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Sustainability

Businesses, most especially real estate developers, are aiming to make workers happy by embracing demands for greater sustainability in the work place.

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2016. 09. 14. 21:09

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Budapest Business Journal | September 16 – September 29, 2016

Improving oil’s green credentials

Sustainability and environmental awareness are increasingly important to an everwidening range of companies, even oil and gas producers like Hungary’s MOL and the Anglo-Dutch Shell. But how do you improve the green credentials of a fossil fuel producer? CLAUDIA PATRICOLO

“An oil company’s business model has a significant impact on the environment and communities both negative and positive. We must be able to mitigate negative impacts and find opportunities within this context,” said Zsolt Novotny, head of MOL Group Health, Safety and Environment. “We are creating robust management systems overseen by the highest decision makers in the company.

We are monitoring our performance in the economic, social and environmental dimensions and we are reporting all three together in a so-called integrated report.” It’s a similar story at Shell, says Petr Šindler, external affairs manager for Central & Eastern Europe. “Sustainability at Shell is about delivering energy in a responsible way to meet the world’s growing needs. Our approach to sustainability starts with running a safe, efficient, responsible and profitable business. We work to share wider benefits where we operate. And we’re helping to shape a more sustainable energy future.” Of course, all oil companies are being pushed to do better by the Millennium Development Goals promoted by United Nations, the 2030 Agenda for sustainable development and the Climate Change Conference (COP21) held in Paris last year. “Shell has long recognised the importance of the climate challenge, along with the ongoing critical role energy plays in enabling a decent quality of life for people across the world. We aim to play a role in providing more energy with less carbon dioxide, especially in areas where we have the expertise and skills, such as natural gas, new energies and carbon capture and storage. We know our long-term viability as a company depends on our ability to anticipate the types of energy that people will need in the

future in a way that is both commercially competitive and environmentally sound.” That rings true for MOL, too. From a sustainability point of view, it says it is focused on six areas: communities, human capital, ethics & governance, environment, health & safety, and climate change. Among ongoing programs, Novotny noted three targets in climate change: reducing CO2 emissions by 400,000 tonnes by 2020 through energy efficiency measures and reduced flaring and venting; increasing EBIDTA from alternative energy sources and increasing annual staff training hours.

Better World, Grren Belts Both companies have outreach programs with NGOs. “Among others we would mention the Earthwatch Institute, our partner of our employee volunteer program, Project Better World,” explain’s Shell’s Šindler. “Through Earthwatch, our employees also provide business skills and mentoring to managers who work in organizations that look after protected areas.” For its part, MOL is running the so-called Green Belt program in cooperation with the Hungarian Environmental Partnership Foundation. This aims to contribute to the implementation or reconstruction of

09 community green areas through the support of NGOs, and Novotny calls it:“A great initiative to pull together stakeholders and achieve positive impact in communities.” Another longerstanding initiative aims to turn cooking oil into biofuel. Both companies say they are increasingly careful of the impact their businesses have on the people who live near them. “We aim to be a good neighbor wherever we work, by contributing to the well-being of communities,” commented Šindler. “We work closely with them to manage the social impacts of our business activities, address any concerns about our operations and enhance the benefits that we are able to bring. In 2015, we invested around USD 122 million in voluntary social projects worldwide.” MOL had one piece of good news made public this week. “Our best achievement this year is to have become a member of the Dow Jones Sustainability World Index, the only oil and gas company from CEE, which means we are in the top 15% of the industry in terms of our sustainable development practices. This is a great honor, a good feedback of our work and directions and a strong reputational factor for many stakeholders, hopefully including the investors as well,” says Novotny. RobecoSAM, a specialist in sustainability investment, invited 68 oil and gas companies to undergo evaluation for inclusion in the index, but admitted just ten. MOL returned to the index after a five-year absence.

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2016. 09. 14. 21:09

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Budapest Business Journal | September 16 – September 29, 2016

Green certification increasing a

Green or sustainability accreditation is now a pre-requisite for the successful development and management of offices at the higher end of the markets in Central Europe. GARY J. MORRELL

With regional developers such as Skanska, Atenor and HB Reavis employing common sustainable development policies across CEE, as is also the established practice in Western Europe, all class “A” and higher class “B” pipeline projects are nowadays accredited. Conforming to wider sustainability requirements and making a profitable return on investment is regarded as part of the same process. This is seen as benefiting developers and building owners, who have higher returns as a result, while at the same time minimizing the wider environmental impact of places of work. Further down the line, the higher strata of investors and fund managers regard accreditation as a basic requirement when considering an acquisition. “The commercial property market is showing an increased trend towards sustainable building construction,” said Cushman & Wakefield. “Green certification is awarded to promote environment-friendly space using stateof-the-art technical solutions, top quality materials and the best property management practices. Benefits resulting from certification and implementation of sustainable solutions are also appreciated by investors.” According to Colliers International, green buildings have 13% lower maintenance charges, 10-20% less energy usage, 33-39% less CO2 emissions, 40% less water usage and up to 70% less solid waste to landfills. And there is one other benefit: green accredited buildings provide 17% higher occupant satisfaction. From a wider perspective, environmental protection organizations require that the commercial real estate industry takes responsibility for its role in combating climate change and minimizing the consumption of scarce resources such as energy, water and natural materials. The United Nations Environmental Program (UNEP) estimates that buildings are responsible for more than 40% of energy use, one-third of greenhouse gas emissions and 30% of raw material use. “There is a growing number of developers or owners of existing buildings that are looking to certify their buildings with the goal of maximizing operational efficiency while minimizing the impact the building has on the environment,” commented JLL. Sustainability elements are essentially utilized to raise the standard of new buildings and upgrade older buildings to meet the requirements for green building development and property management. Certification organizations thus offer both new construction and

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Green certification increasing across CEE ilustrations Sustainability Classifications

BREEAM

LEED

Outstanding

Platinum

Very Good

Silver

Excellent

Gold

Good

Certified

Pass

BUDAPEST BUILDINGS UNDER CONSTRUCTION/PIPELINE V17 Corvin IV Budapest Central Towers Telecom HQ Office Garden III Nordic Light GTC White House WING KFK Project Promenade Gardens Advanced Tower HillSide Offices Graphisoft N

“There is a growing number of developers or owners of existing buildings that are looking to certify their buildings with the goal of maximizing operational efficiency while minimizing the impact the building has on the environment.” in-use/existing building accreditation. The most commonly used certification organizations in Central Europe are the U.K.-based BREEAM (Building Research Establishment Environmental Assessment Methodology), and the U.S.-based LEED (Leadership in Energy & Environmental Design). A small minority of buildings are certified by the DGNB accreditation system, favored by German speaking countries. BREEAM and LEED systems provide new construction certification

12 800 25 000 39 000 55 000 18 500 26 200 20 500 20 000 25 000 11 500 22 000 8 000 at both the design and immediate postconstruction stages. With regard to the development process in Hungary, LEED figures indicate that 90% of buildings are certified at the design stage, as sustainability is an intrinsic part of the entire development process. “Green elements need to be incorporated from the design stage and developers, architects, cost consultants and financers need to coordinate their roles from the inception of a project,” said Pál Baross, an experienced developer and sustainability assessor in the Hungarian market. The total stock of sustainability accredited office buildings in Hungary stands at 47 new and existing projects with 28 buildings accredited in 2015 and six granted sustainability status so far this year. Outside of Budapest, National Instruments in Debrecen has attained sustainability accreditation and the 13,000 sqm Hun Office, also in Hungary’s second city of Debrecen, has BREEAM in-use accreditation. In the retail sector, Árkád Szeged by ECE and Hegyvidék by Wing are green accredited and in the industrial sector five projects are recognized sustainable buildings.

BREEAM BREEAM BREEAM BREEAM LEED LEED LEED LEED LEED/BREEAM BREEAM BREEAM v. LEED BREEAM Other sustainable buildings are the Central European University (CEU) Campus Redevelopment Project in central Budapest – the first BREEAM accredited non-commercial building in the region – and the Groupama Aréna Ferencváros football stadium. In the Budapest area the new IKEA store, currently under construction, will attain BREEAM accreditation in line with the international policy of the family-owned company to development green accredited outlets. The first green certifications in Poland were awarded six years ago. According to Colliers Poland, 108 projects were granted certification or pre-certification in 2015, a 44% increase on the previous year. The pace of growth indicates that, as in Hungary, BREEAM is the more popular option with 75% of accredited buildings. The most popular level of accreditation for BREEAM is “Very Good”, the third level of accreditation, which represents 56% of accreditations. Almost 47% of green buildings are located in Warsaw, where 42 new certifications have been recorded this year. With regard to secondary cities the largest increases were recorded in

2016. 09. 14. 21:09

www.bbj.hu

Budapest Business Journal | September 16 – September 29, 2016

g across CEE Green Office buildings in Budapest DGNB/ÖGNI new buildings

DGNB/ÖGNI operating buildings

1% 2% 21%

BREEAM new buildings

42%

10%

LEED new buildings

LEED commercial interiors

BREEAM operating buildings

21% LEED new buildings

Wroclaw, Krakow and Gdansk. Skanska is set to complete the 17,000 sqm LEED “Gold” accredited Green2Day in Wroclaw. In Warsaw, Rondo 1, an existing office center, has been awarded LEED “Platinum” certification under the LEED Building Operations and Maintenance rating system. “During the certification process, an in-depth analysis of the

building’s use was conducted along with audits on both energy and building installations. In addition, companies occupying the office space participated in a questionnaire regarding thermal comfort and ease of commuting to and from Rondo 1. The re-certification of Rondo 1 at the highest level possible – “Platinum” – illustrates the policy of

“The commercial property market is showing an increased trend towards sustainable building construction.” sustainable development implemented by Deutsche Asset Management,” said Marek Jakubiak, head of CEE real estate at Deutsche Asset Management. Office remains the leading sector with regard to green accreditation, representing 70 of the total or 250 buildings. This is followed by the retail sector with 22% of buildings and industrial with 7%. “Stable growth in the number of green certificates seems to be a good predictor for the development of sustainable building practices and the further development of sustainable facilities management,” said Colliers. “Certifications are becoming more popular in successive real estate sectors and in a growing number of cities. The prospects for the development of certificates seem promising as Szczecin is the first city in Poland to have taken the initiative to introduce tax relief for the design of green buildings. They must achieve LEED “Gold” or BREEAM “Very Good” accreditation.” Sustainability elements in a building are generally regarded as adding to its return on investment and capital value and are increasingly a much for higher level investors. “A good design and the high quality of construction, underpinned by LEED certifications ensures the

11 buyer that they will not have to make significant capital investments into the property during its operation. To ensure that the process is efficient and simple for investor partners an in-depth evaluation of the building is conducted, this prediligence process is conducted by external advisers,” commented Adrian Karczewicz, transaction director for CEE at Skanska. Skanska is currently developing the third 15,000 sqm phase of Green Court in Bucharest, the first two phases of which were sold to the Greek developer/investor, Globalworth. In line with its international policy, its first development in Romania is LEED “Gold” accredited. Accreditation is also increasingly the norm in the less established markets, as developers require an exit strategy and institutional developers are showing an interest in these markets. In Bucharest the 50,000 sqm Globalworth Tower by the Greek developer/investor has been LEED “Platinum” certified. The building is the first in Romania and the wider SEE region to achieve this level of certification according to Globalworth. In Serbia, the prolific CEE developer, GTC is constructing the second 7,600 sqm phase of Forytone in New Belgrade. The 27,000 sqm project is due to be delivered in three phases and is the first certified LEED “Gold” office building in the capital city, according to GTC. Some 400 km away in Zagreb, the owner-occupied Zagreb Poslovni Centar Adris an building is expected to be the first internationally accredited green office building in Croatia with LEED “Gold” certification.

