast for the restaurants when they need it...The first 100 delivery guys came to us via social media, but after two weeks the new riders were the friends of those we had interviewed earlier.”

RidRoll co-founder Tamás Lakatos.

ROBIN MARSHALL

“It all started when I could not order food from my favorite restaurant more than a year ago,” co-founder Tamás Lakatos tells the Budapest Business Journal. “They told me that they do not deliver to my address; the manager said that they had bad experience with the delivery staff, so had decided to put an end to their delivery service.”

Lakatos says it was “really socking” that in 2016 there was no service

“The next morning, I had a trip with my uncle... On the way to Balaton, we discussed the problem and possible solutions.

After one and a half hours, the idea of an appbased service was born.”

available on the Hungarian market to offer a solution to such a problem.

If that was the genesis of a light-bulb moment, a road trip the following day saw the switch flipped.

“The next morning, I had a trip with my uncle, Zsolt Szalay, who is a senior software developer. On the way to Balaton, we discussed the problem and possible solutions and alternatives.

After one and a half hours, the idea of an application-based service was born.”

That was followed by several months of market research with restaurants and delivery drivers, and only then did the software development start, but already it seems clear the need is there. “At the beginning, we had a 45-day plan to get “x” number of restaurants and “y” number of delivery guys. We completed that goal in seven days. Now the aim is to have one-to-four new restaurants connected per day.”

The idea behind the app is simple.

Restaurants effectively order a “pizzapusher” or “burger-bringer” to deliver their food to their customers. The drivers and riders download the app to

their smartphone, where they receive notification for pick-ups from the restaurants.

“One of the core features of the app is that riders have a choice between being online, so that they can receive orders from the restaurants, or they can be offline by sliding a button in the app.

This way the drivers can manage their own time and this can provide for a flexible schedule,” Lakatos explains.

The delivery agents work for several different restaurants, which Lakatos says is a key element in the reducing the delivery time, “something that restaurants, in our experience, always struggle with”.

Professional Service “It is really important that our goal is to become a professional delivery service for all restaurants; with us, every restaurant can offer home delivery without worrying about how to find good staff, nor will they have to pay the riders when there are no orders,” says co-founder Szalay.

“We have a small per km price (HUF 75/km); it is most important to keep this low because the restaurants donʼt know from how far the order will come from: it could be 1 km or 18 km. With a higher km price, the delivery fee could be bigger than the ordered food. There is also an order fee (HUF 300/order).

With this pricing, we are able to reduce the daily budget restaurants spend on their own delivery staff.”

Lakatos says one of the main goals is to whiten the delivery market and make it a more transparent, legal place both for restaurants and both for the delivery drivers. That should not come as a surprise; father, Péter Lakatos, is founder and managing partner of Lakatos, Köves and Partners, one of the leading law firms in Budapest.

“We would like to give everyone the opportunity to have a flexible and transparent full- or part-time job with the possibility for the delivery guys to earn even HUF 350,000-400,000 per month,” Lakatos says.

Currently there are six people in the team, but Lakatos says the aim is to grow that to around 15 within a month.

“We have our own developers, so that we can add new features really fast for the restaurants when they need it,” he explains. “We have our own sales colleagues who find the restaurants.

The first 100 delivery guys came to us via social media, but after two weeks the new riders were the friends of those we had interviewed earlier, so word-ofmouth is working there.”

ADVERTISEMENT

we’re here to make you

LOOK GOOD Literally. We’re at 36. Rózsa Street, Budapest 1077

BBJ_2517_news.indd 3

You have found your design partner.

We’re DekoRatio, an international design agency headquartered in Budapest. We’re here to help you with all your creative needs; from brand identity and product catalogues to advertising and marketing collateral. Visit our website and find out how we can help you look your very best.

www.dekoratio.co.hu

2017. 09. 20. 19:55

1

1 News

News

///macroscope

Automotive Industry Shifts Into Reverse

As earlier suspected, the main reason for the weaker industrial performance in July was the lagging automotive sector: output in this area plummeted a massive 7.9% on a yearly basis, partly due to the fact that summer production break arrived earlier this year than in 2016. The poor performance, however, can also be detected in declining order stocks, making the outlook for the industry less than rosy right now.

ZSÓFIA CZIFRA

In line with the first reading released earlier this month by the Central Statistical Office (KSH), Hungary’s industrial output was only 0.2% higher in July 2017 than in the same period a year earlier, based both on the working days adjusted and nonadjusted indices.

Output went up by 4.8% in the first seven months of 2017 compared to the same period of the previous year.

The volume of industrial export sales rose by 1.1%. Within export sales in manufacturing, the exports of transport equipment (representing 35% of the total) declined by 8.3%. In the manufacture of computer, electronic and optical products – accounting for 14% of manufacturing exports –, the export volume increased by 1.6%, the KSH report reveals.

Industrial domestic sales (and within this the domestic sales of manufacturing) grew year-on-year by 2.2%.

Weak Manufacturing When drilling down into detailed data, it turns out that, in addition to the automotive industry being one of the main causes for the worse than expected figures, manufacturing also showed weak vital signs in July.

Of the various industry sectors, production rose only by 0.3% in manufacturing, representing a decisive weight (96%), and by 15.7% in mining and quarrying (which have little weight). The output of the energy industry (electricity, gas, steam and airconditioning supply) decreased by 6.4%.

The production of transport equipment, representing 28% of the manufacturing output, dropped year-on-year by 7.9%.

Another factor that also played a role in the downturn was that the summer stoppage fell in a different period than in the base year, and the lower performance level of the subsection was also reflected in its orders indicators.

The manufacture of parts and accessories for motor vehicles went up by 1.3%, but at the same time the manufacture of motor vehicles themselves fell by 15.9%.

The manufacture of computer, electronic and optical products, accounting for 11% of manufacturing, grew by 4.9%; within this, the manufacture of consumer electronics (having the largest weight) increased by an outstanding amount at 15.3%.

The manufacture of food products,

Photo: MTI/Szilárd Koszticsák

Sapa Growing in Székesfehérvár

Managing director Frank Iepema, speaking at the Ministry of Foreign Affairs and Trade in Hungary earlier this month, announces a HUF 6.8 billion investment by Sapa Profiles Producing and Trading Ltd. One of the leading automotive suppliers in the world, the Oslo-head quartered Sapa is to build a press factory in Székesfehérvár, for which it has won government support of HUF 1.15 billion forints. The new plant will create 120 new jobs.Sapa already has an aluminum manufacturing plant in Székesfehérvár (65 km southwest of Budapest), which is one of the largest extrusion plants in Europe with five presses, surface coating capabilities, and 160 machines for fabrication. It currently employs more than 1,400 staff in the country.

BBJ_2517_news.indd 4

Numbers to Watch The second estimate of retail trade figures for July will be released.

According to the first estimate, a 4.1% increase was registered in the sales of retail shops in Hungary in the seventh month of the year.

Three-month rolling employment and unemployment statistics will be published on July 27, the reference period is June-August. The latest labor market data shows that unemployment rate had decreased to 42% in May-July, with 62,000 more people working than a year earlier. Analysts expect this upward trend to continue. beverages and tobacco products (representing 12% of manufacturing output) rose by 4.6%.

Within this, the largest group (representing 23% of the subsection), the processing and preserving of meat and the production of meat products, declined by 5.8%, while the second largest group, the manufacture of beverages, grew by 10.5%, year-on-year.

Machinery and Metals Up The manufacture of machinery and equipment, accounting for 7% of manufacturing output, grew the most yearon-year (by 13.7%), mainly due to the low base effect. The manufacture of basic metals and fabricated metal products (having medium weight) rose by 11.5% and the manufacture of rubber and plastics products, and other non-metallic mineral products, increased by 8.8%, owing to a favorable tendency in both domestic and export sales.

The downturn continued in the manufacture of chemicals and chemical products: output fell by 7.7% in July, largely due to the decline in manufacture of plastics in primary forms.

The manufacture of coke, and refined petroleum products dropped furthest at 12% year-on-year, mainly as a result of a fall in domestic demand.

Total new orders in the observed subsections of manufacturing declined by 2.5% compared to the same month of 2016. The volume of new export orders decreased by 2.3%, while that of new domestic orders dropped by 3.8%. The volume of total stock of orders was below the level of July 2016 by 2.9%.

Looking at the first seven months of the year, the data shows that industrial production went up by 4.8% from the same period of 2016.

The volume of export sales, representing 65% of all sales, grew by 5.2%, while that of domestic sales (accounting for 35% of all sales) increased by 3.6%.

The labor productivity of industrial enterprises with five or more employees went up by 1.4%, along with a 3.2% increase in the number of employees. Industrial production rose in every region of Hungary. The largest volume growth was measured in the Northern Great Plain (8.5%), while the lowest was found in Southern Great Plain (3.1%).

2017. 09. 20. 19:55

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

REAL ESTATE NEWS

1 News | 5

Investment for the Year Could Reach EUR 2 bln Hungary continues to return positive investment indicators, with vacancy rates low and demand rising in all market sectors. The country is attracting a wider pool of institutional investors, even as Hungarian funds continue to be active. In this positive environment, annual investment volumes are expected to approach EUR 2 billion for 2017.

GARY J. MORRELL

According to JLL, circa EUR 750 million in investment transactions was concluded in the first half of 2017.

CBRE expects 2017 investment volumes

open for leveraging, allowing a greater depth of investors to enter the market, resulting in more investors being able and willing to invest in the region. This competitive tension is driving pricing and pushing yields.”

Offices will remain the most active sector across Hungary and CEE according to many consultants. “The Hungarian market is much more oriented towards offices, with a yearly split forecast of 50% for office and 35% for retail, with the balance for logistics, hotels and alternatives,” commented Kevin Turpin, head of CEE research and consultancy at JLL. However, retail in Hungary has made a significant leap in activity this year, The 14,500 sqm Eiffel Palace office building. with more stock being made available to investors. “Demand for retail has always been there, but vendors were not logistics at 7.75%. “The gap between necessarily willing to sell. This year has to be in region of EUR 1.5 bln-1.8 Hungary and Czech Republic and Poland seen a change in this attitude as retail bln, reaching or even surpassing last is closing, and should narrow to some 50 yields have compressed and the number year’s level. Bence Vecséy, director basis points by the end of the year,” said of willing buyers increased,” notes of investment services at Colliers Benjamin Perez-Ellischewitz, head of O’Sullivan.

International Hungary, estimates that capital markets Hungary at JLL. “CEE presents an interesting investment volume could reach the In a recent deal the institutional opportunity for investors,” he continues.

EUR 2 bln figure, making this the investor, Corpus Sireo Real Estate, “Arguably, the market here is late in most active year ever in the Hungarian made its second Budapest office the cycle compared to Western Europe. investment market. acquisition with the purchase of the This time lag between geographies Czech Republic and Poland continue 14,500 sqm Eiffel Palace office building offers investors an interesting solution to be the leading CEE investment from the National Bank of Hungary for their capital allocation as they hunt destinations, although the gap between (MNB) for EUR 53.8 million, at a yield for higher returns. CEE still offers value Hungary and these countries is of around 5%. for investors who may be priced out of narrowing. The Czech market recorded the Western markets but want to stay EUR 2.2 bln in investment volume in close to their core country. The four H1, followed by Poland with EUR 1.53 Solid Fundamentals countries in Central Europe offer great bln, according to Colliers International opportunities for investors to build figures.

Says Tim O’Sullivan, head of a diversified portfolio while seeking Improving sentiment towards Hungary investment properties for Hungary stabilized returns,” O’Sullivan adds. and increasing competition for product & SEE at CBRE: “The underlying This year could see CEE regional is causing yield compression. JLL fundamentals are solid in the CEE development reach EUR 13 bln, which estimates prime Budapest office yields markets and have proved stable. would set a new record. at 6.5%, shopping centers at 6% and Furthermore, the banks are more

Wing Purchases Európa Center Business and Logistics Park

Wing Zrt. has expanded its industrial portfolio with the acquisition of the Európa Center Business and Logistics Park, located adjacent to the M0 ring road. The Hungarian developer plans to further develop the complex, which will trade under a new name: Login Business Park.

GARY J. MORRELL

The Európa Center is a modern 75,000 sqm logistics facility consisting of large industrial sheds, smaller warehouse facilities, class “A” offices, retail units and showrooms. An additional 8,000 sqm of development land is also available.

BBJ_2517_news.indd 5

Wing is now is a leading player in the increasingly attractive Hungarian logistics market, where demand is rising and vacancy falling.

The company has announced the construction of a pair of industrial units (14,000 sqm and 11,000 sqm) in two phases at the East Gate Business Park in response to what the developer sees as heightened demand for space.

Tenants at East Gate Budapest include GE, Philip Morris and Magyar Posta.

At the beginning of this year, Wing sold the South Pest Business Park, a city logistics center in District IX. “As a strong, Hungarian-owned property firm, we have been committed participants in the domestic industrial and logistics market for 20 years.

One of our better-known projects is Harbor Park, which was the first modern logistics center development in the country,” said Noah Steinberg, chairman and CEO of Wing.

“Following this, we launched the East Gate Business Park and the South Pest Business Park and now we are starting another new chapter with the acquisition of Európa Center,” Steinberg added.

The Európa Center Business and Logistics Park, adjacent to the M0 ring road.

Quality Stock

Cushman & Wakefield put quality industrial stock in the Budapest area at close to two million, compared to Czech Republic with more than 6.5 million sqm. As recent demand has been strong, Hungarian vacancy has fallen to 5.5% as of the end of the first half year, compared to a CEE average of 5.2%.

“Increasing construction costs are slowing down speculative development, hence the Budapest stock is unable to keep up with demand,” said Gábor Halász-Csatári, head of industrial at Cushman & Wakefield Hungary. “In Budapest, the most active sector is

contract logistics with an automotive and retail/FMCG background.

E-commerce continues to soar with the online retailers actively pursuing modern and well-located warehouse space – not only in Budapest but in countryside locations too,” HalászCsatar added.

A functioning industrial market has not really developed outside the capital in Hungary and companies establishing light industrial facilities have tended to develop their own facilities.

One problem with development in Hungary’s regional cities is a shortage of skilled labor.

2017. 09. 20. 19:55

2

Business

2

Business

BUD Handles Record Cargo Volumes, Sees Continued Growth in H1 Budapest Airport (BUD), the operator of the Ferenc Liszt International Airport says it processed a record 72,161 tonnes of cargo from January to July 2017, up 19.6% on the same period last year.

BBJ STAFF

The airport recorded 49,420 tonnes of air cargo, up 16.7%, and 22,741 tonnes of trucked cargo, up 26.5% compared to last year. July figures grew 16% to 10,729 tonnes, including 7,432 tonnes of airfreight, up 15.5 % on July 2016, and 3,297 tonnes of trucked freight, up 17.2%.

“Budapest has a balanced market share, with inbound cargo at 47% in the first half of the year, and outbound cargo at 53%,” says József Kossuth, cargo manager at BUD. “All segments of our community, including freighters, belly cargo, and integrators enjoyed volume increase in this period compared to 2016, which was already a record cargo year at Budapest Airport.”

North America, Central America, and Asia were the largest markets for Budapest

Left to right: Réka Sebestyén, head of property development and leasing; René Droese, property and cargo director; and Jozsef Kossuth, cargo manager, all for Budapest Airport.

Airport, with the remaining share coming from the Middle East, South America, and Africa.

The Central European hub grew thanks to new cargo flows from long-haul passenger route operators including Emirates and Air China, in addition to volume increases from freighter partners, including Qatar Airways Cargo, Cargolux, and Turkish Cargo.

Extensive Network “Budapest Airport benefits from an extensive road network to 20 European Union (EU) and non-EU countries within trucking distance of our airport,” says René Droese, property and cargo director, Budapest Airport.

“Together with the airline development team at Budapest, we have leveraged a strong belly cargo network, with Air Canada having already commenced seasonal flights to Budapest, and American Airlines scheduled to launch a daily service from

Philadelphia, USA, to Budapest in the summer of 2018. The Polish flag carrier LOT Polish Airlines will also launch six direct flights per week from Budapest to New York and Chicago in May 2018, creating an additional direct link between the USA and Hungary,” Droese adds.

Under the BUD:2020 Development Program, the airport operator is transforming its cargo facilities, which will include two state-of-the-art express facilities, and a dedicated freight center called Cargo City. This latter will be next to Terminal 2, and is due to be completed in 2019.

On September 14, BUD announced that DHL Express had become the latest to launch at the EUR 160 million state-of-theart express warehouse and office facilities.

These have automated sorting systems, and represent the largest air cargo development at the airport to date, with a total land area development of just over 60,000 square meters.

“DHL Express has already been present in Hungary for more than 25 years. The new lease agreement between Budapest Airport and DHL Express for another 15 years clearly reflects the commitment of Deutsche Post DHL Group to Hungary and the airport,” says Zoltán Bándli, managing director of DHL Express Hungary.

“The 6,000 sqm warehouse capacity will give DHL space to accommodate the volume growth of our business, with the new state-of-the-art sorting technology, which includes fully automatic shipment processing, allowing us to process more than 6,000 pieces per hour, which is three times our current capacity,” Bándli says.

Improved Synergies “As DHL Global Forwarding and DHL Freight are also located at Budapest Airport, synergies between the three business units will strengthen, and contribute to a more effective operation, further improvement of services, and development of cross dock businesses. The move will also mean a quality improvement in working conditions, and further efficiency gains in warehouse operations,” Bándli adds.

More than 600 employees will be based at the two new express complexes, which are located in the area next to Terminal 1.

Budapest Ferenc Liszt International Airport is owned by a consortium of Canadian (Caisse de dépôt et placement du Québec, 21.2 %) and Singaporean (Malton Investment Pte Ltd., 23.3 %) investors, led

by AviAlliance GmbH (55.4 %).

The airport is a leading international air cargo hub servicing 45 airlines, with a throughput of 112,143 tonnes of cargo in 2016. This year, BUD was awarded the

ADVERTISEMENT

DeLaVie becoming a global brand The alpine vitamin drink made from Swiss herbs is now marketed in 29 countries around the world. The brand has become really popular among traders since it won a prize at the Dubai Drink Tech-nology Expo. Primarily, the Hungarian owners have looked to strengthening its position with a “word of mouth” marketing strategy.

