Budapest Business Journal 24/09 by Business Publishing Services Kft.

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THE OFFICE MARKET

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for relief but there is hope hitting record lows, fast. s in the capital are to make new space Class ‘A’ office vacancie rs are using upgrades creative develope in the pipeline and

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Coming together

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Budget seems set for elections CEU President John Shattuck explains plans to unify his university with an ambitious downtown development. 24 156x50_skanska_banner_02_print.pdf 1 2016.04.29. 12:39:26

Analysts say the government’s 2017 plan, featuring tax cuts and funding increases for schools and health care, is apparently part of an effort to keep the electorate happy before they go to the polls the following year. 3

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Local owners lean on property managers When it comes to representing landlords, pleasing tenants or maintaining the quality of assets, PM professionals have become essential to the business of owning an office in the capital. 16

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2016. 05. 04. 22:14

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Budapest Business Journal | May 6 – May 19, 2016

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Report New space mostly

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THE OFFICE MARKET

Budapest is building

BUSINESS JOURNAL BUDAPEST

for relief but there is hope hitting record lows, fast. in the capital are to make new space Class ‘A’ office vacancies developers are using upgrades creative in the pipeline and

VOL. 24. NUMBER 09

MAY 6, 2016 – MAY 19, 2016

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

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Coming together

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NEWS

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Budget seems set for elections Analysts say the government’s 2017 plan, featuring tax cuts and funding increases for schools and health care, is apparently part of an effort to keep the electorate happy before they go to the polls the following year. 3

CEU President John Shattuck explains plans to unify his university with an ambitious downtown development. 24 156x50_skanska_banner_02_print.pdf 1 2016.04.29. 12:39:26

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Soft control of media poses greater threat While the current government’s frequent use of the legal process to control the mass media represents a blatant assault on democratic principles, its subtle efforts at soft control is more insidious, and therefore more disturbing. As one of its first major acts after taking power in 2010, the Fidesz government rewrote the Media Law, actually amending the Constitution to create provisions that give officials undue control over the press. It was troubling to see Fidesz suddenly treating publicly funded media as its own propaganda machine, and enjoying new legal powers to exert pressure on private media outlets. But at least these moves were obvious. Efforts at surreptitiously influencing private media may pose a greater threat. We never would have found out about the indirect influence that officials running the National Bank of Hungary (MNB) have on the news portal vs.hu if it were not for a March 31 court decision forcing the bank to open up its books. The revelations of spending by the Pallas Athéné Foundation (PADA), a body funded with public money but controlled by the MNB in an opaque manner, have embarrassed MNB Governor György Matolcsy and spurred recent calls for his resignation. Among its activities, PADA contracted news portal vs.hu to provide content for roughly HUF 500 million. It has also been alleged that the company owning vs.hu includes the involvement of Matolcsy’s cousin Tamás Szemerey, a claim that the company denies. There has been an outcry over PADA’s lavish spending on projects that seem to be beneficial for government officials and their friends. In the case of vs.hu, the problem is bigger than concerns about handouts.

Much of the news coverage provided by vs.hu was critical of the government and the status quo. Since its founding in 2013, the portal, which appeared on the scene without any obvious backers, has done a credible job of setting itself up as an independent voice. If it was not for the revelations about PADA, readers might never assume that the government could influence vs.hu, and this secret link meant the news portal could have served the ruling party quite effectively. Instead of being openly pro-government, it could simply make the government look better through omission: by not covering the stories that truly hurt the image of officials. The Fidesz leadership may also have similar soft control over other apparently independent media. For example, we still do not know what agreement was made with RTL’s German ownership last year, when the government did away with a tax that was crippling RTL Klub, Hungary’s largest TV station. And in April we learned that governmentcontrolled Eximbank reportedly gave a second loan to the owner of TV2, Hungary’s second largest television station. TV2 is owned by Andrew Vajna, a former Hollywood producer who is not only the government film commissioner but is also one of the few people in Hungary to be granted a casino license. He claims that he will run his station to be entertaining and profitable, but it is hard to believe that he will not heed the call of his associates in the government when they see the need. As the early 2018 elections draw closer, we can expect the government to seek to expand and more fully exploit its soft control on the media, leaving us to wonder how often the news we receive is subtly influenced by those in power.

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Then and now

LaMography/Moni Lazar

2016. 05. 04. 22:14

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Outcry over spending by central bank

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Városliget development slowed by tree lovers

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Next budget seems geared for election year Analysts say the generous spending, lighter taxes and increased deficit planned for 2017 appear to be designed to make people happy before they go to the polls in 2018.

cuts will result in HUF 55 bln lower budget revenue in 2017. The increase of the tax allowance for families with two children will affect 350,000 families next year and leave them with some HUF 15 bln more in their collective pockets. Next year’s tax package will favor businesses in certain areas: The small business tax (KIVA) and the itemized tax for enterprises (KATA) will change for the better, András Tállai, who is also the head of the National Tax and Customs Administration, said at a press conference presenting the new tax package on May 3. He also said that the cap on the investment tax benefit for SMEs will be abolished.

ZSÓFIA CZIFRA

National Economy Minister Mihály Varga submitted what is being dubbed by many analysts as an “election budget” to Parliament on April 26. Key figures for the 2017 plan were already known, and by early May analysts had been given sufficient time to parse the details. Although there is no exact definition of election budgets, Policy Agenda has gathered some elements that suggest that next year’s budget will be one of them. Such things, as listed by the political and economic research institute, include a higher budget deficit, increased funding for education and health care, improving the situation of households, and improving the net value of wages. Indeed, next year’s deficit goal is 2.4%, which is 0.4 of a percentage point higher than this year. Paired with the planned 3.1% GDP growth for 2017, it allows some HUF 460 billion elbowroom for the government, thus it will be able to ensure the increased funding for education and health care. Varga also detailed areas where the government plans to spend more: In addition to the two areas mentioned above, it ensures extra funding for culture, national defense, the judicial system, municipalities, foreign affairs and law enforcement (see table for details). The government will also earmark some HUF 211 bln next year in order to support the cabinet’s housing program. According to Varga, the government will guarantee an inflation-indexed pension hike so that the real value of pensions can be maintained. If inflation is higher than projected, pensioners can receive compensation, he stressed.

Key figures confirmed As for the key figures, the 2017 budget bill targets revenue of HUF 17.375 trillion and expenditures of HUF 18,541 trillion. The economy minister confirmed that the budget deficit is targeted at 2.4% of GDP, economic

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Gov’t to increase excise tax

Economy Minister Mihály Varga presents the 2017 budgt at an April 26 press conference in Budapest. (Photo: MTI/Kovács Tamás) growth is expected at 3.1%, and Hungary’s debt-to-GDP ratio is to be reduced further. A new structure will be introduced next year: The budget will be separated into three pillars. The first will contain the state’s operating revenues and expenditures; the second will contain EU-funded developments and locally-funded developments. Varga said that the operating balance of the general government can show no deficit. This is not the same as the so-called “zero budget” the government has been talking about for a while. In fact, the government not only failed to meet the requirements for a real zero-deficit budget for 2017, it actually increased the deficit, so the draft is very likely to be in conflict with one of the fiscal rules of the Stability Act, which is also an EU requirement, analysts say. There is a medium-term objective (MTO) set in every member state in the European Union, and all member states are expected to reach their MTOs, or to be heading towards them by adjusting their structural budgetary positions at a rate of 0.5% of GDP per year as a benchmark. In Hungary’s case, the MTO is a 1.7% structural deficit target of the GDP. By setting the deficit target to 2.4% the structural deficit is likely to miss the MTO. However, while it could have financial consequences if a eurozone member state fails to meet its MTO or fails to take steps towards reaching it, as Hungary is not a member of the euro area, the European Commission might

only make recommendations for budget adjustment. Increased tax revenues will also ensure more spending next year: Revenue from personal income tax is targeted at HUF 1.787 trillion, up from HUF 1.658 trillion this year. Revenue from the bank levy will decrease: It is set to fall to HUF 66.5 bln in 2017, down from HUF 79.2 bln forints this year. Year-end public debt as a percentage of GDP is expected to fall to 71.9% next year from a targeted 73.5% at the end of 2016, continuing on a downward path as required by the constitution.

More money left with taxpayers The government also submitted its tax package for 2017 to Parliament recently. According to the draft, the rate of value-added tax (VAT) will be lowered to 5% on several products and services next year. As a result, the VAT cut on poultry will cause a shortfall of some HUF 19 bln worth of revenues. The VAT on restaurant services will be lowered to 18% in 2017 and further to 5% in 2018. The VAT on locally produced nonalcoholic beverages will also drop, this will reduce budget revenues by HUF 8.5 bln. The VAT on fresh milk will be cut to 5%, which will lower budget revenues by HUF 4.5 bln. The VAT on eggs will be cut to 5%, which will result in a HUF 10.5 bln revenue loss, and lowering VAT on internet services will lead to a HUF 12.5 bln revenue loss. Altogether, VAT

But not all tax changes will be favorable: Excise tax will increase on tobacco and fuel products next year. EU rules allowed Hungary a transitional period until December 31, 2017, but it is obliged to raise the excise tax on tobacco products eventually. A 29% hike will be carried out by December 2017, which will be done in three stages, the first hike will come into effect on September 1. In a rather surprising move, the cabinet proposed to link the excise tax on fuel to world market prices. This means that if the price of Brent crude drops below a level set by the law, the excise tax on fuel will be raised. The government had two alternatives in mind for the threshold: $40 and $50. Tállai added that the end-quarter world market price should be the benchmark. The excise tax will be raised by HUF 10 per liter on diesel and HUF 5 per liter on gasoline if the world market price of oil drops to under the preset threshold, Tállai said. This would mean an extra HUF 20 bln in revenue in the budget, which would be spent on road reconstruction. In its draft budget for next year, the government gives up on a significant amount of corporate tax. This year companies will transfer their corporate tax to support spectacle team sports at a value of HUF 64-69 bln; that amount is expected to climb to HUF 90 bln in 2017. The largest sport financing items in the budget for next year contains some HUF 35 bln for the National Olympic Center, HUF 13 bln for supporting Hungaroring Sport Zrt., and some HUF 10 bln towards organizing the swimming world championships in 2017. Parliamentary discussion of the budget act will start on May 9 and, if everything goes as planned, the parliament could pass it on June 13.

2016. 05. 04. 22:15

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04 News

Budapest Business Journal | May 6 – May 19, 2016

Bill would practically ban Uber in Hungary Taxis line Budapest’s Dózsa György út in a demonstration against ride-sharing service Uber on May 3. The Hungarian government on May 4 submitted a bill proposal to Parliament that would practically ban the operations of U.S.-based ride-sharing service Uber in the country, according to reports. Parliament could vote on the proposal by June 13. The aim of the proposal is to prohibit internet access to illegal “taxi or taxi-like” dispatcher services, the explanation in the proposal says, Hungarian online daily origo.hu reports. Under the bill, relevant authorities would be eligible to block webpages that are related to transport services that do not operate under Hungary’s legal framework, origo.hu added. The proposal also says that drivers caught offering such illegal services could lose their driver’s license. (Photo: MTI/Zoltán Balogh)

NEWS IN BRIEF Hungary’s Supreme Court okays referendum on EU quota system Hungary’s referendum on the EU refugee quota can now be initiated by the government following a Supreme Court (Curia) ruling on May 3 that qualifies it as a matter of Hungarian sovereignty, according to reports. After the National Economic Committee (NVB) passed the referendum question with nine voting in favor and three against, it was brought before the Curia by opposition parties. The referendum question translates as: “Do you want the European Union to prescribe the settlement of non-Hungarian citizens into Hungary without the approval of the Hungarian Parliament?” The president of the NVB earlier said that the question is

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not in violation of international laws, as it does not name any EU institutions in particular, and the Fundamental Law of Hungary addresses the European Union in general terms, according to Hungarian online daily index.hu.

Hungarian fighter jets intercept British Airways flight After failing to contact air traffic controllers on the ground when crossing into Hungarian airspace on April 30, a British Airways commercial flight was escorted by two fighter jets from the Hungarian Air Force, dispatched by the Hungarian Defense Ministry. The British Airways’ Boeing 777 commercial flight was on its way from Dubai to London Heathrow, when it failed to contact

Hungarian air traffic controllers. Local authorities issued their highest alert, following a breach of safety protocol which dictates that pilots must make contact with traffic control when entering another country’s airspace, U.K. daily the Telegraph reported. Two Gripen fighter jets from the Hungarian Air Force left their base at 12:55 p.m. and returned at 1:21 p.m., after contact with ground control was re-established by flight BA108, according to Sky News. “Communication was quickly restored with air traffic control and the flight landed normally at Heathrow,” a British Airways spokesperson said, according the Telegraph.

Data secrecy rule tucked inside budget-related bill A paragraph in a bill submitted by Economy Minister Mihály Varga as legislation underpinning the 2017 budget contains a ban on access to data at “any public company or in connection with economic activities of businesses held by them” if that data could harm the company’s market interests, online news portal 444.hu reported on May 3. The text resembles a law on data secrecy at the Hungarian Post Office. That law was questioned by Hungary’s President János Áder a few weeks ago, but finally approved by the Constitutional Court in a March 31 ruling. On the same day, the court struck down a bill to hide the spending of foundations owned by the Hungarian

National Bank (MNB), and the resulting revelations about that spending sparked calls for the ouster of MNB Governor György Matolcsy this week. Under the new bill, the secrecy rules that protect the Post Office would be extended to all state-owned companies. The justification submitted with the bill reportedly states that is in the national economic interest to withhold business information. The bill also states that companies dealing in electricity, natural gas, district heating or “telecommunications activities linked to records kept by an authority” would be allowed to keep contracts classified for 5-30 years, 444.hu reported.

Student loan outlays reach HUF 16.6 bln in 2015 Outlays of Hungarian student loan provider Diákhitel Központ (DK) reached HUF 16.6 billion in the 2015 calendar year, an annual report released on April 28 shows, according to Hungarian news agency MTI. Outlays of general purpose loans came to HUF 10.9 bln and went to almost 34,000 students. Outlays of special-purpose loans that cover education costs came to HUF 5.7 bln and were disbursed to 16,000 students. Since its launch in 2001, DK has lent approximately HUF 300 bln to more than 370,000 students. DKʼs total assets stood at HUF 281.1 bln at the end of last year, down 6% from 12 months earlier. DK issued bonds with a nominal value of HUF 20.5 bln last year.

2016. 05. 04. 22:15

News 05

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Budapest Business Journal | May 6 – May 19, 2016

Varga: Tax office restructuring to lift tax revenue Once the restructuring of Hungary’s National Tax and Customs Authority is finished – it currently stands at 60% completion – the authority will play an “important role” in the planned increase of corporate tax revenue in 2017, Hungary’s National Economy Minister Mihály Varga said late on April 28. During an interview with commercial station Info Rádió, the minister said that the authority’s organizational structure has been reduced from three to two elements, central and county, and headcount will be brought to an “optimal” level in the next six months, Hungarian news agency MTI reported. The minister stressed that the Hungarian government expects a crackdown on tax evasion to raise next year’s corporate tax revenue from HUF 400 billion to HUF 770 bln, and it also predicts economic growth and the introduction of the growth tax credit, MTI reported. Varga added that the Hungarian government is not planning to introduce new taxes in the future but to collect those already due.

Former MTI reporter: Government influences public media The Hungarian government influences state-owned media to propagate the messages of the leadership, János Kárpáti, a former reporter of state-owned news agency MTI said at a conference about self-censorship in Brussels on May 2, according to Hungarian online daily index.hu. Kárpáti said that reporters and journalists are “advised” to discuss questions they are about to ask government officials with their supervisors, and the questions need to be approved. The reporter said he worked with MTI since 1981 and was fired earlier this year, after being told there were redundancies at the agency. Though more specific reasons for his firing from the agency were never given, he said that after he posed a question to Hungary’s Prime Minister Viktor Orbán in Brussels last year that he had not first discussed with his supervisor, he was never again deployed to attend Orbán’s press conferences, index.hu reported. “Practically I was banned from attending Orbán’s press conferences,” Kárpáti said, according to index.hu. “I could not ask him any questions afterwards.” The former MTI reporter added that requests “regularly arrive from above”, such as “you should emphasize this” or “you should ask this and not that,” He noted that the public media was centralized after Orbán started governing in 2010. “This is not public media, but government media, and the two should not be the same”. Kárpáti reportedly said.

Translator allegedly alters refugee’s testimony, could get jail time A translator employed by the prosecution to translate the testimony of an asylum seeker charged for inciting a riot at Horgos-Röszke last year could be sentenced to one-five years in prison after allegedly mistranslating and falsifying statements in the defendant’s testimony, online news portal index. hu reported on May 3. Issues with the asylum seeker’s testimony only came to light when the judge asked the defendant

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if these were in fact his statements and the “mistranslations” were read back to him in Arabic, index.hu said. Terms such as “with force” were allegedly added to the testimony to describe how he attempted to cross the border last year, words he never used in his original testimony, according to the portal. The translator could be charged with perjury, which carries a sentence of up to five years, index.hu said. Until the principal case is closed, however, only the District Court of Szeged has the authority to report the translator to the authorities. The court has not yet decided on how it will proceed, index.hu reported.

Government’s data requests on Facebook users on the rise A total of 67 information requests have been fulfilled by Facebook initiated by the Hungarian government this year on the social networking site’s users, Hungarian online daily origo. hu reported on April 29. Hungary is following an international trend in which the number of information requests to the social media site regarding its users has been on a gradual increase in the past few years, origo.hu reported. If Facebook chooses to provide local authorities with information on its users, IP addresses, locations as well messages sent and received through the platform may be shared, according to origo.hu. A total of 185 information requests were made by the Hungarian government to Facebook regarding 224 users in the first half of last year, while the government requested twice as much information about Facebook users in the second half of 2014 as compared to the first half.

Hungarian government submits bill proposal to lower bank levy Hungary’s National Economy Minister Mihály Varga yesterday submitted a bill to Parliament that aims to reduce the extraordinary levy on the banking sector, according to reports. The proposal is designed to keep the rate on total assets under HUF 50 billion unchanged at 0.15% in 2017 and 2018, but it would reduce the amount for total assets over the threshold to 0.21% from 0.31%. The bill would also stipulate that the bank levy be calculated based on banksʼ adjusted total assets in the previous two years, rather than on adjusted total assets from 2009, Hungarian news agency MTI reported. The Hungarian government said earlier that it would lower the extraordinary bank levy, which was introduced as a temporary measure, in exchange for elevated lending by banks operating in the country.

Survey shows rift between priorities for ideal and real jobs Hungarians make big compromises on criteria for their “ideal jobs” and the positions they actually fill, a representative survey among 18-59 year olds commissioned by French-owned Hungarian insurer Groupama Insurance shows, Hungarian news agency MTI reported on May 4. When asked to pick the most important criteria for their “ideal job”, 59% of respondents chose high pay; 59% creativity, commitment and job interest; 52% collaboration with colleagues and 35% a short commute.

CEU BUSINESS SCHOOL

Doing Dim Sum: Why Hungary issued yuan Eurobonds Péter Szilágyi

It is well-known that the Dim Sum issue was not exactly cost-driven.

Associate professor of finance

Business Journal quoted Varga as saying that the issue would help boost bilateral relations with China, and is a test for getting to know the market. It is easy to see why a Dim Sum issuance would generate good will. Despite concerted efforts to internationalize the While an April 14 yuan, the currency has recently lost a fair bit of luster in cross-border finance bond issue might not due to the Chinese government’s have made immedate market interventions. My own research with SWIFT has shown that the yuan business sense, it continues to struggle to truly break through, and remains used in less than is apparently an 3% of global payments. investment in future Hungary is also not the first to seek good will through a Dim Sum issue. cooperation. British Columbia issued in November 2013 with the underlying objective, On April 14, Hungary became the according to the Wall Street Journal, of first country in Central and Eastern promoting trade relations. The United Europe to issue a yuan-denominated Kingdom issued in October 2014, four offshore Eurobond. Economy minister months after the London branch of Mihály Varga had talked up a Dim China Construction Bank became a Sum issue of up to CNY 3 billion as yuan clearing center. Europe’s fifth early as December, but after a January yuan hub was, in fact, opened in roadshow plans were postponed due to Budapest by Bank of China, the same a liquidity squeeze that sent yields to bank that arranged Hungary’s Dim record levels. In the end, Hungary sold Sum issue. And, in June 2015, Hungary a three-year CNY 1 bln (HUF 42 bln) became the first European country to bond that was 2.6 times oversubscribed, sign a cooperation agreement with at a yield of 6.25%. Varga says he may China on its “One Belt, One Road” next tap China’s onshore Panda market initiative, which seeks to develop trade for further yuan funding. and transport infrastructure across It is well-known that the Dim Sum Eurasia. issue was not exactly cost-driven. The Varga’s argument of getting to Wall Street Journal points out that if know the market may actually have Hungary had wanted yuan exposure, added relevance in relation to “One it could have paid up to 100bp less by Belt, One Road”. I am not aware of an issuing in dollars and swapping into official statement on this, but the Dim yuan. It did not – as expected the issue Sum issue may have had a secondary was swapped into euros resulting in objective of establishing future yuan an actual yield of 2-2.5%, still above access to fund projects related to the Hungary’s euro borrowing costs. initiative. China is already proceeding Three-year forint-denominated bonds with the Belgrade-Budapest hightrade at around 1.5%. speed rail line, reportedly to be built by The handsome premium on the issue Chinese state-owned firms and set to is not surprising given that the Dim connect Western Europe with the Greek Sum market has been at a five-year port of Piraeus, now owned by Chinese low. Fitch says investors have been shipping giant COSCO. One would cool towards Dim Sum issues since the think that Hungarian firms would also yuan’s shock devaluation in August participate in this and other projects. last year. Those wanting yuan have If so, government issues in the Dim been tapping the onshore Panda market Sum market may also come in handy instead, where yields are 130-300bp not just for funding, but as benchmarks lower given the much deeper liquidity off of which Hungarian firms with pool that now includes previously major yuan needs could issue their own banned foreign investors. Indeed, the bonds. Panda market was tapped by Korea in December, is currently being eyed by Péter Szilágyi is an associate Nigeria and Russia, and was also being professor of finance and director considered by Poland until it decided of the MSc in Finance at the CEU to hold off and issue in euro instead on Business School. This column is part of a continuing series of opinion April 13. columns from experts at the Central European University Business School Buying good will in Budapest. The opinions stated here Why, then, Hungary’s decision to tap do not necessarily reflect those of the the Dim Sum market? The Budapest Budapest Business Journal.