The new large-scale green development. Promenade Gardens on Váci út Standing out from the crowd in a business environment where buildings are springing up one after the other is certainly a challenge for all commercial developers. Taking up this rewarding task, Horizon Development – with its excellent track record of award-winning sustainable development projects (Eiffel Square, Eiffel Palace, Váci 1 Building) and a proven dedication to green building – broke ground for its Promenade Gardens office building this Summer. Budapest Business Journal asked Edina Hornok – Head of Sustainability Consultancy at the general contractor, DVM group – to spell out the sustainability agenda of the project. “Promenade Gardens – with its expected dual (LEED Gold and BREEAM Very Good) certifications – has to meet the highest expectations when it comes to environmental consciousness, energyand water efficiency, and offering a healthy, employee-friendly work environment for its tenants. Towards this goal, we incorporated various measures and innovative features. To provide efficient and ergonomic lighting solutions, we use occupancy and daylight sensors and energy-saving LED light fixtures. We plan to place photovoltaic panels on the roof that will generate electricity, partially replacing traditional sources. Energy-efficient

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elevators enable quick and resourceful above average clear internal height of vertical traffic between the five floors 3 meters makes even denser seating in each tower. To safeguard our water arrangements spacious and airy. The supplies we use harvested rainwater humidified fresh air supply we can for flushing toilets and urinals, and provide in the building is 12,5 liter/ watering our internal community garden. second/person, which is exemplary in With separate metering, we have the these types of buildings. With our highcapacity to generate comparative data quality building management system, that enables us to monitor potable we are able to closely monitor and water versus rainwater consumption. optimize the overall energy- and water Our faucets and showerheads are also performance of our mixed-use office equipped with built-in low-flow aerators building. for maximum savings. Biodiverse green walls and extensive Climate control and well-being were green surfaces – apart from being fine also important considerations when aesthetic features – also improve air we planned Promenade Gardens, so quality and increase humidity levels. we opted for an energy-efficient VRV The location attributes of the site are system and air-to-water heat pumps also very favorable, with various modes connected to radiant heating-cooling of public transportation within reach, ceiling panels on office premises. The as well as bicycle roads and a 3-lane

arterial road. To encourage sustainable ways of commuting, we provide electricand hybrid car chargers, as well as bicycle storages with lockers and showers in the building. Sustainability is not only a great characteristic of the building in its final, operational phase, but also our way of managing the complete project. During the current construction phase, for example, we pay great attention to protecting the physical environment, and those living around. To minimize the unavoidable dust pollution of groundworks, we use a steam cannon onsite. We also built a 45-meter-long wall, protecting little residents of the neighboring kindergarten and nursery from both noise and dust. All vehicles leaving the site are properly cleaned before they rejoin main traffic paths. Most products and materials used in the building are local or regional, environmentally friendly, recycled, and preferably certified, meeting all sustainability and safety requirements.” As a co-exhibitor on the official Budapest stand (A2.331) – together with the Municipality of Budapest, the Hungarian Investment Promotion Agency and the Hungarian Property Developers’ Roundtable Association – Horizon Development will be showcasing Promenade Gardens to the international property community at EXPO REAL in Munich on 4-6 October.

www.promenadegardens.hu www.horizondevelopment.hu

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

EXPERT OPINION

2016. 09. 14. 21:09

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Budapest Business Journal | September 16 – September 29, 2016

Brave green world not yet in sight

Sustainable buildings are appearing in Budapest, but critics say an apparent lack of commitment at the city decision-making level is holding back more marked progress. LEVENTE HÖRÖMPÖLI-TÓTH

“Green washing. That’s what’s going on, on a large scale,” says Sándor Bardóczi, a landscape achitect and board member of the Hungarian Chamber of Architects who is a vocal critic of local green planning. “It’s when you put an eco stamp on your project, sell it as environmentally friendly, but at its core, it has nothing to with cutting energy consumption. In fact, often in cases where green rooftops are set up that require very intensive care, it even increases it.” The pre-recession era did witness some ambitious efforts, as a result of which “A”-class office developments and larger residential areas were planned with lush vegetation around them. The financial crisis, however, broke this promising pattern and ever since such leafy aspects have carried far less weight. “Like the bulk of market-based developments, the government and the municipalities stick to green field projects, which lead to the felling trees. Their financing stems from EU funds, and the only reason why the environment is taken into account at all is because it is required by the relevant tenders,” Bardóczi tells the Budapest Business Journal. András Lukács, president of Levegő Munkacsoport (Clear Air Action Group), says he, too, finds this lack of eco-sensitivity hard to understand, as it is also in the best interests of property developers to maximize green surfaces. “The value of such premises goes up and selling or renting out also gets a lot easier,” he reasons. There are positive role models out there, as many companies from Western Europe and further away aspire to lead by example. And there are, too, examples of local firms that demonstrate exemplary commitment to the environment. The latter case is duly underlined by the Kopaszi dam investment by the Danube. The investor spent HUF 10 billion just to clear up the bay area and to build a public park, even before getting its project started. “This resembles a fully Western approach where, even before you break ground, an assessment is made to what extent the place needs to be green,” Bardóczi says. The trouble is though that is no dedicated system of government incentives, coupled with which the relevant laws, not to mention the engagement of authorities, are often inadequate. Bardóczi has been calling for a landscape development network to be set up that works closely together with the capital’s city development department.

Words vs. action Such cooperation could also bring about better compliance with the current

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Sándor Bardóczi. regulations. Bardóczi acknowledges that environmental restrictions are provided for, but complains that enforcement is a whole different issue. “You don’t hear about many cases where builders were obliged to tear something down just because it violated some eco regulation,” he points out. The degree of room for improvement is shown by the results of the European Green City Index. Some 30 cities across the continent were evaluated by the Economist Intelligence Unit for ecofactors ranging from air quality to transport; the Hungarian capital ranks only 17th on that list, scoring 57.55 out 100. That compares with neighboring Vienna’s score of 83.45, which was still only enough to be ranked in fourth place. Lukács agrees that a lack of resources and careful planning form a large obstacle here. “Even though the Budapest general assembly adopted a comprehensive environmental protection program back in 2011, no funds, no deadlines and no people in charge have been assigned to the goals laid down therein,” he points out. Lukács himself handed over a complex blueprint on how to turn Budapest into a sustainable city – drawn up by the Clear Air Action Group – to city mayor István Tarlós in 2014, but to date he hasn’t received any feedback.

Involving stakeholders in the conversation Engaging stakeholders in decisionmaking about the city’s future would tie in well with current trends elsewhere in Europe for process-centered planning. This means that businesses, residents and civil organizations are all asked to share their views about how they imagine shaping their place of operation and living. “We are lagging 30-40 years behind in this respect. Instead of embracing a bottom-up approach, here it is still a topdown principle that rules. As a result, developments are executed not along market needs, but rather the interests of a small group of insiders,” Bardóczi claims. András Ekés, a mobility expert and managing director of Mobilissimus Kft., confirms that in the West a planningfor-people approach is thriving and infrastructure-based planning is of secondary relevance. “As it turns out, if you get to know what residents really want, on many occasions you end up finding more cost-effective solutions,” he tells the BBJ. He says the problem in Budapest

András Ékes. is that senior city decision makers have for too long been trying to satisfy the car driving population. But measures that may temporarily trigger tension, such as London’s congestion fee or the re-occupation of the Rhône bank for the sake of nature are great examples of ideas that, in the long run, pay off. But there are other best practices nearer to home. The main pillar of planning in Vienna, Ekés explains, was to keep developments within the city boundaries so that they could be accessed via train, subway or tram. “Take Aspern, which at first counted as the middle of nowhere, but is now a booming urban area with workplaces and residential neighborhoods. The U2 Metro line was extended expressly for the purpose of making the quarter an integral part of the city. The rehabilitation of the Hauptbahnhof district further reflects this concept.” Berlin hits similar chords, with developments only allowed in the first place along S-Bahn lines. “These are all cases where the city communicates with its surroundings. By contrast, in Budapest it is a practice unheard of,” Ekés says. “In suburb areas huge commercial and residential developments were completed, which have grown many fold since, but rail infrastructure and high capacity public transport building didn’t keep pace. It was never an issue to make transport sustainable. The conscious planning Vienna is characterized by cannot be found here even in traces.”

Turning rust into gold One logical development path is to revitalize urban rustbelts under brown field investments. A working paper by the mayor’s office called “Budapest 2030” does contain a detailed concept to capitalize on this potential, but it when that might begin to materialize is another question. The City Park Project, under which a new museum district is being created, is a good example. For a long time the run-down area behind Nyugati Railway Station was agreed to be the ideal location. The change of venue caused huge uproar and protests, not least because it involved the felling of healthy trees. “Such rust sites are extremely contaminated and without public funds they cannot be rehabilitated profitably,” Bardóczi said of the original host area for the museum quarter. The London Olympics showed, however, that by applying a clear-cut

long-term concept, run-down zones could be brought back to live (including the development of a public park of some 250 acres). Now that plans for Hungary’s Olympic bid are on the table, it would be an ideal time to seize the momentum to embrace such a long-term approach. But many of the selected venues, such as Margit-sziget, Hajógyári Sziget and Népliget, seem to indicate that even if the Olympics do take place in Budapest in 2024, it might largely be as a result of green field investments. The mayor’s city development department was asked to comment for this article, but declined to do so.

GREEN LIGHT AT THE END OF THE TUNNEL In spite of the obstacles ecofriendly approaches often face, some market players are taking serious steps towards a brave green world in Budapest. The aim of the Hungary Green Building Council (HuGBC), a non-profit organization, is to campaign for a radical transformation of the locally built environment by providing information on sustainable practices and facilitating learning and communication on the subject. HuGBC’s Green Building Week takes place from September 26 to October 2, and includes the Green Walk 2016 event where 20 buildings erected in an ecofriendly fashion can be visited, among them eight new venues like CEUʼs freshly completed campus and Váci Corners. Participants are invited to take photos of these innovative premises and enter them in a competition in the hopes of winning an award. But the key highlight will be the #BETTERBUILDGREEN conference on October 4 in which architects, property developers and managers, and green building specialists will gather to discuss how to improve and get the most out of the sustainability business model.