At the Dubai Drink Technology Expo, an exclusive beverage industry world exhibition attended by more than 200 manufacturers, the “La Boisson DeLaVie” vitamin drink won the “Best Innovative Health Drink” prize. The alpine vitamin drink also won the recognition of a reputable vitamin testing institution, the Swiss Vitamin Institute (ISV), established in 1931. Winning this prize few months ago,

BBJ_2517_bus.indd 6

was a major milestone that opened the global markets for the Hungarian owners of Swiss Laboratory Ltd., the maker of for the vitamin drink. Investors and trade partners have come forward to buy dis-tribution, and started to sell the alpine drink around the world. Currently the product is available in countries from China to the USA, and from Switzerland to Australia and Ghana.

Krisztián Schmidt (left) and Zoltán Ruskó, co-founders of Swiss Laboratory Kft. Primarily, the brand has been using a “word of mouth” marketing strategy around the world. In order to make its position on the market even stronger, and to better develop its communicational strate-gy, Swiss Laboratory Ltd. has started a cooperation with national PR agency, KRQ Communications. The agency’s task

is to develop marketing solutions, such as branded content, PR and influencer strategies, foremost for digital platforms – considering the local cultural differences – which could work effectively anywhere in the world. The KRQ agency earned this cooperation based on its experiences and references.

“DeLaVie” the basic product of Swiss Laboratory, combines well-proven traditional medicine with the results of modern nutritional science. The product family contains five types of drink. There is the basic product, and its sugar free version, called “La Boisson DeLaVie Zero”, and also is a version made for children, which is called “DeLaVie Kids”. To cover calcium replacement needs after sport, and to support ossification in the elderly, the company created “LaBoisson Elysée”, and for those more in-terested in dietary lifestyle, it has developed a drink called “SlimBiosis”. The product is available mostly in gyms, and in certain shops, but development of the distribution network is ongoing.

2017. 09. 20. 19:58

2

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Business

|7

1st ʼItalian Business Dayʼ Targets Debrecen The Italian Chamber of Commerce in Hungary (CCIU) has launched what it calls a “historical first” at Hungary’s second city of Debrecen.

BBJ STAFF

“It is the first time that the whole Italian business system (including the embassy, Italian Trade Agency (ITA), Italian Institute of Culture, and the chamber) has come before the regional economic community,” CCIU said in a statement sent to the Budapest Business Journal.

Italy is the fifth largest investor in Hungary, but has ambitious plans to grow its market share. “Several sources confirm there are wide margins of growth, especially in the countryside,” the chamber says.

Ambassador Massimo Rustico makes a point during the “Italian Business Day”.

The “Italian Business Day” will be an annual event in four different cities; Debrecen and three others “to be realized in the next six-seven months”.

At the institutional level, Mayor of Debrecen László Papp met with the

Italian Ambassador Massimo Rustico and representatives of the Italian Chamber of Commerce (president Ferdinando Martignago and former vice president Francesco Maria Mari), Marco Bulf, the director of ITA, Italian Culture Institute director Gianluca

Borghese, and honorary consul Roberto Sarcià. The meeting laid the basis for an intensified commercial partnership between Italy and Hungary, CCIU says.

That was followed by a “Made with Italy Business Meeting”, hosted by Hajdú-Bihar Chamber of Commerce, involving Italian and Hungarian companies and in the presence of the mayor, the ambassador and representatives of the CCIU and HajdúBihar Chamber of Commerce.

There was also a side meeting aimed at putting together HoReCa (hotel, restaurant and catering) operators in the field of Italian cuisine.

The last part of the day was a cultural event hosted by the Italian Cultural Institute in Debrecen’s Csokonai Theater, featuring the guitar and flute duo Graziano Schiavone and Davide Lazzari, and a “light gala” in the foyer of theater, where Italian specialties were served.

The “Italian Business Day” also marked the start of a new chamber project called the “CCIU University Program”. The aim is to set up a structured collaboration plan among the most prestigious Hungarian universities and major Italian companies. The CCIU will also host a meeting between a Hungarian and an Italian university in order to stimulate lasting collaboration.

ADVERTISEMENT

32nd SPAR Budapest Maraton® - a feast of sport, health and aid

“For meaningful childhood” with the Hungarian Maltese Charity Service

One of the principles of the corporate philosophy of SPAR

SPAR also cooperates with its strategic partner, the

Magyarország Kereskedelmi Kft. is serving public inter-

Hungarian Maltese Charity Service (Magyar Máltai Sze-

ests. The company supports cultural and sports activities

retetszolgálat) at the 32nd SPAR Budapest Marathon

throughout the country, helps those in need, promotes

event, supporting the “Bringing the playground here”

Hungarian products and - last but not least - provides

programme. The mobile playgrounds of the organisation

guidance in establishing a healthy lifestyle. The company

take the joy of playing to more than three hundred villag-

is very proud to be the title sponsor of the largest free-

es throughout the country, enabling children in even the

time event in Hungary, promoting sporty lifestyle with the

poorest of families to get to know them. They visit villages

participation of tens of thousands every year. The event in

without any organised programmes, community places or

the country is not only an opportunity for sport enthusiast

sometimes even without a swing or a sand box for chil-

to test their endurance, but it also focuses on promoting

dren. The two organisations intend to raise awareness at

training and health-conscious lifestyle to as many people

the 32nd SPAR Budapest Marathon event that all children

as possible.

deserve to play, even if their circumstance would not allow them. This year SPAR has a special offering: the entire rev-

Bring a storybook

enue at its booth will be donated to aid the “Bringing the playground here” programme of the Hungarian Maltese Charity Service.

At the 32nd SPAR Budapest Marathon event, SPAR and the Hungarian Maltese Charity Service collect storybooks jointly for children in need. Organisers collect used storybooks which are in a good condition at the Maltese tent next to the SPAR booth, from everyone who can help those in need this way.

V4 RUNNING WEEKEND 2017. október 14 – 15.

Budapest, Ötvenhatosok tere

SPAR_maraton_252X158mm.indd 1

BBJ_2517_bus.indd 7

2017. 09. 19. 12:06:08

2017. 09. 20. 19:58

8| 2

Business

WHO’S NEWS

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Do you know someone on the move? /// Send information to news@bbj.hu

CBRE Creates new Head of Advisory and Transactions Role

far more sophisticated and integrated solution to our clients.”

Lóránt Kibédi Varga, managing director of CBRE Hungary, said: “We are very proud to have David in our Budapest team. He is one of the most experienced and respected agents within the Hungarian market, and with this experience and his professional approach, I am confident that CBRE can reach its key objective: providing unique solutions to our Hungarian and international clients more efficiently.”

“We are thankful for László Vas’ enormous work, who has developed this department from the basics. We are confident that with Balázs Czifra’s professional knowledge and management experience, Diófa Asset Management will reach a new milestone,” Biró added.

Peter Würsching Appointed Head of Leasing at JLL

Balázs Czifra Joins Diófa Asset Management

David M. Johnston was appointed senior director, head of advisory and transaction services at real estate services firm CBRE Hungary over the summer. The head of advisory and transactions is a new role within CBRE, with the Hungarian position being only the sixth of its kind across the entire EMEA region, according to a press release sent to the Budapest Business Journal.

CBRE Hungary employs 16 people across the three teams, and it will be Johnston’s task to manage and oversee the growth and development of these teams, resulting in enhanced client care and a far more sophisticated and integrated service to client’s needs, the press release says.

Before joining CBRE, Johnston spent almost 14 years working at Cushman & Wakefield, including for the last nine years as partner and head of the office agency team based in Budapest. Prior to that he worked for Cushman & Wakefield in its Edinburgh office in his native Scotland. Johnston is a Member of, and an Assessor for, the Royal Institution of Chartered Surveyors. ““All Agency teams operate in approximately the same manner, sharing some of the same clients between them.

This new role allows us to take advantage of this, unify the service lines and offer a ADVERTISEMENT

Dentons Hires Former Hungarian Ambassador Balázs Csuday

With 20 years of professional experience on the local and international fields, Balázs Czifra has taken over the real estate department at Diófa Asset Management.

Prior to his appointment, he was member of the board at Dunavárosfejlesztő Ltd. and spent five years as country head at DTZ Hungary. He also gained leadership experience heading the Hungarian and CEE commercial department at SEGRO. Czifra studied at Nottingham Trent University, and has been a member of the Royal Institution of Chartered Surveyors since 2001.

“The company’s dynamic growth shows that we are on the right path and chose the perfect strategy to build a significant real estate portfolio of 250,000 sqm in the past five years,” said Gergely Biró, CEO at Diófa Asset Management.

From September, Péter Würsching fills the role of head of leasing at commercial property and investment management services firm JLL Hungary. In this position, he will be responsible for managing and supervising the operations of JLL’s three agency teams, Office Group, Retail and Industrial.

Würschingʼs main role is the comprehensive management of complex projects involving one or more agency teams locally or internationally.

“Péter started at JLL this January and during this period he has proved his outstanding experience in both team building and leasing management,” said Ferenc Furulyás, managing director of JLL Hungary.

“He has achieved great improvements in JLL’s real estate consultancy and transaction management, which made this promotion an obvious decision. I’m sure that due to the three service lines being led by one hand, our services will be more focused and will benefit from better synergies.”

Mastercard Names CEE Business Development Director

Tibor Berkes has been named director of business development and sales for the CEE region at Mastercard, according to

BBJ_2517_bus.indd 8

online news portal napi.hu. He will be responsible for business development on core products and solutions, while identifying product innovation opportunities in credit, prepaid and valueadded services.

Having joined the Budapest office in June, Berkes assumed responsibility for basic bank card and corporate card products, prepaid card programs, and value-added banking services in Hungary, Croatia and Slovenia.

Previously, Berkes worked for more than a decade at the Telenor group, where his primary task was to develop and successfully market new and innovative mobile financial solutions.

The 42-year-old specialist gained his economics degree in 2001 at the International Business School, and then obtained an MBA on a scholarship to Oxford Brookes University in the United Kingdom.

Dentons has recruited Balázs Csuday, a former Hungarian ambassador, as senior counsel. He joins Dentons’ regulatory practice in Budapest, and will substantially enhance its capabilities in public affairs, statutory compliance and regulation, the law firm said.

He was previously director of public sector and government relations at PwC in Budapest. Prior to that, he served in the Hungarian Ministry of Foreign Affairs, where he was Ambassador Extraordinary and Plenipotentiary with the Permanent Mission of Hungary to the UN and Other International Organizations in Vienna. As ambassador, he was responsible for opening the Hungarian Embassy in Quito, Ecuador.

Csuday was educated at the Faculty of Law at Eötvös Loránd University (ELTE) in Budapest, the Diplomatic Academy of Complutense University in Madrid, and the School of Law at Fordham University, New York.

“It is a pleasure and an honor to welcome Balázs Csuday to our team,” said István Réczicza, Hungary managing partner at Dentons. “His experience at the highest level of international regulatory development and public affairs adds considerable weight and experience to our capabilities in these areas. His appointment also underlines the contribution of our Budapest office to the legal environment in Hungary and across the entire region.”

2017. 09. 20. 19:58

2

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Business

|9

Market Players Press for National Translator Register A concept has been unveiled that aims to redefine the translation market by reintroducing a register of linguistic professionals after a gap of nearly 70 years.

LEVENTE HÖRÖMPÖLI-TÓTH

Legislative reform has long been overdue on the translation market, according to market players. EU regulations aiming to cut the red tape and recent scandals over false identities and translations in the criminal proceedings of illegal migrants have further intensified discussions over the necessity for an official register of certified linguistic professionals.

A detailed concept was unveiled at the Translation Business Day 2017 Conference in Budapest to try and give that drive a final push. The

András Szalay-Berzeviczy, head of the working group detailing the national translatorʼs register, made up of organizations Proford, MFTE and SZOFT.

idea is being promoted by a group of professional organizations – Proford, MFTE and SZOFT – that represent some 70% of the industry. The head of the working group entrusted with drawing up the proposal is András Szalay-Berzeviczy, who highlighted several problems.

“Public service interpreting and translation attestation are faced with a controversial regulatory environment,” he explains to the Budapest Business Journal. “They are partly overcentralized, partly way too deregulated.

What matters most, though, is that they are subject to outdated legislation from three decades ago.”

The national register of professional translators and interpreters had existed in Hungary until the Communists took over after World War II. Ever since, all public linguistic tasks have been assigned to the Hungarian Office for Translation and Attestation (OFFI).

“Several professions have their own registers or chambers, why would linguists be an exception?” SzalayBerzeviczy says. The lack of a consistent set of qualification criteria has caused courts to use interpreters on a random basis, but public service interpreting is not subject to any specific qualification.

“Under the current rules, it could well be that you interpret in Spanish in front of the court, for instance, if you claim to know it and provided you are a qualified interpreter in any other language,” the head of the working group explains.

Multilevel Register Another critical issue is the low number of interpreters in rare languages, and that scarcity became particularly apparent during the migrant crisis. According to Szalay-Berzeviczy, the objective is to set up a multilevel register that differentiates between professionals based on their level of competence. This could allow for a higher number of personnel to be

employed at least for social interpreting tasks when it comes to barriers in rare languages.

“Just as in Germany, the concept of ‘intercultural mediator’ should be introduced,” the expert says. “These people would need only to complete some basic course and meet minimum requirements such as having secondary education and no criminal record.

This way they could be channeled into the labor market and the quality of interpreting could be ensured.” Rates for public-purpose linguistic services should also be regulated, as setting uniform fees by legislation is another pillar of preserving quality in this area.

More change is coming from Brussels anyway. Under an EU regulation, as of early 2019, a range of public documents will need to be issued in multiple languages, which will substantially decrease the necessity for producing certified translations. Other EU rules also urge cutting the scope of attested translations, where a state monopoly exists.

“Change is inevitable,” SzalayBerzeviczy points out. “We have the majority backing of the sector; the detailed concept is ready. We hope for a positive ending as a result of the consultation that is set to continue with the public authorities concerned and the Ministry of Justice in the oncoming weeks.”

ADVERTISEMENT

BBJ_2517_bus.indd 9

2017. 09. 20. 19:58

10 | 2

Business

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

M&A Market Back at 2011 Level investment manager GalCap Europe, and the acquisition of the 25,300 sqm Váci Greens Building B by Hungarian property investor OTP Ingatlan Befektetési Alapkezelő Zrt. from the Belgian Atenor Group,” the EY report notes.

The sector was closely followed by the food sector, with ten deals. As far as the value of transactions is concerned, the biggest change is that average value of deals signed under USD 100 million significantly grew, EY data reveals.

The services sector and the telecommunication and media sector saw six deals each. The manufacturing sector was responsible for five deals.

The Hungarian mergers and acquisitions market had its best returns in four years, with the real estate sector being the most active in the first half of the year, to little surprise, according to EY Hungary’s H1 figures.

Domestic Still King

Margaret Dezse, partner at EY Hungary’s transaction advisory services.

CHRISTIAN KESZTHELYI

M&A deals inked in Hungary in the first half of this year grew by 12% as compared to the corresponding period a year earlier. With an approximately USD 980 million in traffic, the first six months

of the year have been the strongest since 2011, according to the most recent M&A Barometer, issued in mid-September by EY Hungary. A total of 66 deals were concluded in H1 2017, eclipsing last year’s total of 64.

It will have been little surprise, given that the sector has seen a spectacular

revival, that most deals closed (24% of the total) related to real estate, with 16 deals in the first half, as compared to last year’s six.

“Transactions included the purchase of the centrally located prestigious office building of Mercury Palace in Budapest by the Vienna-based

Following last year’s tendency, the M&A market was again dominated by domestic deals; 59% of transactions involved Hungarian businesses at both ends (39 deals on total). In 35% of the deals (23, all told), foreign companies purchased Hungarian companies, while in 6% (4 deals) Hungarian companies purchased companies abroad. The most active countries in Hungary in terms of FDI were Austria with five deals, the United Kingdom with four, and the United States with three.

“The Hungarian state’s activity increased on the Hungarian M&A market in H1 2017 compared with the

ADVERTISEMENT

The 20 years old

and

present:

ATLANTA

BRAD LEWIS The Supergroup, Creative group head LONDON

HENRY HITCHCOX Jungle Creations, Founder & head of creative SAN FRANCISCO

26-27. October, 2017

BONNIE WAN Goodby Silverstein & Partners, Director of brand strategy and partner LONDON

MULTISCREEN NEW ERA OF BRANDING

REGISTRATION AT BRANDFESTIVAL.HU

SPONSORS

MARK STEPHENS

VIDUS GABRIELLA

Time Inc. UK, Head of content marketing

RTL Magyarország, CEO

SOFIA

HETÉNYI MÁRK

Viber, Director Business Development CIS & CEE

HORVÁTH IMRE

ATANAS RAYKOV PARIS

Metro Kereskedelmi Kft., CEO

MARIA GARRIDO

KURTISZ KRISZTIÁN

LONDON

VARGA ZOLTÁN

Havas Group, Global chief insights and analytics officer

PHILIP BROWN Come Round, Head of influencer LONDON

MICHAEL CRADDOCK Kairos Media, Co-founder FRANKFURT

EDMUND DUECK Liferay, Marketing manager Europe

BBJ_2517_bus.indd 10

MKB Bank, Deputy General Manager

Uniqa Biztosító, CEO

Centrál Médiacsoport Zrt., CEO

SZENTKUTI GABRIELLA

Microsoft Magyarország, General Manager

MÁRTON SZABOLCS Republic Group, Creative Director

ÉS MÉG TÖBB, MINT 100 ELŐADÓ!

2017. 09. 20. 19:58

2

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Business | 11

EXPERT OPINION

INNOVATION

sponsored by

Insight

previous year. Transactions included, amongst others, the 100% takeover of DÉMÁSZ by the First National Public Utility company, ENKSZ, from French EDF, and MVM, the state-owned Hungarian energy group, has via a capital raise become a 50% owner of ENKSZ,” the M&A Barometer states.

“Also noteworthy is the fact that, while in 2016 the state was rather on the sellside, in H1 2017 it acted mainly as a buyer. During H1 2017 none of the state involvement transactions deal values was public,” EY adds. State transactions have not, therefore, been included in the analysis of the M&A market and the above deal numbers.

Placing Hungary in the bigger picture, the country appears to be outperforming peers in the region, as far as the M&A market is concerned, even if only to a slight extent. Hungary was able to grow the number of deals, while the Central and Southeast European region as a whole saw a contraction of 27%. Hungary exhibited the third highest number of deals, being beaten only by Poland (second with 107 deals) and Czech Republic (first with 113 deals). However, the region did see a significant rise of 42% in the value of M&A deals, chiefly boosted by the Polish and Slovenian markets.

The Budapest Business Journal discussed the performance of the Hungarian market with Margaret Dezse, partner at EY Hungary’s transaction advisory services, who talks about a “robust business environment” and has a positive attitude about the future of the market.