CEU BUSINESS SCHOOL

2016. 05. 04. 22:15

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06 News

Budapest Business Journal | May 6 – May 19, 2016

MNB revelations spur calls to oust Matolcsy Central bank governor criticized over foundation set up with public funds. ANIKO FENYVESI

Opposition politicians were demanding the resignation of National Bank of Hungary (MNB) Governor György Matolcsy in early May, amid continued revelations of apparently inappropriate spending by the central bank’s foundations, according to reports. Socialist deputy faction leader Bertalan Tóth charged on May 2 that Matolcsy had the authority to personally decide on spending by a central bank foundation and said it is possible that the bank chief, or other officials, engaged in illegitimate activities, MTI reported. On April 30, Tóth told journalists outside the MNB that he had called for a parliamentary committee to investigate how the MNB and its affiliated foundations, and specifically Matolcsy, were involved in the spending of public funds, and how billions of forints wound up in the bank account of Matolcsyʼs cousin Tamás The April 30 demonstration outside the National Bank. (Photo MTI/Bea Kallos) Szemerey, according to reports. After a successful legal battle, the opposition in April obtained documents forints worth of Hungarian and Italian Other foundation activities include that indicate Matolcsy, along with state bonds, a purchase that could not awarding grants to right-wing publishers to another board member, decided on have been permitted by the MNB. publish pro-government books, including a investments of the controversial Pallas six-volume history written by an oncologist, Athéné foundation (PADA). Matolcsy School of ‘unorthodox economics’ planned The Economist reported on May 2. The has said that the foundation operated activities of foundations affiliated with the independently of the MNB. According to reports, the 18th-century MNB have also come under the scrutiny of According to reports, Szemereyʼs mansion gifted to the PADA by the MNB the European Central Bank as evidenced in Növekedési Hitelbank received several is valued at HUF 2.4 billion and will be an annual report issued last month, in which deposits from PADA, as did Sándor transformed into an economics school, the ECB highlights the lavish spending of complete with luxurious furnishings and these foundations, The Economist added. Demjánʼs Gránit Bank and OTP Bank. The documents also reportedly reveal a wine-and-cheese shop. Matolcsy has Legislation to classify central bank that Matolcsy was responsible for the said he wants the school to teach his own spending was pushed through Parliament foundation’s purchase of several billion brand of “unorthodox economics”. in an expedited procedure on March 1,

after a journalist sued to gain access to details of the spending by the MNBʼs PADA foundation. In a rare break with the wishes of the government that appointed him, Hungarian President János Áder on March 9 declined to sign that legislation, and asked the Constitutional Court to decide whether the measure was permitted by Hungary’s Constitution. The court ruled on March 30 that the MNB must release data on all tenders managed by PADA, up to the date of the data request by journalist Károly Csabai.

Journalists maintain vs.hu coverage was untainted PADA provided approximately HUF 500 million to their publisher, 11 journalists quit the portal. “It must be clarified that vs.hu’s staff was independent, and very critical of the government,” Attila Bátorfy, one of the journalists who resigned, told the Budapest Business Journal. “As far as I know there were some intentions from the owner to suggest some topics and changes in articles but our Editor-InChief Olivér Lebhardt always rejected this CHRISTIAN KESZTHELYI pressure. So we didn’t know about these intentions until now.” Although a foundation of the Hungarian Although press reports have maintained National Bank (MNB) did not disclose that MNB Governor György Matolcsy’s that it was funding online portal vs.hu, cousin Tamás Szemerey has interests in that news site maintained its editorial the firm publishing vs.hu, the website’s integrity, according to a former reporter owners, New Wave Media Kft. and New who decided to join ten colleagues in Wave Production Kft., said in a statement resigning after the link to MNB funding that Szemerey “is not and has never was revealed in late April. been” the owner of those companies. The Following a legal battle, the central statement said no connections can be bank published the finances of its Pallas drawn between the central bank and the Athéné foundation (PADA) on its website companies, or the media outlets owned on April 22. Shortly after they learned that by these companies: online portals vs.hu

Although a central bank foundation was quietly funding the news portal, reporters said they did not feel any political pressure.

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and origo.hu, which was sold by Magyar Telekom at the end of 2015. “I came here [to vs.hu] two months ago and I was told that the real owner is Tamás Szemerey,” Bátorfy claimed. “His name is not in the company registry data in any level, but for me it was obvious that he is the real owner. I don’t know why they denied it officially.”

One-bid tender alleged According to press reports from the resigning journalists, the publisher of the portal received the funds from the MNB by applying for tenders that no other media outlets knew about, so no competition took place. “The vs.hu’s Hungarian parent company, New Wave Productions applied to these foundations. They gave us a huge sum of money to produce mainly innovative, audiovisual content without any transparency. It’s not true that the application was open. None of the other media companies knew about it,” Bátorfy told the BBJ.

Despite requests, the MNB would not comment for this story. After the string of resignations, Lebhardt, the editor-in-chief of vs.hu, who resigned as well, admitted he had knowledge of money coming from the MNB foundations. “I made a mistake when I let sponsored content be published without signaling the sponsors,” Lebhardt was quoted as saying. “I take full responsibility.… however, I hereby state that under my lead, the work of the editorial team was free, autonomous and independent, of which I am proud.” The journalists who resigned, communicating on social media and talking to Hungarian and international media outlets, maintained that their editorial work was always independent, and none of the articles they published were unduly influenced by the owners. Still, as credibility of the portal has been hurt by the revealed financing, they said they felt they needed to resign, according to reports.

2016. 05. 04. 22:15

News 07

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

Protestors stall start of Városliget project

LaMography/Moni Lazar

Ambitious plans to turn the City Park into a museum quarter appear to be on hold, as tree lovers are camped out and ready to stop major clearing work from taking place. ANIKO FENYVESI

Rumors of a May 2 showdown between construction crews and demonstrators seeking to prevent the remodeling of Budapest’s Városliget (City Park) never came to fruition, but workers could begin cutting down trees at any time. The plan to turn the western half of the city’s 184-year-old park into a museum quarter has been approved, and the first trees have already been felled. The project is intended to create a complex that will draw tourists, while also moving institutions out of Buda’s Castle District, so that the Prime Minister and other government officials can start setting up their offices there. But according to Imre Pákozdi, an activist who has collected 11,750 signatures against the project, the government does not want to risk popular outrage by starting the work. “I am totally convinced that they won’t complete the Liget project and that they won’t cut down anymore trees,” Pákozdi asserts. Indeed, the tree-cutting begun in midMarch was stopped when demonstrators showed up right away, and nothing has happened since. Protestors are still camped out in the park and waiting to leap into action if workers wield chain saws. The ambitious HUF 200 billion Városliget plan currently comprises two phases. The first, with an original delivery date of spring 2018, is to include the construction of the House of Hungarian Music as well as the refurbishment of the Hungarian Technical and Transportation Museum and the Museum of Fine Arts. A National Museum Restoration and Storage Center, for restoring artworks and conducting research, is to be built just to the northwest of the park, with completion currently set for 2017. Phase two of the project, scheduled for delivery in the second half of 2019, includes the construction of the Museum of Ethnography, the Városliget Theater and the 46,000 sqm National Gallery to be relocated from the Castle District, as well as renovation of the Castle of Vajdahunyad, the Olof Palme House and the Budapest Zoo. All of the new construction is to be built on sites that currently house parkland or on the parking lot at the western edge of Városliget. Under the aegis of the project, green areas within the park will be renovated and expanded, providing recreational elements for the general public, according to the Városliget Budapest Project’s website.

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Demonstrators maintain their camp in Városliget in early May. facilitate plans for a big restructuring of the Castle Hill area. This plan, which Pákozdi estimates could cost upwards of HUF 1.2 trillion and take more than 25 years, would see the Royal Palace restored to its pre-World War II form inspired by the Parisian city planner Baron GeorgesEugene Haussmann, and would entail the relocation of the National Gallery to the Városliget and the removal of the Széchenyi Library, to be transferred to an as yet undetermined location, Pákozdi says. This project would require the demolition of purpose-built buildings to make way for a massive museum within the Royal Palace that will pay homage to the castle that existed during the period There has never been, and never will of the Austro-Hungarian Empire up to be again, such an opportunity for the the end of World War I. country, the ministerial commissioner Also part of this long-term project for the project, László Baán (who is also is the plan to move the government the director general of the Museum ministries into the residential section of Fine Arts, currently closed for of the Castle District, says Pákozdi. renovations), told online daily Magyar This will only exacerbate the problem Narancs at the start of the project in of the Castle District being empty most July 2014. “Usually healthcare and evenings if it is transformed into the seat education, or even public security are of government ministries, he adds. The more important than building museums. government has yet to confirm the details It was a decisive factor that the Liget and exact budget to carry out this plan. Budapest Project not only use public money, but also create a profit: through Approval process questioned extra revenue generated by tourism,” said Baán. According to reports, Baán According to Pákozdi, the process estimates that Városliget Budapest could necessary to receive approval for the park attract an additional 300,000 tourists a remodeling was carried out in reverse. year to Hungary and provide a return on “First came the government decision in early 2013, then the Városliget Law at investment in 15 years. The Liget Budapest’s website says the the end of 2013 that took the park away park’s green areas will increase from the from the City of Budapest, then came current 60% to 65%, but critics say that the architectural tenders and then the referring to grass on top of buildings feasibility studies,” he says. and above underground parking lot According to the Varosliget Budapest entrances as “green space” is a misnomer project website, there was a consultation, and in no way compensates for the 400 albeit after the drafting of the Városliget or more 150-year-old trees that will be Law. “The Budapest Municipality cut down to make room for the massive conducted partnership consultation in construction, not to mention the trees spring 2014, within the framework of that will be destroyed during the process. which some 200 civil society organizations Additionally, some buildings within the and private individuals had the park, are expected to be as high as six or opportunity to expound their views,” says seven stories. the website. The website also said that Despite requests, government officials it has undergone lengthy consultations did not comment on the Városliget regarding the renovations to be carried out in the park itself, from improving project for this article. facilities to installing a running track, better lighting and renovating existing Tied to changes in the Castle green spaces. Critics say, however, that By moving museums out of the Castle these much needed refurbishments will District, the Városliget project will only happen if the museum quarter is built.

Critics say that referring to grass on top of buildings and above underground parking lot entrances as “green space” is a misnomer and in no way compensates for the 400 or more 150-year-old trees that will be cut down.

A sign declaring the plans for the Városliget.

Unsuccessful referendum

In early December, District XIV Mayor Gergely Karácsony submitted a proposal for an initiative to stop the Liget Budapest Project, and by mid-December Budapest’s voting committee had green lighted the initiative. This would have led to the collection of signatures that would have initiated a referendum on the question: “Do you agree that City Park building codes could prevent the construction of new museum buildings in City Park?” In late January, Hungary’s Supreme Court (Curia) blocked the referendum, stating that the issue cannot be voted on in a referendum because the park’s developments are regulated by a law that came into effect on December 24, 2013. Pákozdi maintains that, although the Varosliget Law does expound on preparing the park, it contains no clause stipulating that the park must be built-up, adding that it was a government decision, not the law, that set developments in motion.

Civil initiative The Ligetvédők (Park Protectors) set up camp in the Városliget over a month ago, at the site where the first trees were being cut down to make way for the first phase of the museum quarter and Pákozdi says the group’s enthusiasm is vital in the struggle to save the park. “There are a number of ‘aboriginal’ Hungarians stationed at Városliget that have taken to guarding trees. ... If police take them away by force there will be a huge ruckus,” he explains. In response to a question from news blog mandiner.hu about protestors not leaving the site, Baán said in the interview posted on March 30: “Order must be restored. We will request protection of the property if we can’t resolve the danger of accidents caused by the already half-cut trees or the risk of accidents to protesters.” Pákozdi says that risk of accident is a concern, but use of police force to remove protesters would be far more controversial and harmful to the progress and popularity of the project. He expresses the hope that the government will not risk the bad press that would ensue.

2016. 05. 04. 22:15

2Business BBJ

Daimler launches expansion through HUF 185 bln investment Work takes place at Kecskemét plant of German car manufacturer Daimler on April 29, the day it was announced that the firm is investing HUF 185 billion into the facility. Mercedes-Benz Manufacturing Hungary announced on April 29 it will spend approximately HUF 80 bln on a 99,000 sqm car body plant and use the rest of the funds to purchase efficient, innovative machinery that will help to further expand production capacity. (Photo: MTI/Sándor Ujvári)

COMPANY NEWS MTel employees to become entitled to shares The board of Magyar Telekom, the Hungarian subsidiary of German telco giant Deutsche Telekom, on May 2 decided to launch a program, under which the “vast majority” of its employees would become entitled to shares, according to reports. Under the decision, employees will be entitled to shares with a value of HUF 100,000, calculated on the average share price on the 20 trading days prior to June 30, 2016, and employees will be entitled to a dividend on the shares while there will be no lock-up restrictions, Hungarian news agency MTI reported. The award of the shares is contingent upon an annual increase of the internal operating free cash flow of Magyar Telekomʼs MT-Hungary segment, MTI said. Upon confirmation of the improvement in the MT-Hungary segmentʼs operating free

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cash flow in late February 2017, the shares will be awarded to some 7,500 employees in April 2017, according to MTI. “Magyar Telekom expects this initiative to increase further employee engagement through a strengthening of the ownership culture,” the company said, according to the news agency.

Ikarus to merge into Mabi-Bus Hungary-based bus manufacturer Ikarus Egyedi Autóbusz Gyártó will merge into now Hungarian-owned peer Mabi-Bus, Hungarian daily Világgazdaság reported on May 3. The merged company, which will be named Ikarus, will have net assets of HUF 865 million and HUF 3.3 billion in liabilities, which were assumed from Mabi-Bus, Hungarian news agency MTI reported. Világgazdaság noted that MabiBus was awarded HUF 4 bln from the National Economy Ministry after it won

a tender to deliver 20 electric buses to the Budapest Public Transport Company (BKV).

Hungarian Ivanka eyes American market Hungarian concrete design company Ivanka showed its latest products at exhibitions in Milan and Chicago in April, according to a press release issued on May 2, and the company is planning to enter the American market. The company, which is currently present in 21 countries through distributor networks, is present in America with two projects: working on the facade of Navy Yard in New York, as well as the planned opening of a showroom in Miami, the press release added. Beyond expanding into the United States, Ivanka is committed to further strengthening its international presence, while focusing on its Hungarian roots, the press release noted, adding that the company is currently working on a project with the Central European University in Budapest.

Csányi buys €23 mln in MOL bonds Sándor Csányi, the deputy chairman of Hungarian oil and gas company MOL, has acquired MOL corporate bonds with a nominal value of €23 million, MOL disclosed on the website of the Budapest Stock Exchange (BSE), Hungarian news

agency MTI reported on May 2. Csányiʼs Sertorius Global Opportunities Fund, based in Singapore, bought €20 mln of the bonds and Csányi purchased another €3 mln of the papers directly. The bonds were purchased at a price of 99.3%. The bonds mature in 2023 and carry a coupon of 2.625%.

Lower oil prices put INA in the red INA, the Croatian unit of Hungarian oil and gas company MOL, had a first-quarter net loss of HRK 66 million, deteriorating from a profit of HRK 50 mln in the base period as oil prices fell, an earnings report shows, according to Hungarian news agency MTI. Net sales revenue fell 31% to HRK 2.602 bln. INA had a HRK 159 mln loss at operating level, but a net financial gain lifted the bottom line. Earnings per share came to a negative HRK 7. CAPEX was up 45% at HRK 342 mln.

Erste Bank Hungary operating profit down 24.4% in Q1

Austriaʼs Erste Group booked a firstquarter loss of €200,000 at its business in Hungary, a big improvement over a net loss of €15.6 million in the base period, an earnings report released May 4 shows, according to Hungarian news agency MTI. According to Erste Bank Hungaryʼs report: Net interest income

2016. 05. 04. 22:16

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2 Business

Budapest Business Journal | May 6 – May 19, 2016

declined 18.2% to €45.9 mln mainly due to lower loan volumes and the impact of the consumer loan law; net income from fees and commissions dropped 3.4% to €33.1 on lower fees from payments and card business; operating expenses increased 15.4% to €49.9 mln due to the booking of the full-year contribution of €7.1 mln to the deposit insurance fund; operating profit fell 24.4% to €32.7 mln. With operating expenses up and income down, the cost-to-income ratio rose to 60.4% from 50%, and total assets edged up half a percent to €6.465 trillion, Erste Bank Hungary said.

MFB profits lifted by Főgáz stake The state-owned Hungarian Development Bank (MFB) had net profit of HUF 18.4 bln in 2015, rising 175% from a year earlier mainly on its holding in Főgáz, national utilities company ENSZʼs bridgehead into the gas market, an earnings report published on April 29 shows. Excluding the impact of discontinued activities – the sale of the Főgáz stake is included in MFBʼs business plan for this year – net profit rose 36% to HUF 9.1 bln, the report shows. Net interest revenue fell 15% to HUF 11.6 bln. Net revenue from commissions and fees was practically nil. MFB reported total assets of HUF 1.528 trillion at the end of last year, up 21% from 12 months earlier. Net assets rose 5% to HUF 254.6 bln. Stock of client deposits was up 22% at HUF 41.3 bln, and stock of client loans rose 39% to HUF 467.0 bln, the report said.

Invitel enhances domestic and international wholesale services

Hungarian telco Invitel will launch a new department to better serve its domestic and international wholesale partners, according to a press release issued by the company on April 27. Operations will be restructured to better serve Invitel’s key partner segment (fixed and mobile telecommunications service providers, cable television companies) as well as IT and telecommunications providers, the press release said. The restructured department will be led by International Wholesale Director Beatrix Kapitány who performed similar roles at British Telecom, GTS and Deutsche Telekom. Invitel will also nominate a board responsible for international wholesale clients, led by Attila Barta previously in charge of Invitel’s wholesale division, the press release added.

Suzuki, Flaar sign strategic cooperation agreement

The Hungarian unit of Japanese Suzuki and Hungarian boat manufacturer Flaar today signed a strategic cooperation agreement, under which Suzuki will provide boat engines to vessels manufactured by Flaar, according to a press release issued on April 28. The agreement also states that sales of products manufactured by the two companies need to be supported from both the companies, and product development should be carried out on mutually agreed terms, the press release said. Flaar and Suzuki plan to carry out joint marketing and branding. Suzuki Hungary said it is proud of the role it plays in the Hungarian and international sailing community. The company added that the current agreement is another step by the Japanese company in the area.

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WHO'S NEWS Füzi to handle litigation for Noerr law firm

Dr. Viktor Füzi joined Noerr & Partners Law Office in Budapest as an employment and litigation specialist. Füzi studied law and graduated from ELTE University in Budapest in 2005. He continued his education at the Ludwig Maximillian University in Munich in a range of disciplines including German civil law, labor law and also German company law. During his career he has gained experience advising on executive collective dismissals, negotiating with trade unions and advising across all aspects of labor and employment law related matters, Noerr said. Viktor also has experience in litigation law and has advised in lawsuits concerning, among others, environmental pollution against environmental authorities, liability cases, cases relating to breach of contract between companies, clients versus Hungary’s National Customs and Tax Authority (NAV) and dismissal protection, the press release added. He has experience negotiating with the environmental authority and environmental experts and has prepared legal statements regarding the construction of a wind energy plant and photovoltaic power plants.

Bodor to specialize in state aid, corporate law at Noerr Dr. Ádám Bodor joined Noerr & Partners Law Office in Budapest as a state aid specialist and a corporate and investment lawyer. Bodor studied law and graduated from ELTE University in Budapest in 2011. Bodor has worked for over four years at HIPA (Hungarian Investment Promotion Agency) as an in-house lawyer, gaining experience in the field of state aid and investment law. He is regarded as a prominent expert of state aid and subsidies in Hungary, Noerrʼs statement said. He has advised in relation to all major investment projects implemented in Hungary in the last four years, and as such, he was responsible for the so-called VIP cash grant/EKD cash grant (which is the most popular existing subsidy program among large investors), and he was also involved in the preparation of legislation regulating subsidies in Hungary and the EU (including the new General Block Exemption Regulation of the European Commission and the Government decree on the VIP cash grant).

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

Tompa handling healthcare, corporate, M&A for Noerr Dr. Ágnes Tompa joined Noerr & Partners Law Office in Budapest as a healthcare and corporate/ mergers & acquisitions lawyer. She is the head of the Corporate/M&A department and leads the Pharma/ Healthcare/Life Sciences practice group of Noerr Budapest. Tompa graduated from the University of Debrecen and continued her studies of European law at the University of Péter Pázmány in Budapest. She also completed Eastern European Political Studies at the University College of London. During her career she has advised on a broad range of corporate transactions, including M&A, joint ventures, restructuring and private equity transactions. She has gained experience working both as a commercial practitioner at international law firms and as in-house counsel. Tompa has experience in the pharmaceutical sector and has advised companies in the pharmaceutical, biotechnology and medical device industry – from startups to large publicly listed companies.

Takács named VP at Telenor Hungary Zoltán Takács was appointed Telenor Hungary’s vice president of innovation, signaling a new direction for the company to further strengthen its focus on innovative services and partnerships that extend beyond traditional mobile business. Takács joined Telenor in 2011 as product and innovation director. Later he was appointed chief digital services officer in 2013. Before joining Telenor, Takács gained international experience in sales, marketing, product, service and business development at companies such as Ericsson, Nokia, RTL Klub and Huawei. “We are very glad to have Zoltán on board again after a period of sick leave. Zoltán played a vital role in launching popular digital services including online television service MyTV, music catalogue Deezer and Telenor Wallet. With this new position, Telenor will strengthen its focus on making more and more innovation available for customers. I am confident that Zoltán’s broad-based experience will provide a valuable contribution to this journey,” said Christopher Laska, CEO of Telenor Hungary. “Innovation is always the engine of growth, therefore, it is a great honor for me to be able to coordinate and lead our customer-focused innovation activities. Our mission is to be the best partner for

innovative companies in Hungary from startups to large corporates. Through such partnerships we would like to provide the best digital services for customers in their digital lives,” added Zoltán Takács.

Bihari joins property team at Jalsovszky Law Firm Levente Bihari joined Hungarian Jalsovszky Law Firm at the end of March, assuming a position on the company’s real estate law team. Bihari has worked for international law firms for the past ten years in the fields of construction and commercial law. “During my previous jobs I was most interested in real estate law and M&A transactions, however, lately I missed challenges in my daily activities. I met the firm through a mutual transaction – sitting on the other side of the table – and this way I could get a personal impression of the professionalism of the firm’s lawyers,” Bihari said in connection with his joining Jalsovszky. “Our real estate team has in recent years been the legal advisor of purchases such as Green House and Óbuda Gate office buildings. … The expansion has been necessary to preserve our high-quality work in the field of the real estate market, and in the person of Levente we can rely on a colleague with excellent professionalism,” leading partner of the firm Pál Jalsovszky said.

Laska to remain at helm of Telenor Hungary indefinitely Christopher Laska’s mandate as CEO of Telenor Hungary has been extended by the Telenor Group for an indefinite period. Laska (pictured) has been leading Telenor Hungary since January 2011. Under his leadership, the company extended its activities beyond traditional telecommunication services – launching several new digital services and building up its Hipernet mobile network with a download speed that is in the top league internationally. Since October, Laska has also part of the Telenor Group’s Executive Management, reporting directly to Group CEO Sigve Brekke, with an impact on shaping the international company’s digital future. Laska joined Telenor in 1998 and has worked in various senior managerial positions within the company including stints in Hungary, Serbia, Pakistan and Montenegro. He holds a degree in management from the University of Bradford and a postgraduate degree in marketing.