2016. 09. 14. 21:09

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Budapest Business Journal | September 16 â&#x20AC;&#x201C; September 29, 2016

Sustainability impacts the future look of the city

As developers in Budapest increasingly design, construct and upgrade office projects in line with sustainability accreditation requirements and environmental legislation, this will have an inevitable impact on both the shape and look of the city and the internal environment of offices.

â&#x20AC;&#x153;Location is very important if we speak about sustainability. It is essential that the project be easily accessible by public transportation, and also for those who ride bikes to go to work. If the workplace inspires the employees to use public transportation or bicycle instead of car, it supports sustainable aims.â&#x20AC;?

GARY J. MORRELL

Market players point out that this is a reciprocal phenomenon, however, as the expectations and requirements of the inhabitants of the city â&#x20AC;&#x201C; and tenants and staff in offices â&#x20AC;&#x201C; are also changing. If you walk around Budapest today and compare it with five zears ago, there are

Sustainability will have notable impacts on the smart cities of the future. more people on bikes, more bike paths and more green spaces. Building developers need to meet sustainability requirements that require

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less carbon emissions and shorter journey times, with a public transport option. Previously there was a fashion for projects to be undertaken in out-of-city locations with no metro or other direct public transport links, but the periphery now has the highest vacancy rates and the inner city and suburban sub-markets the lowest. â&#x20AC;&#x153;We have come to the point where bicycle parking is now a demand. Over the past two years we have seen bicycle traffic in the city increase noticeably. We have yet to see whether electric cars will take off. I tend to think that they will. At the same time, within the life-time of these buildings it is likely that we will have self-driving cars and therefore we would not have the same demand for parking spaces,â&#x20AC;? said Michael Smithing, LEED and BREEAM assessor and director of green building advisory at Colliers International. â&#x20AC;&#x153;Location is very important if we speak about sustainability. It is essential that the project be easily accessible by public transportation, and also for those who ride bikes to go to work. If the workplace inspires the employees to use public transportation or bicycle instead of car, it supports sustainable aims,â&#x20AC;? said ZoltĂĄn BorbĂŠly, country manager of Atenor Group Hungary.

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Smithing comments that the new trends are becoming standard features. â&#x20AC;&#x153;We are getting to the point where sustainable methods have become the way we build buildings. When was the last time that they built an office building in Hungary that did not have air-conditioning? This is now just the way that architects design buildings and rating agencies are raising the bar. In five years, design teams and contractors will be so used to sustainability requirements that it will not require any further input. From our perspective, possibly we will have to

find something else to do because our work will be passed onto the contractors and architects.â&#x20AC;? The coinciding of commercial gains and meeting the needs of tenants is reflected in the policy of Skanska. â&#x20AC;&#x153;The most important issue is to keep the clients in our building for a long time. That means we have to know our clientâ&#x20AC;&#x2122;s needs, we have to know the needs of the city and we have to know what the benefit for the city is if we build something. Further, benchmarks with regard to sustainable materials should be introduced,â&#x20AC;? said AndrĂĄs Schmidt, sustainability director at Skanska Hungary. â&#x20AC;&#x153;An excellent location is also very important. However, alternative transportation like electrical cars etc. should be considered when choosing a plot in the future,â&#x20AC;? he added.

Accessibility BalĂĄys Simonyi, leasing director at CPI concurs with this view. â&#x20AC;&#x153;Good accessibility and less transportation are basic from a sustainability perspective. Close vicinity of mass public transportation, easy connection to highways or direct links to bicycle paths are essential. On the other hand, services and amenities in-house or nearby areĂ&#x; just as influential, by reducing or eliminating traveling needs,â&#x20AC;? he said. Immofinanz sees that the increasing importance for tenants to have their offices in an environmentally sustainable building will impact the companyâ&#x20AC;&#x2122;s acquisition and asset management strategy, going forward. ZoltĂĄn BorbĂŠly, country manager at Atenor Group Hungary, says developers have to be innovative today for the cities of tomorrow. â&#x20AC;&#x153;Sustainable developments will have notable marks on the cities in the near future â&#x20AC;&#x201C; some already have. Cities go smart, and developments need to find their roles and spaces in a continuously changing environment with new challenges day by bay. Topics such as mobility, use of energy resources, and quality of the environment, connectivity, governance and citizen involvement also deserve innovative approaches from the developer side.â&#x20AC;?

2016. 09. 14. 21:09

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Budapest Business Journal | September 16 – September 29, 2016

Sustainability the norm from development and investment perspectives

Developers have used names such as “Green House” and “Váci Greens” in Budapest to promote their office projects, but sustainability must go further than good PR, for developers and tenants alike. GARY J. MORRELL

The trend for sustainability accreditation of office buildings has impacted the full office development process from sourcing a location, design, construction, leasing, property and asset management, to the exit strategy and purchase by an investor. Further, investors are upgrading older buildings to gain in-use sustainability accreditation. In general, the conventional wisdom is that the more sustainable an office development is, the more successful it will be. Under sustainability accreditation systems, a building’s planning, construction and operation are certified and controlled by an impartial third party. Some consultancies now have departments or dedicated staff working on sustainability issues from the owner/developer, investor and tenant 124x158_ad_nordic_light_03.pdf 1 2016.09.13. 9:05:42

perspectives, in addition to producing research and playing a proactive active role in promoting sustainability. “The primary concern of real estate developers is typically money. However, when you look at the research you see that green buildings attract more tenants, so in this way if you build green then you have a better chance of winning tenants that come to the market. A lot of what is behind sustainability makes good business sense, because when you look at how to use resources more efficiently you end up saving money at the same time. This is a win-win situation,” said Michael Smithing, LEED and BREEAM assessor and director of the green building advisory at Colliers International. From the tenant perspective, buildings accredited by BREEAM or LEED are regarded as providing improved efficiency. “The key to marketing a building is identifying what sustainability provides for the tenant. In this sense productivity is central – what are we doing to make people in the space more productive and to make them more comfortable and better workers. For example, bicycle parking in the basement and shower facilities, this is better for a person’s overall well being. Another issue is natural light that has an impact on how tenants feel and how they work,” Smithing explained. With regard to the perception that green development is more expensive, the increased cash flow is seen as offsetting the cost of certification. “Some years ago sustainable development meant more costs in the short-

“When it comes to office buildings, we would not buy properties without a certification or certain standards in energy-efficiency and sustainability.” term (development phase), but nowadays, thanks to the evolution of green industries and research & development, sustainable development does not definitely mean more costs. In the long-term, the operation and maintenance costs of a sustainable building are much less than a non-sustainable building,” said Zoltán Borbély, country manager at Atenor Group Hungary. The Belgium Atenor Group is constructing the third phase of the 125,000 sqm Váci Greens in the Váci út business corridor. Energy efficiency forms a large part of accreditation requirements. Váci Greens has low energy consumption appliances with a high efficiency ventilation system. Energy efficient lighting is also in use at the complex. Credit points were given by the assessor for the provision of bike racks, showers and changing rooms. “Our projects meet strict criteria in terms of location, economic effectiveness and respect of the environment. Sustainability has many impacts on a project, starting from environmentally friendly techniques during development to the handover of the buildings with, for instance, carpet floors made out of recycled materials,” said Borbély.

Investment chain With regard to the immediate Budapest pipeline, Hungarian developer Wing is aiming to achieve a very good BREEAM rating for its 12,000 sqm V17 office project in Váci út. According to Wing, it boasts a green area of 900 sqm, a storage room for 90 bicycles, showers and changing rooms, natural ventilation and fresh air supply, maximum use of natural light, special multifunctional glass front and external/ internal shading. Construction included recyclable materials for long-term use. In the view of Smithing, the further up the investment chain, the more important sustainable accreditation becomes. “Institutional investors and major real funds typically have a very difficult time buying a new class “A” building that does not have certification: however, a building can be purchased if it is clear it can attain certification before the investor is ready to sell,” he said. The next level of investors is seen as smaller opportunity funds such as Bluehouse, and not all the buildings that they buy are certified, but they check whether it is possible to certify these buildings. The 21,000 sqm Váci Corner by HB Reavis delivered last year and subsequently sold to the Greek Zeus Capital Management, received BREEAM Excellent accreditation. The assessor noted positive aspects related to energy, water and waste management processes, quality of construction materials and the approach of the management to sustainability. According to HB Reavis the design of the project ensures zero carbon emission, rainwater harvesting, recycling, and access to electric car charging stations

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and ensures zero pollution from its ventilation systems. In addition, nine elevators with advanced drives have a 50% reduction in energy usage. Váci Corner is adjacent to a metro station as well as other means of public transport. In addition the project provides bicycle racks, lockers and shower facilities. Sustainability elements in a building are regarded as adding to its return on investment and capital value. “We believe in sustainability, a perfect long-term investment solution adding value to our property portfolio and benefiting our environment,” said Hungarian investor, Diófa Asset Management. “Since the market has turned green and almost every newlybuilt office building is developed to fit an international green standard, as an investor we have a choice of brilliant office solutions. With the recent purchase of the V17 office building, Diófa Asset Management has three green offices in its portfolio, and a fourth is under way. We also emphasize sustainability by turning well developed first generation office buildings green.” According to the company, for newly built modern office buildings, sustainability is considered a basic requirement from the tenant’s side. “This impacts yields in several forms: lower management costs, satisfied tenants, low vacancy rates, and all these also have an effect on transactional costs.” Investment funds including IMMOFINANZ and CA Immo are in the process of certifying their existing buildings. Much of the CA Immo portfolio is LEED Gold accredited. The policy of Immofinanz is to upgrade older assets to BREEAM/LEED standards. The investor has In-Use certificates for five of its office buildings in Budapest and says one of the factors helping drive its rental success is the BREEAM certification awarded to Szépvölgyi Business Park, Greenpoint7, the Central Business Center, Haller Gardens, and Átrium Park. Immofinanz says development means not only investing in new projects, but also in existing assets. “Investment in more efficient operations can earn not only BREEAM In-Use certification, but also – due to lower operating and service costs – brings in new tenants,” commented Nóra Fodor, leasing manager at IMMOFINANZ.

Due diligence “Sustainability is part of our due diligence. Immofinanz places high priority on the responsible use of resources, of climatefriendly technologies, a well-defined strategy of energy consumption, the renovation of suitable older buildings and the construction of energy efficient buildings,” she added. Standing properties also make up the majority of S IMMO’s portfolio and the company began to gradually certify its properties in 2014. At the end of 2015, the Blue Cube office building became the first S IMMO property in Budapest to receive a BREEAM In-Use certificate. “Sustainability is one of many major factors we have to keep in mind when making a purchase. When it comes to office buildings, we would not buy properties without a certification or certain standards in energy-efficiency and sustainability. Lots of companies have to make sure that they only move into buildings that are certified – this is often also part of their guidelines,” commented Katalin Sermer, country manager at S Immo on their development strategy.