Hungary’s M&A market had its best year since 2011. What is the chief reason for the market performing so well?

We have generally seen a correlation between the macroeconomic environment and M&A activity. The volume of gross domestic product was 4.2% higher in Hungary in the first quarter of 2017 and 3.2% higher in Q2

BBJ_2517_bus.indd 11

than in the corresponding period of the previous year. These resulted in one of the largest GDP growths in the past few years’ semestrial periods, with a total 3.6% growth in the first half of 2017 compared to the year earlier, and a robust business environment ensuring the increase of the M&A market.

To little surprise, having observed recent trends, the real estate market was the most active as far as M&A is concerned. Will this tendency continue in Hungary?

The stronger position of the real estate sector was already experienced in 2016.

The number of deals quadrupled from four, in 2015, to 16 in H1 2017. We do not foresee any reasons that would lead to a decrease in this high-level activity.

The most prominent change is that the number of deals under USD 100 mln on average has significantly risen. What is the reason for this?

The growth in the average value of deals with a disclosed deal value was due to the increased activity in the real estate market, where the largest transactions were closed.

The Hungarian M&A market was again dominated by domestic deals. Is this promising?

The Hungarian market was dominated by domestic deals in H1, consistent with previous years. That said, the share of inbound transactions has been increasing since 2014, reflecting also the number of attractive and healthy companies here in the eyes of foreign investors.

What is boosting Hungaryʼs M&A growth, while the rest of the region appears to see a falling tendency?

Hungary has good fundamentals for investment and business, more than that it has profitable and strong companies to attract FDI. Good assets will always find a buyer, at the right time.

The 2017 edition of Telenor Accelerate offers a one-of-akind opportunity to the best few selected applicants. The story of one of last yearʼs mentored startups, eSports Horizon suggests that, indeed, they have every reason to look forward to it.

Telenor launched the first-ever corporate acceleration program in Hungary in 2016, with five startups selected out of 143 to enjoy intensive mentoring. This year, 110 signed up for three available spots, and whoever nails one of them should certainly be inspired by last year’s success stories.

Take the example of eSports Horizon, which did so well on demo day at the end of the mentorship period that it attracted VCs and is in negotiations regarding further investments.

“We have been busy finalizing the details of the investment ever since, and

by October at the latest the related paperwork should be done,” founder Adrián Árkosi says.

It is little wonder the product gained traction quickly. According to the 2017 Global Eports Report by Newzoo, the global market will grow to USD 1.5 billion by 2020 from projected revenues of some USD 700 million in 2017.

Market Entry

“We entered Telenor Accelerate with an existing demo product,” Árkosi explains. “However, we still needed a lot of input in terms of marketing. Telenor’s contribution prepared us perfectly for market entry.”

The program also made eSports Horizon realize that it should create two separate platforms, not a single one.

“As a result, we have been convinced to run the e-sports training scheme and the competition as two different units,” Árkosi notes. This wider scope of services also raises the potential number of users.

At the moment, some 4,000 users play 14 different games, from which four or five offer competitions. “We create the opportunity for users to make money by entering competitions, whereas those willing to become pros are offered training by renowned players,” the founder adds. All this is available on pc right now, with PlayStation and Xbox to follow in Q2 2018. Users should expect to have mobile access by H2 of next year.

The eSports Horizon project was assisted under Telenor Accelerate 2016

by Zoltán Varga from Central Invest, a renowned member of the local investor community with an excellent track record.

“Zoltán shared his deep-rooted business expertise with us and contributed tremendously to our improvement,” Árkosi adds. Varga is on board as a Telenor Accelerate mentor again this year, so whoever is assigned to him can look forward to his invaluable business advice.

The total value of support at Telenor Accelerate is worth HUF 150 million.

Seed investment will amount to HUF 5 mln-10 mln per project in exchange for minority ownership of Telenor.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILIT Y

An Accelerated Story to Remember

2017. 09. 20. 19:58

GRUPPO T.F.M. KFT. 1068 Budapest, Király u. 102.

6TH DISTRICT

12TH DISTRICT

91 SQM – 3 ROOMS, KRISZTINA CIRCUIT

57 SQM – 2 ROOMS, GYŰRŰ STREET

67 SQM – 3 ROOMS, CHINOIN STREET

114 SQM – 4 ROOMS, NAGYMEZŐ STREET

888 SQM – 8 ROOMS, KAKUKK STREET

152 SQM – 5 ROOMS, RÁKOSPALOTA

Beautiful view over the Buda Castle, this very spacious apartment has balcony and it is situated within a building in good condition with elevator.

In a renovated building with elevator, this street facing apartment has separate rooms, spacious dining room, bright kitchen and balcony. It is located in a quiet street.

In a new building, this quiet, garden facing, duplex apartment benefi ts of a living room with fully fitted open kitchen, separate bedrooms, terrace and private gas heating.

This sunny apartment is fully renovated, and situated within a nicely renovated period building. Only a few steps away from Andrássy Boulevard. Benefits of a perfect layout.

This three storey, luxury villa house built on 1425 sqm of lot, has beautiful panorama, 80 sqm of wellness area with indoor swimming pool, sauna and jacuzzi. 5 car garage belongs to it.

In a quiet street, this two storey family house in good condition built on 428 sqm of lot, has 2 bathrooms, balcony and 2 car garage.

43.900.000 HUF

19.990.000 HUF

32.990.000 HUF

64.000.000 HUF

375.000.000 HUF

1ST DISTRICT

+36.1.201.0403

1ST DISTRICT

3RD DISTRICT

+36.1.379.0506

3RD DISTRICT

4TH DISTRICT

+36.1.782.7275

4TH DISTRICT

+36.70.3156.087

7TH DISTRICT

+36.1.789.2846

13TH DISTRICT

15TH DISTRICT

49.990.000 HUF

+36.70.398.8754

15TH DISTRICT

81 SQM – 4 ROOMS, HUNYADI JÁNOS STR.

49 SQM – 2 ROOMS, FALUHÁZ

92 SQM – 3 ROOMS, ISTVÁNTELKI STREET

150 SQM – 4 ROOMS, DAMJANICH STREET

77 SQM – 3 ROOMS, HEGEDŰS GYULA STR.

200 SQM – 7 ROOMS, PESTÚJHELY

At the bottom of the Buda Castle, this very sunny and spacious apartment has balcony and it is situated within a renovated building with elevator.

This park facing apartment in good condition has separate rooms and balcony. It is situated within a building with elevator and solar panels on the roof.

This completely renovated family house built on 534 sqm of lot, has separate rooms, terrace, private gas heating, swimming pool in the well kept garden and garage.

Close to the City Park, in a very nice period building with elevator, this sunny, high floor apartment has living room with fully fitted open kitchen, 4 separate bedrooms and balcony.

22.900.000 HUF

89.500.000 HUF

This two storey family house built on 566 sqm of lot, has big terrace, garage, swimming pool and garden pond in the well kept garden. It is located in a quiet street.

54.900.000 HUF

59.900.000 HUF

This completely renovated, top fl oor apartment has private gas heating and it is situated within a well maintained period building with elevator, close to the St. István Park.

41.000.000 HUF

79.000.000 HUF

+36.1.201.0403

2ND DISTRICT

+36.1.430.1403

3RD DISTRICT

+36.1.782.7275

5TH DISTRICT

+36.1.351.0446

10TH DISTRICT

+36.70.414.7759

13TH DISTRICT

+36.70.398.8754

16TH DISTRICT

124 SQM – 5 ROOMS, FRANKEL LEÓ STREET

68 SQM – 2 ROOMS, INNER ÓBUDA

73 SQM – 2 ROOMS, NÁDOR STREET

55 SQM – 2 ROOMS, TARALIGET SUBDIVISION

79 SQM – 3 ROOMS, KATONA JÓZSEF STR.

70 SQM – 2 ROOMS + HALL, PÁLYA STREET

This very spacious, street and garden facing apartment has living room with open kitchen, 4 separate bedrooms, private gas heating and balcony.

In a new building with elevator, this very sunny, well divided, high floor apartment benefits of separate rooms and wardrobe room. Garage possibility for 3.000.000 HUF.

Close to the Danube, this completely renovated, bright and spacious, high floor apartment has private gas heating and it is situated within a period building with elevator.

In a new built subdivision with elevator, this park facing, high fl oor apartment benefi ts of separate rooms, balcony and air conditioning system.

This bright and quiet, high fl oor apartment has separate rooms and balcony. It is situated in a nice building with elevator. Close to the metro line 3.

This well divided and sunny semi-detached house built on 600 sqm of lot, has separate rooms, garage and nice garden. It is located in a quiet area.

55.900.000 HUF

40.900.000 HUF

63.000.000 HUF

27.900.000 HUF

43.000.000 HUF

26.900.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.1.430.1403

3RD DISTRICT

+36.1.336.1706

5TH DISTRICT

+36.70.646.6818

10TH DISTRICT

+36.70.414.7759

13TH DISTRICT

+36.70.642.7598

DUNAKESZI

140 SQM – 4 ROOMS, SZEMLŐHEGY STREET

130 SQM – 3 ROOMS, RÓMAI-PART

106 SQM – 3 ROOMS + HALL, APÁCZAI CS.J. STR.

97 SQM – 5 ROOMS, ÓHEGY STREET

50 SQM – 2 ROOMS, MARINA PART

70 SQM – 3 ROOMS, ALAG

Panorama over the Buda Hills, this renovated apartment has 2 entrances, 2 living rooms, 3 separate bedrooms, 2 kitchens, 2 bathrooms and 4 balconies. Within a villa house with garden.

Close to the Danube bank, this completely renovated, quiet duplex apartment has 2 bathrooms, 150 sqm of beautiful garden and 2 parking spaces in the courtyard.

In a beautiful period building, this very spacious, sunny apartment, that needs renovation, has separate rooms and it is located a few minutes walk from the Danube.

In a new built building with nice common garden, this very bright, duplex apartment benefits of a living room with fully fitted open kitchen, 4 separate bedrooms, balcony and garage.

On the Danube Bank, in a new building with elevator, this very sunny apartment has living room with open kitchen, bedroom, 12 sqm of terrace and air conditioning system.

This part of a house, that needs renovation, built on 300 sqm of lot, has private gas heating and parking space in the garden.

85.900.000 HUF

55.900.000 HUF

65.000.000 HUF

51.500.000 HUF

45.900.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.70.669.5350

3RD DISTRICT

+36.1.336.1706

6TH DISTRICT

+36.70.646.6818

11TH DISTRICT

+36.70.455.8062

13TH DISTRICT

26.800.000 HUF

+36.70.399.0399

DUNAKESZI

276 SQM – 6 ROOMS, HÁRSALJA STREET

130 SQM – 4 ROOMS, RÓMAIFÜRDŐ

105 SQM – 4 ROOMS, SZÍV STREET

70 SQM – 2 ROOMS, BARTÓK BÉLA STREET

90 SQM – 4 ROOMS, FRANGEPÁN STREET

100 SQM – 3 ROOMS, ALAG

This completely renovated, two storey family house built on 977 sqm of lot, has living room, 4 separate bedrooms, 3 bathrooms, 2 terraces, 2 car garage and wonderful garden.

In an elegant villa house, this completely renovated duplex apartment has private gas heating, air conditioning system, terrace, nice garden and garage.

64.900.000 HUF

This renovated, top floor apartment has separate rooms, private gas heating and it is situated within a well maintained building with elevator. Good connection to public transport.

In a new building with elevator, this garden facing, top floor apartment has 20 sqm of terrace and it is located in a quiet street, close to the Béke Square. Handover in 2018.

This two storey family house built on 660 sqm of lot, has private gas heating, parking space and garage. It is located close to Tóváros.

130.000.000 HUF

Close to the Andrássy Boulevard, this very spacious, street facing apartment, that needs renovation, has separate rooms and private gas heating. It is situated within a period building.

49.500.000 HUF

41.900.000 Ft

52.200.000 HUF

+36.1.376.6080

2ND DISTRICT

+36.70.669.5350

3RD DISTRICT

+36.1.351.0446

6TH DISTRICT

+36.1.720.2433

12TH DISTRICT

+36.70.455.8062

14TH DISTRICT

31.900.000 HUF

+36.70.399.0399

NAGYKOVÁCSI

500 SQM – 6 ROOMS, GYÖNGYVÉR STREET

117 SQM – 4 ROOMS, KOSSUTH L. RIVERS. RES.

91 SQM – 3 ROOMS, NAGYMEZŐ STREET

85 SQM – 3 ROOMS, SCHWARTZER F. STR.

107 SQM – 4 ROOMS, THÖKÖLY STREET

450 SQM – 11 ROOMS, NAGYKOVÁCSI

Next to the forest, this new, two storey family house built on 5000 sqm of lot, has 77 sqm of terrace, 100 sqm of wellness area, 4 car garage and well kept garden.

View over the Danube, in a new building with elevator, this very sunny and spacious apartment has living room with open kitchen, 3 separate bedrooms, 2 bathrooms, terrace and balcony.

This sunny apartment is in good shape and benefits of a complete kitchen, very good layout, private gas heating and a large balcony.

This completely renovated, very bright, street facing apartment has private gas heating and air conditioning system. It is located close to the Vérmező Park.

In a beautiful, renovated period building, this very sunny, quiet apartment has separate rooms and private gas heating. Good connection to public transport.

In Pest County, in a quiet area, this two storey family house built on 935 sqm of lot, has private gas heating, 2 car garage and 3 parking spaces.

259.000.000 HUF

75.900.000 HUF

45.900.000 HUF

38.900.000 HUF

119.000.000 HUF

+36.1.376.6080

+36.1.379.0506

53.900.000 HUF

+36.70.3156.087

+36.1.789.2846

+36.70.642.7598

+36.1.720.2433

EACH AGENCY INDEPENDENTLY OWNED AND OPERATED. • THESE OFFERS ARE VALID, TILL THE APARTMENTS ARE SOLD. • THESE INFORMATION DO NOT CONSTITUTE A CONTRACTUAL ELEMENT.

BBJ_2517_bus.indd 12

2017. 09. 20. 19:58

3

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Special Report Green Business myhive builds community All informations at

myhive-offices.com/hu

Green Accreditation the Norm for Budapest Offices14 Urban Development a Core Element of Sustainability15 Developing a 21st Century Landmark16 WELL Aims to Complement LEED and BREEAM20

BBJ_2517_special_report_.indd 13

2017. 09. 20. 19:49

Special Report

14 | 3

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Green Accreditation the Norm for Budapest Offices

Green or sustainability accreditation is a prerequisite for the successful development of office projects in the quality strata of the Budapest office market; the number of certified office buildings and the certified office area has tripled over the last three years.

GARY J. MORRELL

Regional developers such as Skanska, Atenor, GTC, HB Reavis and CPI have common sustainable development policies across CEE and Western Europe. Further, Hungarian developers such as Wing, Futureal and Horizon Development have standard sustainable development strategies.

Under the certification system, the sustainability of a building is verified by an independent assessor using standard and common international criteria.

“Green building certification is now a market standard: all major office buildings in planning or under construction are targeting green building certification,” said Colliers International.

More than 1.1 million sqm of office space on the Budapest office market is green certified according to Colliers International. This compares to 200,000 sqm in 2012, after sustainability accreditation arrived on the market in 2010-2011. Around one-third of the office stock in Budapest is green certified.

However, on a building basis, the ratio of sustainability accredited space is much lower as to date 58 buildings have been certified, representing about 15% of the

Eifel Palace interior.

“Green has made people think, change some of the details and spend more time documenting, but it has not actually changed the buildings that much.” market. With 12 office buildings currently under construction consisting of 270,000 sqm of space that is due to be delivered in 2017-2018, green office space will increase by a further 30% according to projections

by Colliers. By way of a comparison, in the Prague office market, 16% of buildings are sustainability certified and 30% of the floor space is certified.

Conforming to sustainability requirements and making a profitable return on investment is now certainly seen as part of the same process. This benefits developers and building owners who have resulting higher returns by attracting or maintaining tenants, while at the same time minimizing the wider environmental impact of buildings. From the tenant perspective, the benefits are increased efficiency and an improved working environment for staff.

Making People Think “Green has made people think, change some of the details and spend more time documenting, but it has not actually

ADVERTISEMENT

BLUE CUBE ADDRESS 1138 Budapest, Váci út 182.

YEAR BUILT 2002 FREE SPACE 5,900 sqm PUBLIC TRANSPORT metro line M3,

bus No. 105, 120, 15

CONTACT Barbara Baráth +36 20 984 4977

Zoltán Fábián: + 36 20 497 2181

Blue Cube office building is located on Váci út, right next to Duna Plaza and the M3 metro station. It is a perfect setting to work in. Be our tenant and enjoy the comfort of abundant parking facilities, a well-equipped conference room, high technical standards, efficient configuration, pleasant inner garden.

BBJ_2517_special_report_.indd 14

changed the buildings that much,” comments Michael Smithing, head of landlord representation and LEED appraiser at Colliers International Hungary.

“Developers get extra points for providing extra light and good views, but in Hungary you cannot lease a building if it does not have good natural light.

However, there is a greater focus on making them green, which we did not talk about ten years ago. They are now a little more economical and they are going to be better for the earth. What we have seen, for example, are discussions about tenant density. This is a key factor when marketing a building,” Smithing adds.

“The BREEAM assessment method provides an independent means of assessing environmental impacts associated with construction projects,” insists Martin Earl, a licensed BREEAM international assessor based in Warsaw.

He says buildings are assessed “at the design, construction, initial occupation and refurbishment stages in a consistent way against a fixed set of criteria.”

Pál Baross, director of the campus development office at the Central European University (CEU) and an experienced sustainability accreditor, says aspects such as location, energy saving concepts and building management systems that, for example, monitor energy usage and the provision of natural light, all play a role.

“Sustainability elements are essentially utilized to raise the standard of new buildings and upgrade older buildings to meet the requirements for green building development and sustainable property management. Green elements need to be incorporated from the design stage and developers, architects, cost consultants and financers need to coordinate their roles from the inception of a project,” he explains.

Commonly Used The most commonly used certification organizations across CEE are the U.K.based BREEAM (Building Research Establishment Environmental Assessment Methodology) and the U.S.-based LEED (Leadership in Energy & Environmental Design). In addition, a much smaller minority of office buildings have been certified by the DGNB accreditation system, favored by German speaking countries. LEED introduced a stricter LEED v4 rating system in the fall of 2013,

while BREEAM updated its rating systems last year.