2016. 05. 04. 22:16

2 Business

REAL ESTATE NEWS

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

Cordia to develop 1,500 new homes

The firm sees big demand for its apartments, which would be in Pest and Buda. GARY J. MORELL

The residential developer Cordia, part of the Futureal Group, is set to undertake construction of around 1,500 new apartments in eight different locations in Budapest. Research released by the company has indicated that demand for newly built apartments in Budapest increased by 70% in the last six months compared to the previous 12 months, and this is triple the demand recorded two years ago. “The significance of these 1,500 new apartments is clearly demonstrated by the fact that in 2015 about 3,500 newly built homes were sold in Budapest, and this represented the total supply as the supply of new apartments hit rock bottom by the end of the year,” said Cordia. According to Tibor Földi, CEO of Cordia Real Estate, there are significant differences in the supply of newly built residential property for sale in the various Budapest districts. While there is high supply in Districts III, XI, XIII and XIV, there are other parts of the city where it is distinctly limited. This is most notable in the inner city (Districts V, VI, VII, VIII and IX), where demand exceeds supply by three times. “Pent up demand has returned to the market due to increasing confidence regarding the future and the fall in interest rates,” said Földi. “Therefore, people see an opportunity to buy. Investors have low confidence with regard to investing in shares and property is traditionally seen as a safe investment as it is something they can own and touch.” Against the background of the current market, Cordia has undertaken the development of nine residential projects in eight locations across the city, with most due to be completed in 2018. Phase one of Corvin Atrium, part of the Corvin Project Cordia, will deliver more than 260 apartments from studio apartments to four-room flats in the first quarter of 2018. The complex is the latest residential component of the Corvin Promenade urban rehabilitation project. According to Cordia, there are very good opportunities for leasing and high yield return on investment. Average rents have doubled over the last ten years and an average net monthly income for a onebedroom flat stands at €650. In the inner District VI, Cordia will develop the Rózsa55 project located close to Andrássy út. This is scheduled to deliver 157 apartments, again ranging from studio flats to four-bedroom apartments, in the Q3 2018. In the central District VII, the Grandio development is at the pre-permitting stage and will deliver 125 apartments in Q4 2018. Both complexes provide guaranteed letting possibilities and a high yield, according to Cordia. In Buda’s District II, Cordia is developing 102 apartments at Kapás21; the complex is at the permitting stage

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Cordia Atrium Residence at the Corvin Promenade.

Cordia Grandio residential project.

“Pent up demand has returned to the market due to increasing confidence regarding the future and the fall in interest rates. Therefore, people see an opportunity to buy.” and is planned to deliver apartments of between 30-100 sqm in Q2 2018.

Smart homes One feature is that these will be so-called “smart homes” enabling homeowners to access smart devices remotely. This could include lighting, heating, electricity and security control. The decrease in VAT to 5% is seen as having brought about a breakthrough in

Cordia Terrace Residence 2. the residential market. However, on the supply side there are few actors remaining on the market and companies are returning very slowly. Thus the number of building permits granted is very low and the market is seen as needing time to react. One problem for investors is the difficulty in sourcing bank financing, as lenders are still very selective as to which companies they will grant loans to. Another problem is the low capacity in the construction industry, which is causing delays. Developers are facing difficulties in finding constructors despite the rise in demand and limited supply. The delivery timeframe of a project is about two-anda-half years, which means supply reacts very slowly to demand. “We were prepared for a market recovery because we kept our team during the crisis, followed the market and prepared a number of projects that we have now launched, and we are preparing further projects that we will launch this year and next,” commented Földi.

The price of apartments in Budapest has risen by 40% in the central seventh district in the past year, compared to 20% in the city center according to Cordia research. This is put down to rising land prices and the increasing cost of construction in these areas. Cordia is also developing residential units in Warsaw, Krakow, Wroclaw, and Bucharest. New build apartment prices are in general 30% higher in Warsaw than in Budapest, and 10% higher in Krakow than in the Hungarian capital. The very low supply and high price of building plots in the inner city could mean the best situated inner city apartments will approach Western European prices in the next few years. Investor interest remains strong as alternative investments offer lower yields, primarily owing to the very low interest rates. The 1,500 apartments developed by Cordia could be seen as both meeting residential demand and being an investment vehicle.

2016. 05. 04. 22:16

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+36.1.379.0506

3RD DISTRICT

+36.70.3156.116

5TH DISTRICT

39.900.000 HUF

+36.70.3156.087

10TH DISTRICT

+36.1.789.2846

13TH DISTRICT

+36.70.398.8754

15TH DISTRICT

94 SQM – 3 ROOMS, SZÉNA SQUARE

710 SQM – LOT, DONÁT STREET

67 SQM – 2 ROOMS + HALL, MÚZEUM CIRCUIT

132 SQM – 7 ROOMS, ÁLLOMÁS STREET

28 SQM – 1 ROOM, CENTRAL PARK SUBDIVISION

222 SQM – 7 ROOMS, PESTÚJHELY

Beautiful view over the Széll Kálmán Square, this completely renovated, high ﬂoor apartment has separate rooms, 2 bathrooms and it is situated in a renovated building with elevator.

This lot has 20% coverage possibility, electricity, gas and water on it. At the moment there is a 70 sqm building that needs renovation on it. It is located in a quiet and green street.

Completely renovated, street facing apartment with separate rooms, at Astoria, close to the main Synagogue. Alarm system and air conditioner are in the ﬂat.

This completely renovated, duplex apartment beneﬁts of 2 kitchens, 2 bathrooms, private gas heating, air conditioning system and alarm system.

19.900.000 HUF

31.900.000 HUF

In a quiet street, this two storey family house built on 548 sqm of lot, has air conditioning system, 2 bathrooms, wardrobe room, laundry room, 33 sqm of terrace and garage.

51.000.000 HUF

42.900.000 HUF

In a new built subdivision with elevator, this very bright, high ﬂoor apartment has 10 sqm of balcony. Good connection to public transport. 17.900.000 HUF

67.850.000 HUF

+36.1.201.0403

2ND DISTRICT

+36.1.379.0506

3RD DISTRICT

+36.70.3156.116

6TH DISTRICT

+36.70.646.6818

10TH DISTRICT

+36.70.414.7759

13TH DISTRICT

+36.70.398.8754

DUNAKESZI

90 SQM – 3 ROOMS, ALVINCI STREET

65 SQM – 3 ROOMS, INNER-ÓBUDA

64 SQM – 2 ROOMS, NAGYMEZŐ STREET

300 SQM – 4 ROOMS, LADÁNYI STREET

106 SQM – 3 ROOMS, KATONA JÓZSEF STR.

58 SQM – 3 ROOMS, DUNAKESZI ALAG

This renovated, spacious apartment has 2 separate bedrooms, living room, 21 sqm of terrace and private garage. It is situated in a small condominium with well kept garden.

This completely renovated, very sunny, high ﬂoor apartment has beautiful panorama over the Buda Hills, balcony and it is situated in a renovated building with elevator.

This apartment is situated within a nice period building, meters away from the pedestrian part of the same street, Opera House and the tree-lined Andrássy Boulevard.

This two storey family house in good condition built on 450 sqm of lot, has air conditioning system, 10 sqm of terrace and a garden pond in the well kept garden.

This very spacious, well divided, renovated apartment is situated in a well maintained building with elevator, adjacent to the St. István Circuit.

In Pest county, 20 minutes drive from Budapest. In a subdivision with playground, this garden facing mansard apartment has open kitchen, private gas heating and parking space.

53.000.000 HUF

23.990.000 HUF

34.900.000 HUF

52.900.000 HUF

41.299.000 Ft

19.500.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.1.430.1403

3RD DISTRICT

+36.70.3156.087

7TH DISTRICT

+36.70.646.6818

11TH DISTRICT

+36.70.414.7759

14TH DISTRICT

+36.70.399.0399

DUNAKESZI

185 SQM – 5 ROOMS, LIPÓTMEZEI STREET

75 SQM – 3 ROOMS + HALL, KISCELLI STREET

65 SQM – 2 ROOMS, KIRÁLY STREET

79 SQM – 3 ROOMS, KALOTASZEG STREET

53 SQM – 2 ROOMS, TÖRÖKŐR STREET

100 SQM – 3 ROOMS, DUNAKESZI ALAG

In a quiet side street, this very spacious, duplex apartment beneﬁts of private gas heating, balcony, winter garden and wine cellar.

In a nice period building with common garden, this completely renovated, well divided apartment beneﬁts of 2 wardrobe rooms, private gas heating and air conditioning system.

This sunny apartment on the top ﬂoor beneﬁts of a nice view over the rooftops of the centre. It is very close to the very central Deák Square.

This completely renovated, garden facing apartment beneﬁts of separate rooms, open kitchen, private gas heating and it is situated in a small condominium with common garden.

In a green area, in a building with nice common garden, this completely renovated, sunny apartment has nice view over the nearby gardens, air conditioning system and balcony.

This new built family house has 500 sqm of lot, living room with open kitchen, 2 bedrooms, terrace and garage.

68.000.000 HUF

33.500.000 HUF

30.990.000 HUF

32.900.000 HUF

25.900.000 HUF

39.200.000 HUF

+36.1.376.6080

2ND DISTRICT

+36.1.430.1403

+36.70.3156.087

7TH DISTRICT

4TH DISTRICT

+36.1.720.2433

72 SQM – 3 ROOMS, BÉLA STREET

134 SQM – 5 ROOMS, MURÁNYI STREET

68 SQM – 2 ROOMS, PRIELLE KORNÉLIA STR.

This duplex, very sunny apartment has living room with open kitchen, 3 separate bedrooms, 2 bathrooms, balcony, two car garage and private garden.

This sunny, duplex apartment in good condition has separate rooms, private gas heating and connection to the common garden. It is located in quiet side street.

In a period building with elevator, this very spacious, street facing apartment has private gas heating and sleeping gallery. It is located a few minutes walk from the City Park.

In a new built building with elevator, this garden facing apartment has living room with open kitchen, separate bedroom, 16 sqm of terrace and balcony.

17.500.000 HUF

38.000.000 HUF

34.900.000 HUF

+36.1.376.6080

2ND DISTRICT

+36.1.782.7275

4TH DISTRICT

+36.1.351.0446

7TH DISTRICT

+36.1.720.2433

12TH DISTRICT

104 SQM – 4 ROOMS, KILÁTÁS STREET

50 SQM – 2 ROOMS, CSÍKSOMLYÓ STREET

82 SQM – 3 ROOMS, HERNÁD STREET

104 SQM – 3 ROOMS, GYŐRI STREET

In a new built building, this duplex apartment has panoramic views, living room, 3 separate bedrooms with 3 bathrooms, balconies, terraces and 4 parking spaces in the garage.

In a new subdivision, this very bright and well divided apartment with balcony is located in a very green and quiet part of the district.

Close to the City Park, this spacious and sunny apartment has separate rooms, fully ﬁtted kitchen and terrace. It is located in a period building with elevator. Price includes all of the furniture.

This completely renovated, very sunny and spacious, park facing apartment has 2 bathrooms, private gas heating and it is located close to the MOM Park shopping mall.

39.000.000 HUF

49.900.000 HUF

112.000.000 HUF

+36.1.336.1706

24.500.000 HUF

+36.1.782.7275

+36.70.399.0399

11TH DISTRICT

134 SQM – 4 ROOMS, VÖLGY STREET

95.000.000 HUF

+36.1.351.0446

+36.1.789.2846

WELCOME

ARE YOU SEARCHING FOR APARTMENT?

WWW.TECNOCASA.HU CONTACT US: INFO@TECNOCASA.HU

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

BBJ_2409_biz.indd 11

2016. 05. 04. 22:16

www.bbj.hu

2 Business

Budapest Business Journal | May 6 – May 19, 2016

AmCham forum supports 2024 Olympic bid

Budapest is competing with Paris, Rome and Los Angeles for the opportunity to host the event. LEVENTE HÖRÖMPÖLI-TÓTH

Even though the host city of the 2024 Olympics will not be announced until September 2017, campaigns are in full motion and candidates are grabbing every opportunity to make their case. The American Chamber of Commerce in Hungary is throwing its support behind Budapest’s efforts to host the event, and AmCham’s April 20 business forum at the Corinthia Hotel was designed to build support and gather ADVERTISEMENT FLAT TO RENT. Spacious, bright and calm maisonette apartment next to Castle District, with a view to Parliament and Castle Hill, in a street with little traffic, but close to public transport, in a decent, neat house with 10 flats, lift and garden to be rented directly from the owner. The apartment consists of 105 sqm, 3 rooms, air conditioning, marble floors, built-in kitchen, spacious closets, two bathrooms and a separate toilet and is in an excellent shape. Monthly rent is 850 EUR plus utilities and caution fee. English speaking contact to the owner, no real estate agent. Please call: +36 20 33 45 199

attention for the capital’s Olympic bid. Budapest is up against Paris, Rome and Los Angeles in a contest that promises to be highly competitive. Budapest is building its hopes on the new set of rules of the International Olympic Committee (IOC) called Agenda 2020 that should make hosting more profitable. Existing and temporary facilities are preferred to new ones and since minimum capacity requirements have been scrapped, there should no longer be the need to erect unnecessarily large stadiums and sports halls. “We are ready to improve the infrastructure in accordance with the needs of the games”, Budapest City Mayor István Tarlós said. He added that next year’s World Aquatics Championships should serve as a great rehearsal to demonstrate that Budapest can handle the challenge related to large-scale sporting events. “The idea of having the most significant sports gathering in the world is gaining more and more support nationwide,” Tarlós noted. Minister of Foreign Affairs and Trade Péter Szijjártó argued that Hungary has undergone major changes in the past few years and the country is now economically strong enough to bid. “Central and Eastern Europe has become Europe’s growth engine and we are happy to represent the entire region,” he said. A successful bid is

Foreign Minister Péter Szijjártó, right, shakes the hand of György Kárpáti, a three-time Olympic champion with Hungaryʼs water-polo team, during the April 20 AmCham business forum in support of bringing the Olympics here. (Photo: MTI/Szilárd Koszticsák) expected to create 100,000 jobs, and tourism, which broke records in 2015, should further thrive. Winning the bid is bound to cause infrastructure-related developments to accelerate. Balázs Fürjes, government commissioner for major building projects in the capital stressed that we are witnessing a Budapest renaissance where architecture, gastronomy, public spaces and innovation are being elevated to a whole new level in an era of creative freedom. Hosting the Olympic and Paralympic Games in 2024 would be well deserved, as Hungary is the only nation among the top ten countries with the most gold medals

that has never had the privilege to act as host, he said. The IOC Agenda 2020 grants a chance for mid-sized cities like Budapest to have an economically viable event. “By awarding the 2024 Olympic Games to us, the IOC could send a message that it really means this reform. It’s all about renewal: New vitality to the Olympic movement, to the country and the city,” Fürjes sad. The timing looks ideal as well. The year 2024 will mark the 20th anniversary of the country’s EU accession, and Hungary will have spent 35 years in freedom after the collapse of communism. The country is on a clear growth track and a successful bid is thought likely to give it another push. More investments are counted on and the nation’s global reputation would improve, the government commissioner said. The Olympics would also prove a great promotional tool for healthy lifestyles and sports development. “Hosting would be celebrated as a joint effort that would free up unprecedented energies in the country,” Fürjes added. AmCham President Ferenc Pongrácz agreed that sports and health walk hand-in-hand. “AmCham Hungary is excited about the social and economic impact offered by the Olympics in the long run. We hope to see Hungary’s economic competitiveness grow as a result,” he said.

DR. ROSE PRIVATE HOSPITAL

DR. ROSE ORTHOPEDIC CENTER

DR. ROSE OBSTETRICS

DR. ROSE BUDAPEST PLASTIC INSTITUTE

DR. ROSE CORPORATE HEALTH CARE

7/8. SZÉCHENYI SQUARE 1051 BUDAPEST TEL.: +36 1 377 6737 WWW.DRROSE.HU

Private Hospital Obstetrics Orthopedic Center Budapest Plastic Institute Corporate Health Care

BBJ_2409_biz.indd 12

Dr. Rose offers an expanded range of services for its patients in an attractive and modern environment. Patients are offered examinations in 28 fields, preventive screenings and excellent specialists without any waiting time. Besides the Private Hospital, the Obstetrics, the Orthopedic Center and the Budapest Plastic Institute, we also operate a Corporate Health Care department. We provide our complex, premium quality health care services with up-to-date equipment and qualified staff amongst stylish surroundings in the heart of the inner city.

2016. 05. 04. 22:16

3Special Report BBJ

Offices

PM techniques gain favor

 16

New space mostly found in brownfields

 18

Budapest is building

Class ‘A’ office vacancies in the capital are hitting record lows, but there is hope for relief in the pipeline and creative developers are using upgrades to make new space fast.

BBJ_2409_spec_report2.indd 13

2016. 05. 04. 22:20

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

Capital’s office p With vacancies at a record low and few immediate deliveries anticipated, the office construction market seems to be warming up, as both foreign and domestic investors are expecting more completions in the next two-to-three years.

Latest big deal: Váci Greens.

Plans for Nokia Tower.

BBJ_2409_spec_report2.indd 14

been below 10%. With this low availability, tenants are considering class ‘B’ or ‘A-’ office product and decisions to relocate are being made two or three years ahead. However, 2018 could see more deliveries, according to the pipeline.” With strong market fundamentals, headline rents are put at €13-14 per sqm per month as there is upward pressure on rents and less tenant incentives are required. Demand for office space in 2015 reached an all-time peak with take-up totaling 364,800 sqm, according to CBRE. The overall office vacancy rate now stands at 11%. The lowest vacancy of 6% is in the South Buda submarket, while in the Váci corridor it is expected to fall to below 10%, whilst at the periphery it stands at 30%. GARY J. MORRELL Speculative development for the year is limited to four further projects. These New office construction is expected, but low delivery figures compare to 2009, for the near future it will be hard to find for example, when 300,000 sqm of office quality office space in the Hungarian space was delivered representing 10% capital that does not already have a of modern Budapest office stock. With regard to the longer-term pipeline, tenant. The supply to meet rising demand Cushman & Wakefield estimate that is low, with vacancy rates expected to around 200,000 sqm of space will be continue to fall in the immediate future. delivered between 2016 and 2018, Office pipeline in Budapest for 2016-17 is although a high proportion of this could put at roughly 90,000 sqm, representing be pre-let. an improvement on post-crisis delivery In the latest delivery, Belgium’s Atenor levels, but still low in relation to the rising Group has handed over Building B, the demand, and much of this is expected to third phase of Váci Greens, the biggest be pre-let. Since the financial crisis, only office project in Budapest, which was 60% equity rich developers and those with the pre-let on delivery. ability to conclude substantial pre-leases have been able to develop in a market Coming soon where debt finance has been expensive and difficult to source. However, in the Atenor plans to go ahead with more positive market environment a construction of the 15,400 Building D combination of established foreign and (the fourth phase) of the same project Hungarian office developers are planning this year, as there is more than enough construction that could be delivered in demand to fill the space, according to the next two-three years. From a positive Atenor. Upon final completion, the project perspective, the quality of office product will consist of six buildings with around is rising in terms of interior and exterior 135,000 sqm of office space. Executive design and sustainability. This is now Officer Olivier Ralet emphasizes that a basic requirement from tenants and Atenor undertook Váci Greens when potential investors with regard to an exit Budapest was generally perceived to be a very difficult development market. The strategy. The recent handover of Váci Greens B company is also developing the phased has further increased quality Budapest 75,000 sqm Hermes Business Campus in office stock by 26,600 sqm to a total of Bucharest; this was also regarded as an around 3.3 million sqm. This consists adventurous move for similar reasons. of 2,600,000 sqm of class “A” and “B” One of the most established developers speculative offices, in addition to 665,000 in the Budapest and CEE market, Skanska sqm of owner-occupied buildings is set to complete the two-phased 26,200 according to the Budapest Research sqm LEED “Gold” accredited Nordic Forum (comprising CBRE, Colliers Light on Váci út in May and September International, Cushman & Wakefield, respectively. Skanska expects to have the Eston International, JLL and Robertson project 60-70% let by the year’s end. Hungary). This compares to Warsaw, for A further Váci út pipeline project by example, where total stock is expected Hungary’s Wing will deliver the 12,000 to surpass the five million sqm mark by sqm V17 office center in summer. An summer, although with a large pipeline 8,500 sqm pre-lease with E-On has there are concerns about the rising been concluded on the project, which is vacancy rate that is now at more than 14%. financed by K&H Bank. V17 is currently 85% let. “Obviously, we see very positive trends in the market in terms of enhanced Class ‘A’ vacancy at 7% or increased occupier demand and, while Demand is strong and there is a low there is vacancy in the market, there is availability of class ‘A’ stock,” said also a lack of large, vacant, contiguous David Johnston, head of office agency at modern space,” said Noah Steinberg, CEO Cushman & Wakefield Hungary. “Vacancy & chairman of Wing. The developer is now has fallen to 12%; this represents 7% for preparing the groundwork for the 55,000 class ‘A’ and 15-16% for class ‘B’. Vacancy sqm Magyar Telekom headquarters in the in the Budapest office market has never out-of-center ninth district.

2016. 05. 04. 22:20

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

e pipeline finally increasing In a rare office development in the central fifth district, Horizon Development is set to deliver 5,700 sqm of office space in Vörösmarty tér at Váci 1, a classic Central European heritage building. The project reflects Horizon’s strategy of developing high-end office space in historic buildings in central Budapest. Futureal is constructing the 25,000 sqm Nokia Tower that forms the latest road, metro and rail transport hub. The office development at the Corvin first phase is planned at around 23,000 Promenade project. The BREEAM sqm, although and a substantial pre-lease accredited development, designed needs to be concluded for construction by Zoboki-Demeter & Associates, to commence, according to Futureal. In will provide Nokia with an IT and Váci út, the same company is planning telecommunications R&D center. This the Advance Tower, which will deliver is regarded as one of the largest deals 11,000 sqm of BREEAM accredited space in the post-economic crisis period. The designed by Mérték architects studio. tower is located adjacent to the 15,000 Further ahead, the Hungarian GRT sqm Corvin Technology & Science Park Group is planning the third 18,000 sqm that will form the fifth office phase of the phase of Office Gardens in the 11th district next year. The project envisages Corvin Promenade. office space in five buildings in a park environment. Also in the 11th district, Longer-term pipeline Hungary’s Info Group is planning a With regard to further pipeline, Futureal further 23,000 sqm phase of the Bartók plans to develop the Budapest One Udvar complex, to be completed in the business park adjacent to the terminus first quarter of 2018. of Metro 4, located on the western edge In southern Buda Property Market, of Budapest. The 45,000 sqm project is a subsidiary of the general contractor seen as part of the redevelopment of a Market Épitő, is planning the Buda Park

delivery of a first phase scheduled for the first quarter of 2018. Another established Budapest developer, GTC is expanding its Budapest office portfolio with the development of the 23,000 sqm Renaissance Plaza close to Arpád Híd. HB Reavis competed the sale of its first Budapest project, the 21,000 sqm Váci Corner office complex in Váci út last year office development on a site opposite to Zeus Capital Management. The deal Infopark. The project could deliver as is seen as strengthening the position of Budapest as an investment destination much as 300,000 sqm of office space. A sign of growing confidence in the and is expected to be the first of many transactions, according Budapest market is that HB Reavis is investment planning a 136,000 sqm project close to to Tim O’Sullivan, head of capital Árpád Híd, the first phase of which is due markets at CBRE Hungary, who acted to be delivered in Q1 2018. The London- on the transaction. The transaction was based Make architects are the concept concluded at an estimated €55 million, designers, and the Hungarian Finta making it the biggest single office transaction for some time. Currently, Studio has also worked on the design. “This is a large-scale project with prime Budapest office yields stand at 126,000 sqm of office space and an around 7% and could soon fall below that. additional 10,000 sqm of service space,” All the recent deliveries and projects commented Zoltán Radnóty, CEO of under construction are attracting the HB Reavis Hungary. “Obviously we will attention of investors, with sentiment phase it – it will probably consist of five towards Hungary improving and strong phases – and we believe there will be fundamentals such as falling vacancy and demand for this type of quality space.” rising rents in the office market. What The development is being financed is more, debt financing is increasingly through a combination of the company’s available with banks competing to finance own equity and debt finance, with development projects and acquisitions.