2016. 09. 14. 21:09

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Budapest Business Journal | September 16 – September 29, 2016

EXPERT OPINION

For investors looking to move into the Hungarian property market, CE LAND is increasingly becoming the first point of contact, says its managing director, Csaba Széll. And what is important to those investors is not just the services and professionalism offered by the company, but the fact that it is also investing in the market. “We know what the customers want, what the tenants want, what the development options are, and how to invest and asset manage real estate portfolios in Hungary,” Széll says. “We can evaluate their needs and be honest with them and lead them to the right solutions.” CE LAND was founded in 2004, the year Hungary joined the European Union, but in May 2011 it made asset management the core of its business. “We find increasingly we are seen as that first point of contact,” Széll says. “That alone, of course, is not enough to secure business, but what we do is offer investors market options. We asset manage our own portfolio, but also those of clients, and do so across a range of areas: asset management; investment services; agency; and technical management.” Naturally enough, none of this has Csaba Széll, managing director, CE LAND. happened in a vacuum. CE LAND has had to build a reputation for delivering on investors’ expectations, and in Shikun&Binui, Volksbank Real Estate there is a clear perception among the an increasingly competitive market. Services/Immigon and UniCredit market players that we are now on an “Competition has become much Leasing, and it also provides market overall upward trend. It started with tougher,” Széll says. “Five years ago we intelligence and helps develop relevant prime residential properties, which were virtually the only business that was marketing materials for the Hungarian bottomed out around the summer of set up exclusively as an asset manager. Investment Promotion Agency (HIPA). 2014 together with tourism supported Now it seems almost everyone offers The decision to start investing in “horeca” and hospitality segment.” asset management as an ‘á la Carte’ its own properties was taken in the Not every other segment has followed element of their websites.” fall of 2014, with the first acquisitions suit yet though, but offices, retail and The company is clearly doing made in January 2015. “We wanted investment sectors are clearly going something right. Since 2011 CE to strengthen our market position and in the right direction. LAND has been asset managing and saw this as a way of doing so. Investors investment managing close to quarter like to see that you are involved and UPBEAT billion euros worth of client’s assets committed in your market.” Széll says he is genuinely upbeat and built its own prime residential real Clients are a mix of local investors about the immediate future. “We are estate portfolio. Today, CE LAND offers and international companies with positive, that is why we are investing real estate portfolio asset management local Hungarian exposure, such as in our teams and focusing on those across a wide scale of services banks. “I’d say that 90% plus of the segments. Many people are saying including Fund Management, Asset buildings we manage are in Budapest the atmosphere in Budapest is like it Management, Leasing Management, and its vicinity,” Széll notes. That bias was in 1998, and that was followed Financial and Legal Services, towards the capital is explained by by 10 good years. If you offered me Project/Development Management, the fact that international investors five good years that would be good Transaction Management (Acquisition rarely look beyond Budapest into enough right now!” and Disposal of real estate investment the countryside, though there are The one sector where he does products) and Agency Services exceptions and there is clearly not see any immediate signs of a (Landlord- and Tenant representation). potential there. significant take off is logistics. The Reference clients include GTC, Erste So how does the market look last two years were strong, with a Ingatlan, Erste Group Immorent, today? “I think we have bottomed out; significantly decreased vacancy rate

BBJ_2417_spec_report.indd 17

“Tenants expect green developments, a reduced ecological footprint and cost efficiency. You can see from the very few new buildings delivered in recent years that you must have some level of green certification.” (below 7%), moderate increase in development activity and a couple of investment transactions recorded, but 2016 H1 is seeing a slight drop again. “Logistics is a special case because of the kinds of technologies now being applied. Since 2008 the world has moved on from the sort of primitive “big box” approach that was being offered in Hungary. Our experts study the global logistics market and travel around, and we do not see examples of the current best practices being realized in Hungary.” BEST PRACTICE Sustainability is one best practice that is entering the Hungarian market, but Széll says it is being driven by the end-users. “Some developers are clearly dedicated to sustainability; you can see it is very much part of their whole approach. Others use it more for marketing purposes. But tenants expect green developments, a reduced ecological footprint and cost efficiency. You can see from the very few new buildings delivered in recent years that you must have some level of green certification.” If he does have a complaint to make of the market, it is over the look of some the buildings. With a background in architecture, he says he is too often disappointed in what goes up. “I am a citizen of Budapest too. How many buildings put up in 1998 have withstood the test of time? Buildings have a long life-cycle, they should be judged not on how they look after five years, but after 20. I have just got back from Prague and I have to say it looks like a German city; the general quality is clearly higher. You might think the answer must be they collect much more in rents than in Budapest, but it is only a couple of euros more. Somehow we have to be more inventive.” If you want help finding the standout exceptions in the Hungarian capital, you should probably contact CE LAND.

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

The first point of contact

2016. 09. 14. 21:09

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Budapest Business Journal | September 16 – September 29, 2016

Market Talk: Sustainable real estate

How green is the building stock of Hungary/Budapest? How is this changing, and how does it compare on a regional and EU basis?

has to meet the market requirements in this respect. This also concerns older, existing office buildings: it’s important to hold a green certificate, and if the tenants are international, it’s a must. Due to the lack of office demand and development in the past five years in Hungary, the proportionate amount of certificated buildings compared to other countries in Europe is lower.

MÁTYÁS GEREBEN, GENERAL MANAGER, CPI HUNGARY Today it’s impossible to build without LEED or BREEAM certifications, one

LÁSZLÓ VAS, INVESTMENT DIRECTOR, DIÓFA ASSET MANAGEMENT Hungary’s office stock has changed significantly during the past five years,

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and sustainable office solutions have become key in new developments. As development activity was low in the past five years, so-called in-use certificates for existing offices boosted the green office stock in Hungary. Landlords are following the trend and have decided to add value to existing buildings by refurbishing according to a sustainable methodology, just as Diófa Asset Management did with the Óbuda Gate office building. Not only buildings go green, though; tenants are strengthening their commitment by moving to environmentally-friendly office buildings, and applying green solutions for their office areas.

VIKTOR NAGY, COUNTRY MANAGER OPERATIONS, IMMOFINANZ Since the World Green Building Week was held in Budapest two years ago, there has been an increased awareness of the need for sustainable and ecologically aware building. The Hungarian Green Building organization, HuGBC has played a part in this and continues to educate and pressure builders to do more. Developers have such an important part to play, not only in the new build environment, but also by raising existing assets to higher, more sustainable standards. BREEAM In-Use certificates have been gained for more than half of the standing IMMOFINANZ office assets. Clients are increasingly demanding green and environmentally sustainable buildings. It’s a push-pull situation where both developers and clients have their part to play. Regionally, Hungary is probably a little ahead of the curve in some respects, but on a Europe-wide basis there is a lot of catching up to do.

The green building industry has a growing importance in Hungary and also in the region. Poland is greenest in terms of industrial developments, but Budapest is on track to becoming a green capital. Skanska’s work helps this objective: the company was the first to incorporate the LEED international environmental certification system in Hungary. By 2021 every performer in the building industry has to provide energy-saving buildings, which means that nearly zero energy consumption and using renewable energy will be required.

MARCELL LACZKÓ, TEAM LEADER FOR PROPERTY MANAGEMENT, TRIGRANIT Due to more restrictive energy efficiency regulations, buildings are subject to high technical requirements and solutions, and office buildings are more often built in a green way. These solutions help reduce monthly operating costs, important both for landlords and tenants. Furthermore, international companies are restricted to leasing certified green office spaces by the corporate sustainability responsibility agenda most have adopted. In Hungary the number of offices with BREEAM or LEED green certificates is steadily increasing. At the end of 2015, the number of certified offices had reached 30% of the whole modern Budapest office stock, and the number is regularly growing. Offices under development in Budapest in 2016 are all in the certification process. With this ratio, Hungary is near the regional level.

What are the upcoming trends? How different will Budapest’s cityscape become in the mid- to longterm?

ANDRÁS SCHMIDT, SUSTAINABILITY MANAGER, SKANSKA november-str_2015_2.indd 1

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CPI: New developments contrast strikingly with the trends of the Millennium, as expectations have changed remarkably. The market now requires different types of office spaces, not only workstations but also communal, green and living spaces with an innovative layout. Buildings must fit the newest trends in respect of use of modern building materials and layouts, with the existence of social, sport and recreational facilities on the

2016.09.13. 11:11:28

2016. 09. 14. 21:09

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Budapest Business Journal | September 16 – September 29, 2016

premises. This trend also concerns the larger cities in the countryside. CPI’s newest refurbishment program is taking place in the Balance Office Park, the most recent innovation of this being the Balance Loft project. Diófa AM: Sustainability has become a must; multinational companies in particular have this on their expectation list when looking for a new HQ. Both landlords and tenants see the benefits of green solutions, especially when it comes to service charge costs. Budapest is expected to change significantly in the mid- to long-term, as several cityin-city developments are in the pipeline. A new feature of these schemes will World Green Building Week, launched in Budapest two years ago, will run from be professional sustainability that will September 26 to October 2, 2016. decrease the ecological footprint. Is there any green Skanska: Current trends regarding IMMOFINANZ: You only have to look green solutions are mainly focused on technology that is unique around the city to see how much change earning verifications from some of the to Hungary or used here is going on to the built environment; most important certificating agencies. As more commonly than there have been major renovations to for regional trends, there is a continuous elsewhere? squares and important public areas 5% growth in the number of verified cityßwide, and we have much more to green building developments, which is CPI: Now property developers, along come. So change is with us right now, very promising. Budapest is planning a with CPI, have realized that green and what underpins all this renovation new project in the near future called the areas, a wide range of services, the and new building is that it must be Smart City Program, the organizational development of infrastructure is cleaner, greener and more sustainable. background for which was already set very important for the tenants to feel How different the cityscape will look in in 2015. This project considers smart sustainability as a reality. the mid- to long-term is an interesting buildings with their unique possibilities for question, which is down to the vision future technologies. When we are talking Diófa AM: We don’t see significant of developers and architects. How the about current and future trends, we have to differences between regions. The market cityscape will be is easier to answer, be clear that Hungary has no sub-markets; in Hungary adapts very well to the because it simply has to incorporate all activities are concentrated in the capital international trends and has introduced every aspect of the trends towards city. This is a considerable difference several clever solutions for sustainability greening our environment. between the rest of the region and us. during the past years.