According to Colliers, there is almost twice as much space certified under BREEAM than LEED in in Hungary.

This applies to both existing building certifications and new building certification.

Horizon Development, in partnership with the investor, Erste Open-ended Real Estate Fund has been awarded both LEED “Gold” and BREEAM “Very Good” accreditation for its 25,000 sqm Promenade Gardens office project on Váci út, scheduled to be completed in 2018. The Hungarian developer also achieved dual LEED and BREEAM accreditation for the Eiffel Palace development, which has twice been purchased by investors over the last three years.

“Meeting the requirements of BREEAM and LEED means an employee friendly, healthy atmosphere for the building users, and reduced stress on the environment by utilizing energy and resource-efficient materials and technologies,” commented Edina Hornok, head of sustainable construction at DVM Group, who designed the projects.

Zsombor Barta, president of the Hungarian Green Building Council (HuGBC) and a BREEAM assessor, sees a small difference between the methodology of each sustainability accreditation organization, resulting mostly from the origin and background of these systems.

“Although there are differences, we can see that these systems have established a good market position on the CE market, which shows also the good co-existence of the different schemes. The clients and their preferences decide about the selected system,” he said.

BREEAM for example makes assessments based on nine categories – management, health and well-being, energy, transport, materials, waste, water, land-use/ecology and pollution.

Sustainability elements in a building are generally regarded as adding to its return on investment and capital value and are a must for higher level investors. Further, a good design and the high quality of construction underpinned by green certification ensures the buyer that they should not have to make significant capital investments into the property during its operation. Essentially, investment grade buildings are usually sustainability accredited.

“It is not a prerequisite for an office purchase – it is just preferred by the investor. Although it must be noted that most newly constructed offices have some level of sustainability,” said Tim O’Sullivan, head of investment properties for Hungary & SEE at CBRE.

Sustainability Classifications

BREEAM

LEED

Outstanding Excellent Very Good Good

Platinum Gold Silver

Pass

-

2017. 09. 20. 19:49

www.bbj.hu

3

Budapest Business Journal | September 22 – October 5, 2017

Special Report | 15

Urban Development a Core Element of Sustainability

In Budapest, the norm is to develop in locations with direct access to public transport and bicycle lane connections.

Further, office developments are currently located within close proximity to population centers.

It is a start towards sustainability, but more needs to be done.

GARY J.MORRELL

BREEAM accreditation, one of the leading certifications on the market, talks directly about urban design and transportation.

“The transport category encourages better access to suitable means of transport for building users. Issues in this section focus on the accessibility of public transport and other alternative transport solutions that support reductions in car journeys and, therefore, congestion and CO2 emissions over the life of the building,” said Martin Earl, a CEE-based BREEAM assessor.

Hungary’s best builders are certainly aware of this. Horizon Development has a policy of developing office projects with electric car chargers, and bicycle storage with showers and lockers. The locations include easy access by public transport, bicycle lanes and shops and services within walking distance.

Obviously, development plots at transport intersections are becoming more difficult and expensive to source in a compact city going through a development boom. Nevertheless, Wing is due to deliver the BREEAM “Very Good” certified Magyar Telekom Group HQ at a road, tram

Agora Budapest. and metro intersection on the main road to the international airport.

Good Density The density of the Budapest public transport is regarded as very good, although it is outdated in some parts.

“Public and alternative transportation is a hot topic in city level sustainability,” says Zsombor Barta, president of the Hungarian Green Building Council (HuGBC).

“As one of the overall main goals of a sustainable city is to create a more livable and healthier urban environment, the reduction of the individual gasolineengine car traffic has a high priority. The provision of new alternative transport methods, such as car and bike sharing platforms, or electric car schemes, are improving the city’s sustainability significantly,” Barta notes.

“The attractiveness and high efficiency of public transportation should also be a high priority to improve urban air quality, to reduce noise and to free-up urban spaces for community use. Again, complex and holistic thinking is important for city level sustainability and transportation and a smart combination of new and alternative transportation schemes, in order to improve overall sustainability and transportation as well,” he adds.

In the Váci corridor, HB Reavis is developing its latest office project, the

ADVERTISEMENT

Long-term Plan The Budapest 2030 Long-term Urban Development Concept envisages the capital’s evolution over the next ten years, taking into account its urban characteristics. The document argues that there is a need to adopt an approach that lays greater emphasize on the protection and sustainable use of existing assets.

“Increasing importance is attached to a healthier, greener urban environment, reducing social inequalities, developing ADVERTISEMENT

BUDAPART OFFICES „A”

BUDAPART GATE ADDRESS 1117 Budapest, Hengermalom út 70.

YEAR BUILT 2019 FREE SPACE 15,229 sqm PUBLIC TRANSPORT metro line M4,

Bus No. 33, 103, 133 E

CONTACT Borbála Csuhay, +36 1 241 0080

E-mail: sales@budapart.hu Web: www.budapart.hu

BudaPart is a unique investment in Hungary due to its location and the high rate of green areas and water. 11 of the 54 hectares of the property is water whilst 25 hectares is green area bringing you as close to nature as you can be in a vibrant city. Our main goal for this new quarter is to provide an exciting, colorful place for those who live and work here, and those visiting the area for recreational purposes. BudaPart Offices A is classified as A-category and will receive LEED Silver qualification. It is an efficient and an environmentally friendly building offering an enormous possibility for people that work here and for companies seeking the Buda mood.

BBJ_2517_special_report_.indd 15

138,000 sqm Agora Budapest. It will consist of five office buildings distributed around three public squares. The development has been designed by the London-based Make Architects and the Hungarian Finta Studio, who emphasize the public squares in the design and facilities that can be used by adjacent population centers.

All projects in the booming Váci út area are being created with direct access to metro stations and bicycle paths. Another established regional developer, GTC, is developing the 22,000 sqm White House here. The project has been awarded LEED “Gold” pre-certification. Elsewhere, the Corvin Promenade project is regarded as a particularly successful development plot with regard to location, as it has excellent transport links and Futureal has delivered a very attractive environment.

on an environment-friendly basis, energy efficient transport and the smart management of urban areas and resources,” says the introduction to the document, published by the Urban Development Department of the Municipality of the Budapest Major’s office.

“Sustainable cities are not only greener and healthier cities, but they are also smarter. The new smart technologies can support the city’s overall efficiency and make the urban space a more livable and enjoyable place,” comments Barta, who wrote study in collaboration with Sándor Finta, the former chief architect of the Municipality of Budapest.

“If we are talking about new real estate developments it would be highly important to evaluate the project also on the community level and not just as a stand-alone project. Sustainable buildings are smart buildings as well and they are responding to the needs of the building users, but they are also interconnecting with their environment. Sustainability should make a city more livable, therefore, in an ideal case, it should have a huge effect also on the city’s appearance as well,” Barta goes on to say.

He argues that Váci út could be made more comfortable with more pedestrian areas and bicycle lanes. Further, Budapest in general needs to connect its fragmented network of cycle lanes, so that they can become an intrinsic be part of the transportation system. “An important achievement of the sustainable movement is the changing attitude of people, the increased commitment towards sustainability and the more detailed knowledge about polluting sources and their effects. The economic effects of sustainability, especially in the built environment, is also a new achievement and knowledge, which is important,” Barta believes.

“Although there are some very promising movements and methods as to how to improve the built environment’s sustainability, there is still a lot to do.

We have the knowledge and we have also the instruments for how to make our environment healthier and more livable, but general education is still needed and important because we also see that we have no more time to wait or to postpone these movements. Pollution caused by humans has very long-lasting effects, and we are also damaging the economy, health and natural resources,” he concludes.

ADDRESS 1117 Budapest, Dombóvári út 27.

YEAR BUILT: 2019 FREE SPACE: 18.165 sqm PUBLIC TRANSPORT: metro line M4, Bus No. 33,

103, 133 E, 153,154, Tram No.1, BKK boat CONTACT: Borbála Csuhay, +36 1 241 0080 E-mail: sales@budapart.hu Web: www.budapart.hu

BudaPart is a unique investment in Hungary due to its location and the high rate of green areas and water. 11 of the 54 hectares of the property is water whilst 25 hectares is green area bringing you as close to nature as you can be in a vibrant city. Our main goal for this new quarter is to provide an exciting, colorful place for those who live and work here, and those visiting the area for recreational purposes. Being appreciative of the nature and the urban environment surrounding the BudaPart, we will convert the synergy offered by the river and the close inner city into a harmonious and inspiring environment in line with the modern HR strategies. BudaPart Gate is an efficient, environmentally friendly building classified as A+ category and will receive LEED Gold qualification.

2017. 09. 20. 19:49

16 | 3

Special Report

Developing a 21st Century Landmark

CEU COLUMN

Green Business in a Grey Region Sebastian Krol Financial Controller NUTRICIA ADVANCED MEDICAL NUTRITION, POLAND

According to the World Health Organization, Central and Eastern Europe (CEE) is the most polluted part of the continent. The statistics are staggering.

The mortality rate attributed to air pollution is 122.8 in Hungary (per 100,000 population) and 68.9 in Poland, compared to 32.5 in Germany and 17.2 in France (World Health Statistics, WHO, 2017).

In the CEE region, where demographic trends spell trouble for future economic growth, these statistics should concern not only thoughtful statesmen. This also applies to agile business leaders.

An increase in environmental awareness among consumers should be a trigger for your business to assess its environmental footprint (e.g. through Environmental Accounting). Doing so could give you a competitive edge, if you deal with it the right way.

EC Engineering, an engineering design company based in Krakow, came up with a unique benefit package for its employees. The company offers EUR 0.12 for each kilometer cycled to and from the office. According to the company’s HR department, two-wheel commuters are healthier, happier and less

The idea of establishing a bike path stretching more than 100 kilometers between Budapest and Lake Balaton, or the initiative to establish a biking infrastructure in Bucharest (more than 200 km of bike lanes) shows that the municipalities in the region have started to understand the need to provide viable alternatives to cars.

BBJ_2517_special_report_.indd 16

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

stressed, not to mention eventually better off financially.

This is an excellent example of how a green approach can foster positive employer branding on a relatively low budget. Even a medium-sized business can create a buzz on social media. At a time when the labor force has become a scarce resource in the region, an employee’s benefits should stand out from the standard. The above example is still a novelty in CEE.

Competitive Advantage Another example from Poland is SEEDiA, a startup that manufactures products that gather solar energy, like solar benches and charging stands.

Recently, bValue investment fund announced its intention to invest EUR 0.8 million in this project, as it sees potential in such products.

SEEDiA has orders not only from municipalities, but also from private companies (e.g. real estate companies).

These days, being green helps to set a company apart and create a competitive advantage.

Such green thinking could also generate benefits for public institutions.

Data captured by TomTom’s Traffic Index proves that cities in CEE are experiencing the biggest traffic in Europe. The idea of establishing a bike path stretching more than 100 kilometers between Budapest and Lake Balaton, or the initiative to establish a biking infrastructure in Bucharest (more than 200 km of bike lanes) shows that the municipalities in the region have started to understand the need to provide viable alternatives to cars.

Eco-refuges could foster the deficit of skilled labor force from the cities that ignore environmental issues. It could be a serious threat to Budapest’s economic growth.

As a stock investor, consider investing in companies that offer unique environmental solutions.

Bioelektra, an innovative Polish startup that received an award during the Economic Forum in Davos, owns a technology that could revolutionize the way the world deals with garbage.

The company could process any type of garbage with literally no waste. Bioelektra is on the radar of American and Gulf investors, and those investors who purchased stocks during the initial stage of the project can expect remarkably high returns.

Companies which neglect the impact of their environmental footprint might suffer a hit in the long run. Today, being more eco-friendly could give you a competitive advantage, while in the future it will become a hygiene factor. Do your “from being green to being great” homework, before your rivals do their own.

This column is part of a series of opinion pieces from academic business experts. The opinions stated here do not necessarily reflect those of the BBJ.

The man behind the development of one of the most ambitious, and at times controversial projects in Budapest says BudaPart will deliver a modern, sustainable, mixed-use quarter.

ROBIN MARSHALL

“This will be one of the biggest developments in Budapest in a decade,” says Gergely Árendás, managing director of developer Property Market Ingatlanfejlesztő Kft. It has also been a long time in coming. “The public park [Kopaszi gát] was developed more than ten years ago and is very popular. The rest of the site remained undeveloped because of the financial situation of the previous owners.”

In total, including the public park and the Lágymányos Bay, the site is on 53 hectares, of which 23 hectares are development land. The land changed hands in December 2015, and that ushered in a yearlong process aimed at maximizing the potential of the plot.

“We wanted to give the site a master plan that it deserves, as we felt the old plans did not do it justice,” explains Árendás. Award-winning Copenhagen-based Adept was drafted in to prepare the concept plan for the quarter. By May 2016, the master plan was ready and presented to the public.

This was followed by six months of negotiations with the municipalities, completed in December of last year.

“We have permitting for two office

Gergely Árendás, managing director of developer Property Market Ingatlanfejlesztő Kft. buildings and two residential, and are going ahead with the two residential buildings, which will have a total of 265 apartments, and BudaPart Gate, an 18,000 sqm class “A” office unit.

Artist’s illustration of BudaPart Gate.

2017. 09. 20. 19:49

www.bbj.hu

3

Budapest Business Journal | September 22 – October 5, 2017

We have done detailed analysis and from the Pest side, with the exception of some of the approaches, it will not be visible, and from north Buda or from the Castle District it will not be visible at all. Most of the architectural community is positive about it. It will not overshadow the area, but it will become a 21st century landmark in the southern part of the city.”

The following two residential buildings will come online in a couple of weeks’ time,” the developer says. “We are calculating it will take ten years to fully realize the project, by which time 6,000 people will be living here, and 24,000 working in offices.”

Uncertainty and Controversy Any new development creates a degree of uncertainty and controversy. In the case of BudaPart, there were two main areas. “The public’s biggest concern

has been the public park,” Árendás acknowledges. “That will remain. We are improving it and have already invested HUF 150 million to upgrade the public spaces. We will not build on these, and that has been the most important area of communication for us. The park will remain open throughout construction. The feedback is that more people now know exactly what we want to do, and most are extremely positive.”

The other area of controversy has been height, specifically the height of one building, a 120-meter high rise (the tallest structure allowed in Budapest). Even UNESCO has waded in, saying it would not want to see anything detract from the World Heritage-listed Danube banks area.

“High rise buildings are always the subject of public debate. The real situation is that, while it is close to the city center, this is not part of the World Heritage zone, or even its buffer zone; in fact that is more than one kilometer away. We have done detailed analysis and from the Pest side, with the exception of some of the approaches, it will not be visible, and from north Buda or from the Castle District it will not be visible at all. Most of the architectural community is positive about it. It will not overshadow the area, but it will become a 21st century landmark in the southern part of the city.”

A key concept of BudaPart is that this is a mixed-use development, which means it is sustainable. Having homes

Special Report | 17

Artist’s illustration of BudaPart residental building. there makes the retail units possible, because office- or residential-only zones struggle to fill retail space. It is also well served by public transport, particularly so since Metro 4 opened, and the No.1 tram line has been extended. A new tram line linking the site from Gellért tér and the Technical University is already in the design phase, and that has been financed by the developer.

The first residential phase is now 85% sold and will be delivered in January 2019, the developer insists. Based on

this success, another 400 units in two buildings will be delivered later the same year. “It is great trust that our customers have shown towards the project, rewarding the quality of the designs and the stability of the owners.”

Property Market Kft. is majority owned by one of Hungary’s leading building contractors, Market Építő Zrt., with minority ownership belonging to Constellation Hotels Holding Limited, based in Luxembourg, but with Qatari money behind it.

EXPERT OPINION

Horizon Development showcases 3 sustainable projects at EXPO REAL Hungarian property developer of award winning premium downtown projects – Horizon Development – co-exhibits at the Budapest stand of Europe’s largest real estate event, EXPO REAL. The Munich-based property fair to be held on 4-6 October 2017 is an excellent opportunity for Horizon Development to feature three of its main projects in the pipeline: Szervita Square Building, Promenade Gardens and Buda Gardens.

The three developments – representing different sectors of the property industry – also vary in the stages within their respective development cycles, but they all share one important aspect: exceptional value to be presented to the international real estate investment community.

Szervita Square Building is a multifunctional development in the 5th district of Budapest that combines retail, office and residential functions at a neverbefore-seen level of architectural quality, redefining downtown luxury. Current works include the demolition of the 1970s office- and garage building standing on the plot, giving place to the 15,000 sqm LEED Platinum certified property in 2019.

Promenade Gardens

Szervita Square Building Promenade Gardens is the most technically advanced ongoing largescale office development on the 13th district Váci office corridor, featuring uniquely sophisticated exterior and interior design elements. The 25,000 sqm commercial development is structurally complete, with a year- end handover date, celebrating its Topping Out in September 2017.

Buda Gardens is a pure residential scheme to be realized within the 11th district, by Lake Feneketlen. It will stand out from the crowd of new apartment complexes with its innovative

technological solutions and high ratio of green surfaces. The smart living homes of Buda Gardens are currently in the conceptual design phase, but architectural details of the LEED Gold residential development will be revealed soon.

Creating quality spaces with energyand water efficiency, thermal comfort and wellbeing in mind has always been at the forefront of Horizon Development’s sustainability agenda.

It became a prerequisite for the company’s commercial and residential developments to implement most

Buda Gardens currently available green solutions, and to earn one or more international environmental certifications.

The Budapest stand at EXPO RE AL (A2.411) will also have a strong sustainable urbanization and smart city focus this year, where Horizon Development projects perfectly fit in.

Managing partner Attila Kovács MRICS will also be a panelist of the main event, speaking at the roundtable discussion entitled ‘Hungar y: Confidence continues to Grow’ on 4 October. www.horizondevelopment.hu

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

BBJ_2517_special_report_.indd 17

2017. 09. 20. 19:49

18 | 3

Special Report

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Office Depot’s Environmental Mission

EXPERT OPINION

The tax Aspects of Hungarian Real Estate For renovation and investments aimed

Judit Jancsa-Pék

at safeguarding cultural heritage, the

Tax Advisor | Partner

not even limited by the amount of pre-

LeitnerLeitner

carry-forward.

tax base may be reduced by triple the renovation cost. Moreover, the latter is tax profits either, i.e. resulting in losses

Real estate investments may also form part of a project eligible for No wonder that real estate plays a major

development tax allowances (providing

role in the overall M&A market, since

80% credit from payable CIT, ending

these properties represent financial

in an effective tax rate of 1.8%) and

and emotional security too. Both buyer

other state subsidies. Moreover, from

and seller try to maximize their cost-

2017, the implementation and operation

benefit ratio, and are dependent on

of asset investments aimed at energy

reliable data. Next to identifying, for

efficiency or reducing final energy

example, future rental income and

consumption also can lead to a CIT credit

maintenance costs, the owner/lessor has

of 70%. The tax incentive is capped at

to be absolutely sure about the funding

30% of the eligible costs, which can be

of fiscal circumstances, including taxes.

further increased by 10-20% for SMEs

In this article, we would like to give an

(altogether up to EUR 15 million).