“Obviously, we see very positive trends in the market in terms of enhanced or increased occupier demand and, while there is vacancy in the market, there is also a lack of large, vacant, contiguous modern space.”

Roosevelt Rejuvenated DVM group delivers fresh design and new interiors for premium downtown asset Every office building can benefit from a gentle facelift from time to time. The Roosevelt building – originally completed in 1980 and entirely refurbished in 2006 – is now getting ready for another big change.

we even accommodated an exhibition area for seasonally changing, temporary art shows here.

The rejuvenation, however, does not stop here. The new lobby will reiterate certain details of the reception design, DVM group’s interior design plans - that entail the rebirth where functionality and aesthetics play an equally of the reception and lobby common areas by Q4 2016 - important role. Envisioned to be a true meeting point were revealed last week by the Landlord, GLL Real Estate and a space of lively social interactions, the generously Partners, during a celebratory unveiling event. The larger- spacious yet cozy Roosevelt lobby will bring back the than-life visualizations applied on the glass walls of the soft contours and smooth finishes of the light-colored sunny atrium give a sneak peek into the building’s soon- wood shell, and carry on with the color palette of the to-be revitalized identity. reception area. When it comes to the innovative features, my personal favorite is the tailor-made bench in the Tibor Massányi, managing partner at DVM group, reflected shape of the Roosevelt logo’s lion, attracting people to on the architectural concept behind the transformation: ‘we sink into its soft pillows, but also strongly communicating started with the idea of the multitenant reception becoming the brand. the new focal point of the building, the area that has to make a great first impression when one steps into Roosevelt. The New office standards are also being introduced in the design objective was to make this first point of contact building by the Landlord, with top-quality materials and inviting, functional, warm and cozy, so we combined a new, excellent fit-out solutions. To showcase the variety of ways organic wooden interior with beautifully arranged lights in which DVM group’s construction arm can fit out modern and a new color scheme inspired by the building’s greenish offices in Roosevelt, we built a showroom featuring both tint of glass. With the intention of elegantly maximizing the cellular and open space work areas, with an impressive space and optimizing both vertical and horizontal traffic, reception and collaboration space. we moved the reception desk closer to the entrance, and simultaneously created an easier access to the elevators. More design and construction reference projects at To honor the Landlord’s dedication to contemporary art, www.dvmgroup.com

BBJ_2409_spec_report2.indd 15

2016. 05. 04. 22:20

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

Investors embrace PM techniques Local real estate firms see active management of office properties as an effective way to address the tight office market in Budapest. GARY J. MORRELL

Against a background of rising demand and limited immediate supply, some investor-developers are attempting to reposition their existing portfolio to meet the changing demands of tenants through property and asset management, while “pure” developers are utilizing property management (PM) and facility management (FM) techniques to attract tenants to new office centers, perhaps with an eye on a sale to investors. “The owner’s business objectives for a class ‘A’ office building are mainly to secure long-term income from the asset, to have a flexible exit strategy, to reach high occupancy ratio at an early stage of the property’s development, to lease space within the agreed ERV (estimated rental value), and also to offer favorable service charges to tenants,” said János Seifert, head of PM at Cushman & Wakefield (C&W). “Naturally, the priorities of the PM service provider Under redevelopment: Balance Office Park. back up the owner’s business objectives. On a daily basis, the PM’s scope of work includes: landlord representation; tenant retention; property inspections; lease management; rent collection; service charge reconciliation; and optimizing operational expenses. Regarding the class ‘A’ offices managed by Cushman & Wakefield, we make an extra effort on continuous development of the operational systems, as well as cost optimization.” The company have just taken over property management of the twophased 26,200 sqm LEED “Gold” accredited Nordic Light on Váci út, due to be delivered in May and September respectively. Skanska expects to have the project 60-70% let by the year’s end. Skanska, as developer, does not have enough in-house staff to serve the needs of tenants, and has therefore outsourced PM services. FM services have been sub-contracted to Vinci, which is carrying out an on-site facility FM, meanwhile, coordinates space, management role. András Schmidt, infrastructure, people and organization. sustainability and property manager Facility management represents a wider at Skanska Property Hungary sees range of activities than just business property management as focused on services and the core areas of facility the needs of clients, while facility management covered in office buildings management provides on-site technical takes in daily operation of the property. This includes reception, security, services C&W defines PM as the operation, gardening, and on-site maintenance control, and oversight of real estate personnel. FM services are in most cases as used. It looks after both the daily outsourced to specialized companies. operation, keeps its quality and the Asset management monitors, longer-term profitability of the property. maintains and increases the value of the Property management involves the property. This is seen as a systematic processes, systems and manpower process of deploying, operating, required to manage the life cycle of maintaining, upgrading, and disposing the property, including acquisition, of assets cost-effectively; the owner, control, accountability, responsibility, in most cases, is responsible for asset maintenance, utilization and disposition. management.

“The owner’s business objectives for a class ‘A’ office building are mainly to secure long-term income from the asset, to have a flexible exit strategy, to reach high occupancy ratio at an early stage of the property’s development, to lease space within the agreed ERV, and also to offer favorable service charges to tenants.”

BBJ_2409_spec_report2.indd 16

LEED Gold: Nordic Light on Váci út.

Five-year plans “The ‘older’ office buildings, approximately five years after their handover, face different challenges compared to the newly built ones,” C&W’s Seifert explained. “Usually, these buildings are more than 90% leased, and their tenants have running lease contracts. The owners of such buildings mostly think pro-actively in threeto-five-year terms. The main midterm objectives of these buildings are to keep quality and service standards high, as well as retaining reliable tenants. In this part of the life-cycle, the marketing focuses more on existing tenants’ satisfaction. They invest less in the lease marketing, but focus more on client entertainment, client satisfaction surveys and a fast response to tenant’s demands,” added Seifert. An example of a long term developerinvestor is CPI Hungary, which has been operating in Hungary for around 20 years and has a commercial property portfolio valued at €298 million, including 15 office buildings. The company is currently renovating the 15,600 sqm Balance Office Park, located close to the Forgács utca metro station in the Váci corridor. The refurbishment will be carried out in two phases, the first 9,400 sqm to be completed this summer. Space plans range from 300-3,000 sqm located in a green park environment. Balance Loft, the second phase consists of 6,200 sqm of “industrial and modern style loft space” scheduled to be completed in 2017. CPI has applied for BREEAM “Very Good” certification. Balázs Simonyi, leasing director at CPI,

sees the Balance Loft as class “A++” and believes the loft style design will provide niche space to the market. The delivery time is seen as crucial, as it will be ahead of the wave of deliveries expected for 2018. “CPI is pursuing a dual strategy of developing speculative and built-to-suit office space. We see ourselves as longterm investor-developers and we keep development and acquisition products in our portfolio. Our aim is to increase the occupancy and upgrade our existing products through in-house property management,” he said. Simonyi defines asset management as increasing income, optimizing costs and outgoings, and maintaining and upgrading the quality of offices and services to encourage tenants to renew their leases. In-house property management can better control the quality of the day-to-day running of an office center and contact with tenants, he believes, while facility management involves monitoring the out goings and quality of services at each level. GTC, another long-term CEE investor-developer, has purchased the 31,500 sqm Duna Tower for around €52 mln. In what is widely seen as a rejuvenated Budapest investment market, GTC recognizes value-add potential in the complex, which was originally delivered in 2006. The major role of the asset managers of the complex is increasing occupancy level. “We will invest in upgrading the building’s specification and amenities to improve the service and comfort level for new and existing tenants,” said Thomas Kurzmann, CEO of GTC.

2016. 05. 04. 22:20

CityZen Offices - Be here. Be more. The “A” Category, BREEAM Certified CityZen Office Building offers 12,600 square meters of office environment on 9 floors, and 3 underground parking levels. The office building on the Váci Corridor is easily accessible by car or public transport (M3, 75, 79 bus). The fully customisable internal spaces, the great location and the premium quality services make CityZen one of the best office buildings in Budapest.

1134 Budapest Váci út 37. | +36 70 319 6916 |

BBJ_2409_spec_report2.indd 17

info@cityzenirodahaz.hu |

www.cityzenirodahaz.hu

2016. 05. 04. 22:20

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

The hunt is on for space to build The limited number of office vacancies is driving the search for new places to build. Most of the suitable locations seem to be brownfield sites, rather than greenfield. GARY J. MORRELL

In the current positive market environment, with rising demand and falling vacancy, a combination of foreign and Hungarian players are considering office developments. While the land rush is focusing on areas outside the city center, this does not necessarily mean a tendency toward urban sprawl. The obvious basic requirement for any office project is a suitably-sized site with unimpeded access to utilities, clean title and direct access to public transport and major road networks; in Budapest, suitable sites tend to be brownfield rather than greenfield. With a limited supply of development plots in the historical center of Budapest, most office development is now being undertaken in out-of-center locations that provide easy access for a qualified urban labor force via public transport, car and, increasingly, by bike. This could be seen as a maturing of the market, with the current need for building developers to meet sustainability requirements that require less carbon emissions and shorter journey times with a public transport option. In contrast to the current trend, there was previously a fashion for projects to be undertaken in out-of-city locations with no metro or other direct public transport links. However, the periphery now has the highest vacancy rates and the inner city and suburban sub-markets the lowest. “One of the most important issues is location,” said Pál Baross, director of the Campus Redevelopment Office at the Central European University (CEU) and former adviser to the Budapest city administration. “First, the right location in which to develop has to be sourced; it is very important that office development in an urban city context is close to public transport, and such locations are essentially brownfield sites. This is an important principle as, around ten years ago there was a danger that the office market would ‘suburbanize’, but as the Tó Park development showed this view was premature and not what was needed at the time. The labor force wants offices to be in Budapest.” The largest current Budapest office project is Váci Greens by the Atenor Group. This is a phased project that will deliver 135,000 sqm of office space located in a green environment. “We commenced the project due to a need for office space in Budapest, the supply of large development plots in Váci út with excellent public transportation links and the support of the local authority,” said Olivier Ralet, CEO at Atenor. The

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Big things going up in southern Buda: A drawing of the Buda One business park. company has extended the project by purchasing an adjacent industrial building that will be demolished and a further office phase constructed. Demolition of an existing building on site adds an expense to the project: During the construction process, a developer has to take into account environmental and possible site contamination issues, title and legal issues with the contingent liabilities and the possible political risk regulation system that encourages inward in securing building permits. In general, development. restitution issues over title are not now Most analysts agree that the drivers regarded as a major issue in Budapest, of the development of Váci út are good although it has been a problem elsewhere public transport, large plots and cheap in CEE. “The price of land is rising, land prices, the allowance of high although the purchase of development density development and the “open door” sites is more considered than in the boom policy of the district political leadership, time and two plots have recently been including the engagement of successive transacted in the Váci corridor,” said chief architects with developers. Mike Edwards, head of CEE valuation at A sign of growing confidence in the office market is that HB Reavis has Cushman & Wakefield. Depending on the state of the plot, the secured a large plot in the area and is purchase price constitutes around 15-20% planning a 136,000 sqm project close to of the total development cost. There Árpád Híd. The first phase is due to be are known to be a number of suitable delivered in 2018. development plots in the 13th district, but In the same area, another established plots in southern Buda are more difficult Budapest developer, GTC has acquired to source. Closer to the center, a plot in a plot for the development of the 23,000 the vicinity of the Bank Center is said to sqm Renaissance Plaza office complex be available and a possible plot behind on the site of a 19th century market hall. “GTC is planning to revitalize this site Duna Plaza is available for purchase. and create a complex whose format will be based on the existing structure,” said Váci corridor draws developers the company. In recent years, the so-called Váci út business corridor has arguably Southern Buda and outer Pest established itself as the business center of Budapest with its large supply of former The other area currently popular with industrial land and the pro-active policy developers is southern Buda, with the of the 13th district authority. Indeed, the recent completion of the Metro 4 line. area could be regarded as a template for A subsidiary of the general contractor, former industrial areas to be redeveloped Market Épitő is planning the Buda Park and attract inward investment. Dr. József office development on a site opposite Tóth, mayor of the district, comments Infopark. The project could deliver as that Váci út is continuing to attract much as 300,000 sqm of office space office and residential development as according to the development plans. it has a very good public transport and Also in Buda, Futureal plans to develop road infrastructure, relatively cheap the Budapest One business park adjacent development plots, and a planning to the terminus of the Metro 4 line,

“Around ten years ago there was a danger that the office market would ‘suburbanize’, but as the Tó Park development showed, this view was premature and not what was needed at the time. The labor force wants offices to be in Budapest.” located on the western edge of Budapest. The 45,000 sqm project is seen as part of the redevelopment of a road, metro and rail transport hub. In a further development, Futureal is constructing the 25,000 sqm Nokia Tower that forms the latest office development at the Corvin Promenade project, just south of the Nagykörút in Pest. This is regarded as one of the largest deals in the post-economic crisis period. The tower is located adjacent to the 15,000 sqm Corvin Technology & Science Park, which will form the fifth office phase of Corvin Promenade. According to Futureal, the office developments are attracting substantial interest in part due to the availability of retail, leisure and residential amenities at the mixeduse development. The award-winning Corvin Promenade has been developed in cooperation with the eighth district municipality, enabling the redevelopment of a very run-down 22 hectare urban area. In the neighboring ninth district, Wing is preparing the ground for the 57,000 sqm Magyar Telekom headquarters. Again, the complex is located at a metro and road network hub on the road to the Budapest international airport. This is adjacent to the Groupama stadium, home to Ferencváros Football Club. The close to HUF 50 billion project, designed by TIBA Építész Stúdió, is due to be completed in the second half of 2018. The consortium of banks financing the project consists of UniCredit Bank Hungary, UniCredit Bank Austria and K&H Bank. The sale of the land is essentially contributing to the cost of the stadium.

2016. 05. 04. 22:20

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Budapest Business Journal | May 6 – May 19, 2016

EXPERT OPINION

Meeting tenants’ needs in a low vacancy market Head of Tenant Representation at JLL, Zoltán Szalóky, shares his insight on finding the best fit for his clients in a market that is becoming increasingly lessor driven.

What does tenant representation at JLL entail? We primarily handle the Budapest office market and within this, we represent tenants’ interests, usually for larger companies and multinationals. First off, we establish a strategy that details all the requirements, client expectations, etc., and then we help in the search of that tenant’s ideal office. This is based on basic parameters such as number of staff, how many square meters are required, how many parking spaces are needed, storage requirements, location, proximity to public transport and highways or proximity to airports and so on. There are also services which are becoming increasingly important for us, such as sustainability, employee engagement, change management; in other words, the human factor. How do you go about finding a suitable property for your corporate clients? We usually discuss the re-negotiations of the tenant’s current lease while simultaneously searching for a new location to give the tenant an alternative so that they can weigh their options. This also provides a kind of safety net. Even if they choose to stay, we suggest alternative locations so they can compare market conditions with what they currently have. This also gives them bargaining power. The search process has several stages. Firstly, we send out a request for information to market players and then we narrow this information down until a final choice is reached. Following this, we assist the tenant in drawing up a lease agreement. Our work ends when that lease agreement is signed. This is when

BBJ_2409_spec_report2.indd 19

the third stage starts, which involves refurbishments to match the client needs. These fit-outs are handled by another department within JLL, the project and development services team. We work very closely with them on these projects from the initial search through to the overhaul.

have a network and processes to reach out to all available properties and that we can represent them throughout the process. Timing is largely contingent on how much remains of their lease. These days we need more time than in the past because of the shortage of offices vs. demand. Lessors are in a much better position than tenants. And demand is also on the rise. Last year, for example, a record number of lease agreements were signed, amounting to 538,000 sqm of office space. This is unprecedented in the Budapest market.

What kind of trends are you seeing in the sector? The total amount of “A” and “B” category office space in Budapest is currently approximately 3,300,000 sqm, which means that we have the second largest office market in the region, just behind Warsaw. And what is also important to note is the vacancy rate, which was 20-22% a few years ago, but dropped to 11.3% at the end of the first quarter of this year. This is an average number of all “A” and “B” category buildings in Budapest across all submarkets – we differentiate nine submarkets in Budapest, for example Vaci Corridor, South Buda and South Pest, these are the most popular locations at present. The vacancy rate of “A” category buildings is currently 7-8% while the vacancy rate of “B” category buildings is 16%. And of course this varies among submarkets. For example the vacancy of “A” category buildings in South Buda is 5.2%, which is practically zero. But even this low vacancy is distributed across a number of buildings and offices. If someone is looking for a 2,000 sqm office space in Budapest, this poses a serious problem in the current market. And this is not likely to improve in the next couple of years.

When a firm approaches you looking for new company headquarters, what are some of the factors they consider most important? JLL has about a 33% share of the tenant representation market and working with multinationals usually involves built-to- Why are there so few vacant offices in suit requests, which means we are starting Budapest? from scratch. The initial stages are very This is pretty much in sync with economic long and detailed and it’s here that we cycles. There was a substantial boom assess all the client’s needs. The most from 2000 when several new offices were important factors are usually location, being built and this peaked around 2006the floor plan, the quality of the building, 2009. Then came the financial crisis in services in and around the building, to 2008 and companies started scaling back on expenses. With a dramatic drop name a few. in demand, the construction of new Determining the company culture and buildings essentially stopped, aggravated To what extent do low vacancy rates design requirements is done by the project by the fact that there was neither capital, affect rental fees? services and development team through a nor bank financing to speak of. So nothing This shortage affects the sqm costs series of workshops. When we figure out much was built until 2012. Fortunately, the substantially. For example, the cost of premium category rentals, those in central what the exact needs are, then the search situation in Hungary has improved since. Budapest in a top category offices, hover begins. This includes looking at existing around €22 per sqm per month. That properties, properties under development There is also, among other factors, a represents about a 10% increase in less and off-market opportunities that have not growing number of shared service centers than a year. Likewise, we see effective yet begun. and outsourcing companies coming to rental costs (including incentives) rising in Budapest, which in turn increases demand all categories and more rigid parameters How do tenants typically approach you? on the Budapest market. Unfortunately, Companies come to us for various however, there is still a lack of speculative being imposed by lessors. reasons, either because they are JLL office developments and the construction of corporate clients, or returning local clients, new offices has not been able to catch up they can be new prospects or come to us with this demand. It’s a long process. Those based on referrals by other clients. They office buildings that are expected to be trust that we have a good and up-to- handed over by 2018 will not be sufficient to date understanding of the market, we meet the needs of the growing market.

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

Zoltán Szalóky, Head of Tenant Representation at JLL.

2016. 05. 04. 22:21

20 3

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Budapest Business Journal | May 6 – May 19, 2016

Developers now design outside, and in Local experts say office owners are expected to take more responsibility for the interiors of their projects.

“Both developers and investors have become much more focused on ‘tenant satisfaction’ than in the past, when an investment-grade property could be described by a few technical specifications and an excel sheet summarizing the lettable areas.”

GARY J. MORRELL

Interior design and fit out are now regarded as central elements of office design along with the exterior look. Indeed, it has developed into a specific area of expertise, with consultancies setting up interior dedicated departments, while some tenants now employ their own interior designers for leased office areas. Analysts argue that interior issues should be incorporated into the overall design process of an office building, and this should be taken into account by the architectural team. From a sustainability perspective, a healthy and efficient work environment is seen as more productive. “For workplaces, the critical issue is ‘building health’, mostly in office buildings. This includes natural light, fine grade control over temperature, humidity and noise, visual contact with the ‘world out there’ and usable outdoor space,” commented Pál Baross, a qualified green accreditation assessor. “As many certified buildings in Budapest and all over the world testify, designing buildings with these parameters is well within in our reach. In my view, both developers

András Schmidt, sustainability and property manager at Skanska Property Hungary said the role of the developer and investors have become much more over costs and settlements. Furthermore, involves providing quality, flexible space focused on ‘tenant satisfaction’ than in the expert oversees the process of with, for example, natural daylight while the past, when an investment-grade implementing potential changes within the clients now often utilize their own property could be described by a few the scope of works, and helps to solve any interior designers, as the tenants know technical specifications and an excel other problems that may arise,” he said. their own requirements. sheet summarizing the lettable areas.” Developers are increasingly designing a project with a view to securing tenants According to Mariusz Aleksandrowicz, Handling tenant’s work too associate director of project and who establish shared service centers with development services at JLL, the fit-out Aleksandrowicz said he sees the role a dense person per sqm ratio and the work phase should always begin with of a project manager as organizing any need for amenities such as bike changing design works. “During the construction required tenders and the contracting room facilities, café bar and restaurant works, the technical expert serves as the of the tenant’s own works. “It is worth facilities, and green areas that also act as eyes of the tenant on the construction mentioning that although it is market informal meeting areas. A large letting site; they oversee the progress and practice that most works are carried at a new class “A” office complex could quality of works, their compliance with out by the landlord, more tenants are now be regarded almost as a built-to-suit approved documentation and the client’s deciding to employ their own contractors project, with many developers requiring requirements, as well as managing control independently and are ready to take a significant pre-lease before a planned on responsibility for the space delivery project goes ahead. In this way GE themselves. In this scenario, a project established an international headquarters ADVERTISEMENT manager is additionally responsible for at Váci Greens, developed by the Atenor conducting all necessary tenders in order Group. The recently delivered 24,500 to employ an appropriate contractor(s). A sqm Building B was 60% let to GE BLUE CUBE project manager’s responsibilities include Infrastructure and, overall, GE expects conducting all tests and handovers – both to have around 4,000 employees at Váci ADDRESS 1138 Budapest, Váci út 182. during the construction works and those Greens. In total, GE has leased 45,000 YEAR BUILT 2002 after completion. One should ensure sqm of space at the complex. According FREE SPACE 5,280 sqm that the office space is safe and ready to Joerg Bauer, president of GE Hungary, PUBLIC TRANSPORT metro line M3, for employees. Therefore, the experts the investment on the fit out at the GE bus No. 105, 120, 15 should check not only if everything looks offices was HUF 6.5 billion and includes CONTACT Barbara Baráth +36 20 984 4977 good (straight walls, materials used in two restaurants, a gym, medical center Zoltán Fábián: + 36 20 497 2181 accordance with the design) but also, and conference center. and maybe most important of all, if the The concept is that staff will be happy air-conditioning, ventilation and other to spend time at the complex, often building systems will provide the tenant working irregular hours and taking with the expected comfortable working the opportunity to utilize the leisure Blue Cube office building is located on Váci út , right next to Duna Plaza and the M3 metro station. It is a environment,” he added. facilities. Mariusz Aleksandrowicz of JLL.

perfect setting to work in . Be our tenant and enjoy the comfort of abundant parking facilities, the well-equipped conference room, high tenchnical standards, efficent configuration, peaceful inner garden and the Unilever shop in-house.