19 IMMOFINANZ: Hungary is located in a large sedimentary basin, its geothermal features are excellent, but we are currently ranked at about 16th place in the EU for geothermal energy use; given our natural resources, this could clearly be improved. You’re unlikely to see several geothermal office buildings in Budapest, but it’s a trend that definitely has a future, and the technologies are advancing quite rapidly. IMMOFINANZ was among the first in Hungary to use a geothermal cooling and heating system in one of its office building: Greenpoint 7. When these technologies mature, Hungary is well placed in terms of natural resources to utilize this energy source. Skanska: We do not vary much from the rest of the region or other EU members; we follow the same directives and regulations, the only visible difference is the proactive attitude to how we adapt to these common laws. Skanska is visioning the possibility of participating in a new program called Well Being that is focusing on thermal content, the choice of environmentallyfriendly materials, biophilia, amenities and lighting quality. TriGranit: Being green is in the foreground, and this trend will remain and hopefully will grow. But I have to add that the need for green office buildings has its limits – I cannot imagine, for example, that geothermic sources in office buildings will be widely used due the enormously high construction costs.

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2016. 09. 14. 21:10

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Budapest Business Journal | September 16 – September 29, 2016

Increasing emphasis on sustainable interiors

A healthy, sustainable work environment is increasingly becoming a tenant demand, with added, often ecofriendly, amenities seen as making staff feel happier and more productive. GARY J. MORRELL

Sustainability elements are regarded as central to office interior design. Indeed, analysts now argue that these 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 the tenant perspective, a healthy and efficient work environment is seen as more productive, with added amenities in place where staff are happy to spend time. “For workplaces, the critical issue is ‘building health’, mostly in office buildings. This includes natural light, fine grade control over temperature, humidity and noise control, visual contact with the ‘world out there’ and usable outdoor space,” commented Pál Baross, an experienced developer and 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 and investors have become much more focused on ‘tenant satisfaction’ than in the past.” The impact on interiors is in part due to sustainability issues, but much more due to other changes in the market and how we work. “The real impetus for how we design interior space comes partly from the traditional green rating systems, but I think that more will come from what is behind the Well Building system. This rating system focuses on the well being of the building occupants,” said Norbert Szircsák, senior associate at green advisory services at Colliers International. His company argues that certification is going to focus more on the tenants themselves in two ways: One is the growing intelligence of buildings and the amount of data that is becoming integrated in the buildings. “Ten years from now everything will be integrated – if you plug into the internet, then you will be able to receive information on the amount of daylight, occupancy, CO2, humidity and temperature sensors. However, there is the question of who owns the data and how we control it with regard to security issues.” The other issue relates to thermal comfort or temperature in relation to varying requirements from tenants. The next step will be delivering thermal comfort to an individual desk by delivering air that is directed to a particular person or a particular desk.

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bus No. 105, 120, 15

CONTACT Barbara Baráth +36 20 984 4977

Zoltán Fábián: + 36 20 497 2181

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

CITYZEN OFFICES

Developers are increasingly designing a project with a view to securing tenants who establish shared service centers with a dense person per sqm ratio, with the resulting greater need for amenities such as bike racks, showers and changing rooms, cafe bar and restaurant facilities and green areas that also act as informal meeting areas. A large letting at a new class “A” office complex could almost be regarded now as a built-to-suit project. In just such a way GE established an international headquarters at Váci Greens. Overall, GE expects to have around 4,000 employees at the center. The concept is that staff will be happy to spend time at the complex, often working irregular hours and taking the opportunity to utilize the leisure facilities. “The design and the fit out have to ‘support’ cost efficiency and flexibility. Nowadays, recycled water (used for maintaining the green areas as well as toilets and other purposes), great insulation to prevent heat loss, and controlled ventilation in low-energy consuming appliances throughout the infrastructure

are absolutely minimal requirements if we speak about sustainable projects,” said Zoltán Borbély, country manager at Atenor Group Hungary

Environmentally sound The investor IMMOFINANZ also sees the growing importance of sustainable interiors. “We have experienced that it is of increasing importance for tenants to have their office in an environmentally sustainable building when choosing a property in Budapest. For tenants, the priorities are for buildings that are environmentally sound, with all the benefits that this brings including health, comfort, efficiency and cost savings,” commented Nóra Fodor, leasing manager at IMMOFINANZ. András Schmidt, sustainability and property manager at Skanska Property Hungary sees the role of the developer as providing quality, flexible space with, for example, natural daylight, while clients now often utilize their own interior designers, as they know their own requirements.

KÁLVIN SQUARE ADDRESS 1134 Budapest, Váci út 37. YEAR BUILT 1996 (renovated in 2016) FREE SPACE 6,500 sqm PUBLIC TRANSPORT metro line M3, trolley No. 75, 79 CONTACT Bernadett Zádori +36 70 364 6823

e-mail: bzadori@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 our in house Cafeteria welcomes you, the premium quality will fulfill your highest expectations in an environment that inspires you every day to create something new.

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Staff at GE enjoying the facilities at Váci Greens.

ADDRESS 1085 Budapest, Kálvin tér 12. YEAR BUILT 2003 (renovated in 2016) FREE SPACE 1,001 sqm PUBLIC TRANSPORT metro line M3, M4,

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

CONTACT Bernadett Zádori +36 70 364 6823

e-mail: bzadori@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. 09. 14. 21:10

60 000

18%

40 000

12%

20 000

www.bbj.hu

Budapest Business Journal | September 16 – September 29, 2016

EXPERT OPINION

JLL taking the pulse of the office market Vacant space (m2)

Vacancy rate (%)

Source: JLL Research, BRF, August 2016

Vacant stock and vacancy rate by submarket

Rita Tuza Head of Research

JONES LANG LASALLE

JLL has recently published its H1 2016 Office Market Pulse. This is the first research study published by the new JLL research team of Barbara Huszár – who recently joined the company – and Rita Tuza, who has been the head of the research department for five years. This biannual JLL publication covers the latest Budapest office market trends including stock, vacancy, demand and rental conditions. In this article, JLL gives an exclusive summary of its office market report, the full version of which can be downloaded from www.jll.hu. MODERN OFFICE STOCK IN BUDAPEST In Q2 2016 the modern office stock in Budapest amounted to 3,297,360 sqm including owner occupied stock of 664,580 sqm. Within the overall stock, the total gross area of Class “A” buildings represents 63%, whereas the remaining 37% is made up of Class “B” offices. There are nine office submarkets in Budapest, out of which Váci Corridor remains the largest with 27% of the total stock, followed by Pest Central South (14%) and Buda South (12%). These submarkets are the most popular among office tenants. During the first half of 2016, two new office schemes were completed with a total area of 31,300 sqm. The handover of Váci Greens B – the third phase of the Váci Greens office campus – has increased the modern office stock by 25,600 sqm. The refurbishment of Váci 1 was completed in Q2 2016 in the CBD, including 5,700 sqm office space. The office area of the asset was 50% occupied upon completion by a well-known fashion company, who will relocate their back-office to the new office premise. UNDISTURBED DECLINE OF VACANCY RATE The vacancy rate continued its decline for the 10th consecutive quarter and dropped to 10.3%. This indicates a 100 bps decrease quarter-on-quarter and a massive 390 bps decrease year-onyear. Out of the nine office submarkets, the highest availability (relative to the stock) is recorded in the Periphery

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120 000

36%

3 500 000

21,00%

100 000

30%

3 000 000

18,00%

80 000

24%

2 500 000

15,00%

60 000

18%

2 000 000

12,00%

1 500 000

9,00%

1 000 000

6,00%

500 000

3,00%

40 000

12%

20 000

Vacant stock and vacancy rate by submarket 120 000

Vacant space (m2)

Class "A"

Class "B"

Total stock (m2)

36%

Vacancy rate (%)

Source: JLL Research, BRF, August 2016

100 000

Budapest average

0,00%

Vacancy rate (%)

Source: JLL Research, BRF, August 2016

30%

80 000 24% period of 2015, H1 2016 submarket (31.2%), while the lowest is of the same started to decline. Today the achievable andSouth vacancy rate by building category inTotal thestock Buda submarket (5.2%). gross and net take-up volumes were still rent-free periodsH1stand Distribution of gross take-up by submarkets 2016 at 0.5-1 month 000 In 60terms of the amount of vacant above or in18% line with the 10-year average per contracted year. space, volumes, reflecting a stable market 3 500the 000 largest pool of immediately 21,00% Buda Central 40 000 offices is located in the Váci 12% 12% available environment. FORECAST 3 000 000 18,00% Buda North Corridor submarket (106,480 sqm) In the first half of the year, the strongest We expect an additional four buildings, 4% 2 500 000 15,00% 20 000 6% Budaby South whereas there is a serious shortage of occupational activity was recorded in the totaling 65,870 sqm, to be delivered 35% 2 000 000 modern office space in the Pest Non Váci Corridor 12,00% are submarket, where 35% of the end of 2016, out of which, two CBD 0 0% 8% Central (7,600 sqm) and Buda South the total gross For the period of take-up was concluded. almost 100% pre-let. 1 500 000 9,00% Periphery The Pest Central South and Buda 2017-2018, we forecast the office stock (20,700 sqm) submarkets. 1 000 000 6,00% roughly 230,000 sqm in North Central submarkets, representing 20% to expand by 7% Pest Central 500 000 3,00%H1 2016 occupational more than ten buildings. Almost 40% and 12% of the GRADE “A” OFFICES VS. GRADE “B” Pest Central South 0,00%this. of this space is already pre-let. Bearing activity, followed OFFICES 0 2% space (m2)there Vacancy (%) Class Class "B" average Non Central in mind 10% the active occupationalPest and At the end of Vacant Q2 "A" 2016, wasrateBudapest 1% we 338,520 sqm of immediately Source: JLL Research, BRF, August 2016available The largest transactions of the year so 20%development markets, we believe Váci Corridor office space in Budapest. Out of far were renewals, hence the share of will see the launch of additional office this volume, around 155,710 sqm raterenewals within gross take-up increased developments in the near future, both on Total stock (m2) Vacancy (%) comprised Class “A” space and to 44%. Out of the top ten JLL, largest deals, Source: BRF, August 2016 a speculative and built-to-suit basis. Total stockwas and vacancy rateoffice by building remainder Class “B” space.category there was only one expansion, whereas According to our forecasts, the decline Source: JLL Research, BRF, August 2016 This translates into a vacancy rate of the rest included occupiers prolonging of the vacancy rate will lose momentum 7.5%3 in their lease agreements 500the 000 Class ”A” office stock and 21,00% with their current during the second half of the year and the rate will stagnate around 10% or 14.8% in the Class “B” office stock. landlords. 3 000 000 18,00% The Váci Corridor has the highest increase slightly. Nevertheless, bearing in 2 500of 000immediately available Class amount mind the moderate amount of new office LEVELS15,00% BACK TO THEIR Distribution of gross take-up by submarkets H1 RENTAL 2016 “A” 2buildings, whereas the lowest PEAK AFTER 6 YEARS space to be delivered to the market in 000 000 12,00% choice of such schemes was recorded Due to the very limited availability of 2017, we foresee that the availability will Buda Central 1 500 000 9,00% 12% in the Pest Non Central submarket. adjacent office space in the CBD, prime start to decline again next year. Buda North 000 has the lowest vacancy 6,00% Buda1 000 South office rents increased to €22/sqm/month 4% Buda South a 10% growth rate within Class “A” stock (4%), in Q2 2016, indicating 500 000 the 3,00% 35% €22/sqm/month level whereas the highest rate is recorded in year-on-year. The OVERALL STATISTICS CBD 0 0,00% 8% the Periphery (13.3%). is the highest rental level which has been Class "A" Class "B" Budapest average Periphery recorded in the Budapest office market 3,297,360 sqm andCentral 2009), HEALTHY DEMAND, THE LARGEST 7% (between 2007 Pest Northmeaning that Total office stock in Budapest at the prime rents are back to their peak after TRANSACTIONS WERE RENEWALS end of Q2 2016 Pest Central South Total stock Vacancy six rate (%) Occupational activity in (m2) Budapest years. Pest Non Central remained healthy in the first half10% of the 2% 31,305 sqm 1% year. Gross take-up reached Due to the continuous 20% Source: JLL Research, BRF, August 2016 213,580 New supply completed in H1 2016 Váci Corridor decline of the sqm whereas net take-up equaled vacancy rate, we have started to 118,720 sqm. Although these volumes record a rental incline in several Class 97,170 sqm were the volumes “A” offices, while rental incentives have Source:significantly JLL, BRF, August below 2016 Total new supply to be delivered in 2016 (including owner occupied buildings) Distribution of gross take-up by submarkets H1 2016 Buda Central