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

insight into the specialties of real estate taxation in Hungary.

In order to build a full picture, the VAT, which is in many cases the most difficult

In terms of real estate, Hungary

issue in a real estate transaction, should

levies taxes on the owner for holding,

also be mentioned. Generally, the

utilization and alienation of the

alienation of real estate is subject to

property. Taxes are assessed both at

VAT at a rate of 27%. The sale of real

the level of central administration and

estate occupied for more than two years

local municipalities. Upon alienation,

or undeveloped land (except building

moreover, taxes may be imposed for

plots) as well as the rental and leasing of

the alienator (capital gain taxation both

property is tax exempt. Notwithstanding

for corporations and private persons)

this general rule, the taxpayer may

and the purchaser (real estate transfer

opt for taxation, but will be bound to

tax, gift tax depending on the form of

his decision until the end of the fifth

acquisition) too. Although in some cases

calendar year. With respect to real estate

real estate holdings are also taxable, it is

transactions, taxpayers may opt to be

still worth considering structuring real

taxable on the sale, or the lease, or both.

estate investments by share instead of

In the case of leasing, it is possible to

asset deal – it is especially advantageous

differentiate between residential and

to combine that with a so-called

non-residential real estate. Considering

reported participation scheme, which

the varieties, it is necessary to be well

grants full exemption from the taxation

prepared for the VAT.

of any capital gains in a future sale of the shares.

So, tax optimization tailored to each client’s need is very important in real

It is also advisable to be aware of

estate transactions. As a renowned M&A

potential tax savings concerning real

advisor, LeitnerLeitner has decades of

estate investments. In planning the

practical experience in the M&A and

investment, one may consider the

real estate market. We provide our

development reserve that represents

clients with high-end tax and financial

a kind of accelerated depreciation. In

advisory through all stages of the real

the case of long-term used tangible

estate lifecycle, from establishment

assets – such as real estate with a yearly

or purchase to initialization of sale or

depreciation of 2-6% – this is a good

demolition of real estate.

development loan from the budget.

Moreover, a special tax advantage may also be used for the maintenance costs of monument buildings and locally listed buildings (double deductibility of costs).

BBJ_2517_special_report_.indd 18

Károly Szigeti, CEO of Office Depot in Hungary.

According to Károly Szigeti, CEO of Office Depot in Hungary, clients are generally more environmentally conscious than they were, but product cost still tends to be the primary deciding factor when it comes to making a purchase.

BBJ STAFF

A franchise of Office Depot Europe, the well-known brand will actually be celebrating 20 years in Hungary this October and November, though it certainly hasn’t been all plain sailing, Szigeti tells the Budapest Business Journal.

“The business has changed significantly since it was purchased in 2012 by a private equity firm,” says Szigeti. “The company had been de-scaling in Hungary under the old ownership, going from 18 shops down to nine. Thanks to some severe costcutting, we survived and now the business is growing steadily. We are feeling the strength of the Hungarian economy and SMEs.” Office Depot’s business model takes in those shops (eight are in the capital, the ninth in Győr), B2B sales through agents, and the internet. “In our segment, we are in the top five businesses in Hungary, but we are unique in dealing with all three channels, which makes us more complex than our competitors,” the CEO says.

Each of the channels has its own tendencies, of course, but Szigeti says certain trends can be seen. “There is a noticeable environmentally conscious attitude among the manufacturers. Our partners are interested in green products, but many people will not change because of pricing,” he says. He sees part of the

mission of Office Depot as educating customers about making more informed choices.

Personal Contacts “Footfall” customers who walk into a shop, or those who are shopping anonymously online (split roughly equally between individuals and SMEs), are the hardest to convince, because they have a definite idea in mind.

But even with the biggest B2B customers, and Office Depot counts the likes of Bosch among those, price can still matter. The big difference here is that a sales rep who has developed a good rapport with a customer can have an effect.

“For the biggest clients, a tender may be called by the head office in Frankfurt or Amsterdam, say, and that will be very cost sensitive. But you may be able to persuade them to buy something else around that which is a greener alternative. B2B sales reps can be more proactive in pushing the green agenda.” As with so many aspects of life, it depends on personal contacts and a good relationship.

Szigeti says the best-selling products are Office Depot’s own-brand recycled paper and recycled paper towels, along with remanufactured markers and ballpoint pens.

Sales of green products thus far this year are somewhat down at HUF 113.1 million YTD, compared with HUF 124.6 mln in 2016. “Bigger buyers have reduced how much recycled paper they have been buying this year due to the slightly greener color, while the SME sector has stagnated,” he explains. And although Office Depot can meet all your sustainable office needs, from recycled paper and pens all the way up to furniture, it is still paper that is by far the biggest green sales item.

For next year, used items and supplies collection boxes, along with recycled office technology products will be on the shelves of Office Depot’s department stores. Approval is also in progress for a “green corner” design for each shop, and the sale of paper waste collectors for the B2B segment.

2017. 09. 20. 19:49

Vienna

Warsaw Budapest Prague Bucharest

myhive builds community

Welcome to myhive, your office of the future! A place of communication and cooperation with a friendly atmosphere, firstclass infrastructure and comprehensive service: from the concierge and the business networking lounge to the provision of goods and services for your day-to-day requirements. All you need for your company’s success and your personal wellbeing at your workplace at one single location.

More information at www.myhive-offices.com/hu

BBJ_2517_special_report_.indd 19

An IMMOFINANZ brand.

2017. 09. 20. 19:49

20 | 3

Special Report

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

WELL Aims to Complement LEED and BREEAM

The building certification market, currently dominated in Europe

by BREEAM and LEED, has recently seen a new peer, WELL, which aims to be a complementary certificate. The Budapest Business Journal discussed the European market with the New York-based system’s CEO.

developments in 77 countries, and almost 2,265,900 buildings registered for assessment.

LEED, founded in 1998 in the United States, is a green building rating system that awards Certified, Silver, Gold and Platinum certificates, based on how the buildings score. LEED says it has more than 90,500 participating projects in 165 countries & territories.

What makes WELL stand out as compared to these two? “WELL is a complement to green rating systems across the globe. When the WELL Building Standard was first being developed, green building certifications like LEED had set out a baseline for how green building practices could impact human health,” Rick Fedrizzi, chairman and CEO of the International WELL Building Institute in New York, tells the Budapest Business Journal.

CHRISTIAN KESZTHELYI

With globalization appearing to tie people to the desks in their offices for longer working hours than ever, real estate developers have put a special emphasis on delivering buildings that keep the wellbeing and health of white collar workers in the center.

The Hungarian market has been chiefly dominated by the Building Research Establishment Environmental Assessment Methodology (BREEAM), and Leadership

Artist’s rendering of Advance Tower, which will be the first of Futureal Group’s Hungarian projects to be designed to meet the WELL Building Standard’s requirements. in Energy and Environmental Design (LEED). However, Futureal’s recent announcement that it is aspiring to obtain the WELL Building Standard certification from the International WELL Building Institute has certainly grabbed attention.

BREEAM, founded in 1990 in the United Kingdom, is a sustainability assessment method that claims to address a number of lifecycle stages such as New Construction, Refurbishment and In-Use. Today it has more than 562,200 certified

Impact on Human Health “Today, a growing body of research is available to underscore the impact indoor spaces can have on the health and wellness of the people inside of the buildings, making it increasingly important to focus on both human and environmental sustainability in buildings. WELL, therefore, was

ADVERTISEMENT

gatewaybc.hu

FIND YOUR OFFICE IN OUR

RENEWED BUILDINGS balanceloft.hu

Office Retail Logistics Hospitality +361 225 6600 hungary@cpipg.com www.cpigroup.hu

BBJ_2517_special_report_.indd 20

2017. 09. 20. 19:49

www.bbj.hu

3

Budapest Business Journal | September 22 – October 5, 2017

developed to take a much deeper dive into these health impacts and to improve the way people live by creating spaces that enhance their health and quality of life,” the CEO adds.

Putting the people into the center could not be more timely, when it seems we spend ever more time in front of our computers in office buildings. How these offices affect workers cannot be ignored.

“At a time when we spend 90% of our time indoors, it is important to recognize the profound impact that our buildings and communities have on our health and wellness, especially when you consider that human health and wellness can impact everything from stress levels to alertness to productivity,” Fedrizzi explains.

“With this in mind, it’s no surprise that developers and businesses are now incorporating design and construction elements into their spaces that can positively contribute to occupant health, and, in turn, potentially reduce absenteeism, increase presenteeism, boost productivity, and enhance the overall human experience,” he adds.

Biological Sustainability The greatest challenges lie in understanding the ways an office building can affect the health of those working in it. This is the first step, according to Fedrizzi, in creating places that promote biological sustainability.

“Educating the workforce on how workplace features such as acoustics,

“At a time when we spend 90% of our time indoors, it is important to recognize the profound impact that our buildings and communities have on our health and wellness, especially when you consider that human health and wellness can impact everything from stress levels to alertness to productivity.” lighting, ergonomics, and indoor air quality can have long lasting effects on human health, wellness and productivity is important. From the quality of air in a space, to the amount of daylight entering, to the ‘walkability’ of a building’s location, there are many ways to use architecture and behavioral science to help people form new, positive habits in largely automatic ways.”

A BREEAM certification can be acquired through licensed assessors who crosscheck the evidence against the credit criteria and report it to parent company Building Research Establishment (BRE). The latter then checks if its requirements have been met, and issues the certificate. In the case of LEED, on the other hand, the design

team collects evidence, which is sent to the U.S. Green Building Council, which examines this and issues the certificate based on demands met.

Fedrizzi tells the BBJ that WELL works in harmony with “other building certifications such as LEED and BREEAM” by design. Also, he adds that it makes sense to pursue WELL Certification while also pursuing other programs, because it builds upon many facets of a “green” building as a starting point.

But what are the most important factors WELL investigates before granting a certification? “The WELL program encompasses more than 100 features addressing seven concepts of building performance, working in concert to deliver the highest benefits,” Fedrizzi notes.

“WELL is designed so that projects are incorporating a range of design elements, from lighting to support our sleep to walkable spaces that promote physical activity. The WELL seven concepts have been scientifically proven to affect human health and wellness and include air, water, nourishment, light, fitness, comfort, and mind,” he notes.

Clear Interest Fedrizzi says interest in the region is clear. By September 1, a total of 15 projects have registered to pursue WELL Certification in CEE, including Hungary.

“In Hungary, these projects are major developments, ranging from 132,000

Special Report | 21 square feet to 423,000 square feet, which points to the fact that WELL Certification helps to set projects apart in a newly booming real estate market,” Fedrizzi notes.

Advance Tower, located in the booming Váci út corridor, will be the first of Futureal Group’s Hungarian projects to have been be designed to meet the WELL Building Standard’s requirements, Futureal Hungary tells the BBJ. “The building’s pre-qualification for the WELL certification is already in progress.”

According to Futureal, work environment is among the top three factors affecting employees’ performance and satisfaction. “Therefore, Futureal has been committed to sustainability and thus when developing our office buildings, factors that improve employees’ health and well-being are of great importance, besides the environmental considerations and energy requirements. Our aim is creating a work environment that is beneficial not just for the comfort of employees but also for their health,” the real estate developer says.

Futureal praises WELL for helping employees to pick proper nourishment and to improve their fitness, well-being or even their sleep; ensuring greater comfort and thus, optimal performance in companies’ operation.

“Futureal Group will keep the Well Building Standard’s requirements in mind during its forthcoming office development projects, including Corvin 5, as well as the Budapest ONE Business Park,” the real estate company promises.

What the future looks like for the CEE office market in terms of sustainability?

Marcin Łapiński

András Schmidt

Managing Director

Sustainability Manager

SKANSKA PROPERTY HUNGARY & ROMANIA

The CEE real estate market has gone through an enormous period of growth after the crisis. The amount of current projects on the market, especially in the office sector, is showing a considerable increase. These developments have one thing in common: developers are focusing on sustainability today more than ever.

“What we, at Skanska, simply call futureproof workplaces, are the most sought-after ones in today market in the whole CEE region.

BBJ_2517_special_report_.indd 21

SKANSKA PROPERTY HUNGARY

We identify and prioritize the most likely drivers for a workplace change in immediate future, while focusing to understand how humans thrive at work and anticipating their future needs. Our aim is to create a positive human experience and improve the quality of life at work, as we know it contributes sustainably to the success of organizations. In order to measure employee wellbeing, we at Skanska implement WELL certification in our upcoming developments.” - mentions Marcin Łapiński, Managing Director of Skanska Property Hungary and Romania.

“Nevertheless, creating a working environment that offers green solutions in all areas such as water consumption, energy efficiency, reducing our carbon footprint and lowering the impact of the development on the local community have become essential” says András Schmidt, Sustainability Manager of Skanska Property Hungary.

Skanska has been experiencing a huge demand from tenants for these type of solutions in Hungary. Its most recent delivered project, Nordic Light, and its upcoming Mill Park development are great examples of how important the sustainability factor has become, and how innovative solutions can contribute to creating a truly green workplace.

“Reducing energy consumption is one of the main elements in Skanska’s developments, improving the asset value for our customers.

By doing so we contribute to curbing climate change and improving energy security.

International studies have shown that more sustainable developments are not only good for nature, but also for people. Our green pioneering approach is appreciated by many local and international tenants.” - continues Mr. Schmidt.

Mill Park office complex, ready to be delivered in 2018 and located in the vibrant setting of Budapest’s 9th district, incorporates various green solutions, among which energy efficiency is one of the key features. After being delivered and operational, it will use approximately 25 percent less energy than a conventional Hungarian office building would.

As a leading development and construction company, Skanska is striving to explore and implement solutions in all areas and during the whole development process. To limit

the local impact on the public close to a worksite, the Swedish developer monitors the construction and operational process through environmental management systems, and then follows-up on the footprint from these operations, such as noise, emissions and waste.

Skanska’s latest inaugurated project, the Class A Nordic Light office building located on the Váci office corridor, provides more than 26.000 sq m gross leasable area on 7 above ground levels. It has been developed with a unique water system that allows for the office complex to use nearly 75 percent less water than a conventional Hungarian office building, and includes a rainwater and soil water harvesting system for toilet flushing and irrigation. The building also has a green roof in order to avoid heat island effect, maintain storm water runoff and promote healthy working environment, enhancing productivity and biophilia. Skanska consequently provides tenants with information about water efficiency to influence occupants to use less water, and advises them to also install water efficient fixtures.

“These types of solutions are becoming a commonplace standard, and we believe that it’s important to make yet another step and commit to one more sustainable trend, that focuses on enhancing people’s health and well-being through the built environment.” concludes Mr. Schmidt.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

EXPERT OPINION

2017. 09. 20. 19:49

22 | 3

Special Report

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Market Talk: How Green is Budapest?

With green accreditation becoming the norm in both the property development and the asset management segment, market players are increasingly aiming to secure more than one green accreditations.

With technology improving at break-neck pace and ever more demanding tenants, disregarding the trend is not an option.

Tibor Gasser.

Edina Hornok.

Gergely Árendás.

Mátyás Gereben.

Viktor Nagy.

LEVENTE HÖRÖMPÖLI-TÓTH

The Budapest Business Journal approached leading market players in property development and management to find out how they assess the market’s readiness to comply with requirements for sustainability and eco-friendliness.

Replies elaborated on the ultimate matter of whether the now commonplace green accreditation is a genuine attempt to improve the environment, or it could be considered simply as window dressing, based on the fact that clients demand it. The findings further touch upon the extra cost burden green investments bear on future ROI. Finally, the BBJ was curious about whether any developer would still consider investing into non-ecofriendly projects at all.

Here’s what the market players have to say.

Tibor Gasser general manager Gamma Properties Implementing sustainability and green strategies in the category “A” office sector is still decisive for both property development and asset management.

The global trends, the development of the market, together with more informed tenants are all behind the process.

Nevertheless, green accreditation alone plays only a small part in property marketing, since the market

BBJ_2517_special_report_.indd 22

is already devoted to green aspects and the technological development is extremely fast; thus, those who disregard these factors are already at a disadvantage.

In the office buildings managed

by GAMMA Properties, “sustainable facility management” is a priority.

In our experience, the extra greenrelated costs amount to approximately 1% of the total project. Its negative impact on ROI is balanced by faster achieved, higher cash-flow as a result of the accreditations, even if its effect is becoming more marginal. Considering ongoing office developments – and also those in the next couple of years – developers aim to get at least one green certificate, but we see more and more buildings with double accreditations.

We welcome the fact, that in addition to the BREEAM and LEED certifications, new systems such as WELL Building Standards have appeared on the market.

These new system − beside development, mechanical or maintenance aspects − focus on employee well-being as well.

All in all, each new development aims to get some kind of green certificate, but we see the demand for existing buildings without green accreditations as well.

Edina Hornok head of sustainability consultancy, DVM group The beneficial effects of sustainable developments are visible, thanks to the follow-up tools of the certification schemes, and the impact studies that regularly analyze the energy savings and productivity changes related to green buildings. The studies report improved performance from year to year. The incremental construction cost is 1-2% for a sustainable building.

Owners cannot recover this cost simply through energy savings, because operating costs are passed on to the tenants. However, the increased value of the building and the higher rents improve the ROI compared to regular buildings.New developments without green certification are not competitive in the real estate market any more.

Sustainability is a major factor for tenants when considering relocation, a large part would not move into a noncertified building. We can say green accreditation is now compulsory for new office developments.

Marcell Laczkó.

Viktor Nagy country manager IMMOFINANZ Hungary Green accreditation does indeed help to position our properties, but it is certainly not only a marketing tool. IMMOFINANZ is firmly committed to environmental issues across our portfolio, and over half of our Hungarian offices now have BREEAM “In-Use” certification.

So, as responsible real estate owners, we consider this task a priority. Of course, it is also expected by clients, who increasingly see the clear advantages of being in a building that is environmentally friendly, or at least environmentally neutral. If we start from a blank page, then of course there is more scope to examine every aspect of the functions of a building.