ÓBUDA GATE

TERRAPARK C + D ADDRESS 2040 Budaörs, Liget utca 3/2. BUILDING YEAR C Block 2008;

D Block 1995-2000;

PUBLIC TRANSPORT Bus 40, 140, 240, 88, 188, 287, Terrapark shuttle bus CONTACT

Tel: +36 20 9848 999 info@terrapark.hu

Terrapark C + D , Hungary’s first office park of Western European quality, currently is home to more than 80 companies in Budaörs. Thanks to its excellent accessibility and favorable location, it offers high-quality office space in a natural environment. Terrapark offers office solutions at flexible conditions from 15 sqm to as much as 2,000 sqm on one floor.

BBJ_2409_spec_report2.indd 20

András Schmidt of Skanska Hungary.

ADDRESS 1023 Budapest Árpád fejedelem útja 26-28. BUILDING YEAR 2001 FREE SPACE 5,470 sqm PUBLIC TRANSPORT Tram 17, Bus 9, 86, 160, 260 CONTACT alapkezelo@diofaalapkezelo.hu

The grade „A” Óbuda Gate office building located on Danube bank in a key Central Buda location offering 14,000 sqm office area with high technical standards. Large continuous areas are still available in Óbuda Gate. The building can be easily accessed from Buda and Pest Side by public transportation and by car. Óbuda Gate and its vicinity are well-provided with amenities such as restaurants, banks and shopping facilities. The office building will have a fully renovated, brand new reception and lobby area, as well as a renewed restaurant and cafeteria, from the middle of June 2016. The owner is also redesigning the other common areas, to make the entire office building more modern and attractive.

2016. 05. 04. 22:21

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Budapest Business Journal | May 6 – May 19, 2016

An architect’s rendering of the new structure.

MT begins construction of new HQ Magyar Telekom, the Hungarian subsidiary Bank, the press release noted. Telekom of German telco giant Deutsche Telekom, and T-Systems Magyarország plan to launched construction of its new Hungarian relocate most of their Budapest-based headquarters, which is scheduled to employees to this new building once be completed in 2018 and will be the construction is completed. largest single-block office development The building will also feature an in Hungary, according to a press release underground car park with a total of 1,350 issued May 2. parking spaces and a conference hall with The 57,000 sqm building, developed room for up to 300 people, according to by real estate developer Wing Zrt., is the press release. being built at the intersection of Üllői út In addition to the space being used by and Hungária körút (ring road), near the Telekom, an additional 4,000 sqm office space will be available for lease in the Groupama Aréna football stadium. The investment will cost nearly HUF building. The construction project is 50 billion, with three banks financing expected to create approximately 1,000 the project: UniCredit Bank Hungary, jobs, the press release added. UniCredit Bank Austria and K&H – Fran Elsner

Wing undertakes new office project Hungarian real estate firm Wing is set to commence construction of the Hungarian Nobel Prize Winners Research & Development Park located on the Buda side of the Rákóczi híd following the signing of a major pre-lease, the company announced. The complex will house a set of buildings designed for businesses engaged in research and development. The 24,000 sqm R&D center is LEED ”Gold” accredited and the project is being financed by a consortium of banks consisting of UniCredit Bank Hungary, UniCredit Bank Austria and K&H Bank, according to Wing. The first phase is to be delivered at the end of 2017, and a second phase has already been planned, the firm said. The design work is being performed by Wing’s subsidiary, Aspectus Architects.

THE 3RD LARGEST LISTED REAL ESTATE COMPANY IN THE CEE REGION Office Retail Logistics Hospitality Engaged in property investment, development with quality office spaces, turnkey solutions, innovative asset management and green concepts in Hungary.

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www.cpigroup.hu

2016. 05. 04. 22:21

22 3

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Budapest Business Journal | May 6 – May 19, 2016

EXPERT OPINION

INTERVIEW: ‘HANDS-ON’ STYLE PAYS OFF S IMMO Country Manager Katalin Sermer discusses her firm’s activities in Budapest. How many properties are you handling in Budapest? S IMMO AG’s portfolio in Budapest consists of seven office buildings of which two are located on the Buda side and five on Pest side, plus the Hotel Marriott Budapest. Our asset and property management company S IMMO APM Hungary takes care of these properties. We let the vacant areas, perform full property management of the office buildings, and we plan and execute investment projects on all of them including the hotel.

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

Are there any particularly interesting properties you would like to highlight? Our portfolio is largely diversified – smaller to large buildings, rented premises ranging from 20 sqm to 14,000 sqm, lease lengths between one and 15 years, single tenant building to multilet with 50 tenants, and so on. They are all different and interesting, full of challenges and much success. Budapest’s office market is heating up, with few vacancies and not much development in the pipeline. How is your business impacted? We have made large investments in our buildings over the last two years, to be ready for the awakening interest. This approach proved to be successful and resulted in extending contracts as well as concluding many new lease agreements. It is the core strategy of our mother company, S IMMO AG in Vienna, to anticipate the real estate cycles and to take advantage of them. I am furthermore convinced that S IMMO’s style of negotiation, our “hands-on” management and close relationship with our tenants are also paying off. Given the busy market, are you actively looking at acquisitions here? S IMMO AG is invested in Austria, Germany and six countries in Central

Buda Center.

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A good time for the l Asked to assess the situation and good strategies, local real estate professionals say their business is doing well, and they expect it to stay that way for a couple of years. BBJ STAFF

With demand high and top-quality vacancies low, this is a fine time to be in the Budapest office business, according to executives of local real estate firms. These experts spoke to the Budapest River Estates . Business Journal about their strategies for the market’s current direction, as well as and South Eastern Europe. Its plans the trends they see for the future. for acquisition, developments and One obvious strategy mentioned is to investments are always targeted toward make the most of the good situation right now. all regions. At the moment new projects “Until Q2 2018, we see opportunistic are under way in Vienna, Germany and value-add investors seeking and Bucharest. These schemes were opportunities in Hungary as a potential prepared in previous years and we will investment target,” said Mátyás Gereben, be happy to support any new projects in general manager of CPI Hungary Kft. Budapest if and when those are decided “CPI is upgrading its existing portfolio upon. while at the same time seeking valueadd investment opportunities. More quality product will improve sentiment Can you see the possibility to create towards Hungary.” some class “A” office vacancies by Several experts said they have been upgrading existing properties that expecting the booming market here. you have or can obtain? “Besides extending the contracts of old S IMMO Hungary’s office buildings tenants, we also concluded dozens of have seen continuous upgrading and new lease agreements in 2014 and 2015 in all our buildings,” said Katalin Sermer, increasing occupancy. Most of the country manager of S IMMO APM technical and visual renovation works finished by the end of last year. This year Hungary Kft. “While this may be partly attributed to overall market activity, has already brought a number of major the results confirm that the strategy lease agreements. I strongly believe of our mother company S IMMO AG, that upgrading properties – especially in Vienna was the right one: We invested prime locations – is a crucial factor of heavily in these buildings to be ready for being successful in Budapest nowadays. awakening interest.” Viktor Nagy, country manager of the Asset Management Office at What kind of advice are you giving IMMOFINANZ Hungary, described a potential partners about assets in this similar situation. “Our growth pattern market? continues in 2016 and within the last Assets on the Budapest market are to few months, IMMOFINANZ has signed be maintained to a high level and the several lease agreements accounting for approximately 18,000 sqm in the personal touch is also very important. Hungarian portfolio,” he said. “About 6,500 sqm are new leases and expansions, and an additional 11,500 sqm of office space comprises extended rental.” Csaba Zeley, director of asset management at ConvergenCE, said that this market was something his company was waiting for. “When we invested in distressed assets exactly 12 months ago, we anticipated this undersupply and a consequent improvement in the rental market,” he said. “This is obviously positive for us and others involved in commercial property.” The rush for space is apparently being felt beyond Budapest, according to Éva Szilágyi, Sales manager of Terrapark Kft., which operates Terrapark “C” and “D” Block buildings, Terrapark, just outside

Mátyás Gereben, general manager of CPI Hungary Kft.

Éva Szilágyi, sales manager of Terrapark Kft. of the city limits. “We are experiencing a greater demand here due to the shortage of sufficient office space in the capital, Szilágyi said. “That alone would not, however, be enough for companies to move here. The other reason why they like to move out here is the traffic. If they have their offices here, they can avoid queuing on the M1/M7 motorways, and also the traffic jams within the city. Not to mention parking, which in Budaörs is free in public areas.”

Upgrades a good idea Given the need for new vacancies, it makes sense to upgrade existing properties, as a way to ensure maximum available space. According to the experts interviewed, constant upgrades are also essential to maintain the value of their properties. Sermer of S IMMO described her firm’s recent work to improve its portfolio. “This is exactly what we did recently, upgrading the HVAC systems in River Estates, Buda Center, and Pódium office building; modernizing the appearance of City Center, Buda Center, River and Pódium

2016. 05. 04. 22:21

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EXPERT OPINION

NEW LEASE TERMINATION OPTIONS FOR OFFICE BUYERS? Having recognized the significance of

Tamás Balogh

ensuring and maintaining the new owner’s

Attorney at Law SCHOENHERR HETÉNYI ATTORNEYS AT LAW

Viktor Nagy, country manager, Asset Management Office at IMMOFINANZ Hungary.

Katalin Sermer , Country Manager S IMMO APM Hungary Kft. our office buildings. Last year we started to replace all mechanical systems at our Central Business Center, and this year significant modernization has started at the Globe 13 and Xenter 13 buildings. For example, refurbishment has taken place on gardens and restaurants – which are important places for tenants – and also the mechanical infrastructure, which is important from the aspect of building management,” he said. “I would also highlight the Árpád Center, where the reception area has recently been fully refurbished and modernized, along with some offices. The building itself will get a whole new mechanical engineering system soon.”

Another couple of years of growth Csaba Zeley, director of asset management at ConvergenCE. – supporting our tenants in creating attractive and fresh-looking offices as well as opening roof terraces, for example in Buda or Pódium,” she said. ConvergenCE’s Zeley said that upgrading older office space is a way to get new category “A” offices out of formerly category “B” space. “We have had a positive experience doing this during the last year, although it can become a more complex process than building a new building in the case of a comprehensive refit such as CityZen,” he said. Gereben said his firm enjoys the benefits of improving the quality of its properties. “CPI is upgrading its existing portfolio. We have invested close to €3 million in order to improve the quality and the efficiency of our assets,” he said. “This continuous refurbishment program mainly focuses on sustainability, and a modern, high tech and human-oriented environment.” Nagy of IMMOFINANZ spoke of the need to improve quality just to stay in place. “At this point, our main emphasis is on continuity, and we are in the continuous process of modernizing all

BBJ_2409_spec_report2.indd 23

As for the future prospects for the market, most of the experts were upbeat, and said they can see plenty of reason to invest now. Noting that he expects the market to peak in mid-2018, CPI’s Gereben said, “Considering the high need for new office stock and the moderate pipeline, the early risers will be the winners with regard to office development.” Nagy of IMMOFINANZ pointed to the potential impact of projects in the pipeline. “New developments will certainly make the life of existing properties more challenging, but this is normal, and everyone is prepared for such competition,” he said. Zeley of Convergence was ready to predict another couple of years of a growing market. “The commercial market will continue to strengthen as rental demand exceeds supply for the foreseeable future,” he said. “The local banks will have a key role to play in financing new projects – particularly speculative projects without pre-lease tenants – in a way that ensures a balance of supply and avoids a rush back into an oversupply situation (as experienced in Prague and Warsaw in the last couple of years). Equally, as debt financing terms and conditions improve, investment values will rise during the next 24 months.”

Apparently, the Ministry of Justice has recognized market needs to some extent and intends to implement certain amendments of the Civil Code also affecting property development financing and real estate acquisitions. The amendments in the pipeline may strengthen the positive trends on the property market and boost real estate financing. The initiative on the amendment of the secured

transaction

scheme

the

subject of heated debates among legal

professionals, as it puts forward some

fundamental changes in the currently

applicable civil law provisions. Not only

would the formerly used non-accessory mortgages be reintroduced, but security

interests would not be terminated in the

case of transfer of contractual positions. These

amendments

would

certainly

have considerable impact on real estate

financing and acquisitions, while some other planned changes could also have

an impact on real estate lease relations. It is also the subject of ongoing discussions

whether termination rights shall be granted to investors acquiring buildings with existing lease agreements.

With regards to the potential amendment of lease termination rights, pursuant to

the current civil law provisions, lease relations shall remain in effect even if the

object of the lease is sold to a third party.

This concept means that the tenant may

right to utilize and control the property

after the completion of an asset purchase

transaction, the above general concept may be amended mainly in favor of

investors of real estate acquisitions.

It is suggested that termination rights of

the parties in real estate lease agreements shall be amended in a way that in the case

of an asset sale, the new owner would be

entitled to terminate definite term leases

following the acquisition. Nevertheless, the

right of the new landlord on termination

would only exist for a limited period after having been informed about the

registration of its ownership rights with the

Land Registry. In the latter case, however,

the previous landlord (i.e., the seller of

the real estate) would be obliged to pay adequate compensation to the tenant. It is also subject to further clarification what the adequate compensation of the tenant shall mean and how it will be calculated.

As an exemption, the new landlord would not be allowed to terminate the definite

term lease if the tenant’s right to lease is registered with the Land Registry. (Given

that under the current regulatory system

the registration of lease rights is not appropriately regulated, the amendment of

the Land Registry regulations would also be required.)

It needs to be emphasized that the new

regulation on termination rights shall only

be applicable to those agreements which

will have been concluded after the relevant act enters into force, which is expected only at the beginning of next year.

Investors and future tenants need to pay special attention to the contractual

regulation of termination rights of new

investors especially in the case of preleases and build-to-suit projects.

continue to use the leased property under

the same conditions and for the same rental fee as agreed with the original

landlord. The only amendment of the lease

is that the original landlord is replaced by

the purchaser entity by force of law.

www.schoenherr.eu

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

e local office market

Budapest Business Journal | May 6 – May 19, 2016

2016. 05. 04. 22:21

24 3

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

CEU grows a green campus downtown The BREEAM environmentally certified project is meant to unify the diverse campuses of the university into one new construction. GARY J. MORRELL

The first phase of the Central European University (CEU) Campus Redevelopment Project in the historical fifth district of Budapest is due to be completed in summer, with the shell and much of the interior completed, Irish architects Sheila O’Donnell and John Tuomey said at an April 26 presentation of the site. The first non-commercial building project in CEE to receive Building Research Establishment Environmental Assessment Methodology (BREEAM) green accreditation incorporates hightech functions while at the same time maintaining the classic Central European integrity of a UNESCO World heritage site. Both the facades and interiors were regarded as interconnected and intrinsic parts of the design, and architects were

Architect John Tuomey shows the work on one of the courtyards. (Photo: Matyas Pödör) involved in the interior design from the outset, helping ensure that the inside spaces are coherently integrated into the overall design, planners said. There is now a perceived need for new non-commercial buildings to be sustainable and green accredited, as is the case in the office sector. “The aim of the project is to bring the entire university together into one campus on its 25th anniversary and in this way it will work in a more effective way,” said John Shattuck, president and rector of the CEU.

The development will provide a central 35,000 sqm campus across seven buildings, unifying the university’s departments. The first €16 million phase, consisting of the business school and library, is due in August. A second €8 mln phase, including the school of public policy, is scheduled to be completed in August 2018, and a third €4-5 mln phase, which would house an administrative center in a refurbished historical building, is set for delivery in August 2019. The designers sought to construct a functional building that blends in and complements the surrounding classical Central European architecture. The project design was concluded after a series of consultations with the local municipality and heritage authorities in which “a range of opinions were expressed with regard to a new building in a world heritage setting”, the architects said. The end result will consist of around 60% of the old building, with 40% new. For example, the original staircases and brickwork have been preserved. Per the sustainability accreditation, all materials such as the stone used in the construction have been sourced locally.

Using the courtyards O’Donnell and Tuomey where selected after an open tender and the design was developed over a four year period. “Such an enterprise raises a number of questions related to the interplay

between contemporary architecture and urban cultural heritage,” said Sheila O’Donnell. “The urban fabric of the center of Budapest consists of courtyards and we were interested in preserving the old courtyards and using these to connect the different parts of the existing buildings into a physical unit. In the design there is a focus towards the courtyards – ways of making interconnections between the buildings, not only on the ground floor, but on the upper floors,” she said of the design process. The building will have glass roofs that take into consideration the extreme temperature variations in Hungary and the need for air-conditioning in summer and efficient heating in winter. The use of natural lighting is meant to save electricity. “The design will reduce overall energy consumption by a third, significantly lowering the environmental impact of the CEU’s buildings. We are also looking at saving close to €1 mln per year thanks to energy efficiency prudent management of space and increased user consciousness regarding sustainable practices and installation of modern mechanical methods,” said Pál Baross, director of the CEU campus redevelopment office. Pitched roofs with windows open to the sky in the courtyards are meant to give a feeling of openness. The project is not a “traditional” university design from the ground floor upwards but designed horizontally with a series of connected staircases, planners said. A rooftop garden spanning two buildings will provide views of the historical center of Pest and will be used for events. A conference center will have a capacity for 350 people. “A connected campus is the first principle of our work – connected to the city and connected with itself,” said architect John Tuomey. Sustainable features were incorporated in the planning process from the outset and the project is only the second higher education institution in continental Europe – and the first in CEE – to be granted BREEAM “Very Good” accreditation. CEU received a 100% BREEAM transportation rating for providing as many as 200 cycle racks and shower facilities. There will be no car parking facilities apart from a limited number of service spaces.

CITYZEN OFFICES

KÁLVIN SQUARE ADDRESS 1134 Budapest, Váci út 37. YEAR BUILT 1997 (renovated in 2016) FREE SPACE 9,128 sqm PUBLIC TRANSPORT metro line M3, trolley No. 75, 79 CONTACT Csaba Zeley +36 70 319 6916

e-mail: csaba.zeley@convergen-ce.com web: www.cityzenoffices.hu

Usually we spend more time in the office than at home, thus we need an attractive and comfortable office environment. The newly reconstructed “A” category CityZen Office Building offers 12,600 square meters of professionally designed office environment where the scent of fresh coffee from CityZen Café welcomes you, the premium quality will fulfill your highest expectations in an environment that inspires you every day to create something new.

BBJ_2409_spec_report2.indd 24

ADDRESS 1085 Budapest, Kálvin tér 12. YEAR BUILT 2003 (renovated in 2016) FREE SPACE 2,185 sqm PUBLIC TRANSPORT metro line M3, M4,

bus No. 8, 9, 15, 112, 115, tram No. 47, 49

CONTACT Csaba Zeley +36 70 319 6916

e-mail: csaba.zeley@convergen-ce.com web: www.kalvinsquare.hu

The prominent “A” category Kálvin Square Office Building has a unique view onto one of the busiest traffic hubs in Budapest surrounded by amenities. This is arguably the best office location in Budapest at the intersection of the M3 and M4 metro lines and tram 47/49. Strikingly modern, the 9,000m² building provides carefully designed interior spaces and the highest quality building management and tenant services creating a professional working atmosphere and it is surrounded by every possible leisure amenity.

2016. 05. 04. 22:21

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

Category A office buildings in greater Budapest

✓

Capital squaRe

www.capitalsquare.hu

36,050 50,800

250 3

4+3+3 426

12–14 3.50

Magyar Posta, Samsung, AON, Mortoff Kft.