12%

Buda North 4%

35%

Buda South CBD

Periphery 7%

Pest Central North Pest Central South

20%

Source: JLL, BRF, August 2016

10%

Pest Non Central Váci Corridor

230,000 sqm Confirmed pipeline for 2017-2018 (exc. owner occupied buildings) 213,580 sqm Gross take-up in H1 2016 118,720 sqm Net take-up in H1 2016 65,827 sqm H1 2016 10.3% Average vacancy rate as of Q2 2016

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

Barbara Huszár Junior Research Analyst

Total stock and vacancy rate by building category

2016. 09. 14. 21:10

22 3

www.bbj.hu

Budapest Business Journal | September 16 – September 29, 2016

Making the green acres greener

CLAUDIA PATRICOLO

With the slogan of “Greener, Cleaner, Smarter!”, the eighth Environment for Europe ministerial conference took place in June in Batumi, Georgia. Three days later, the Batumi Initiative on the green economy was launched, which aims to collect ideas and efforts to encourage sustainable development. “Several partnerships are formulated between countries to enhance cooperation in this field,” commented Hungary’s deputy minister of agriculture István Nagy. “Actually, the CEE looks to be surprisingly active. Regional Director of UNEP, Jan Dusík said of this trend: ‘This region of Europe can be a leader in the transition to green economy.’” István Nagy, Hungary’s deputy minister As Nagy explained, the Hungarian of agriculture. approach to Batumi was to highlight less obvious areas. “Hungary has other states, and came to the conclusion several ongoing projects in the field that Hungary should show some of its of green economy, embraced by the typical issues,” he said. National Framework Strategy on One such is the goal to strengthen Sustainable Development, by the the role of local farmers, decreasing National Environmental Plan and other their dependence on international key documents. The final report of the markets. This action will also have an Batumi conference was aimed to show impact on transportation, minimizing some of the most colorful examples to call environmental loads and creating new general attention to the green economy. jobs. “A short supply chain project can We expected that the energy sector and be implemented in different ways,” Nagy industry would be much represented by told the Budapest Business Journal. “The

aim is always to offer fresh Hungarian fruits and vegetables to customers, but different methods involve different stakeholder groups in different ways. On the other hand, some solutions are already in service, for example finding so called farmer’s markets all around the country, with fresh and healthy vegetables and fruits, directly from the producers.”

Energy efficiency A second area concerns the development of energy-efficiency buildings in the agricultural, governmental and NGO sectors, and making new district-heating units based on renewable energy. The goal here is to decrease dependency on the international energy market, support the local building sector, and develop local expertise. When it comes to access to services, the purpose is to change public opinion, through the review of some policies and the reinforcement of information campaigns. “Education can have an immense effect on customer’s habits. A curriculum on sustainability will surely have an effect on future consumption,” Nagy said. The Hungarian report on Batumi Initiative often refers to educational programs. “Some states are hesitating about the green economy because

they are afraid of its possible effects on unemployment,” explained Nagy. “On one hand, this habit can limit competitiveness in the longer term. On the other hand, the workforce in the traditional industrial sectors can be shifted towards new possibilities by proper education and training. Development of the green economy requires special knowledge and skills that are not always available now. So educational programs and training have key role in the transition.” Another idea being looked at by the Hungarian government is dedicated to mapping the required measures to decrease food waste, as set out in the 2030 Agenda for Sustainable Development. “The Batumi Initiative greatly overlaps the goals of the 2030 Agenda for sustainable development,” commented Nagy. “Both documents were elaborated by the contribution of UN organizations, so their basic approach is the same, and that is simply sustainability. The principle of sustainability sounds simple – answering the needs of the present without compromising the ability of future generations to meet their own needs – but it is not easy to transform it into everyday practice. The 2030 Agenda for sustainable development is defined as set of global and universe aims, while the Batumi Initiative focuses on the green economy in the Pan-European region.”

CHANGE YOUR WORK STYLE +36 1 225 6600 www.balanceloft.hu

BBJ_2417_spec_report.indd 22

THE LIVING WORKPL ACE

2016. 09. 14. 21:10

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

1ST DISTRICT

3RD DISTRICT

5TH DISTRICT

10TH DISTRICT

13TH DISTRICT

15TH DISTRICT

55 SQM – 2 ROOMS, MÉSZÁROS STREET

68 SQM – 3 ROOMS, HÍMZŐ STREET

72 SQM – 2 ROOMS, SZALAY STREET

47 SQM – 2 ROOMS, KŐRÖSI CSOMA S. STR.

100 SQM – 3 ROOMS + HALL, ÚJLIPÓTVÁROS

98 SQM – 4 ROOMS, PESTÚJHELY

This completely renovated apartment beneﬁts of fully ﬁtted open kitchen, private gas heating, air conditioning system and it is situated within a well maintained building.

This park facing, quiet apartment beneﬁts of separate rooms and balcony. It is located close to the Danube.

Very nice apartment with nice view from the balcony, on the top ﬂoor of a period building with elevator, near the Parliament. Price includes furniture.

In a new building with elevator, this high ﬂoor, street facing apartment has separate rooms, private gas heating and balcony. Very good connection to public transport.

In a very nice period building, this garden facing, very spacious apartment has private gas heating and it is located close to the Dózsa György út subway station.

In a quiet side street, this spacious family house built on 396 sqm of lot, has 2 bathrooms, front garden and parking space in the garden.

26.900.000 HUF

16.900.000 HUF

52.900.000 HUF

21.900.000 HUF

26.900.000 HUF

36.900.000 HUF

+36.1.201.0403

+36.1.379.0506

+36.1.287.6745

+36.1.780.8276

+36.70.398.8754

3RD DISTRICT

5TH DISTRICT

113 SQM – 3 ROOMS, SZILÁGYI DEZSŐ SQUARE

44 SQM – 2 ROOMS, DÉVAI BÍRÓ M. SQUARE

91 SQM – 3 ROOMS, VERES PÁLNÉ STREET

67 SQM – 2 ROOMS, KŐRÖSI CS. S. WALKWAY

58 SQM – 2 ROOMS, CSATA STREET

200 SQM – 5 ROOMS, RÁKOSPALOTA

Beautiful view over the Danube, this very spacious apartment in good condition is situated within a nice period building, on a beautiful square.

This completely renovated part of a house that has separate rooms, terrace, nice garden with brick barbecue is located in a quiet side street.

The building is elegant and completely renovated with elevator. This very nice apartment has 2 bathrooms and the fully ﬁtted kitchen is included in the price.

This street facing apartment in good condition has separate rooms, dining room, 2 sleeping galleries and parking space in the closed courtyard.

56.000.000 HUF

22.500.000 HUF

In a new built building with elevator, this garden facing, high ﬂoor apartment has fully ﬁtted kitchen, private gas heating, terrace, balcony and parking space in the garage.

This two storey family house built on 380 sqm of lot, has 2 bathrooms, wardrobe room, big terrace and parking space. It is located in a family house area.

26.990.000 HUF

57.500.000 HUF

1ST DISTRICT

58.900.000 HUF

+36.1.201.0403

2ND DISTRICT

21.900.000 HUF

+36.1.430.1403

3RD DISTRICT

+36.1.287.6745

+36.1.780.8276

13TH DISTRICT

+36.70.701.2348

15TH DISTRICT

+36.70.398.8754

11TH DISTRICT

14TH DISTRICT

65 SQM – 3 ROOMS, SZILÁGYI ERZSÉBET ALLEY

100 SQM – 4 ROOMS, BÉCSI ÚT

49 SQM – 2 ROOMS, PODMANICZKY STREET

72 SQM – 2 ROOMS, BARTÓK BÉLA STREET

58 SQM – 3 ROOMS, PADLIZSÁN STREET

106 SQM – 4 ROOMS, DUNAKESZI

In front of the beautiful Városmajor Park, this garden facing apartment in good condition has spacious and bright separate rooms and it is situated within a building with elevator.

In a new building with elevator, this high ﬂoor, garden facing, duplex apartment has 2 bathrooms, 2 balconies, garage and parking space in the courtyard.

This apartment faces to the tree-lined part of the street within a nice period building, between Bajcsy-Zsilinszky Street and Teréz Circuit.

This high ﬂoor apartment in good condition has 2 balconies and it is situated in a well maintained building with elevator.

This park facing, mansard apartment has separate rooms, big kitchen, private gas heating, air conditioning system and it is located very close to Örs vezér Square.

This new built semi-detached house has 420 sqm of lot, living room with open kitchen, 3 bedrooms, 2 bathrooms, terrace and parking space in the nice garden.

34.900.000 HUF

43.900.000 HUF

25.300.000 HUF

33.800.000 HUF

25.900.000 HUF

34.900.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.1.430.1403

3RD DISTRICT

6TH DISTRICT

10TH DISTRICT

+36.70.701.2348

+36.70.3156.087

6TH DISTRICT

+36.1.720.2433

11TH DISTRICT

+36.1.612.5475

DUNAKESZI

14TH DISTRICT

+36.70.399.0399

DUNAKESZI

71 SQM – 3 ROOMS, KELETI KÁROLY STREET

236 SQM – 10 ROOMS, NAP STREET

76 SQM – 2 ROOMS, LISZT FERENC SQUARE

59 SQM – 3 ROOMS, KISMARTONI STREET

117 SQM – 3 ROOMS, ABONYI STREET

170 SQM – 5 ROOMS, DUNAKESZI CENTRE

Beautiful view over the Mechwart Grove, this apartment that needs renovation beneﬁts of 2 balconies, separate rooms and it is situated on the high ﬂoor of a building with elevator.

In a quiet side street, this two storey family house that needs renovation built on 589 sqm of lot, has 2 bathrooms, terrace, balcony and garages.