It is now the norm, and is expected by clients, and almost all new developments are certified. The demand is continuously growing because the advantages are clear in terms of cost savings, operating efficiencies, and overall comfort for tenants and employees.

IMMOFINANZ is taking the lead in this area, and making great strides in achieving our green aims across our portfolio. I believe that other developers

2017. 09. 20. 19:50

www.bbj.hu

3

Budapest Business Journal | September 22 – October 5, 2017

Special Report | 23

EXPERT OPINION

The Cost of Going Green Partner VLK CRESA

will increasingly follow our lead because it makes market sense, so the percentage of new developments which can be considered green will steadily rise.

Gergely Árendás managing director, Property Market Real Estate Development Ltd. The real estate development community has improved greatly in delivering ever more efficient and higher quality buildings, that is buildings that are therefore more sustainable in the long run. Whether green accreditation by itself adds value to a building is another matter. According to one argument, the additional costs of such accreditation may be better spent on improving the sustainable features of a project.

The office projects we are developing at BudaPart are already budgeted to be sustainable and achieve at least LEED “Gold” status; therefore, for us, there is no extra investment. Most of the new developments have environmental certification; it is one of the arguments for moving into a new space.

Not taking sustainability into account harms a new project in two ways: certain tenants will only consider certified buildings, and it also may negatively affect the exit value, as this is something most investors are looking for as well.

Mátyás Gereben general manager CPI Hungary Kft. According to the relevant European legislation, by 2020 significant pollutant emission reduction has to be achieved by all commercial buildings and developers invest heavily in their existing and newly built portfolio to comply with those regulations.

But there are many soft elements on the market as well that have a serious impact on the green accreditation rating, even if they mainly serve tenant’s comfort and wellbeing. Increased green surfaces around the building and on the roof, amenities supporting bikers or paper free/digital building management are good examples.

Green-related costs depend on to what extent you would like your building to be green. There are multiple levels of a green accreditation and the costs depend on which

BBJ_2517_special_report_.indd 23

classification you would like to achieve with your building. The rating assessment of an existing building refurbishment differs from a new development.

CPI is more involved in implementing refurbishment programs in its existing portfolio, whilst applying solutions such as advanced HVAC [heating, ventilation, and air conditioning] technology, integrated BMS [building management system], energy efficient illumination etc. Extra investment related to green solutions in the case of redesign normally represents 10-15% of the total expenses, whereas for new developments the figure ranges rather between 5-20%, depending on the level of accreditation the developer desires to achieve.

Nowadays, eco-friendly and energy efficient buildings are considered a must.

The scale of environmental friendliness can vary, but this will not substantially affect rents. However, human factors, including well-being at the work place, are gaining ever more significance and CPI prides itself on being a pioneer in this respect.

Marcell Laczkó project director TriGranit Over the last few years, sustainability and green buildings have moved to mainstream in the real estate industry. Nowadays, not only due to tenant requirements, but to more restrictive energy efficiency regulations, new office buildings are subject to strict technical requirements and solutions, and they are built in a green way. In other worlds, each new office development is green nowadays. And this also hints at what the future holds.

Due to an EU regulation, buildings receiving an occupation permit after the end of 2020 will be subject to much stricter technical regulations, and as an effect, buildings will tend to reach zero emission.

As for the extra cost of green buildings – though it may sound strange – if an office building aims at receiving an average certification like BREEAM “Very Good” or LEED “Silver”, it means no extra cost, as today’s average technical solutions are already green compatible. In this case, the extra cost is only the certification fee itself.

However, in the case of LEED “Diamond” or BREEAM “Excellent” certification, the extra costs can reach at least 10-20%, or even more, of the total project cost.

While there is no denying that Budapest’s building stock is becoming greener (all new builds have green accreditation nowadays), it isn’t always clear what is driving this, according to tenant representation specialists VLK Cresa.

“It is partly marketing for the developers, partly sustainability, partly a genuine effort to cut building emissions, and partly company branding; a desire from tenants to keep their talents by offering green workspaces,” says partner Péter Takács. “The truth is that no one factor dominates; it is a complex matrix of interconnected issues.”

That the green trend is well established is an indication of the growing maturity of markets such as Hungary, says Takács, though he admits there is still a way to go.“It started to happen seriously fiveten years ago, and came in with more responsible developers such as Skanska, with its Scandinavian background, who built the first green accredited building, Green House. It is certainly true today that a lot of tenants are sensitive and open to it.”

But not all. And even for those that are, green certification is almost never the number one priority for a tenant looking for new offices. “I can say that, of the projects we have worked on in the last year, nobody has asked us for a fully sustainable building at the outset.

When we share with them our section of property choices, and explain the green certifications, they are interested and want explanations.” Specifically, he says, tenants want to know if the green technology translates into cost savings.

But even if a landlord puts in newer equipment, is it really more efficient?

(Takács says VLK Cresa has found cases where it was actually worse.) And if it is more efficient, do the tenant’s work processes allow them to get the most out of the potential cost savings? Generally what is required is a genuine partnership between landlord and tenant to find the best results. A growing area of work for VLK Cresa involves educating clients and performing energy cost audits.

“You can have the most modern office imaginable, with rainwater collection, thermal heating pipes, solar panels, but it doesn’t mean much if you are throwing away hundreds of plastic bottles a week!”

The most common green certificates are from BREEAM and LEED. At the lower levels, they really represent little more than a marketing stamp, says Takács. Only at the very top levels does it represent a serious commitment to going green, not least because the technologies required are seriously expensive. But there is a third player gaining a presence on the market, WELL, which looks less at the building, and more at the people inside the structure. “WELL has a very good approach; it is how green certification should have started in the first place, because it considers the well-being of the employee. It is a truer measure of how the building performs because it looks at how the individual is able to perform in that building.” And as we all know by now, happy workers are more productive workers.

The first buildings to receive the certificate in Budapest are only being built now. Again, tenants are not demanding offices with these credentials, but Takács thinks they will readily understand what the accreditation stands for. “WELL will not solve all sustainability issues by itself, but we think it is easier to understand, for tenants to relate to in business terms.”

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

Péter Takács

RECURRING THEME Cost is something of a recurring theme. If you are a developer, there is a balance to be struck between putting in the latest solar panel technology today, say, or waiting two or three years when that same technology will be more widely available and, crucially, cheaper. To a certain extent, that can be accounted for if you are talking about a new build, but such ROI questions are particularly pressing if you are talking about an upgrade to an older building.

2017. 09. 20. 19:50

24 | 3

Special Report

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Growing Concern With Interior Sustainability Issues

Health and wellbeing are taking an ever more central role in the design of modern commercial buildings.

GARY J. MORRELL

According to BREEAM, the health and wellbeing category of its assessments “encourages the increased comfort, health and safety of building occupants, visitors and others within the vicinity. Issues in this section aim to enhance the quality of life in buildings by recognizing those that encourage a healthy and safe internal and external environment for occupants”.

A further development of the sustainability accreditation programs has been a concern with the interior environment of offices that parallels and to some extent reacts to the priorities of developers and tenants.

“I think that governmental regulations are not strict on sustainability, so for us the aim is more to push the market or to raise the barrier even higher,” says Katarzyna Zawodna, business unit president at Skanska Commercial Development Europe.

“The aim is not to wait for the market to ask about certification, but to offer something that is at the top of the business requirements that gives us a competitive advantage – here is a building that will continue to attract talent. Today it is a standard requirement to have sustainability certification, but it is not yet standard to think about wellbeing and have a human-centric approach,” she adds.

This can be seen as sustainable development that benefits building occupiers coinciding with a developer gaining a commercial advantage by producing a more financially viable product. “Improved lighting, layout and use of plants are all known to benefit wellbeing and can increase the performance of

Futureal’s Advance Tower building.

“The rise of wellbeing in the commercial real estate sector is not a fad, but a long overdue acceptance that people are the largest cost and biggest contributor to the success of companies.” employees,” comments Sophy Moffat, from the EMEA research and insight group at Cushman & Wakefield.

“Gains through boosting performance far outweigh potential cost savings through real estate efficiencies, making the imperatives for occupiers clear. The rise of wellbeing in the commercial real estate sector is not a fad, but a long overdue acceptance that people are the largest cost and biggest contributor to the success of companies,” Moffat adds.

Skanska has a policy of utilizing LEED accreditation for its office developments throughout Europe. In addition, the company plans to attain Well Building Standard (WELL) certification for all its projects.

“Buildings with WELL certification provide their tenants with a healthy working environment, a high level of personal comfort facilitating work,

availability of healthy food, and the possibility of rest doing sporting activities or in green spaces such as gardens and green corners, which improves the mental well-being of employees,” said Skanska.

Committed to Sustainability Futureal has applied for WELL certification for its Advance Tower and Corvin 5 buildings, which will be some of the first office projects in Budapest to obtain the certification.

“The International Well Building Institute’s system examines a building’s impact on the human body, health and environment and rates them based on seven categories – air, water, nourishment, light, fitness, comfort and mind. Futureal has been committed to sustainability and thus when developing our office buildings, factors that improve employees’ health and well-being are of great importance, besides the environmental considerations and energy requirements,” said Futureal.

In its latest Budapest project, the 130,000 sqm Agora Budapest, HB Reavis has applied for WELL Gold and BREEAM Outstanding certifications.

“At HB Reavis, we think that it is not enough to create sustainable buildings anymore. The whole planning and design procedure is now led by the wellbeing of

people,” the company told the Budapest Business Journal.

“We are committed to human health and wellbeing, and it is important for us to build office buildings that serve the employees and the people living in the neighborhood in the long-term. We are planning each of our new projects for WELL, BREEAM Communities (site scale) and New Construction (building) Certifications. The WELL Building Standard focuses on enhancing people’s health and well-being through the built environment,” the developer notes.

The complex will consist of green areas the size of 15 tennis courts, which will contribute to enhancing of the site’s ecology. Agora Budapest will have outdoor solar chargers, electric recharging stations on basement levels and rainwater recycling for irrigation.

“Our developed energy and water metering strategy, the reduction of night time light pollution and the high number of cycle storage spaces and accompanying facilities also contribute to a sustainable future. The project conception of the first two buildings of Agora Budapest includes humanfocused innovative solutions like smart pass integration, elevator-controlling systems, micro location-based information system, smart office mobile applications and smart parking.”

International BREEAM assessor and president of the Hungarian Green Building Council (HuGBC) Zsomber Barta notes that WELL dovetails with other certificates.

“The completely new WELL certification system from the U.S. is different from the green building certifications as it evaluates only the internal spaces and areas and their overall effects on the building users. It is important to mention that the WELL system also recommends and highlights the importance of gaining green building certification as well for a WELL certified project, as the asset’s overall sustainability can be only proved together with a third party green building certification. The coexistence of these schemes is therefore very important and it is also important to understand how they support each other and increase sustainability on the real estate market,” he says.

ADVERTISEMENT

LUXURY SANITARY WARE wellis.com

BBJ_2517_special_report_.indd 24

wellis.hu

2017. 09. 20. 19:50

www.bbj.hu

Special Report | 25

3

Budapest Business Journal | September 22 – October 5, 2017

Green Office Buildings

– –

2017

36,867 42,681

9 2,700

930 3–5

35,900 50,800

9 1,500

11,007 3–5

12–14 3.50

2008

32,000 38,000

9

Ÿ

13– 14.5 1,250 HUF

–

2009

Ÿ

3

CenteR point www.gtc.hu

Real estate agenCy (agenCies) oR agent(s)

– –

validation level

11 3,650

millennium

12-14 2004/2006 3.75

–

✓ ✓ ✓ ✓ ✓

–

✓ ✓ ✓

–

–

✓

–

Breeam Very Good

–

Wing Zrt. (100) –

1097 Budapest, Könyves Kálmán körút 37.

(1) 451-4280 (1) 451-4289 sales@wing.hu

BREEAM Very good

CBRE Leasing, www.cbre. hu

– TPG Real Estate (100)

1095 Budapest, Lechner Ödön fasor 10/B (1) 456-6200 (1) 456 6201 mgs@trigranit.com

–

Ÿ Ÿ

1139 Budapest, Váci út 81.

(1) 412-3699 (1) 412-3682 leasing@gtc.hu

1138 Budapest, Dunavirág utca 2–6.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

Magyar Telekom –

gReen Roof

loCal ReCyCling

eleCtRiC/hybRid CaR ChaRgeRs

daylight and motion sensoRs

natuRal ventillation

eneRgy effiCienCy pRogRam

independent poWeR supply

oWn seWage management

publiC tRanspoRtation

biCyCle stoRage

solaR ColleCtoRs

CuRRent majoR tenants

ClassifiCation of existing building

37,000 2 gaRdens 74,844 www.millenniumgardens.hu

✓ ✓

gReen seRviCes

final phase

2018

planning phase

yeaR established

14 4

oWneRship (%) hungaRian non-hungaRian

otheR

monthly Rental fee in aug. 1, 2017 (euR/sqm) monthly seRviCe ChaRge on aug. 1, 2017 (euR/sqm)

4,000 5

magyaR telekom

1 székház www.wing.hu

inteRnal yaRd With paRk

CuRRent leasable offiCe spaCe (sqm) minimal lease teRm (yeaR)

8 6,000

Company Website

stage of gReen CeRtifiCation Rating

gRey WateR Reuse

no. of levels aveRage level size (sqm)

56,000 58,800

Rank

net offiCe spaCe (sqm) total gRoss building aRea (sqm)

Ranked by net office space (sqm)

addRess phone fax email

–

–

✓ ✓

–

–

–

✓ ✓ ✓

–

✓ ✓ ✓

–

✓

–

–

Exxon-Mobil, Honeywell, Nalco, GE Hungary

–

✓ ✓ ✓

–

✓ ✓ ✓ ✓

–

✓

–

–

–

–

✓ LEED Gold

–

BREEAM ✓ Very Good

–

– CPI Property Group (100)

Ÿ Ÿ Ÿ LEED Gold

–

– CA IMMO (100)

1133 Budapest, Váci út 76.

(1) 501-2800 (1) 501-2801 office@caimmo.hu 1134 Budapest, Váci út 45.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

gateWay offiCe paRk

www.gatewaybc.hu, www.cpigroup.hu 4

5

Capital squaRe www.caimmo.com

Ÿ

5

myhive átRium paRk

www.myhive-offices.com/hu 6

31,200 38,400

9 4,500

2,392 5

13.50– 14 990 HUF

Magyar Posta Zrt., Samsung, AON, Mortoff, – Atmedia, Chiesi, Vin-Vin Étterem

Albemarle, Regus, Ferrero, KCI

✓ ✓

–

–

–

–

✓ ✓

–

–

✓ ✓

bank CenteR

30,041 52,176

11 1,400

588 3

16-20 1,413 HUF

1996

Citibank, REGUS, BÉT

✓ ✓ ✓ ✓ ✓ ✓

8

duna toWeR

29,800 31,500

16 800

4,800 5

13-16 3.82

2006

IBM,Huawei, Metlife, Ford

–

29,000 62,800

8 4,700

Ÿ

13.50– 14.00 2.70– 3.00

28,520 34,300

8 4,000

760 5

13 990 HUF

sCienCe paRk 11

27,278 29,450

7 1,910

– 5

12–14 3.60

ip West 12

26,500 30,100

8

Ÿ Ÿ

12-13.5 1,320 HUF

www.dunatower.hu

mill paRk 9

PMS 152 C C0 M50 Y100 K0 R229 G114 B0 HEX #e57200 NCS S 1080–Y40R RAL 060 60 80

PMS Black 90% C0 M0 Y0 K90 R64 G64 B64

10

www.skanska.hu

5

myhive halleR gaRdens

www.myhive-offices.com/hu

www.sciencepark.hu

www.caimmo.com

BBJ_2517_special_report_.indd 25

Ÿ

2018

Ÿ

✓ ✓

✓ ✓ ✓

Ÿ

–

2002

Ÿ

–

2009

Siemens, British Telecom, Transcom

–

–

–

–

–

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

7

www.bankcenter.hu

✓ ✓ ✓

–

–

✓ ✓

–

✓ ✓

–

–

–

–

–

✓ ✓

✓ ✓

–

✓

✓ ✓

–

–

–

–

✓

–

✓ ✓

–

–

–

–

✓

BREEAM Very Good

JLL, Robertson

– Immofinanz AG (100)

✓ ✓

–

✓

–

–

–

–

–

✓

BREEAM Very Good

Avestus Real Estate, www. avestusrealestate.com

– (100)

1054 Budapest, Szabadság tér 7.

(1) 302-9010 (1) 302-9020 anett.eles@bankcenter.hu

–

–

–

–

–

–

–

–

✓

BREEAM Very Good

Cushman & Wakefield Kft.

Ÿ Ÿ

1138 Budapest, Népfürdő utca 22.

(1) 412-3699 (1) 412-3680 leasing@gtc.hu

–

– Skanska Central Europe Holding B.V. (100)

1095 Budapest, Soroksári út 44.

(1) 382-9100 (1) 382-9129 property@skanska.hu

–

–

✓

✓ ✓ ✓ ✓

Ÿ

–

✓

–

–

–

✓

–

✓ ✓ ✓

–

–

–

JLL, – BREEAM Cushman & IMMOFINANZ AG ✓ Very Good Wakefield (100) Kft.

✓ ✓

–

–

–

–

–

BREEAM ✓ Very Good in Use

–

Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

Ÿ Ÿ Ÿ LEED Gold

1095 Budapest, Soroksári út 32–34.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

CBRE

– Heitman (100)

1117 Budapest, Irinyi József utca 4–20.

(1) 374-3040 – office.hungary@cbre.com

–

– (100)

1117 Budapest, Budafoki út 91–93.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

2017. 09. 20. 19:50

13

népliget CenteR

www.nepliget-center.com

26,000

Ÿ

9 900

Ÿ Ÿ

Ÿ Ÿ

www.bbj.hu

2010

Ÿ

✓ ✓ ✓

–

✓ ✓ ✓

–

✓

Ÿ Ÿ ✓ Ÿ

pRomenade gaRdens

www.promenadegardens.hu 14

25,000

24,770 25,303

Ÿ

váCi gReens

15 b épület www.vacigreens.hu

6 4,300

13,000

Ÿ

Ÿ Ÿ

2017

Ÿ

6

3,253 5

14 2.60

2016

GE Corporate, ITSH

6,000 5

13.5014.5 3,7

2018

Ÿ

12.5014 1,250 HUF

Ÿ

12.95– 14.00 2.70– 3.10

Ÿ

baRtók udvaR ii.