32,000 38,000

200 3

19 609

12.50–13 1,100 HUF

Albemarle, KCI, Ferrero, Regus

bank CenteR

www.bankcenter.hu

duna toWeR offiCe building 6

www.dunatower.hu

31,200 38,400

Underground+8

350 5

25 733

✓

Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ

Cushman & Wakefield Kft., www. cushmanwakefield. hu

✓

–

✓

30,041 52,184

200 3

17 480

16–20 4.20

BÉT, BorsodChem, Citibank, Regus, Weil

29,717 32,410

100 5

10 413

12–15 3.70

IBM, Huawei, Metlife, iGate

✓

independent poWeR supply

biCyCle paRking

Waste ReCyCling

1138 Budapest, Dunavirág utca 2–6. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

– (100)

1133 Budapest, Váci út 76. (1) 501-2800 (1) 501-2801 office@caimmo.hu

–

– Immofinanz AG (100)

1134 Budapest, Váci út 45. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com 1054 Budapest, Szabadság tér 7. (1) 302-9010 (1) 302-9020 anett.eles@ bankcenter.hu

Ÿ Ÿ Ÿ

✓

–

– CPI Property Group (100)

✓

12.50–13.5 950 HUF

1139 Budapest, Váci út 81–83. (1) 412-3699 (1) 412-3981 bori.gedai@gtc.hu

✓

átRium paRk

www.atriumpark.hu, www.immofinanz.com, www.iroda.immofinanz.com

✓

Ÿ Ÿ

✓

addRess phone fax email

–

Cushman & Wakefield Kft., www. cushmanwakefield. hu, ESTON International, www.eston.hu

✓

oWneRship (%) hungaRian non-hungaRian

✓

gateWay offiCe paRk www.gatewaybc.hu, www.cpigroup.hu

leasing agent, name, Website

natuRal light and aiR ventilation

bank bRanCh/atm

ExxonMobil, Honeywell, Nalco, GE Hungary

in-house faCility management

12–13 3.75

suitable foR disabled people

16 578

gReen enviRonment

212 5

24-houR ReCeption and seCuRity seRviCes

aveRage monthly Rent on apRil 1, 2016 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2016 (euRo/sqm)

36,867 41,312

Wellness and spoRt seRviCes

no. of elevatoRs no. of paRking spaCes

www.gtc.hu

RestauRant, Café

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

CuRRent majoR tenants

CenteR point

gReen teChnologies

seRviCes

no. of levels

Company Website

net offiCe spaCe (sqm) total gRoss size of building (sqm)

Rank

Ranked by net office space (sqm)

✓

JLL, Robertson

✓

Aventus Real Estate, www. aventusrealestate. com

✓

– Allianz (50)Generali (50)

✓

Cushman & Wakefield Kft., www.cushmanwakefield.hu

✓

–

Ÿ Ÿ

1138 Budapest, Népfürdő utca 22. (1) 412-3699 (1) 412-3680 bori.gedai@gtc.hu

–

Ÿ Ÿ

1051 Budapest, Széchenyi István tér 7–8. (1) 473-1209 – i.kerekes@ horizondevelopment.hu

1095 Budapest, Soroksári út 30–34. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

✓

Roosevelt

www.roosevelt-budapest.com 29,000

Ÿ 5

8 231

Ÿ Ÿ

✓

–

✓

–

✓

–

– IMMOFINANZ AG (100)

halleR gaRdens 8

www.immofinanz.com, www.iroda.immofinanz.com, www.hallergardens.hu

Underground+7

300 5

15 618

12–.5 890 HUF

✓

–

✓

28,065 43,000

200 5

12 399

Ÿ Ÿ

E&Y, Diageo, Regus, Affidea, IT Cinema

–

✓

–

✓

–

Ÿ Ÿ

787 3

8 520

12.50–14 900 HUF

✓

ESTON International Zrt., www.eston.hu

✓

Ÿ Ÿ

270 5

10 388

12.50 4

Ericcson, GEA EGI, Swietelsky, TATA

✓

White Star Real Estate Kft., www. whitestar-realestate. hu

✓

– Heitman (100)

6 566

11–12.50 3.70

Grand Vision, Viacom, LeasePlan

✓

–

✓

Cushman & Wakefield, www. cushmanwakefield. hu

✓

Ÿ Ÿ

15 385

11.75–12.5 990 HUF

Evosoft, British Telecom, Dalkia

✓

–

✓

CA IMMO

✓

–

– (100)

paRkWay

27,600 31,200

sCienCe paRk

27,278 29,450

doRottya udvaR

27,050 28,846

200 5

ip West

26,500 30,100

60 3

www.sciencepark.hu

www.dorottya.net

www.ipwest.iroda.hu

BBJ_2409_spec_report2.indd 25

✓

28,520 34,300

West end business CenteR

www.eston.hu

✓

JLL, www.jll.hu, Cushman & Wakefield, www. cushmanwakefield. hu

www.westendbusinesscenter.hu

✓

–

✓

1132 Budapest, Váci út 20–26. (1) 451-4760 (1) 451-4289 office@mompark.hu 1087 Budapest, Könyves Kálmán körút 54–60. (1) 877-1000 (1) 877-1001 info@eston.hu 1117 Budapest, Irinyi József utca 4–20. (1) 382-5100 (1) 382-5101 info@ whitestarrealestate.hu 1113 Budapest, Bocskai út 134–146. (1) 888-0395 (1) 888-0399 dorottyaudvar@eur. cushwake.com 1117 Budapest, Budafoki út 91–93. (1) 501-2800 (1) 501-2801 office@caimmo.hu

2016. 05. 04. 22:21

independent poWeR supply

biCyCle paRking

leasing agent, name, Website

Waste ReCyCling

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

CuRRent majoR tenants

natuRal light and aiR ventilation

gReen teChnologies

seRviCes

RestauRant, Café

aveRage monthly Rent on apRil 1, 2016 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2016 (euRo/sqm)

no. of elevatoRs no. of paRking spaCes

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

no. of levels

Company Website

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

net offiCe spaCe (sqm) total gRoss size of building (sqm)

Rank

26 3

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

Ÿ Ÿ

1138 Budapest, Váci út 135–139. (1) 473-1209 – i.kerekes@ horizondevelopment.hu

–

– (100)

1097 Budapest, Könyves Kálmán körút 11. (1) 473-1209 – i.kerekes@ horizondevelopment.hu

–

Ÿ Ÿ

bsR CenteR www.bsr.hu 14

26,000

250 3

Ÿ Ÿ

✓

–

✓

–

✓

–

népliget CenteR

www.nepliget-center.com 14

26,000

200 3

Ÿ Ÿ

✓

–

✓

–

✓

paRk atRium

www.park-atrium.com 26,000

✓

–

✓

–

✓

–

✓

pRomenade gaRdens

www.promenadegardens.hu 17

25,000

váCi gReens b building

www.vacigreens.hu

24,500

Ÿ 5

14 349

Ÿ Ÿ

Underground+7

300 5

12 399

13–.5 2.60

GE Infrastructure Holding Kft.

Vodafone, CITI, Cognizant, Bank of China

✓

–

✓

–

✓

Cushaman & Wakefield, www. cushmanwakefield. com

✓

1068 Budapest, Dózsa György út 84/B

Ÿ Ÿ Ÿ

✓

Ÿ Ÿ

1133 Budapest, Váci út 80–84. (1) 473-1209 – i.kerekes@ horizondevelopment.hu

✓

City Tower Kft. (100) –

1138 Budapest, Fövény utca 4–6. (1) 785-5208 – balogh@atenor.hu

–

– CPI Property Group (100)

1087 Budapest, Hungária körút 40–44. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

1088 Budapest, Rákóczi út 1–3. (1) 235-7770 (1) 235-7767 info@ersteingatlan.hu 1133 Budapest, Váci út 96–98. (1) 382-9100 (1) 382-9129 leasing@skanska.hu

aRena CoRneR

www.arena-corner.hu, www.cpigroup.hu 24,200 47,000

east-West business CenteR www.ersteingatlan.hu

noRdiC light 20

www.skanska.hu

100 3

12 370

14–16 3.90

23,000 29,000

100 5

5 222

Ÿ Ÿ

✓

–

✓

–

✓

–

✓

Erste Ingatlan Kft. (100) –

23,000 44,000

400 5

12 404

12.95–13.5 2.70–3.2

✓

–

✓

CBRE, www.cbre.hu

✓

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

10 407

12–13 1,200 HUF

NSN, IBM

✓

–

✓

CA IMMO

✓

–

– (100)

2/tower 440

13.75 4.50–3

P&G, Mediaworks, Systemax, ARM, Futureal

✓

–

✓

(100) –

7–10 2.50–3

S&T, Flaga, Partner in Petfood, GDF Suez, Trane, Bioderma, Progast, Goodmills, Dexon Systems, Edco, KaiserFood, Ricoh, Bellinda, Controltech, Rockwell

✓

Terrapark Kft., www.terrapark.hu

✓

– Terrafinanz GmbH (100)

2040 Budaörs, Liget utca 3/2. (23) 423-323 (23) 423-324 info@terrapark.hu

✓

White Star Real Estate Kft., www. whitestar-realestate. hu

–

– Heitman (100)

1123 Budapest, Alkotás utca 50. (1) 382-5100 (1) 382-5101 info@ whitestar-realestate.hu

✓

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

✓

– (100)

1134 Budapest, Váci út 35. (1) 429-5050 (1) 429-5055 office@simmoag.hu

✓

Cushman & Wakefield, www.cushmanwakefield.com, CBRE, www.cbre.hu

–

TriGranit (26) Heitman Hepp IV (74)

1095 Budapest, Lechner Ödön fasor 8. (1) 456-6200 (1) 456-6201 scsikos@trigranit.com

City gate

22,800 25,000

157 3

CoRvin toWeRs

22,000 25,000

241 5

www.citygate.iroda.hu

www.futureal.hu

teRRapaRk C+d www.terrapark.hu

21,282

alkotás point

www.alkotaspoint.hu

20,500 25,100

15 3

13 344

380 5

9 395

14 4.45

400 3

11 352

12–13.5 1,100 HUF

Citibank, DIGI, Gilda Max, HostLogic, Danone, Erzsébet Vagyonkezelő

– 5

8 300

Ÿ Ÿ

Morgan Stanley, MSD Pharma, Lexmark

www.simmoag.hu

20,245 21,340

millennium toWeR iii

www.millenniumcitycenter.hu

BBJ_2409_spec_report2.indd 26

20,050 35,000

Bayer, Concorde, Euronet, Medicover, ✓ Signal

RiveR estates

✓

–

✓

–

✓

–

✓

–

✓

1092 Budapest, Köztelek utca 6. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1082 Budapest, Futó utca 35-45. (1) 266-2181 (1) 688-5498 office@futureal.hu

2016. 05. 04. 22:21

www.bbj.hu

no. of levels

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

no. of elevatoRs no. of paRking spaCes

18,777 22,166

860 5

14 299

13–15

200 3

gReen teChnologies

Wellness and spoRt seRviCes

24-houR ReCeption and seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

natuRal light and aiR ventilation

Waste ReCyCling

biCyCle paRking

independent poWeR supply

seRviCes

RestauRant, Café

aveRage monthly Rent on apRil 1, 2016 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2016 (euRo/sqm)

net offiCe spaCe (sqm) total gRoss size of building (sqm)

Rank

Company Website

Budapest Business Journal | May 6 – May 19, 2016

✓

–

✓

–

✓

Ÿ Ÿ

1134 Budapest, Váci út 47. (1) 412-3699 (1) 412-3981 bori.gedai@gtc.hu

9 450

10.90–11.9 1,100 HUF

Keler, Develor

✓

–

Cushman & Wakefield Kft., www. cushmanwakefield. hu

✓

–

– (100)

1074 Budapest, Rákóczi út 70–72. (1) 501-2800 (1) 501-2801 office@caimmo.hu

100 5

13 486

Ÿ Ÿ

Group M, Pfizer, Young&Rubicam, Bonitás, Thales

✓

Cushman & Wakefield, JLL

✓

Ÿ Ÿ

200 3

7 350

12–.75 3.20

STRABAG Zrt., Lufthansa Systems, Pannontej

✓

–

✓

GAMMA Properties Kft.

✓

– TRIUVA (100)

Cetelem Bank, Medicover, Dealogic, AXN Hungary, Mastercard, TESCO, Grundfos, ESAB, Givaudan, Costa

✓

– Europa Fund II. (100)

1062 Budapest, Teréz körút 55–57. (1) 225-0912 (1) 375-0445 csaba.zeley@ convergen-ce.com 1117 Budapest, Alíz utca 4. (1) 327-2050 (1) 327-2055 info@officegarden.hu

CuRRent majoR tenants

leasing agent, name, Website

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

gtC White house

www.gtcwhitehouse.hu 28

R70 offiCe Complex

18,700 19,000

mom paRk offiCes www.momparkoffice.hu

18,638 48,000

infopaRk building d

18,526

www.r70.iroda.hu

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

eiffel téR offiCe building www.eiffelsquare.com 32

18,500 23,500

250 5

10 365

20 3.90

18,500 5

Ÿ Ÿ

12.50

250 5

6–9

12.50–13.85 2.66

✓

ConvergenCE, www.convergen-ce. com

Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ

Robertson Hungary, www.robertson.hu

✓

Ÿ Ÿ

✓

Cushman & Wakefield Kft., www. cushmanwakefield. hu

✓

Ÿ Ÿ

✓

1123 Budapest, Alkotás utca 53. (1) 487-5501 (1) 487-5542 office@mompark.hu 1117 Budapest, Gábor Dénes utca 2. (1) 382-7560 (1) 382-7570 office@gamma-am.hu

offiCe gaRden iii

18,500

váCi gReens building C

18,500

CoRvin one

18,000 20,000

– 5

6 342

13.50 3.95

Epam, DAS, ERGO, Futureal

✓

–

✓

(100) –

kRisztina palaCe

18,000 22,600

400 5

7 399

12.75–13.50 3.59

✓

–

✓

–

Cushman & Wakefield, www. cushmanwakefield. hu

✓

–

(100) –

millennium toWeR ii

17,800 23,000

– 5

Ÿ Ÿ

Morgan Stanley, Oracle Hungary, Nestlé, KLM, Lexmark

✓

Cushman & Wakefield, www. cushmanwakefield. com, CBRE, www.cbre.hu

✓

–

TriGranit (26) Heitman Hepp IV (74)

1093 Budapest, Lechner Ödön fasor 7. (1) 456-6200 (1) 456-6201 scsikos@trigranit.com

400 3

6 254

11–13 3.90

EMEA, Getronics, Fővárosi Ítélőtábla, EPAM, Oberbank

✓

Cushman & Wakefield Kft., www. cushmanwakefield. hu

✓

– JP Morgan Asset Management (100)

1027 Budapest, Henger utca 2. (1) 225-0912 (1) 375-0445 info@margitpalace.com

179 5

Ÿ Ÿ

Boehringer Ingelheim Pharma, Cognizant, Panalpina, Vodafone

✓

Cushman & Wakefield, www. cushmanwakefield. com, CBRE, www.cbre.hu

–

TriGranit (26) Heitmann Hepp IV (74)

1095 Budapest, Lechner Ödön fasor 6. (1) 456-6200 (1) 456-6201 scsikos@trigranit.com

17,042 20,055

250 3

5 245

7.50–9.5 3.50

✓

–

– JP Morgan Asset Management (100)

2040 Budaörs, Puskás Tivadar utca 4. (1) 225-0912 (1) 375-0445 office@ convergen-ce.com

17,000 30,000

360 3

5 406

12–.5 1,100 HUF

HP, Novartis

✓

–

– (100)

1114 Budapest, Bartók Béla út 43–47. (1) 501-2800 (1) 501-2801 office@caimmo.hu

Avis Budget Group, ABB, MSCI, Deichmann, Innovative Dental Care

–

Torony Real Estate Investment Fund (100) –

1134 Budapest, Kassák Lajos utca 19. (1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

✓

Ÿ Ÿ

1117 Budapest, Alíz utca 2. (1) 327-2050 (1) 327-2055 info@officegarden.hu

www.officegarden.hu

www.vacigreens.hu

www.futureal.hu

www.krisztinapalace.hu

www.millenniumcitycenter.hu

GE, GE Healthcare, Sykes International, Enterprise ✓ Communications, Atenor

✓

1138 Budapest, Váci út 117-119. (1) 785-5208 (1) 785-5209 info@atenor.hu

1082 Budapest, Futó utca 47–53. (1) 266-2181 (1) 688-5498 office@futureal.hu 1123 Budapest, Nagyenyed utca 8–14. (1) 268-1288 (1) 268-1289 info.Budapest, @cushwake.com

maRgit palaCe offiCe building

www.margitpalace.com 17,138 20,323

millennium toWeR i

www.millenniumcitycenter.hu

17,100 18,452

teRRapaRk next b www.terraparknext.com 40

baRtÓk ház

www.bartokhaz.iroda.hu

gReen house

www.diofaalapkezelo.hu 42

offiCe gaRden ii www.officegarden.hu

BBJ_2409_spec_report2.indd 27

16,800 17,800

168 5

6 252

12.95–14 2.80

16,800 27,000

– 5

6 310

12.50

✓

Invitel, DuPont, Tchibo, TOTAL, Coca-Cola Hellenic, ✓ Johnson Diversey, Carlsberg

Shell, TATA, Syngenta, Pirelli

✓

–

✓

Cushman & Wakefield Kft., www. cushmanwakefield. hu

–

✓

–

✓

CA IMMO

✓

–

✓

–

✓

–

✓

–

✓

–

Robertson Hungary, www.robertson.hu

✓

2016. 05. 04. 22:21

28 3

www.bbj.hu

www.vacigreens.hu

16,000

250 5

Ÿ Ÿ

12.50–13.85 2.66

15,873 24,803

underground+6

300 3-5

13 2.58

–

General Electric (GE), GE Health-care, Sykes International, ✓ Enterprise Communications, Atenor Enterprise Communications Magyarország Kft., SYKES Central Europe Kft., GE ✓ Infrastructure Hungary Holding Kft., GCC Kft., Atenor Group Hungary Kft., BNP Paribas Kft.

–

✓

–

✓

Cushman & Wakefield, www. cushmanwakefield. hu

✓

Cushman & Wakefield, www. cushmanwakefield. hu

–

✓

–

independent poWeR supply

biCyCle paRking

Waste ReCyCling

leasing agent, name, Website

natuRal light and aiR ventilation

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

10.50-11.50 2.70

24-houR ReCeption and seCuRity seRviCes

4 177

CuRRent majoR tenants

Wellness and spoRt seRviCes

250 3

16,000 23,800

gReen teChnologies

seRviCes

RestauRant, Café

aveRage monthly Rent on apRil 1, 2016 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2016 (euRo/sqm)

váCi gReens building a

www.vacigreens.hu

no. of elevatoRs no. of paRking spaCes

váCi gReens building d

www.cushmanwakefield.hu

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

business CenteR 140

no. of levels

Company Website

net offiCe spaCe (sqm) total gRoss size of building (sqm)

Rank

Budapest Business Journal | May 6 – May 19, 2016

offiCe gaRden i www.officegarden.hu

15,600 17,000

15,022 26,000

Lufthansa Systems, EIT, National Instruments, 3M

130 5

6 291

12.25–14 3.40

120 5

6 320

12–13 3.80

1,500 3–5

4 439

12.50 3.50

HP, Philips, Sophos

✓

–

✓

–

✓

–

Robertson Hungary, www.robertson.hu

addRess phone fax email

1138 Budapest, Váci út 140. (1) 268-1288 (1) 268-1289 info.budapest@ eur.cushwake.com

✓

Ÿ Ÿ

✓

Ÿ Ÿ

1138 Budapest, Váci út 117-119. (1) 785-5208 (1) 785-5209 info@atenor.hu

✓

Ÿ Ÿ

1138 Budapest, Váci út 117-119. (1) 785-5208 – info@atenor.hu

✓

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

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

–

Ÿ Ÿ

1117 Budapest, Alíz utca 1. (1) 327-2050 (1) 327-2055 info@officegarden.hu

–

– CPI Property Group (100)

1139 Budapest, Váci út 99. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

–

– CPI Property Group (100)

1139 Budapest, Váci út 99. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

–

(100) –

1118 Budapest, Rétköz utca 5. (1) 309-0909 – info@budawest.net

–

SavillsIM Ingatlankezelési Kft. (100) –

1077 Budapest, Wesselényi utca 16. (1) 479-6020 (1) 479-6029 info@centraludvar.com

–

K1A Real Estate Management Kft. (100) –

1103 Budapest, Kőér utca 2/A (1) 785-4985 (1) 799-8879 info@celand.hu

Ÿ ✓ ✓

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Magyar Tudósok körútja 9. (1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

– CPI Property Group (100)

1138 Budapest, Váci út 188. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

✓

infopaRk building e www.diofaalapkezelo.hu

oWneRship (%) hungaRian non-hungaRian

✓

lomb offiCe building

www.cpigroup.hu 14,700 28,500

✓

–

✓

–

Cushman & Wakefield Kft., www. cushmanwakefield. hu, ESTON International, www.eston.hu

balanCe offiCe paRk

www.balancebuilding.hu, www.cpigroup.hu 50

LOGO | colors | primary

budaWest offiCe building www.budawest.net

14,428 22,864

3–9

300–500 3

2–3 313

10.90–12.5 3.50

Starschema, Brendon, Interticket, Opus, Parvis

14,370 27,000

underground+8

200 3

6 280

11–13 3.60

Adidas, Xapt, QualySoft, Helly Hansen, Tupperware, CEZ, OTP, K&H

258 3

9 215

11 3.80

Unicef, TMF, McCann Erickson, GfK, Asus, Culevit, AddVal Kft., Hortonworks

6–7

60 3

8 248

10.50 3.50

CentRál udvaR 52

www.centraludvar.com

13,900 24,000

✓

–

✓

–

✓

AddVal Kft., www.addvalgroup. com

–

CE Land Holding Kft., www.celand.hu

✓

–

✓

lauRus offiCes

www.laurusirodahazak.hu Pantone Silver C

Black

13,862 27,000

✓

–

✓

infopaRk building g www.diofaalapkezelo.hu 54

13,800 14,666

2,000 5

200

3.80

Magyar Telekom

2,400 3

7 258

9–10.50 3.90

Dravanet, Euronet, LMGL Invest

✓

–

✓

–

✓

v188

www.cpigroup.hu 55

BBJ_2409_spec_report2.indd 28

13,750 23,188

✓

–

✓

–

✓

–

✓

–

2016. 05. 04. 22:21

www.bbj.hu

independent poWeR supply

biCyCle paRking

Waste ReCyCling

leasing agent, name, Website

natuRal light and aiR ventilation

bank bRanCh/atm

in-house faCility management

11 950 HUF

suitable foR disabled people

aveRage monthly Rent on apRil 1, 2016 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2016 (euRo/sqm)

6 268

gReen enviRonment

no. of elevatoRs no. of paRking spaCes

– 3

24-houR ReCeption and seCuRity seRviCes

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

Underground+7

CuRRent majoR tenants

Wellness and spoRt seRviCes

no. of levels

13,600 15,500

gReen teChnologies

seRviCes

RestauRant, Café

net offiCe spaCe (sqm) total gRoss size of building (sqm)

Rank

Company Website

Budapest Business Journal | May 6 – May 19, 2016

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

– IMMOFINANZ AG (100)

1075 Budapest, Kéthly Anna tér 1. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

Ÿ Ÿ

1052 Budapest, Szervita tér 8. (1) 473-1209 – i.kerekes@ horizondevelopment.hu

–

– CPI Property Group (100)

2040 Budaörs Szabadság út 117. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

✓

– CPI Property Group (100)

1138 Budapest, Esztergomi út 44–48. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

–

– CPI Property Group (100)

1132 Budapest, Váci út 30. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

–

– (100)

2220 Vecsés, Lőrinci út 59–61. (1) 501-2818 (1) 501-2801 office@caimmo.hu

–

– (100)

1027 Budapest, Kapás utca 6–12. (1) 501-2800 (1) 501-2801 office@caimmo.hu

–

– IMMOFINANZ AG (100)

1139 Budapest, Teve utca 1. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

– (100)

1027 Budapest, Kacsa utca 15–23. (1) 346-6403 (1) 346-6448 krisztina.major@ raiffeisenevolution.com

–

Torony Real Estate Investment Fund (100) –

1023 Budapest, Árpád fejedelem útja 26–28. (1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

–

– HGA Capital (100)

1117 Budapest, Gábor Dénes utca 4. (1) 210-0566 (1) 210-0095 borbala.farago@ strabag-pfs.hu

– (100)

1134 Budapest, Váci út 37. (1) 225-0912 (1) 375-0445 Csaba.zeley@ convergen-ce.com

gReenpoint 7 56

www.immofinanz.com, www.iroda.immofinanz.com

szeRvita squaRe –

13,400 30,000

Ÿ 5

7 300

Ÿ Ÿ

3–8–6

100 1

3–3 350

6.75–9 3.50–4

General Motors, Tesa Tape, Kaiser&Kraft, Kardex

✓

–

✓

–

CBRE Kft., www.cbre.com

✓

–

✓

Eston International, www.eston.hu

✓

–

budaöRs offiCe paRk

www.budaorsofficepark.hu, www.cpigroup.hu 13,315 18,115

✓

–

✓

–

✓

–

✓

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

13,200 20,400

1,600 3–5

7 239

12.50 3.80

268 3

4+2 221

11.50 3.60

BASF, Trigranit, EOS, Samsung, Imhaus, CPI Property Group

60 3

6 260

11–12 1,080 HUF

BMW, Fedex

200 3

6 230

12–13 1,200 HUF

Cernex, Santander, Swedish embassy

✓

–

✓

–

✓

bC30

www.bc30.hu, www.cpigroup.hu 13,000 19,800

euRopolis paRk budapest aeRozone

13,000 65,000

vÍziváRos offiCe CenteR

13,000 14,600

www.caimmo.com

www.vizivaros.iroda.hu

✓

–

✓

–

✓

–

✓

–

Cushman & Wakefield Kft., www. cushmanwakefield. hu

–

CA IMMO

✓

–

✓

globe13 63

www.immofinanz.com, www.iroda.immofinanz.com

ResidenCe 1 offiCe building

www.residenceirodahaz.hu

12,913 17,310

12,900 21,200

Underground+1

– 3

286 3

6 178

5 177

10.50 1,260 HUF

12.90 3.80

ELI-HU, Gnocco, Aegis Media, Primal, Magyar Turizmus Zrt., Diákhitel

✓

–

✓

–

JLL

–

Robertson Hungary, www.robertson.hu, JLL, www.jll.hu

✓

STRABAG Property and Facility Services Zrt., www.strabag-pfs.hu

✓

ConvergenCE, www. convergen-ce.com

✓

–

Óbuda gate

www.obudagate.hu 64

infopaRk building C www.infopark.hu

12,900 13,942

12,703

200 5

5 265

145 3

4 164

10.99–13.2 1,190 HUF

3.300

L'Oréal, Regus, Orbico

✓

–

✓

Cityzen offiCes

www.cityzenoffices.hu

BBJ_2409_spec_report2.indd 29

12,233 12,634

250 5

5 174

3.50

Cargill Magyarország Zrt., OptimalManagement Kft.