This street facing, sunny apartment is situated in the fashionable Liszt Ferenc Square with all the amenities of a pedestrian area (restaurants, bars, etc.).

This two storey family house that needs renovation built on 2000 sqm of lot and it is located in a quiet street, in a very green area.

In a very nice period building, this very sunny and spacious apartment in good condition has high headroom (4 m) and parking space in the closed courtyard.

This very well divided, spacious, two storey family house in good condition has 1 living room, 4 bedrooms, 2 bathrooms, terrace and garage.

35.900.000 HUF

68.500.000 HUF

49.500.000 HUF

58.000.000 HUF

69.000.000 HUF

40.900.000 HUF

+36.1.336.1706

+36.1.379.0506

+36.70.3156.087

+36.1.720.2433

+36.1.612.5475

+36.70.399.0399

WELCOME 2ND DISTRICT

4TH DISTRICT

7TH DISTRICT

12TH DISTRICT

2045 SQM – LOT, TÁRKONY STREET

41 SQM – 1 ROOM, KÁPOSZTÁSMEGYER

80 SQM – 3 ROOMS, DÓZSA GYÖRGY STREET

44 SQM – 2 ROOMS, HAJNÓCZY JÓZSEF STREET

This lot has beautiful panorama, 15% coverage possibility and the possibility to build a 4 apartment condominium. Electricity and water on it, gas is in the street.

In a new building with elevator, this street facing apartment in good condition beneﬁts of air conditioning system and parking space in the courtyard.

Adjacent to the City Park, this spacious, quiet apartment has sleeping gallery, private gas heating and it is situated within a building with elevator and nice common terrace.

Beautiful panorama over the Vérmező Park from the balcony, this high ﬂoor apartment has private gas heating. It is situated within a well maintained building with elevator.

18.900.000 HUF

36.500.000 HUF

26.500.000 HUF

94.900.000 HUF

+36.1.376.6080

2ND DISTRICT

+36.1.782.7275

4TH DISTRICT

+36.1.351.0446

9TH DISTRICT

+36.1.789.2846

12TH DISTRICT

253 SQM – 8 ROOMS, SZÉPVÖLGYI STREET

96 SQM – 3 ROOMS, MEGYERI STREET

77 SQM – 2 ROOMS, RÁDAY STREET

173 SQM – 4 ROOMS, SZÉCHENYI MEMORY LANE

This two storey family house that needs renovation consists of 2 separate apartments and has 1000 sqm of lot and 2 garages. The 2 apartments can be purchased separately as well.

In the new built Homoktövis subdivision, this spacious, garden facing apartment has separate rooms, 2 balconies and air conditioning system.

In the city centre, in a pedestrian street, this very bright apartment in good condition has private gas heating and it is situated within a renovated period building with elevator.

Breathtaking panorama over the Buda Hills from the terrace and the 2 balconies, this duplex apartment has separate tower room with entrance from the staircase and 2 car garage.

112.400.000 HUF

35.900.000 HUF

34.900.000 HUF

115.000.000 HUF

+36.1.376.6080

+36.1.782.7275

+36.1.351.0446

+36.1.789.2846

ARE A RE YOU YOU LLOOKING OOKING FOR APARTMENT? FOR APARTMENT?

WWW.TECNOCASA.HU 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_2417_spec_report.indd 23

2016. 09. 14. 21:10

24 3

www.bbj.hu

Budapest Business Journal | September 16 – September 29, 2016

Green Office Buildings cuRRent majOR tenants

9 2,700

1,000 200

12–14 3.75

2004/ 2006

ExxonMobil, Honeywell, Nalco, GE Hungary

gateWay Office paRk

2008

Magyar Posta Zrt., Samsung, AON, Mortoff, Invest andTrande, Vin-Vin Étterem

www.gatewaybc.hu, www.cpigroup.hu

35,900 50,800

9 1,500

bank centeR

www.bankcenter.hu

science paRk

www.sciencepark.hu

public tRanspORtatiOn

OWn seWage management

independent pOWeR supply

eneRgy efficiency pROgRam

natuRal ventillatiOn

daylight and mOtiOn sensORs

lOcal Recycling

gRey WateR Reuse

electRic/hybRid caR chaRgeRs

OtheR

planning phase

final phase

classificatiOn Of existing building ✓

Cush– BREEAM man & CPI Property Group Very Good Wakefield, (100) Eston

bicycle stORage

Ÿ Ÿ

sOlaR cOllectORs

–

✓

–

✓

–

✓

–

✓

2009

–

✓

–

✓

–

✓

–

✓

BREEAM JLL, Very Good Robertson

1996

Citibank, REGUS, BÉT

✓

–

✓

–

✓

–

✓

– BREEAM Avestus Allianz (50)Generali Good Real Estate (50)

–

✓

–

✓

–

✓

–

✓

BREEAM Very Good

–

✓

–

✓

–

✓

–

✓

31,200 38,400

9 4,500

4,984 5

30,041 52,176

11 1,400

2,100 3

16–20 4.20

16 800

6,000 5

12–15 3.70

2006

IBM, Metlife, Huawei, UNHCR, Ford

28,659 30,446

9 1,910

– 5

12–14 3.60

2002

28,520 34,300

8 4,000

760 5

12 890 HUF

26,000

8 900

Ÿ Ÿ

www.dunatower.hu

LEED Gold

–

12–14 3.50

12.50– 14 950 HUF

duna tOWeR Office 29,800 5 building 31,500

OWneRship (%) hungaRian nOn-hungaRian

5,630 3–5

ÁtRium paRk

www.atriumpark.hu

Real estate agency (agencies) OR agent(s)

yeaR established

36,867 41,312

stage Of gReen ceRtificatiOn Rating

gReen seRvices

Result Of validatiOn (bReeam)

mOnthly Rental fee On aug. 1, 2016 (euR/sqm) mOnthly seRvice chaRge On aug. 1, 2016 (euR/sqm)

www.gtc.hu

cuRRent leasable Office space (sqm) minimal lease teRm (yeaR)

centeR pOint

nO. Of levels aveRage level size (sqm)

Office building Website

net Office space (sqm) tOtal gROss building aRea (sqm)

Rank

Ranked by net office space (sqm)

–

✓

–

✓

–

✓

–

✓

–

✓

–

népliget centeR

www.nepliget-center.com 8

2010

✓

–

✓

–

✓

Ÿ Ÿ

Free bicycle rental for tenants, landscaped garden

✓

Green wall, water efficient aerators, landscaped garden with water feature

pROmenade gaRdens 9

www.promenadegardens.hu

vÁci gReens 10 building b

www.vacigreens.hu

nORdic light 11

25,000

www.skanska.hu

millennium

23,210 24,770

23,000 44,000

21,000 12 tOWeR iii 35,000 www.millenniumcitycenter.hu

BBJ_2417_spec_report.indd 24

25,000 6 4,300 Ÿ

Ÿ Ÿ

8 11,853 3,500 5

8 2,500

Ÿ 5

Ÿ Ÿ

✓

–

✓

–

✓

–

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

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

1134 Budapest, Váci út 45. (1) 451-8040 (1) 236-0435 offices_hu@ immofinanz.com 1054 Budapest, Szabadság tér 7. (1) 302-9010 (1) 302-9020 anett.eles@bankcenter.hu

–

– GTC (100)

1138 Budapest, Népfürdő utca 22. (1) 412-3693 (1) 412-3680 leasing@gtc.hu

BREEAM Very Good - In Use

CBRE

– Heitman (100)

1117 Budapest, Irinyi József utca 4–20. (1) 382-5100 (1) 382-5101 –

✓

BREEAM Very Good

JLL, Cushman & Wakefield Kft.

– IMMOFINANZ AG (100)

1095 Budapest, Soroksári út 32–34. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

✓

EU Green Building

–

– (100)

1097 Budapest, Könyves Kálmán körút 11. (1) 473-1209 (1) 473-1210 m.takacs@ horizondevelopment.hu

–

BREEAM Very Good+LEED Gold

–

Ÿ Ÿ

1133 Budapest, Váci út 80–84. (1) 473-1209 (1) 473-1210 m.takacs@ horizondevelopment.hu

Cushman & Wakefield, Robertson Hungary Kft.

Drews City Tower Ingatlanforgalmazó Kft. (100) –

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

halleR gaRdens

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

– Immofinanz AG (100)

addRess phOne fax email

GE Corporate, 2016 ✓ ITSH

✓

–

✓

BREEAM Excellent

12.9514.00 2.7003.10

2016

✓

–

✓

–

✓

–

Pre-LEED Gold

–

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

1133 Budapest, Váci út 96–98. (1) 382-9100 (1) 382-9129 leasing@skanska.hu

Ÿ Ÿ

2008

Morgan Stanley, MSD Pharma

–

✓

–

✓

–

✓

–

CBRE, Cushman & Wakefield Kft.

TriGranit (26) Heitman Hepp IV (74)

1095 Budapest, Lechner Ödön fasor 8. (1) 456-6221 (1) 456-6201 scsikos@trigranit.com

Ÿ Ÿ

2016. 09. 14. 21:10

www.bbj.hu

cuRRent majOR tenants

560 3

12–.75 3.20

2007

STRABAG, Lufthansa Systems, Pannontej

eiffel téR Office building

natuRal ventillatiOn

daylight and mOtiOn sensORs

lOcal Recycling

✓

Ÿ Ÿ

classificatiOn Of existing building

eneRgy efficiency pROgRam ✓

final phase

independent pOWeR supply ✓

planning phase

OWn seWage management ✓

OtheR

public tRanspORtatiOn ✓

electRic/hybRid caR chaRgeRs

bicycle stORage ✓

gRey WateR Reuse

sOlaR cOllectORs –

–

✓

Real estate agency (agencies) OR agent(s)

yeaR established

7 2,500

stage Of gReen ceRtificatiOn Rating

gReen seRvices

Result Of validatiOn (bReeam)

mOnthly Rental fee On aug. 1, 2016 (euR/sqm) mOnthly seRvice chaRge On aug. 1, 2016 (euR/sqm)

cuRRent leasable Office space (sqm) minimal lease teRm (yeaR)

18,526

nO. Of levels aveRage level size (sqm)

infOpaRk

13 building d www.infopark.hu, www.gamma-am.hu

net Office space (sqm) tOtal gROss building aRea (sqm)

Rank

Office building Website

Budapest Business Journal | September 16 – September 29, 2016

OWneRship (%) hungaRian nOn-hungaRian

LEED Silver

GAMMA Properties Kft.