16

7 23,000 2,50037,300 4000

City gate 16

23,000 25,000

www.bartokudvar.hu

www.citygate.hu

16

noRdiC light

www.erstealapkezelo.hu

23,000 44,000

9

Ÿ

8 3,500

5

5

1999

Ÿ

1998

Citibank, DIGI, HostLogic, Danone, Erzsébet Táborok, GildaMax, P.Dussmann

www.simmoag.hu

20,245 21,340

R70 offiCe Complex 18,700 20 19,000 www.caimmo.com

infopaRk d épület

21 www.infopark.hu, www.gamma-am.hu

22

18,526

Ÿ

váCi CoRneR

23 offiCes www.vacicorneroffices.hu

–

✓ ✓

–

–

✓ ✓

–

✓

–

✓ ✓ ✓ ✓ ✓ ✓

Ÿ Ÿ

–

–

–

–

✓

13-14 3.90

10

Ÿ

Ÿ Ÿ

10.9014.50 1,250 HUF

2002

Ÿ

7 2,500

– 3

12– 12.75 3.20

2007

STRABAG Zrt., IBM, Pannontej

✓ ✓

–

–

✓ ✓ ✓ ✓

✓ ✓

–

–

–

–

– 5

20 3.90

2008

18,460 25,100

9 2,300

545 3

Ÿ

3.30

2014

Sony, CRH, Asseco, MVM Partner, Mylan, Intrum Justitia

7 3,400

– –

– –

8

Ÿ

14.5016.5

Ÿ

✓ ✓

✓ ✓ ✓

–

–

–

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

7 3,200

2008

✓ ✓

–

–

980 3

Ericsson

–

✓ ✓ ✓

10 2,700

2017

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

23,500

magyaR nobeldíjasok kutatás18,012 24 fejlesztési paRk, i.

19,811 ütem, eRiCsson ház

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Cetelem Bank, Medicover, Dealogic, AXN – Hungary, Tesco, Grundfos, ESAB, Costa

eiffel téR iRodaház 18,500 www.eiffelsquare.com

IBM

2016

RiveR estates 19

Ÿ

–

–

–

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

–

Free bike rental for tenants

–

BUBI station

–

–

validation level

final phase

planning phase –

EU Green Building

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

– (100)

1097 Budapest, Könyves Kálmán körút 11.

(1) 473-1209 (1) 473-1210 Tamara.Szanto@ eur.cushwake.com

Ÿ Ÿ

1133 Budapest, Váci út 80.

(1) 473-1209 (1) 473-1210 leasing@ horizondevelopment.hu

–

✓

–

BREEAM Very – Good+LEED Gold

–

✓

BREEAM Excellent

Cushman & OTP Prime IngatWakefield, lanbefektetési Alap (100) Robertson – Hungary

–

BREEAM Very Good

–

Infogroup Csoport (100) –

1115 Budapest, Bartók Béla út 105-113.

(1) 481-4530 (1) 481-4531 info@infogroup.hu

–

– CA IMMO (100)

1092 Budapest, Köztelek utca 6.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

✓

Ÿ Ÿ Ÿ LEED Gold

–

–

–

–

✓

–

Pre-LEED Gold

–

(100) –

1133 Budapest, Váci út 96–98.

(1) 920-2193 (1) 235-5899 erstealapkezelo@ erstealapkezelo.hu

–

–

–

✓

BREEAM Very Good

–

– (100)

1134 Budapest, Váci út 35.

(1) 429-5050 (1) 429-5055 office@simmoag.hu

–

– (100)

1074 Budapest, Rákóczi út 70–72.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

GAMMA Properties Kft.

– TRIUVA (100)

1117 Budapest, Gábor Dénes utca 2.

(1) 382-7560 (1) 382-7570 office@gamma-am.hu

–

–

Ÿ Ÿ Ÿ LEED Gold

–

–

✓

LEED Silver

Ÿ Ÿ Ÿ Ÿ

–

–

–

✓

BREEAM

ConvergenCE

– KGAL (100)

Ÿ Ÿ

–

–

–

✓

BREEAM Excellent

–

Váci Corner Offices Kft. (100) –

1138 Budapest, Váci út 144–150.

(1) 580-2280 – info@vacicorneroffices.hu

Leed Gold

–

Wing Zrt. (100) –

1117 Budapest, Magyar Tudósok körútja (1) 451-4280 (1) 451-4289 sales@wing.hu

Ÿ Ÿ Ÿ LEED Gold

–

– (100)

1095 Budapest, Lechner Ödön fasor 8.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

–

–

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

–

✓

–

www.wing.hu

25

millennium toWeR iii 18,000 www.caimmo.com

BBJ_2517_special_report_.indd 26

21,000

Ÿ

5

Ÿ

1138 Budapest, Fövény utca 4-6.

(1) 785-5208 – info@atenor.hu

1062 Budapest, Teréz körút 55–57.

(1) 225-0912 (1) 375-0445 bzadori@ convergen-ce.com

✓ ✓ ✓

✓ ✓ ✓ ✓ ✓

–

3 meter internal height, green wall, ✓ water efficient aerators, water surfaces

✓ ✓ ✓

✓ ✓

–

✓

Ÿ Ÿ Ÿ Ÿ

otheR

gReen Roof

inteRnal yaRd With paRk

eleCtRiC/hybRid CaR ChaRgeRs

loCal ReCyCling

gRey WateR Reuse

daylight and motion sensoRs

natuRal ventillation

eneRgy effiCienCy pRogRam

independent poWeR supply

oWn seWage management

publiC tRanspoRtation

biCyCle stoRage

solaR ColleCtoRs

CuRRent majoR tenants

ClassifiCation of existing building

stage of gReen CeRtifiCation Rating

Real estate agenCy (agenCies) oR agent(s)

Budapest Business Journal | September 22 – October 5, 2017

gReen seRviCes yeaR established

monthly Rental fee in aug. 1, 2017 (euR/sqm) monthly seRviCe ChaRge on aug. 1, 2017 (euR/sqm)

CuRRent leasable offiCe spaCe (sqm) minimal lease teRm (yeaR)

Company Website

no. of levels aveRage level size (sqm)

Special Report net offiCe spaCe (sqm) total gRoss building aRea (sqm)

Rank

26 | 3

2017. 09. 20. 19:50

14.5016.5 1,100 HUF

17,374 18,935

6

Ÿ

– 5

– –

2015

GE

9

Ÿ

12.5013.5 1,200 HUF

2003

HP, Novartis

– 5

2008

Nestlé, KLM

otheR

gReen Roof

inteRnal yaRd With paRk

eleCtRiC/hybRid CaR ChaRgeRs

loCal ReCyCling

gRey WateR Reuse

daylight and motion sensoRs

natuRal ventillation

eneRgy effiCienCy pRogRam

independent poWeR supply

oWn seWage management

publiC tRanspoRtation

biCyCle stoRage

solaR ColleCtoRs

yeaR established

validation level

monthly Rental fee in aug. 1, 2017 (euR/sqm) monthly seRviCe ChaRge on aug. 1, 2017 (euR/sqm)

17,638 5

CuRRent majoR tenants

ClassifiCation of existing building

CuRRent leasable offiCe spaCe (sqm) minimal lease teRm (yeaR)

12 2,400

gReen seRviCes

final phase

no. of levels aveRage level size (sqm)

17,638 20,092

stage of gReen CeRtifiCation Rating

planning phase

net offiCe spaCe (sqm) total gRoss building aRea (sqm)

Rank

Company Website

Special Report | 27

3

Real estate agenCy (agenCies) oR agent(s)

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

Kopaszi Gát Kft. (100) –

1117 Budapest, Dombóvári út 27.

(1) 241-0080 – sales@budapart.hu

budapaRt gate www.budapart.hu 26

váCi gReens 27 C épület

www.vacigreens.hu

28

baRtók ház

28

millennium toWeR ii 17,000

www.caimmo.com

17,000 30,000

Ÿ

5

14.5016.5

www.caimmo.com

18,600

8 –

offiCe gaRden iii 30

16,922 18,933

8 2,300

5,960 5

13 3.10

gReen house 31

16,800 30,200

10 2,745

– 5

Ÿ

16,300 18,800

7

Ÿ

www.officegarden.hu

www.diofaalapkezelo.hu

32

millennium toWeR i www.caimmo.com

Ÿ

5

Ÿ

980 HUF

14.5016.5

Ÿ

2019

2017

2012

2006

–

Ÿ

–

–

✓ ✓

✓

–

✓

–

✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

–

✓ ✓

–

–

–

✓

–

–

–

✓

BREEAM Excellent

Robertson – Hungary, ZFP Realitní Fond Cushman & (100) Wakefield

1138 Budapest, Váci út 117-129.

(1) 785-5208 (1) 785-5209 info@atenor.hu

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

Ÿ Ÿ Ÿ LEED Gold

–

– (100)

1114 Budapest, Bartók Béla út 43–47.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

LEED Gold

–

– (100)

1093 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

–

GRT Group (100) –

1117 Budapest, Alíz utca 4.

(1) 382-7020 (1) 382-7020 grtgroup@grtgroup.hu

LEED Platinum

–

Torony Ingatlan Befektetési Alap (100) –

1134 Budapest, Kassák Lajos utca 19.

(1) 888-4120 (1) 888-4171 alapkezelo@ diofaalapkezelo.hu

LEED Gold

–

– (100)

1095 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 (1) 501-2801 office@caimmo.com

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

–

✓ ✓

Avis Budget Group, ABB, MSCI, Deich- ✓ ✓ ✓ mann, Innovative Dental Care

Cognizant, Vodafone

–

Cushman & Wakefield – LEED Gold Kft., Eston International

–

–

–

–

–

–

–

✓

–

✓

–

Ÿ Ÿ Ÿ

✓

– LEED Gold

Ÿ Ÿ

–

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

Ÿ Ÿ Ÿ

–

–

✓ ✓ ✓ ✓ ✓ ✓

–

–

✓

–

balanCe hall

www.balancehall.hu, www.cpigroup.hu 33

15,700

8 1,800

15,700 6

12.8013.80 3.50

2019

15,693 17,610

6

951 5

Ÿ Ÿ

2013

Ÿ

váCi gReens a

34 épület www.vacigreens.hu

váCi gReens 35 d épület

Ÿ

15,635 17,721

6

Ÿ

12,054 5

Ÿ Ÿ

15,600 29,000

10 2,900

850 5

13–14 3.20

kRisztina palaCe

15,500 18,000

6 3,000

2,381 5

12.75– 13.50 3.59

offiCe gaRden iv 38

15,373 17,532

7 2,870

17,150 5

Ÿ Ÿ

14,900 30,000

6 1,850

8,000 5

Ÿ Ÿ

www.vacigreens.hu

infopaRk e épület 36 www.diofaalapkezelo.hu

37

www.erstealapkezelo.hu

www.officegarden.hu

Ÿ

–

✓ ✓

✓ ✓ ✓

–

✓ ✓ ✓

–

✓

–

–

Ÿ

–

Ÿ

–

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

–

✓ ✓ ✓

–

–

–

✓

BREEAM Excellent

Robertson Hungary, Cushman & Wakefield

Ÿ Ÿ

1138 Budapest, Váci út 117–129.

(1) 785-5208 (1) 785-5209 info@atenor.hu

Ÿ

Robertson Hungary, Cushman & Wakefield

City Tower Kft. (100) –

1138 Budapest, Váci út 117-129.

(1) 785-5208 (1) 785-5209 info@atenor.hu

–

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Neumann János utca 1/E (1) 888-4120 (1) 888-4171 alapkezelo@ diofaalapkezelo.hu

–

Ÿ

2009

Lufthansa Systems, EIT, National Instruments, 3M

1999

2019

Ÿ

Ÿ

–

–

–

–

–

–

–

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

✓ ✓

✓ ✓

–

–

–

–

✓ ✓ ✓ ✓

–

–

–

–

–

–

–

–

✓ ✓

–

–

✓

–

–

Ÿ Ÿ

–

Ÿ Ÿ

Dressing room and shower in the deep garage

–

✓

–

Ÿ Ÿ Ÿ

–

–

✓

LEED Silver

–

✓

–

BREEAM Cushman & ✓ In-Use Very Wakefield Good Kft.

(100) –

1123 Budapest, Nagyenyed utca 8–14.

(1) 920-2193 (1) 235-5899 erstealapkezelo@ erstealapkezelo.hu

– LEED Gold

–

(100) –

1117 Budapest, Alíz utca 3.

(1) 382-7020 (1) 382-7020 grtgroup@grtgroup.hu

Ÿ

(100) –

1052 Budapest, Szervita tér 8.

(1) 473-1209 (1) 473-1210 leasing@horizondevelopment.hu

–

szeRvita squaRe building www.szervita.com 39

BBJ_2517_special_report_.indd 27

2019

Ÿ

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

–

✓

Ÿ Ÿ

LEED Platinum

2017. 09. 20. 19:50

Special Report

www.bbj.hu

14,600 5

13.5015.5 1,100 HUF

2019

–

skylight City 41

14,459 20,305

8 2,400

14,459 5

9.5011.5 4

13,858 27,000

6-7 5501160

www.skylightcity.hu

42

lauRus offiCes

www.laurusirodahazak.hu

3,350 3

11 3.50

myhive gReenpoint 7 43

www.myhive-offices.com/hu

2004

2011

Ÿ

Ÿ

–

–

✓ ✓

✓ ✓

–

–

–

–

✓

planning phase

✓ ✓ ✓

–

✓

–

✓

✓ ✓ ✓ ✓

–

–

✓ ✓

–

13,600 15,550

8 2,000

– 3

11.90 990 HUF

13,200 20,400

8 1,600

13,200 3–5

12.50– 14.5 3.80

–

Ÿ

–

✓ ✓

–

–

✓ ✓ ✓ ✓

–

–

13,000 65,000

4

Ÿ

11–12 1,080

2004

UPS, BMW, Fedex

–

✓ ✓

–

–

–

–

–

7

Ÿ

12.9014.00 1,200 HUF

2004

Ÿ

6 2,700

– 3

'12-14 4

2010

5

Ÿ Ÿ

1214.50 1,250 HUF

2003

Ÿ

–

✓ ✓

–

–

–

✓

–

✓

–

gReen Roof

–

loCal ReCyCling

otheR

eleCtRiC/hybRid CaR ChaRgeRs

daylight and motion sensoRs

natuRal ventillation

✓ ✓ ✓ ✓ ✓

✓

inteRnal yaRd With paRk

–

gRey WateR Reuse

✓ ✓

eneRgy effiCienCy pRogRam

independent poWeR supply

oWn seWage management

publiC tRanspoRtation

biCyCle stoRage

solaR ColleCtoRs –

–

✓ ✓

–

–

–

–

–

–

–

Ÿ Ÿ Ÿ

–

Thermal – heat usage

–

–

Real estate agenCy (agenCies) oR agent(s)

7 2,500

www.budapart.hu

validation level

yeaR established

14,600 16,882

budapaRt offiCes a building

gReen seRviCes

ClassifiCation of existing building

monthly Rental fee in aug. 1, 2017 (euR/sqm) monthly seRviCe ChaRge on aug. 1, 2017 (euR/sqm)

40

Company Website

stage of gReen CeRtifiCation Rating

final phase

CuRRent leasable offiCe spaCe (sqm) minimal lease teRm (yeaR)

CuRRent majoR tenants

Rank

no. of levels aveRage level size (sqm)

Budapest Business Journal | September 22 – October 5, 2017

net offiCe spaCe (sqm) total gRoss building aRea (sqm)

28 | 3

oWneRship (%) hungaRian non-hungaRian

LEED Silver

Cushman & Wakefield Kft., Eston International

Kopaszi Gát Kft. (100) –

1117 Budapest, Hengermalom út 70.

(1) 241-0080 – sales@budapart.hu

Ÿ

ESTON International

Wing Zrt. (100) –

1134 Budapest, Róbert Károly körút 54.

(1) 451-4280 (1) 451-4289 –

K1A Real Estate Management Kft. (Ÿ) IR CEE Project Development Holding GmbH (Ÿ)

1103 Budapest, Kőér utca 2/A (1) 392-4075 (1) 392-4081 info@celand.hu

CBRE

– IMMOFINANZ AG (100)

1075 Budapest, Kéthly Anna tér 1.

(1) 451-8040 (1) 236-0436 offices_hu@immofinanz. com

Ÿ

–

– CPI Property Group (100)

1138 Budapest, Esztergomi út 44–48.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

–

Ÿ

Ÿ Ÿ

2220 Vecsés, Lőrinci út 59–61.

– – –

–

– (100)

1027 Budapest, Kapás utca 6–12.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

–

(100) –

1118 Budapest, Rétköz utca 5.

(1) 309-0909 (1) 309-0900 info@budawest.net

–

– (100)

1117 Budapest, Neumann János utca 1.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

BREEAM CE LAND ✓ in-use very Holding Kft. good

✓

BREEAM Very Good

addRess phone fax email

neW age CenteR www.newagebc.hu, www.cpigroup.hu 44

45

euRopolis paRk budapest aeRozone –

víziváRos offiCe

45 CenteR www.caimmo.com

47

13,000 14,600

budaWest iRodaház 12,680 www.budawest.net

infopaRk a épület 48 www.caimmo.com

27,000

12,200 13,600

Ÿ

Ÿ

Ÿ

3

5

–

49

Cityzen offiCes

11,736 12,581

9 1,450

2,800 5

14 3.900

1996

50

v48

11,500 13,500

6 2,000

Ÿ 5

Ÿ Ÿ

2006

v17 51

10,600 18,000

11 1,636

170 5

14 3.33

millennium toWeR 52 "h" épület

10,000 12,300

7

7 5

RiveRpaRk iRodák

9,865

www.cityzenirodahaz.hu

www.v48.hu

www.v17.hu

www.caimmo.com

53 www.riverpark.hu, www.gamma-am.hu

BBJ_2517_special_report_.indd 28

Ÿ

Ÿ

8 400– 900

845 3

15.5016.50

Ÿ

12– 13.50 3

Ÿ

–

✓

Ÿ Ÿ

–

Ÿ Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

Ÿ Ÿ Ÿ LEED Gold

Xapt, Qualysoft, Kürt, Adidas, – Helly Hansen, CEZ

IBM, Invitel

✓ ✓

–

✓

–

✓

✓ ✓ ✓ ✓ ✓

✓ ✓

–

–

–

✓ ✓

–

✓ ✓ ✓ ✓ ✓

Ÿ

2011

K&H, Oracle

2009

Henkel, MSC, Bisnode

✓ ✓

–

–

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

FrieslandCampina EMEA, Otis Felvonó Kft., Cargill, – Tech Mahindra, Techwave, Doktor24 Egészségközpont