✓

2016. 05. 04. 22:21

30 3

www.bbj.hu

–

✓

leasing agent, name, Website

independent poWeR supply

✓

in-house faCility management

IBM, Panasonic, Invitel

suitable foR disabled people

aveRage monthly Rent on apRil 1, 2016 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2016 (euRo/sqm) 11–12 1,200 HUF

gReen enviRonment

no. of elevatoRs no. of paRking spaCes 6 375

24-houR ReCeption and seCuRity seRviCes

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

100 3

Wellness and spoRt seRviCes

no. of levels

CuRRent majoR tenants

natuRal light and aiR ventilation

gReen teChnologies

seRviCes

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

madáCh tRade CenteR

12,000 14,500

7–9–12

– 1

4 250

4.26

Lilly Hungária Kft., Lakatos, Köves és Társai Zrt., Morley, Allen&Overy Law Firm, Appello Kft.

✓

–

✓

–

✓

–

✓

–

– (100)

mom paRk toWeRs

11,500 12,200

230 5

9 230

15–16.50 4.20

✓

–

✓

Cushman & Wakefield, www. cushmanwakefield. hu

✓

–

– (100)

budapalota www.wing.hu

11,462 25,541

1,700– 1950 5

7 180

Ÿ Ÿ

✓

–

✓

–

Cushman & Wakefield , www. cushmanwakefield. com, JLL, www.jll.com

✓

–

Budapalota Kft. (100) –

studium offiCe building

10,662 36,000

600 5

6 408

13–13.9 1,250 HUF

✓

–

✓

Eston International, www.eston.hu

✓

–

Wingprojekt 6 Kft. (100) –

v17

www.v17.hu

10,584 19,134

260 5

6 209

14 1,242

✓

–

✓

Eston International, www.eston.hu

✓

–

V17 Kft. (100) –

RiveRpaRk offiCes

9,865

120 3

4 133

12–13.5

Henkel, MSC, Bisnode

✓

–

✓

–

GAMMA Properties Kft.

✓

– TRIUVA (100)

250 3

5 185

9.5–10.5 1,200 HUF

Unilever, Eaton, UFB

–

Colliers International, www.colliers.hu

✓

– (100)

1138 Budapest, Váci út 182. (1) 429-5050 (1) 429-5055 office@simmoag.hu

9,174 9,907

20 1

5 199

7.50–9.5 3.50

Roche, Continental Hungaria Kft., Cushman & Wakefield Kft., Johnson Diversey

✓

Cushman & Wakefield Kft., www. cushmanwakefield. hu

–

– JP Morgan Asset Management (100)

2040 Budaörs Puskás Tivadar utca 4. (1) 225-0912 (1) 375-0445 office@ convergen-ce.com

8,900 10,300

Underground+4

– 3

8 280

11.50 1,200 HUF

–

– IMMOFINANZ AG (100)

1037 Budapest, Szépvölgyi út 35–37. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

Starschema Kft., Brendon Kft., Interticket Kft.

–

– CPI Property Group (100)

1139 Budapest, Váci út 99. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

1027 Budapest, Horvát utca 14–24. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

www.madachtrade.hu

www.cushmanwakefield.hu

www.wing.hu

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

biCyCle paRking

www.infopark_a.iroda.hu

12,200 13,600

Waste ReCyCling

infopaRk building a

bank bRanCh/atm

Company Website

RestauRant, Café

Rank

net offiCe spaCe (sqm) total gRoss size of building (sqm)

Budapest Business Journal | May 6 – May 19, 2016

✓

Cushman & Wakefield Kft., www. cushmanwakefield. hu

✓

–

– (100)

blue Cube

www.simmoag.hu 9,386 10,665

teRRapaRk next a www.terraparknext.com 76

✓

szépvölgyi business paRk 77

www.immofinanz.com, www.iroda.immofinanz.com

✓

–

✓

1117 Budapest, Neumann János utca 1. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1075 Budapest, Madách Imre út 13–14. (1) 268-1900 (1) 269-6684 info@madachtrade.hu 1123 Budapest, Csörsz utca 45. (1) 268-1288 (1) 268-1289 info.budapest@ eur.cushwake.com 1122 Budapest, Krisztina körút 6–8. (1) 451-4280 (1) 451-4289 sales@wing.hu 1093 Budapest, Czuczor utca 2–10. (1) 451-4280 (1) 451-4289 sales@wing.hu 1134 Budapest, Váci út 17. (1) 451-4280 (1) 451-4289 sales@wing.hu 1093 Budapest, Közraktár utca 30–32. (1) 382-7560 (1) 382-7570 office@gamma-am.hu

–

Cushman & Wakefield, www. cushmanwakefield. hu, Eston International, www.eston.hu

✓

–

– IMMOFINANZ AG (100)

✓

– (100)

1051 Budapest, Bajcsy-Zsilinszky út 12. (1) 429-5050 (1) 429-5055 office@simmoag.hu

✓

– (100)

1085 Budapest, Kálvin tér 12. (1) 225-0912 (1) 375-0445 Csaba.zeley@ convergen-ce.com

✓

balanCe building

www.balancebuilding.hu, www.cpigroup.hu 78

8,753 14,453

300 3

2 170

10.90 4

8,688 9,393

Underground+8

277 3

4 208

10.50 890 HUF

✓

–

✓

CentRal business CenteR 79

www.immofinanz.com

City CenteR

www.simmoag.hu 8,682 9,286

63 3

4 100

300 5

4 116

12.5–14 1,200 HUF

kálvin squaRe 81

www.kalvinsquare.hu

BBJ_2409_spec_report2.indd 30

8,448 9,139

3.90

✓

Tumlare, AFP, Associated Press, Itochu, Jetro, Sopron Bank, Dow Jones, Belga ✓ Nagykövetség Vallon Régió, HUMÁN Bioplazma, Samsonite, Reed Philip Morris, Aegon Hungary, Faludi Wolf Theiss Law Firm, GEOX, Alpiq Energia, ✓ Texas Instruments, SafeGuard, Kelly Services, Forestay Group, ExpedIT Kft., DBK Kft.

–

✓

–

Cushman & Wakefield, www. cushmanwakefield. hu

✓

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

✓

ConvergenCE, www. convergen-ce.com

–

✓

2016. 05. 04. 22:21

www.bbj.hu

independent poWeR supply

biCyCle paRking

leasing agent, name, Website

Waste ReCyCling

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

CuRRent majoR tenants

natuRal light and aiR ventilation

gReen teChnologies

seRviCes

RestauRant, Café

aveRage monthly Rent on apRil 1, 2016 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2016 (euRo/sqm)

no. of elevatoRs no. of paRking spaCes

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

no. of levels

net offiCe spaCe (sqm) total gRoss size of building (sqm)

Rank

Company Website

Budapest Business Journal | May 6 – May 19, 2016

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

✓

Diófa Real Estate Investment Fund (100) –

1082 Budapest, Üllői út 48. (1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

Ü48 offiCe building www.diofaalapkezelo.hu 82

millenáRis ClassiC offiCe building

teRRapaRk budaöRs (d5-8, d13 tömbök)

www.wing.hu

www.raiffeisenirodak.hu/ ingatlan/terrapark

7,648 8,145

127 5

5 126

12–13.5 3.60

7,375 12,763

underground+4

300 3

5 40

15–16 1,250 HUF

–

✓

–

✓

–

Millenáris Irodaház Kft. (100) –

7,288 6,387

150 3

5 151

6–7.5 2.40

✓

–

✓

–

✓

–

✓

–

Raiffeisen Ingatlan Alap (100) –

–

– IMMOFINANZ AG (100)

1139 Budapest, Pap Károly utca 4–6. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

– CPI Property Group (100)

1139 Budapest, Váci út 91. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

–

– (100)

1122 Budapest, Maros utca 19–21. (1) 429-5050 (1) 429-5055 office@simmoag.hu

–

– IMMOFINANZ AG (100)

1095 Budapest, Gubacsi út 6/B (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

– (100)

1135 Budapest, Szegedi út 35. (1) 429-5050 (1) 429-5055 –

1027 Budapest, Kapás utca 11–15. (1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu

✓

–

✓

–

✓

xenteR 13 85

www.immofinanz.com, www.iroda.immofinanz.com

6,900 9,200

Underground+7

300 3

3 216

10.70 1,170 HUF

✓

–

✓

–

✓

1024 Budapest, Lövőház utca 39. (1) 451-4280 (1) 451-4289 sales@wing.hu 2040 Budaörs, Puskás Tivadar út 7-11. (1) 477-8490 (1) 477-8499 irodaberlet@ raiffeisen.hu

bC91

wwww.bc91.hu, www.cpigroup.hu 6,600 9,000

250 3

2 75

9 3.50

Danfoss, Mattel, Coty, Forum Media, Grenkeleasing, HTNS, BNM, Idealbody

150 3

4 69

11–13 1,200 HUF

I-Insight, Oktatási Hivatal, Lensa, ANPAST Europroject

maRos utCa business CenteR www.simmoag.hu 87

6,534 7,166

✓

–

✓

–

✓

–

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

✓

offiCe Campus 88

www.immofinanz.com, www.iroda.immofinanz.com, www.officecampus.hu

6,450 12,330

Underground+3

260 3

6 350

8.90–10.9 840 HUF

5+1

Ÿ 3

4 72

Ÿ Ÿ

Bevándorlási és Állampolgársági Hivatal

6,000 6,500

80 3

3 167

9–12 3.65

Dom-P Informatikai Szolgáltató Zrt., Ad Novum

–

✓

–

✓

–

✓

–

Magyar Posta Takarék Real Estate Investment Fund (100) –

5,722 5,890

350 3

2 87

12–14 1,100 HUF

Unicredit Bank, Geometry Global, Code Cool, Black Swan

–

✓

–

✓

Colliers International, www.colliers.hu

✓

–

– (100)

1065 Budapest, Nagymező utca 44. (1) 429-5050 (1) 429-5055 office@simmoag.hu

120 5

Ÿ Ÿ

H&M, Hard Rock Cafe Budapest, Szamos Gourmet, DVM group

–

Ÿ Ÿ

1052 Budapest, Deák Ferenc utca 3-5. (1) 473-1209 – i.kerekes@ horizondevelopment.hu

–

– CPI Property Group (100)

1139 Budapest, Váci út 99. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

–

✓

–

CBRE, Robertson

–

barbara.barath@ simmoag.hu, zoltan. fabian@simmoag.hu

✓

tWin offiCe CenteR www.simmoag.hu

6,163 7,212

buda business CenteR 90

www.diofaalapkezelo.hu

–

✓

–

✓

pÓdium

www.simmoag.hu 91

váCi 1

www.vaci1.hu 5,700 13,800

✓

–

✓

–

✓

–

Cushman & Wakefield Kft., www. cushmanweakefield. hu, ESTON International, www.eston.hu

balanCe loft www.cpigroup.hu 93

BBJ_2409_spec_report2.indd 31

5,671 6,910

500 3

2 80

12.50 3.50

✓

–

✓

2016. 05. 04. 22:21

5,628 6,218

ResidenCe 2 offiCe building

www.residenceirodahaz.hu

15 3

2 65

–

JCDecaux Hungary, Platinium Group, Biomedica, RE, ✓ Zen Studio Kft., Cheminova

–

✓

5,500 9,600

624 3

2 79

12.90 3.80

5,446 5,870

Underground +5

285 3

2 126

9.50 990 HUF

5,397 6,023

Underground +5

430 3

2 87

9–10 950 HUF

2 258

12 4.50

TRUMPF, NKH, Finn wellness, Truck Force One

✓

–

✓

–

✓

–

✓

–

✓

–

✓

– (100)

1016 Budapest, Hegyalja út 7–13. (1) 429-5050 (1) 429-5055 office@simmoag.hu

–

– (100)

1027 Budapest, Ganz utca 16. (1) 346-6443 (1) 346-6448 krisztina.major@ raiffeisenevolution.com

–

– IMMOFINANZ AG (100)

1036 Budapest, Kórház utca 6–12. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

– IMMOFINANZ AG (100)

1138 Budapest, Váci út 189-191. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

Cushman & Wakefield, www. cushmanwakefield. hu

–

Cushman & Wakefield, www. cushmanwakefield. hu

✓

–

White Star Real Estate Kft., www. whitestar-realestate. hu

–

✓

–

– (100)

✓

–

independent poWeR supply

biCyCle paRking

Waste ReCyCling ✓

addRess phone fax email

–

optima a

www.immofinanz.com, www.iroda.immofinanz.com

barbara.barath@ simmoag.hu, zoltan.fabian@ simmoag.hu

oWneRship (%) hungaRian non-hungaRian

–

globe 3

www.immofinanz.com; www.iroda.immofinanz.com

leasing agent, name, Website

natuRal light and aiR ventilation

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

9.5–11 1,190 HUF

OASE, Mood Media, PR-Agent, Rewart, Dow AgroSciences, Rustler, Aktuál Bau, Radio Plus

www.simmoag.hu

RestauRant, Café

CuRRent majoR tenants

buda CenteR

gReen teChnologies

seRviCes

aveRage monthly Rent on apRil 1, 2016 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2016 (euRo/sqm)

no. of elevatoRs no. of paRking spaCes

minimum leasable offiCe size (sqm) minimum lease teRms (yeaRs)

no. of levels

Company Website

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

net offiCe spaCe (sqm) total gRoss size of building (sqm)

Rank

32 3

✓

2220 Vecsés, Lincoln út 1. (1) 382-5100 (1) 382-5101 info@ whitestar-realestate.hu 1082 Budapest, Futó utca 31–33. (1) 266-2181 (1) 688-5498 office@futureal.hu 1061 Budapest, Andrássy út 12. (1) 210-0566 (1) 210-0095 borbala.farago@ strabag-pfs.hu

the quadRum

5,390 5,961

200 3

CoRvin CoRneR www.futureal.hu

5,384 6,122

– 5

3 64

13.75 3.80

EPAM, Tiens

✓

–

✓

(100) –

100

andRássy 12

5,007

100 3

12–14.5 3.20

–

✓

–

✓

–

STRABAG Property and Facility Services Zrt., www.strabag-pfs.hu

✓

–

– HGA Capital (100)

180 1

3 200

9 3.75

Benteler, Trilak, Kühne+Nagel, FedEx, Panalpina, CEVA, UPS

–

– CPI Property Group (100)

2200 Vecsés, Üllői út 807. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

– (100)

1027 Budapest, Ganz utca 16. (1) 501-2800 (1) 501-2801 office@caimmo.hu

–

– IMMOFINANZ AG (100)

1133 Budapest, Árboc utca 6. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

–

List Group (100) –

1052 Budapest, Vármegye utca 3–5. (1) 479-6020 (1) 479-6029 office@addvalgroup.com

1117 Budapest, Budafoki út 209. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

www.thequadrum.hu

www.andrassy-11-12.hu

aiRpoRt City logistiC paRk www.airportcity.hu, www.cpigroup.hu

5,000 37,000

101

Canada squaRe 102 www.caimmo.hu

4,900 6,000

4,503 5,373

✓

–

✓

–

ESTON International, www.eston.hu, Cushman & Wakefield Kft., www. cushmanwakefield. hu

✓

150 3

4 58

12.50–13

Underground+6

270 3

3 105

8.50–9.5 950 HUF

105 3

2 40

8.80 4.20

TNS Hoffmann, FOX, Takenaka, Gemalto

–

✓

–

✓

–

✓

–

– CPI Property Group (100)

Embassy of Canada, Adnovum

Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ

Ÿ Ÿ Ÿ

áRpád CenteR 103

www.immofinanz.com, www.iroda.immofinanz.com

ausztRia ház 104

www.addvalgroup.com

3,218

✓

–

✓

–

✓

–

✓

JLL, www.jll.hu

–

Addval Kft., www. addvalgroup.com

✓

bC 209

www.bc209.hu, www.cpigroup.hu 2,258 2,600

105

andRássy 93 offiCe

106 building www.gamma-am.hu

107

k6 offiCes

www.gamma-am.hu

BBJ_2409_spec_report2.indd 32

1,801

1,470

100 3

– 70

7 3,5

SmartX Solutions Kft., IT Ware Kft., UltiNous Kft.

Ÿ 3

1 12

12.75–13.95 4

–

✓

–

GAMMA Properties Kft.

✓

–

✓

–

– TRIUVA (100)

240 1

9.50–10.5 4.30

Skyscanner

–

✓

–

✓

GAMMA Properties Kft.

–

✓

–

– TRIUVA (100)

1062 Budapest, Andrássy út 93. (1) 382-7560 (1) 382-7570 office@gamma-am.hu 1052 Budapest, Károly körút 6. (1) 382-7560 (1) 382-7570 office@gamma-am.hu

2016. 05. 04. 22:21

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

Local experts explain the fine art of FM Facility management professionals share secrets of the trade with the Budapest Business Journal. BBJ STAFF

An office building’s facility manager (FM) coordinates space, infrastructure, people and organization. The responsibilities of a modern FM start with the daily operation of a property, such as security, gardening and on-site maintenance, but can range well beyond these basics. Local FM professionals told the Budapest Business Journal about the secrets to doing their job well. One of the main points these experts made is that people are a key part of the equation. “A gifted and affable leasing manager within your team can contribute a lot to attracting new tenants. Proactive property and facility managers who succeed in building up trusting relationships with their tenants can contribute a lot toward tying tenants to the property longterm,” said Hubert Mühringer, managing director of AddVal Kft. “Beside the quality of our staff, we focus on our processes as

Marcell Laczkó, team leader for Property Management at TriGranit.

Kinga Kurta, business development director of Dome Facility Services Group.

Hubert Mühringer, managing director of AddVal Kft.

well, which allows teams to work together said the job of an FM requires “complex in an efficient, reliable manner.” skills that rarely exist in one person at Marcell Laczkó, team leader for the same time”, so that the best answer Property Management at TriGranit also is a skilled team. “Our team consists spoke of the importance of the personal of experts who are all professionals in touch, saying satisfied customers have their own fields, and their experience accumulates into a Dome body of helped his firm gain new custom. “Being in regular contact with your corporate knowledge,” she said. tenant is always a must,” he said. “At TriGranit, it has happened several times Keeping clients happy that potential tenants contacted existing tenants to check on the services of A major challenge of the work of the FM is TriGranit.” to attract tenants and keep them satisfied. Kinga Kurta, business development Mühringer of AddVal described the director of Dome Facility Services Group, importance of empathy when dealing

with clients. “You have to view your properties regularly with the eyes of a prospective tenant and improve all issues that could lead to a poor first impression,” he said. “It is important to pay attention to the feedback of your tenants and take accordant actions.” Kurta of Dome noted the benefits of a greener building when it comes to generating business. “Tenants have an inevitable need for transparency and predictability – especially in energy consumption, an environment that reflects their business or image and also helps them with retaining employees,” she said. “Currently in one of our office buildings we have started to work on making operational efficiency sustainable and other improvements with our landlord along the principles of the BREEAM in-use international standards, which has benefits for both tenants and landlord.” Laczkó said the difference his firm can offer is that they do not simply do facility management, but actually provide all services. “TriGranit is an integrated real-estate company,” he explained, “as it follows all of its projects through their whole lifecycle – from planning, to development to property management. We always act as a property and facility manager of our own developed assets, but never carry out FM and PM services for third parties.”

SUCCESS STORY

CENTRAL UDVAR – 100% OCCUPANCY WITHIN 1 YEAR What to do when your single-tenant decides to move out from your office building after 15 successful years and leaving behind an empty building - especially when this affects you exactly at the bottom of the market cycle? with the property owner and creative courtyards, facades. AddVal managed the Starting position Central Udvar – previously named Office interior design partners have established a development process from concept design Trade Center – is located in the heart of comprehensive modernization program for to final handover. Budapest, near the Jewish quarter and the entire building complex to attract new Leasing success the popular Gozsdu Udvar, and consists major tenants. In the implementation of the leasing strategy, of 4 buildings developed in the late ‘90AddVal provided a gifted leasing manager ies. When the former main tenant PwC Modernization program vacated the main building in 2014, the As part of the modernization program, four and took widely the leadership in the leasing vacancy climbed up to 85 %, consisting of entrance lobbies, facades, internal public process as one of two co-exclusive leasing more than 10,000 sqm lettable office space. areas, garage and the internal yards have agents. Moreover, AddVal has delivered Over and above, all debriefed real estate been renewed to Class A standard. New in-house all fit-out design services, which agencies have been quite conservative in functions were added, such as a new allowed reacting very quickly on requests their assessment about the re-leasing of stylish restaurant, gym for the office staff, by prospective tenants. The major breakart corner, facilities for bicycle and motor through has been accomplished with the the property. bike users, and a brand new attractive inner conclusion of a 15-year lease contract for yard. AddVal services included full property, more than 6000 sqm, allowing UNICEF to Repositioning AddVal Kft. who has been the property design and project management, together set up its first Global SSC in Budapest. AddVal has conducted the complex lease and facility manager of Central Udvar with in- house architectural design. negotiations with both, UNICEF and the for more than 15 years on behalf of the Hungarian Government. Thanks to this and Frankfurt based property owner SavillsIM Outstanding contemporary design Asset Management, got also deeply The design language of the redevelopment various other leasing transactions, within involved in the asset management. AddVal was clear from the start: a long lasting, 1 year only, almost 100% occupancy has conducted a detailed market research and contemporary and fresh look, which stands been achieved. established thereafter a well-thought-out out from the crowd with its clean lines re-leasing strategy, which included also a and exclusive material choices. Working Hubert Mühringer, Managing Partner at repositioning concept in various options closely with the property owner and two AddVal Kft. added: “We are delighted together with feasibility calculations. interior design partners, a design code that our professionals could contribute so Moreover, AddVal design, project, leasing was developed which was used in all areas significantly to this great success of Central and property management teams, together of building: entrance lobbies, signage, Udvar”.