Ÿ

–

–

✓ ✓ ✓

–

–

✓ ✓ ✓ ✓

–

✓ ✓ ✓

✓ ✓

–

–

–

✓ ✓ ✓

–

–

–

–

✓

BREEAM Excellent

Ÿ Ÿ Ÿ LEED Gold

Ÿ Ÿ

–

–

–

✓

BREEAM

ConvergenCE

– KGAL (100)

1134 Budapest, Váci út 37.

(1) 225-0912 (1) 375-0445 bzadori@ convergen-ce.com

Ÿ Ÿ Ÿ Ÿ

–

✓

–

–

BREEAM Very Good

–

– Codic International S.A. (100)

1132 Budapest, Váci út 48/E-F (1) 266-6000 (1) 266-6002 info.hungary@codic.eu

–

Torony Ingatlanbefektetési Alap (100) –

1134 Budapest, Váci út 17.

(1) 888-4120 (1) 888-4289 alapkezelo@ diofaalapkezelo.hu

–

– (100)

1095 Budapest, Lechner Ödön fasor 9.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

GAMMA Properties Kft., Robertson

– TRIUVA (100)

1093 Budapest, Közraktár utca 30–32.

(1) 382-7560 (1) 382-7570 office@gamma-am.hu

–

–

–

✓

Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

–

–

Ÿ Ÿ Ÿ Ÿ

–

–

–

✓

–

–

Ÿ

Ÿ Ÿ Ÿ LEED Gold

Ÿ Ÿ Ÿ

Ÿ

2017. 09. 20. 19:50

www.bbj.hu

yeaR established

10.90 3.60

–

9,386 10,665

5 2,230

5,900 3

9.50– 10.50 4.2

– 3

12 1,200 HUF

– 3

10.50 990 HUF

otheR

planning phase

inteRnal yaRd With paRk

loCal ReCyCling

gReen Roof

gRey WateR Reuse –

eleCtRiC/hybRid CaR ChaRgeRs

daylight and motion sensoRs

✓ ✓ ✓

natuRal ventillation

eneRgy effiCienCy pRogRam

independent poWeR supply

oWn seWage management

publiC tRanspoRtation

biCyCle stoRage

solaR ColleCtoRs

–

–

–

–

Real estate agenCy (agenCies) oR agent(s)

monthly Rental fee in aug. 1, 2017 (euR/sqm) monthly seRviCe ChaRge on aug. 1, 2017 (euR/sqm)

441 3–5

CuRRent majoR tenants

validation level

CuRRent leasable offiCe spaCe (sqm) minimal lease teRm (yeaR)

10 999

gReen seRviCes

ClassifiCation of existing building

no. of levels aveRage level size (sqm)

9,400 14,450

stage of gReen CeRtifiCation Rating

final phase

net offiCe spaCe (sqm) total gRoss building aRea (sqm)

Rank

Company Website

Special Report | 29

3

Budapest Business Journal | September 22 – October 5, 2017

oWneRship (%) hungaRian non-hungaRian

BREEAM Very Good

–

– CPI Property Group (100)

addRess phone fax email

1139 Budapest, Váci út 99.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

– (100)

1138 Budapest, Váci út 182.

(1) 429-5050 (1) 429-5055 office@simmoag.hu

– IMMOFINANZ AG (100)

1037 Budapest, Szépvölgyi út 35–37.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

balanCe building

www.balancebuilding.hu, www.cpigroup.hu 54

Starschema Kft., Brendon Kft., – Interticket Kft.

✓ ✓

–

–

–

✓

–

✓

–

Colliers BREEAM International, ✓ www.

Very Good colliers.hu

blue Cube

www.simmoag.hu 55

szépvölgyi business paRk 56

www.immofinanz.com

CentRal business CenteR 57

58

www.immofinanz.com

vision toWeRs

www.erstealapkezelo.hu

8,900 10,300

8,750 9,393

8,059 8,667

5 2,000

9 1,200

6

Ÿ

Ÿ 5

Ÿ Ÿ

2002

2004

1996

Unilever, UFB, Novodata, Herbioticum Distributor

Ÿ

Ÿ

–

–

–

✓ ✓

✓ ✓

✓ ✓

–

–

–

–

–

–

–

–

–

✓ ✓ ✓

✓

–

–

–

✓

✓

–

–

–

–

–

–

✓

✓

✓

–

–

–

–

–

–

–

Ÿ

–

✓ ✓

–

–

✓ ✓ ✓ ✓

–

–

–

Smart building supervision system, ✓ qualified "green" conference center

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Ÿ

–

–

–

BREEAM Very Good

–

✓

–

– Cushman & BREEAM Wakefield IMMOFINANZ AG ✓ Very Good (100) Kft.

Ÿ Ÿ Ÿ

–

1027 Budapest, Horvát utca 14–24.

(1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

(100) –

1134 Budapest, Angyalföldi út 6.

(1) 920-2193 (1) 235-5889 erstealapkezelo@ erstealapkezelo.hu

Ÿ

–

– Kinnarps I Falköping AB (100)

1133 Budapest, Váci út 92.

(1) 237-1251 (1) 237-1250 recepcio@kinnarps.hu

Ÿ

kinnaRps house 59

7,947 9,018

8 1,127

– –

– –

2006

Kinnarps Hungary Kft., Rail Cargo Hungaria Zrt.

liget CenteR

7,170 11,200

5 1,400

– 5

Ÿ Ÿ

2002

Walt Disney, Heineken, Omnicom

–

✓

–

–

–

–

–

–

✓

–

–

–

–

–

–

–

✓

BREEAM in Use, Very Good

Robertson Hungary

Ÿ Ÿ

1068 Budapest, Dózsa György út 84/A (1) 327-2050 (1) 327-2055 office@robertson.hu

6,500

4 1,550

Ÿ

Ÿ Ÿ

–

Ÿ

–

✓ ✓

–

✓

–

–

✓ ✓

–

✓ ✓

–

–

–

–

✓

–

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

–

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Ÿ Ÿ

1052 Budapest, Deák Ferenc utca 5.

(1) 473-1209 (1) 473-1210 leasing@ horizondevelopment.hu

www.kinnarpshouse.hu

60

www.ligetcenter.hu

Ÿ Ÿ Ÿ

balanCe loft

www.balanceloft.hu, www.cpigroup.hu 61

Ÿ

5

váCi 1

5,700 13,800

Ÿ

6

– 5

Ÿ Ÿ

2016

H&M, Hard Rock Café Budapest, Szamos Gourmet, DVM group, St. Andrea Wine & Skybar, Play 'n Go

www.vaci1.hu 62

–

–

–

–

–

–

BREEAM In-Use/ LEED ✓ Gold for commercial interiors

Ÿ

63

the quadRum

5,390 5,961

6 900

2,922 3

10-12 4.35

2008

Truck Force One, TRUMPF, NKH

–

✓ ✓

–

–

✓ ✓

–

✓

–

–

White Star BREEAM Real Estate Very good Kft.

– (100)

2220 Vecsés, Lincoln út 1.

(1) 382-5100 (1) 382-5101 info@thequadrum.hu

64

CoRvin CoRneR

5,384 6,122

8 990

– 5

14 3.80

2014

Ÿ

–

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

–

Ÿ Ÿ

–

✓

–

–

BREEAM Very Good

Futureal

(100) –

1082 Budapest, Futó utca 31–33.

(1) 266-2181 (1) 688-5498 office@futureal.hu

65

Canada squaRe

4,900 6,000

6

Ÿ

1314.50 1,250 HUF

2004

Kanadai nagykövetség

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

LEED Gold

–

– (100)

1027 Budapest, Ganz utca 16.

(1) 501-2800 (1) 501-2801 office@caimmo.hu

www.thequadrum.hu

www.futureal.hu

www.caimmo.com

BBJ_2517_special_report_.indd 29

Ÿ

5

–

–

–

✓ ✓ ✓

Ÿ Ÿ Ÿ

2017. 09. 20. 19:50

4

www.bbj.hu

Socialite

Budapest Business Journal | September 22 – October 5, 2017

Beards and Barbers and Budapest

Hipster beards may be all the rage, but good old-fashioned barber shops are also making a comeback in Budapest, as David Holzer discovers.

It was the queue of young guys with beards outside Barber Shop Budapest on Dob utca that first intrigued me a year or so ago. There must have been at least 15 of them.

I didn’t have the courage to go in for a haircut myself. My idea of the perfect barber shop is one where the décor hasn’t changed for 50 years and the barber is old enough to be my father. I’ve applied this principle in barber shops all over the world with mixed results.

A barber in New York’s Little Italy almost cut my throat when I started chatting gaily away about all the mafia movies I’d seen. Another, in Tangier, Morocco, who must have been 90 and had violently shaking hands had to leave the door to his shop open while he cut my hair because there was no electricity. Once again, I almost got my throat cut.

Why do hipsters have beards? According to The Telegraph newspaper, researchers at The University of Western Australia have discovered hipsters have beards because men are “feeling under pressure from other men and are attempting to look aggressive by being more flamboyant with their whiskers.”

That makes sense. It also explains the vogue for pumped up Arnie arms and full sleeve arm tattoos that make every second guy below the age of 40 look like Popeye.

But for someone of my vintage, for whom beards were inherently scruffy things worn by hippies and teachers, the notion that a man would groom his beard and rub in beard balms, waxes or oils kind of defeats the object. If the whole point of beards is to look macho, why make them smell like a beard bordello?

Enormous Growth I realize I may well be in the minority here.

There’s been an enormous growth in the men’s skincare and hair product market in the past couple of years. In 2016, it was estimated that the gents grooming industry would bring in USD 21 billion in revenue.

Men have fallen in love with spending time and money on their appearance. And the Barber Shop Budapest company is in the right place at the right time.

Barber Shop Budapest was started by the three Gellei brothers with their father

BBJ_2517_socialite.indd 30

Photos: Gabriella Kiss

DAVID HOLZER

around four years ago. The Gellei family is a hairdressing dynasty that dates back to 1930, when grandfather Gellei took up the scissors and straight razor. But the idea for a traditional barber shop was born in Melbourne, Australia where oldest brother András was a Golden Crown awardwinning hairdresser.

After ten years in Australia, the brothers grew homesick for Budapest. They decided to bring everything they’d learned about traditional barbering in Australia back with them, and opened their first shop here in summer 2014.

I found all this out when I interviewed Aaron, the youngest of the brothers, at the new Barber Shop Budapest at BajcsyZsilinszky utca 64, which has a neat little barbers’ museum attached. A charming young man with an impeccably styled beard, Aaron told me that his father designed the museum and all the shop interiors. The mix of classical wooden furniture, artistic displays of brushes and razors and memorabilia is nicely done.

When I mentioned how I’d first noticed the shop on Dob utca, Aaron explained that “the queues of foreigners saying ‘How cool is this?’ started very soon after we opened. We were definitely in the right place at the right time, if not necessarily for Hungarian guys. Social media also helped us because guys could show us pictures of the style they wanted using Facebook and Instagram. When the whole beard thing took off in Hungary, young Hungarian guys started coming in too.”

Classical Why did Aaron think hipsters had beards, I wondered? “I don’t really like the term ‘hipster’,” Aaron said. “Our shops aren’t hipster. They’re classical. We’re reviving the idea of a place where gentlemen can retreat while being groomed and talk about football without having to listen to female chit-chat. We get enough of that at home.

And we’re adding the whole customer service thing we picked up in Australia –

The Barber Shop Budapest Museum.

offering a customer a free cold beer, for instance.”

Today, there are five Barber Shop Budapest hairdressers in the city and five more across the country, but that’s as big as the empire will grow, according to Aaron. The company is now focusing on training young dudes to become barbers and cut hair and beards, wield straight razors with aplomb and use hot towels.

There’s a barber shop academy above the shop on Bajcsy-Zsilinszky. Demand for a proper shave with a straight razor is growing again after it all but vanished in the 1980s because it was believed that straight razor cuts spread the AIDS virus.

Barber Shop Budapest is also making sure it takes advantage of the male grooming boom. Their own Australian Barber brand is excellent, and the shops also stock a wide range of high quality gents’ products, including American Crew.

They do gift packs and vouchers as well.

After speaking to Aaron and seeing the care and attention that have gone into creating an open, well-lit and friendly

environment that nods to the classic barber shop, I’m a convert. I’ll be heading to a Barber Shop Budapest hairdresser for my next haircut, shave and hot towel treatment.

Find a location near you and see what’s on offer at www.barbershopbudapest.hu.

Famous Hungarians you didn’t know were Hungarian #23 When I first saw the name Gellei, it rang a bell but I couldn’t quite figure out why. Then I realized I was thinking of Uri Geller. Was the psychic spoon bender Hungarian?

Of course he was. Although he was born in Tel Aviv, Israel, Uri’s father was Hungarian-Jewish. His mother, incidentally, is supposedly a distant relative of Sigmund Freud. Uri is proud of his Hungarian heritage and speaks the language well. I wonder if he can bend a straight razor?

2017. 09. 20. 19:46

4

www.bbj.hu

Budapest Business Journal | September 22 – October 5, 2017

Socialite | 31

A Sexier Szekszárd Steps Up

Ask many wine lovers, Magyars and expat alike, what their favorite Hungarian wine region is, and a very sizeable number will say Szekszárd.

ROB SMYTH

Long considered much less sexy than its slightly more southern neighbor Villány by various wine critics, the reality is that consumers just can’t sip enough of Szekszárd’s red wines and rosés. Long having given plenty of bang and juicy ripe fruit for the buck, the quality is getting ever better as the wineries put their energies into making increasingly sophisticated wines that better reflect their place of growth and the grape varieties that spawned them.

Critics often dismiss Szekszárd for being all and only about loess, a soil type that is often wrongly presumed capable of yielding only relatively simple wine.

Well, there’s nothing at all wrong with loess when it comes to grape growing – there are outstanding wines made from loess in, for example: Wagram, as well parts of Wachau and Kremstal – all in Austria (where it is prized for its ability to make fuller Grüner Veltliner); many top German vineyards; and eastern Washington, USA. Indeed, some of Tokaj’s most elegant wine comes from loess-dominated vineyards.

However, there’s other soil and rock types lurking under the loess in Szekszárd with lots of red clay and chunks of limestone in the Szekszárdian mix, with the red clay clearly visible and poking through as you drive around the region. This

BBJ_2517_socialite.indd 31

clay is similar to the prized Terra rossa of the Coonawarra wine region in Australia, in which the Cabernet Sauvignon grape thrives.

At the Sebestyén winery, a family operation which is run by the brother and sister team of Csaba and Csilla, it was exciting to taste two Merlots from the same vintage but from different vineyards. The smooth and round Porkoláb-völgyi Merlot 2015, which comprises red clay and large limestone rocks, contrasted significantly with the earthy, über ripe, slightly jamlike, tannic and edgy Görögszói Merlot 2015, which comes from regular clay and loess from a warm spot.

Csilla, who has worked at the highest level as a sommelier at the two-Michelin star Andrew Fairlie restaurant in Gleneagles, Scotland, returned a few years ago to assist her brother. She brought back with her deep knowledge of what the highend international market wants and it’s fascinating to see how Sebestyén wines are moving in subtler and less supercharged direction as Csaba’s raw intensity as a winemaker turns into refinement; the results are impressive. The plan is to bottle more single vineyard Bikavér (Bulls Blood) in future and I, for one, can hardly wait.

Szekszárd winemakers are gearing up for what they feel could be the best vintage in years, one even to rival the stellar 2012, although late rain could still put a dampener on things; the late ripening varieties are still out on the vine and at the mercy of the gods. The grapes in every vineyard I visited last week looked in totally tip-top shape on the vines.

Szekszárd is the Hungarian epicenter of the Kadarka grape (the same grape as Bulgaria’s Gamza) which came to Hungary from the Balkans, supposedly brought by Serbs fleeing Ottoman invaders.

However, for so long its wine has all too often either been watery and insipid, or overdone and covered in an oaky, overripe and tannic cloak and trying to be something it’s not. Now, it is coming on leaps and bounds with many wines striking a fine balance between light playfulness and depth of flavor.

One such wine is Tüske Pince’s Szekszárdi “harmados” Kadarka 2016, which is light in color and airy on the palate but also flavorsome with vibrant acidity, feather light tannins and the grape’s trademark rose hip, raspberry and spicy notes

coming to the fore. An ideal wine to caress rather than overload the palate as the night’s draw in.

On the southern edge of the wine region, the Szeleshát winery, which has more than 50 hectares of vines planted in one block on a plateau that benefits from warmth coming in from the Great Plain and the moderating, cooling breezes blowing in from the Mecsek hills, long lacked Kadarka, and hence also Bikavér (in which Kadarka is a small but key ingredient) in its portfolio.

Szeleshát made a stunning debut with its 2015 Kadarka and the first Bikavér is currently ageing away. The Szeleshát winery appeared to be bursting at the seams and the building of extra capacity was in full swing.

I recall the Takler winery when it was a mere cellar with a house on top. Now it is a classy country estate. It was here we got a sneak preview of Takler Grand Vin Cuvée 2012, which is still a baby but should be delicious when the tannins soften. Grand Vin is a project to make an exclusive wine which must include a minimum of 25% the indigenous Kékfrankos grape, which itself is becoming much more exciting. The other wineries that will release a Grand Vin are Eszterbauer, Heimann and Sebestyén.

Two distinctive Szekszárd wines:

Vida Hidaspetre Kékfrankos 2014 Proof that you can make fine wine in a ‘bad vintage’. From the protected southfacing Hidaspetre vineyard, this taut yet complex and earthy Kékfrankos with lovely fine-grained tannins really captures the essence of a cool vintage with its herbal and spicy notes. Aged mainly in used 300 liter barrels.

HUF 3,500 from In Vino Veritas.

Sebestyén Iván-völgyi Bikavér 2015 A blend of 45% Kékfrankos, 5% Kadarka and 50% Cabernet Sauvignon, Merlot and Blauburger,

aged in used barrels for 15 months.

Juicy black and red fruit, complex green herbs and mixed spices, a touch smoky with fine grained tannins. A tad bitter, but with lots of character and length.

HUF 5,950 from Bortársaság.

ADVERTISEMENT

2017. 09. 20. 19:46

Singapore Explore more of the world with our expanding network. qatarairways.com BBJ_2517_socialite.indd 32 NEW DESTINATION POSTER_820x620.indd 27

2017. 09. 20. 19:46 12/3/15 2:02 PM