BBJ_2409_spec_report2.indd 33

2016. 05. 04. 22:21

34 3

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

Facility management companies

stRabag pRopeRty and FaCility seRviCes ZRt. www.strabag-pfs.hu

FutuRe Fm létesítménygaZdálkodási ZRt.

13,104

5,886

9,664

–

5,886

Bács-Kiskun Municipality hospital, Budapest Airport, Szombathely prison, Vodafone Magyarország Zrt.

OTP Bank Nyrt., GDF Suez Csoport, BNP Paribas Real Estate Zrt., Erste Ingatlan Kft.

–

Raiffeisen Real Estate Fund, CBRE, Európa Real Estate Investment Fund, Audi

72.60

Coca-Cola Hungary, Danubius Hotels, AIG/Lincoln, Debrecen Spa

www.future-fm.hu

kRaFt Fm ÜZemeltetési és sZolgáltató kFt.

dome FaCility seRviCes gRoup kFt.

www.kraft-fm.hu

www.domefsg.hu

Fakultás Fm létesítménygaZdálkodási kFt.

3,134

1,086

1,079

6.40

www.fakultasfm.hu

aRex Fm kFt.

millenia létesítményüzEmEltEtő zrt.

smaRtFm Real estate opeRation kFt.

RustleR kFt.

799

www.arexfm.hu

www.millenia.eu

www.smartfm.hu

532

459

425

www.rustler.hu

Magyar Telekom, WING, MercedesBenz, ELMŰ-ÉMÁSZ, OBI, National Bank of Hungary, Erste Bank, Immofinanz

532

459

–

✓

–

✓

–

otHeR

opeRation

Real estate development

maintenanCe

FinanCe management

inFRastRuCtuRal seRviCes

majoR Clients in 2015

teCHniCal supeRvision

seRviCes

otHeR

logistis and tRade FaCilities (%)

industRial FaCilities (%)

oFFiCe buildings (%)

net Revenue FRom FaCility management in 2015 (HuF mln)

Company Website

poRtFolio

–

✓

–

✓

Cleaning, technical operation, security services, gardening, car fleet management, catering, document management

✓

–

✓

–

✓

–

✓

–

✓

–

REAL Software Kft. (Ÿ), Drexler & Co Holding Kft. (Ÿ), –

gábor décsi Zsolt Jurecska Kinga Kurta

1023 Budapest, Lajos utca 28–32. (1) 423-0000 (1) 423-0001 info@domefsg.hu

(100) –

Ernő Nagy – –

1136 Budapest, Pannónia utca 11. (1) 339-8569 (1) 238-0422 info@fakultasfm.hu

2003

✓

Tibor Balogh (100) –

szabolcs pataki György Osváth Gábor Kelemen

1112 Budapest, Brassó út 64. (1) 248-3800 (1) 248-3809 center@millenia.eu

✓

Energy management, fitoot, condominium management

2012 22

András Sólyom (90), Dorottya Gyürk Sólyomné (10) –

andrás sólyom Péter Farkasházi Martina Simó

2000 Budapest, Vasúti villasor 49/B (30) 721-8553 – martina.simo@ smartfm.hu

–

2008 36

– Rustler Gruppe GmbH (100)

valentin langbein – –

1016 Budapest, Hegyalja út 7-13. (1) 434-2690 (1) 434-2699 budapest@rustler.eu

2001 15

AddVal Group Kft. (100) –

Hubert mühringer Péter Radó Bereniké Csépke

1077 Budapest, Wesselényi utca 16. (1) 479-6020 (1) 479-6029 office@ addvalgroup.com

1992

Individuals (100) –

Zoltán paár – –

1095 Budapest, Soroksári út 48. (30) 982-5991 (1) 799-0558 kotr92.fm@t-online.hu

1997

– TPG Real Estate (100)

árpád török Agnieszka Turowska Dániel Pazsitzky

1132 Budapest, Váci út 30. (1) 456-6200 (1) 456-6201 info@trigranit.com

–

✓

–

1139 Budapest, Pap Károly utca 4–6. (1) 465-7050 (1) 465-7051 info@kraft-fm.hu

1999 53

✓

istván jászberényi, jános kocsis – Dóra Papp

2008 105

Pharmaceutical operation

✓

–

István Jászberényi (64), Péter Medveczky (36) –

✓

1148 Budapest, Fogarasi út 5. (1) 468-4080 (1) 468-4088 mail@future-fm.hu

1027 Budapest, Csalogány utca 23. (1) 325-2640 (1) 325-2644 arexfm@arexfm.hu

✓

–

Ferenc batári – –

endre kovács Edina Váradi –

–

✓

(100) –

1991

BÁV Zrt. (50), VIREX Kft. (50) –

GTC Magyarország, List Group, Erste Immorent, S Immo APM Hungary

✓

1095 Budapest, Máriássy utca 7. (1) 210-0566 (1) 210-0082 gabor.landi@ strabag-pfs.hu

1999 48

–

lászló vágó Gyula Jászai Gábor Landi

Real estate utilization, investment organization, fit-out, valuation, energy certificate preparation

Akácliget Logistics Center, Flextronics, Erste Fund Management, Cushman&Wakefield

–

✓

2004 510

WING Zrt. (49) STRABAG Property and Facility Services GmbH (51)

–

✓

addRess pHone Fax email

Surface specialist methods

Immofinanz AG, Tengelmann Group, Emerson Worldwide

✓

top loCal exeCutive CFo maRketing diReCtoR

Energy, fit-out

✓

oWneRsHip (%) HungaRian non-HungaRian

✓

–

✓

yeaR establisHed no. oF Full-time employees on apR. 1, 2016

total net Revenue in 2015 (HuF mln)

Rank

Ranked by total net revenue (HUF mln) in 2015

✓

2005

addval kFt.

www.addvalgroup.com 10

köt R 92 létesítménygaZdálkodási kFt.

328

111

–

Savills Fund Management, List Group, IHG, Goodman

✓

–

✓

–

AT&T, Morgan Stanley, Oracle, Vodafone

–

✓

–

www.kotr92fm.hu

tRigRanit

www.trigranit.com NR

Ÿ= would not disclose, NR = not ranked, NA = not applicable

BBJ_2409_spec_report2.indd 34

This list was compiled from responses to questionnaires received by May 4, 2016 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu.

2016. 05. 04. 22:21

4 Socialite BBJ

Going for gastronomic gold

The world-famous Bocuse dâ€™Or competition brings top chefs to Budapest from May 10-11 and is followed immediately after by the Gourmet Festival, running May 12-15.

BBJ_2409_socialite_.indd 35

2016. 05. 04. 22:21

4 Socialite

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

WHAT’S

ON ROCK/SPACE/TIME May 6, Ludwig Museum This exhibition explores the influence of Hungarian pop music and visual art on one another. Hungarian pop music and pop culture brought to life new genres and techniques (album covers, posters, music videos, etc.), which spread to the world of visual arts. Hungarian underground music from the ’70s and ’80s is inseparable from the visual arts of that period. Rock/Space/ Time addresses the links between these two parallel worlds. ludwigmuseum.hu DANCE HOUSE DAY May 7, Liszt Academy of Music This gala of the folk music department of the Liszt Academy of Music presents the forgotten musical treasures of Transylvania and Moldavia, among others, collected by folk music researcher and music teacher János Jagamas, who was inspired by similar work carried out by his own teacher Zoltán Kodály. Jagamas recorded several thousand melodies in both vocal and instrumental form, a portion of which will be presented on this evening. The first of these folk events was held in the book club on Liszt Ferenc tér, not far from the academy in 1972. lfze.hu STYLEWALKER DAY&NIGHT May 7, various venues Take a walk through the myriad design shops and design-related businesses scattered throughout District V, and get a glimpse at how local artists and designers work, or snag an original for a bargain. Featured stores and galleries include Anderson Art Lab, Black Box Concept Store, Zigzag Studio, Eventuell Gallery,

Fun things to d o in Budapest for the nex t t wo weeks.

Insitu, Lollipop Factory Budapest, Mono Fashion, and WonderLAB Concept Store. The Stylewalker Downtown Family Picnic from 10 a.m. features family-friendly events. stylewalker-event.webflow.io CHRISTIAN SCOTT May 7, Trafó Grammy Award nominated trumpeter, composer and producer Christian Scott broke onto the scene with a strong debut “Rewind That”, which Billboard Magazine said was “arguably the most remarkable premiere the genre has seen in the last decade”. Scott began his musical training at the age of 13 under his uncle, legendary sax man Donald Harrison, Jr. and continued his studies at the Berklee College of Music. Scott has released seven studio recordings since 2002 and has been referred to as the “architect of a new commercially viable fusion” and as the progenitor of “Stretch Music”, a genre of blind musical form that stretches the rhythmic, melodic and harmonic conventions of improvisational music to encompass as many other musical forms, languages and cultures as possible. His Stretch Music App, released last year, is an interactive music player that allows musicians to control their practicing, listening and learning skills by customizing the player to fit their specific needs and goals. trafo.hu AKUA NARU, SOUL SURGE May 7, A38 American-born Naru began writing and performing rhymes as a young girl and quickly honed her talent for lyricism and extraordinary musical performances. Known as a traveler, as chronicled in her

Izakaya is the first Japanese bistro in Hungary, a little sister of Fuji Japanese Restaurant just opened! Lunch menu, snacks, wide range of á la carte dishes, Japanese coctails, beers, sake, high quality service.

Daily menu with a free green tea, only HUF 1,790!

NEW DISHES, ASIAN FUSION STLYLE! FULLY RENEWED INTERIOR! 1055 Szent István körút 17., Phone: +36 (1) 301 0373, www.kanpaiizakaya.hu

BBJ_2409_socialite_.indd 36

Omer Klein Trio. January 2011 debut, “The Journey Aflame”, Naru has garnered attention by traversing the globe, recording her experiences and layering her musical diversity onto a foundation of hip hop. Her socially conscious rhymes, and musicianship are appreciated both within and beyond hip hop circles, and her live performances are not to be missed. Naru currently resides in Cologne, Germany. a38.hu BOCUSE D’OR May 10-11, Hungexpo The Bocuse d’Or is one of the world’s most respected cooking competitions, named after renowned French chef Paul Bocuse, and this year’s biennial event will be held in Budapest as part of the Sirha food industry show at Hungexpo. Twenty chefs who won national selection in their respective countries will compete for the top prize at the finals in Lyon, France. Each team, which consists of one lead chef and one commis, will be given five-and-a-half hours to prepare two elaborate dishes. Esteemed jury members will scrutinize teams with the quality of the dishes accounting for two-thirds of the overall score. This year’s qualifiers include teams from Iceland, Austria, Norway, Bulgaria, Finland, Germany, Estonia, Spain, the United Kingdom, Turkey, Netherlands, Italy, Russia, Switzerland, Croatia, France, Belgium, Denmark, Sweden and Hungary. bocusedor.com HANS ZIMMER May 11, Budapest Sportaréna Prominent, German-born film composer Hans Zimmer has made the rounds in Hollywood, but not before featuring in renowned pop group the Buggles, which shot to fame with its hit single “Video Killed the Radio Star”. Zimmer got a taste for film music when he collaborated with composer and mentor Stanley Myers on the film “My Beautiful Laundrette” in 1985. His

following solo projects involved combining old and new musical technologies, integrating electronic music and traditional orchestral arrangements. Zimmer’s career changed course in 1988 when he was asked to score “Rain Man”, which went on to win an Oscar for Best Picture. This was followed by writing the score for “Driving Miss Daisy” and the soundtrack for “The Lion King” which earned him an Academy Award. He has since produced dozens of film scores for both live action and animation flicks. For his Budapest show, Zimmer will be accompanied by a band that blends traditional orchestral instruments with rock and electronica enhanced by a light and effects show. livenation.hu PUPPETCIRCUS 4IN1 May 11-13, Trafó The first component of the show, “Circus Mechanicus”, features the automatic theater of Tintaló Company from Hungary that will present its colorful rendition of a travelling circus. “Le Petit Cirque” comprises electro-acoustic musician Laurent Bigot from France who has created an installation to evoke a circus ring, upon which he sets objects and toys in motion. “Pop-up”, by Teatro delle Briciole from Italy, re-invents the pop-up book for the stage, presenting the adventures of a child made of paper. Carlos Vilardeboʼs 1961 film of Alexander Calderʼs mini circus portrays an intricately assembled performance piece played out by handmade characters from jugglers, to sword swallowers, clowns, and animals. trafo.hu GOURMET FESTIVAL May 12-15, Millenáris Park The OTP Gourmet Festival is considered the capital’s most important culinary event, the reason for that being that most Hungarian restaurants, confectioners and wineries worth their salt will be there. This year upwards of 40 restaurants from

2016. 05. 04. 22:21

5 Socialite

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2016

Budapest and a handful from outside the capital will be present alongside more than 30 wineries and distilleries. Visitors can sample tapas-sized portions from various vendors to make up their own multiple course meals. This year’s festival arrives on the heels of the European Selection of the renowned Bocuse d’Or chef competition, also taking place in Budapest this year. As with Bocuse d’Or, the Gourmet Festival will also feature similar key ingredients, including deer and sturgeon. sziget.hu/gourmetfestival TIGER LILLIES May 12, A38 This London-based trio was formed in 1989 by singer-songwriter Martyn Jacques. Their surreal performance style has been described as dark, darkly humorous, strangely humorous, Brechtian, and gypsy cabaret. They are also notorious for singing songs involving controversial and often shocking topics. The band launched their career as buskers, playing songs about the criminals, pimps and whores of Soho, London. Over time, they became involved in several theatrical productions, including the critically acclaimed “Shockheaded Peter”. Known for their intense and outlandish performances, they have garnered both controversy and critical acclaim. a38.hu OMER KLEIN TRIO May 13, Budapest Music Center Pianist and Composer Omer Klein’s music has been referred to as “borderless” by the New York Times and “astonishing” by Westdeutsche Zeitung and his new trio album, “Fearless Friday”, released in early 2015, has been extremely well received the world over. Klein grew up in Israel, where he is lauded as one of the most fascinating artists to have emerged in the last decade. He studied at the New England Conservatory in Boston and completed his studies in New York under Fred Hersch. He quickly became a notable member of the NYC jazz scene, performing as a bandleader at such venues as The Blue Note and Jazz At Lincoln Center. Klein currently resides in Germany and has released six studio albums to date. He remains committed to the genre by educating young talent through master classes and at the Jerusalem Music Center. bmc.hu

Hans Zimmer. BELGIAN BEER FESTIVAL May 13-15, Bálna Budapest Sample 205 beers from as many as 43 Belgian breweries including Blanche de Namur, Deugniet, Gauloise and Saison at the seventh annual Belgian Beer Festival in Budapest. Traditional delicacies such as the obligatory Belgian fries and Belgian waffles, though not the best pairing with beer, will also be on offer. The venue, adjacent to the Danube river, offers great views from the terrace. Purchase tokens on entry that can be traded in for food and beverages at the various vendors. Your entrance fee and includes a beer glass. belgasor-fesztival.hu DIANA DAMRAU AND NICOLAS TESTÉ May 14, Palace of Arts Before committing herself to the Italian bel canto repertoire, Diana Damrau was celebrated as a unique performer in coloratura roles all over the world. She appeared as the Queen of the Night in 15 separate productions of “The Magic Flute”, while making history at the New York Metropolitan Opera by singing the roles of both Pamina and the Queen of the Night in different performances of the same run. In 2010, she married the French bassbaritone who partners her on stage and with whom she has two children. Perhaps not incidentally due to physiological changes, the German soprano has tended to take on

Diana Damrau.

Christian Scott.

roles of a different nature in recent years, immersing herself in the bel canto style, in which she has again become a highly sought-after performer. mupa.hu

Fricke laid such concerns to rest when he referred to Truffazʼs playing as “the clear blue eye of a thrilling hurricane; this is an electric jazz that freshens the large-ensemble crosscurrents of early 1970s Miles Davis and Herbie Hancock with garage-rock-like force”. Truffaz will share the bill with his compatriot, singersongwriter Sophie Hunger. a38.hu

ERIK TRUFFAZ May 14, A38 Swiss-born trumpet player Erik Truffaz first made a name for himself on the international jazz scene for wedding the post-bebop and early fusion styles of trumpet legend Miles Davis with more contemporary forms of music from electronica, to acid rock, to hip hop. The result is a musical synthesis that is often nostalgic yet fresh, sometimes veering into trance music and other times hitting a polyrhythmic dance vibe. While comparisons to Davisʼ groundbreaking era have served as touchstones for critics, the comparisons are seen as both a blessing and a curse. It’s flattering for a musician to be favorably compared with one of the best-known and mostadmired trumpet players. Conversely, comparisons can lead to an assessment of the contemporary musician as merely a copycat. Rolling Stone critic David

BERLIN PHILHARMONIC May 15, Uránia National Film Theater In advance of a new performance of Wagner’s “Parsifal” at the Bayreuth Festival in the summer, conductor Andris Nelsons and the Berliner Philharmoniker will present a prelude and the Karfreitagszauber in Budapest. Wagner called this sacred festival drama with its religious symbolism and expressive musical language his “farewell to the world work”. Redemption, which is a dominant theme in the composer’s work, plays a key role here. This will be followed by a performance of Anton Bruckner’s “Third Symphony”. Bruckner was a disciple of Wagner and this monumental symphony is dedicated to him. urania-nf.hu

SZAMOS GOURMET PALACE CAFE ◆ CONFECTIONERY ◆ CHOCOLATIER SWEET TEMPTATIONS IN THE SZAMOS GOURMET PALACE! We have exquisite desserts waiting for You all day in the elegant surroundings of the Szamos Gourmet Palace in the center of town! 1052 Budapest, Deák Ferenc utca 5.

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www.szamosmarcipan.hu

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Wine: Kékfrankos can carry the Hungarian red torch The most widely planted red grape in Hungary rarely gets the respect that it deserves. ROB SMYTH

Kékfrankos works well as a rosé too.

While the days are long gone since the mere mention of Hungary’s most widely planted red wine grape, Kékfrankos, sent shivers down wine lovers’ spines, still for many the grape will never be put on the pedestal it deserves. This is a shame as this pan-Central European grape is local, capable of very high quality and is now making impressive wine up and down the land. It is also playing a key role in forming the backbone of the ever-improving Bikavérs from Eger and Szekszárd, which enable both international and local grapes to come together and create something unique. Kékfrankos allows the making of distinctive reds that are fruity and flavorsome, but also vibrant with zesty acidity, nicely structured, with medium tannins, and easy to drink with their medium-bodied rather than full-bodied character. Plenty of these were poured

at the Kékfrankos Április tasting held at the Corinthia Hotel Budapest on April 23, which demonstrated that more Magyar vintners are coaxing more out of the grape and see it is a flagship red. The Austrians have led the way with their brilliant Blaufränkisch (the same variety) in the Burgenland, and now is the time for the Hungarians to show what they are capable of. Pelzberg is indeed a name that sounds Austrian, but the wine actually comes from the often-overlooked southern Hungarian region of Tolna and the Grál Winery. The winery’s Pelzberg Kékfrankos Válogatás 2012 came out of the blue to win last year’s Kékfrankos blind tasting organized by Borászportál Bormagazin. The 2013 effort showed that the 2012 was no fluke and also oozed class with its freshness, fruitiness, elegance and balance.

Eger wins blind tasting This year’s winner of the blind tasting was Nimród Kovács’ beautifully balanced and complex Monopole Blues Kékfrankos 2012, from the Eger region. Etyeki Kúria’s Kékfrankos actually comes from Sopron, and its second single varietal release – the 2014 – follows up on the

Rózsavölgyi Salon Arts & Café – Celebrating life

Patara in Tata – the battle is reenacted again!

Rózsavölgyi Salon Arts & Café, the artistic hub and meeting point in the heart of Budapest celebrated its fourth anniversary this spring. When it opened, its founders set the objective to become the home of Hungarian artistic life. The Salon’s enthusiastic and appreciative patrons love the plays, literary events, classical and jazz concerts, cultural talkshows, leading to many sold out evenings. Rózsavölgyi Salon Arts & Café is a vibrant, exciting venue, well worth a visit! It is the mission of Rózsavölgyi Salon who was imprisoned in the 1950s. While the Arts & Café to present the very best of story deals with those incarcerated during contemporary literature, along with the great those difficult political times, it is truly about classics of the 20th century. In 1971, the film the strength of love, faith and loyalty. „Szerelem” (Love), has won the Prix du jury prize of the Cannes Film Festival, among many other international accolades. Now Rózsavölgyi Salon Arts the story is adapted to Rózsavölgyi Salon’s & Café 1052 Budapest, Szervita stage, directed by András Léner. Legendary Hungarian director, Károly Makk serves tér 5. • Tel.: +36 1 as artistic consultant on the play which 486 33 38 • Ticket Information: +36 30 premiered early April. “Love” is based on 463 88 22 • szalon@rozsavolgyi.hu • two short stories written by Kossuth prize- www.szalon.rozsavolgyi.hu • facebook. winning author and playwright Tibor Déry, com/rozsavolgyiszalon

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Take part again in the historic events of the 16th-17th century, relive the Turkish-Hungarian battle! On May 27-29, you can indulge in Europe’s most prestigious historic festival from the Turkish era: The battle of 1597 comes to live again in Tata, at the Old Lake.

3 day tickets: 1500 HUF Details: www.tataipatara.hu

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Budapest Business Journal | May 6 – May 19, 2016

excellent 2013, although is not quite as intense as its predecessor, which is no surprise given the challenges of the vintage. Classy Kékfrankos is now truly coming from all around the country. The Szekszárd region has made huge leaps with the grape in recent vintages, and its Kékfrankos often exudes an appealing and signature sour cherrycum-Morello cherry note. Péter Vida’s Hidaspetre 2013 is on the lighter and more elegant side with lively acidity and forest fruits and winter spices on the nose and palate – although the tannins are currently a little drying and the wine is likely to soften with a bit more time. Kékfrankos has medium rather than full tannins; they can be harsh when the wine is young, but they do develop a lovely smooth grained texture in time. The whole reason that Zweigelt was created (by crossing Blaufränkisch with

St. Laurent – carried out by Dr. Zweigelt in 1922) was to make a wine with softer tannins that can go to the market just a few months after harvest. One criticism sometimes leveled at Kékfrankos is that it’s too thin and austere. Well, Ferenc Vesztergombi’s 2012 was anything but that, with plenty of body and sour cherry on the vibrant nose and juicy palate. This is quite an effort as it is the Szekszárd’s winery’s debut single varietal effort. It should be mentioned that the grape makes killer rosé thanks to its refreshingly high acidity and the lively strawberry and raspberry notes it oozes when picked early. Many of these will be poured at this year’s edition of Rosalia, which is now held in the Városliget (City Park) and will run from May 6-8, featuring 55 exhibitors and the wines of 100 producers in all.

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Shown on these pages are scenes from the Kékfrankos Április tasting held at the Corinthia Hotel Budapest on April 23.

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Youâ€™re looking at a property owned by IMMOFINANZ.

Have a look at all of them: IMMOFINANZ.COM BBJ_2409_socialite_.indd 40

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