– TRIUVA (100)

addRess phOne fax email

1117 Budapest, Gábor Dénes utca 2. (1) 382-7560 (1) 382-7570 office@gamma-am.hu

– KGAL (100)

1062 Budapest, Teréz körút 55–57. (1) 225-0912 (1) 375-0445 bzadori@ convergen-ce.com 1093 Budapest, Lechner Ödön fasor 6. (1) 456-6221 (1) 456-6201 scsikos@trigranit.com

18,500 23,500

7 3,200

– 5

20 3.90

2008

Cetelem Bank, AXN, Medicover, ESAB, Grundfos, Givaudan, Mastercard

18,500 14 tOWeR ii 31,200 www.millenniumcitycenter.hu

7 2,400

Ÿ 5

Ÿ Ÿ

2008

Nestlé, Prologis, Oracle

–

✓

–

✓

–

TriGranit (26) Heitman Hepp IV (74)

– 5

Ÿ Ÿ

2017

–

✓

–

✓

–

✓

–

Robertson Hungary

GRT Group (100) –

1117 Budapest, Alíz utca 4. (1) 327-2050 (1) 327-2055 info@officegarden.hu

18,460 25,100

9 2,300

545 5

3.30

2014

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

–

✓

–

✓

–

✓

–

✓

BREEAM Excellent

–

(100) –

1138 Budapest, Váci út 144–150. (1) 238-0359 (1) 238-0360 –

8 2,500

– 5

13.75 3.80

–

✓

–

✓

–

BREEAM Good

Futureal

(100) –

1082 Budapest, Futó utca 47–53. (1) 266-2181 (1) 688-5498 office@futureal.hu

2007

Celanese, Bunge, Friesland, Process Solution

www.eiffelsquare.com

millennium

Office gaRden iii www.officegarden.hu

vÁci cORneR

17 Offices www.vacicorneroffices.hu

18,500

cORvin One

www.futureal.hu

18,000 20,000

vÁci 33

17,480

10 2,000

Ÿ 3

Ÿ Ÿ

17,300

Ÿ Ÿ

7 2,500

Ÿ Ÿ

www.vaci33.hu

vÁci gReens 20 building c

www.vacigreens.hu

millennium tOWeR i 17,100 21 30,000 www.millenniumcitycenter.hu

–

2006

Vodafone, Morgan Stanley

2012

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

gReen hOuse

www.diofaalapkezelo.hu 22

16,800 30,200

11 2,745

176 5

12–16 855 HUF

Office gaRden ii 23

16,700

– 5

Ÿ Ÿ

Westend city 24 centeR Offices

16,600

1,450 3

13– 13.50 4.20

16,000 22,000

7 3,500

– –

www.officegarden.hu

www.westendiroda.hu

magyaR nObeldÍjasOk k+f paRk 25 i. Ütem www.wing.hu

infOpaRk building e 26

www.diofaalapkezelo.hu

vÁci gReens

26 building d www.vacigreens.hu

kRisztina palace 28

www.krisztinapalace.hu

BBJ_2417_spec_report.indd 25

15,600 29,000

10 2,900

1,660 5

12.25– 14 3.20

15,600

Ÿ Ÿ

15,500 18,000

6 3,000

2,381 5

12.7513.50 3.59

2010

–

✓

–

✓

–

✓

–

✓

Ÿ ✓ ✓

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

Ÿ Ÿ

–

✓

–

✓

–

Ÿ ✓ Ÿ – Ÿ Ÿ

–

✓

–

LEED Silver

✓

BREEAM Excellent

–

LEED Platinum

–

✓

LEED Silver

–

✓

–

Dressing room and shower in the deep garage

✓

BREEAM In-Use Very Good

✓

–

1117 Budapest, Alíz utca 2. (1) 327-2050 (1) 327-2055 info@officegarden.hu 1062 Budapest, Váci út 1–3. (20) 369-1111 (1) 374-6571 info@trigranit.com

–

✓

Erste Ingatlanalap (100) –

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

–

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

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

–

Torony Ingatlanbefektetési Alap (100) –

–

✓

1095 Budapest, Lechner Ödön fasor 6. (1) 456-6221 (1) 456-6201 scsikos@trigranit.com

1117 Budapest, Magyar Tudósok körútja 11. (1) 451-4760 (1) 451-4289 info@wing.hu

✓

TriGranit (26) Heitmann Hepp IV (74)

Ÿ Ÿ

–

✓

–

CBRE, Cushman & Wakefield Kft.

✓

1138 Budapest, Váci út 117-129. (1) 785-5208 (1) 785-5209 info@atenor.hu

Ÿ Ÿ

✓

Robertson Hungary & – Cushman Atenor Group (100) & Wakefield Kft.

Eston International

✓

– IG Immobilien (100)

✓

–

1134 Budapest, Váci út 33. (1) 412-2827 – a.dery@ ies-immobilien.com

Robertson LEED Gold Hungary

✓

–

BREEAM ConvergenCE

–

✓

–

✓

2009

✓

–

Lufthansa Systems, EIT, National Instruments, 3M

✓

–

✓

–

2017

1999

–

Ÿ Ÿ

LEED Gold

Robertson Hungary & – Cushman Atenor Group (100) & Wakefield Cushman & Wakefield Kft.

– (100)

1138 Budapest, Váci út 117-129. (1) 785-5208 (1) 785-5209 info@atenor.hu 1123 Budapest, Nagyenyed utca 8–14. (1) 268-1288 (1) 268-1289 info.budapest@ cushwake.com

2016. 09. 14. 21:10

k3 - allianz Office 31 building –

14,500 32,000

8 1,600

– 5

17–22 3.33

–

PwC Hungary, CBRE, Briitish Chamber of Commerce, St. Andrea 2013 ✓ Wine & Gourmet Bar, Wax in the City, Eiffel Bistro

✓

–

✓

–

✓

–

✓

–

✓

Photovoltaic panels, green wall, water efficient aerators

–

14,350 30,000

8 2,300

13,858 27,000

6–7 5501160

3,855 3

11 3.50

13,600 15,550

8 2,000

– 3

11 950 HUF

2003

–

✓

–

✓

–

✓

13,200 20,400

8 13,200 1,600 3–5

12.50– 14.5 3.80

–

✓

–

✓

12,680 27,000

6 2,700

12–14 3.70

2010

Xapt, Qualysoft, Kürt, Adidas, Tupperware, Helly Hansen

–

✓

–

✓

–

✓

–

✓

–

11,984

8 1,400

Ÿ Ÿ

2011

K&H Bank

–

✓

–

✓

–

✓

–

11,500 13,500

6 2,000

Ÿ Ÿ

2010

Allianz

✓

–

✓

–

✓

–

OWneRship (%) hungaRian nOn-hungaRian

✓

BREEAM Excellent

Robertson Hungary, Cushman & Wakefield Kft.

– Atenor Group (100)

✓

BREEAM Very Good+LEED Gold

classificatiOn Of existing building

final phase

planning phase

OtheR

electRic/hybRid caR chaRgeRs

gRey WateR Reuse

lOcal Recycling

daylight and mOtiOn sensORs

natuRal ventillatiOn

eneRgy efficiency pROgRam

independent pOWeR supply

OWn seWage management

public tRanspORtatiOn

bicycle stORage

sOlaR cOllectORs

cuRRent majOR tenants

yeaR established

Ÿ Ÿ

Real estate agency (agencies) OR agent(s)

www.eiffelpalace.hu

Ÿ Ÿ

stage Of gReen ceRtificatiOn Rating

gReen seRvices

Result Of validatiOn (bReeam)

eiffel palace 30

mOnthly Rental fee On aug. 1, 2016 (euR/sqm) mOnthly seRvice chaRge On aug. 1, 2016 (euR/sqm)

www.vacigreens.hu

15,500

cuRRent leasable Office space (sqm) minimal lease teRm (yeaR)

vÁci gReens 28 building a

nO. Of levels aveRage level size (sqm)

Office building Website

www.bbj.hu

Budapest Business Journal | September 16 – September 29, 2016

net Office space (sqm) tOtal gROss building aRea (sqm)

Rank

26 3

addRess phOne fax email

1138 Budapest, Váci út 117–129. (1) 785-5208 – info@atenor.hu

–

Ÿ Ÿ

1055 Budapest, Bajcsy-Zsilinszky út 78. – – –

Ÿ Ÿ

1087 Budapest, Könyves Kálmán körút 48–52. – – –

✓

BREEAM CE LAND in Use Very Holding Good Kft.

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

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

CBRE

– IMMOFINANZ AG (100)

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

–

– CPI Property Group (100)

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

–

(100) –

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

TriGranit (26) Heitman Hepp IV (74)

1095 Budapest, Lechner Ödön fasor 9. (1) 456-6221 (1) 456-6201 scsikos@trigranit.com

– Codic International S.A. (100)

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

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

1134 Budapest, Váci út 17. (1) 451-4280 (1) 451-4289 sales@ wing.hu

lauRus Offices

www.laurusirodahazak.hu 32

gReenpOint 7 33

www.immofinanz.com

2011

–

✓

–

✓

–

Soil heat usage

–

✓

BREEAM Very Good

–

✓

–

✓

BREEAM Excellent

neW age centeR www.newagebc.hu, www.cpigroup.hu 34

budaWest Office 35 building www.budawest.net

millennium tOWeR

36 "h" building www.millenniumcitycenter.hu

v48 37

www.v48.hu

Ÿ Ÿ

CBRE,

field Kft.

2006

1996

Optimal Management Kft., Cargill Hungary Zrt., Tech Mahindra Magyarországi Fióktelepe

cityzen Offices

www.cityzenirodahaz.hu 38

11,493 12,383

9 1,450

6,500 5

14 3.900

v17 39

10,600 18,000

11 1,636

490 5

14 3.33 (999 HUF)

www.v17.hu

BBJ_2417_spec_report.indd 26

Cushman Ÿ LEED Gold & Wake-

–

✓

–

✓

–

✓

–

✓

Ÿ Ÿ

–

✓

–

✓

–

✓

–

BREEAM Very Good

–

✓

BREEAM ConvergenCE

– Europa Capital (100)

–

Eston International, JLL

V17 Kft. (100) –

2016. 09. 14. 21:10

www.bbj.hu

Real estate agency (agencies) OR agent(s)

Result Of validatiOn (bReeam)

classificatiOn Of existing building

✓

–

✓

845 3

12–13.5 3

2009

Bisnode, Gameloft, Msc

–

✓

–

✓

Ÿ Ÿ

–

GAMMA Properties Kft.

– TRIUVA (100)

1093 Budapest, Közraktárutca 30–32. (1) 382-7560 (1) 382-7570 office@gamma-am.hu

5,280 3

9.5010.5 1,200 HUF

–

Unilever, UFB

–

✓

–

✓

–

✓

BREEAM Very Good

Colliers

– (100)

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

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

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

–

5 2,000

– 3

8,750 9,300

9 1,200

– 3

10.50 890 HUF

8,700 9,450

11 999

2,976 3–5

10.90 3.60

visiOn tOWeRs 46

8,059 8,667

Ÿ 5

Ÿ Ÿ

7,947 9,018

8 993

– –

7,170 10,900

6 1,400

– 5

Ÿ Ÿ

5,700 13,800

1,900 5

Ÿ Ÿ

–

✓

–

Truck Force One, TRUMPF, NKH

–

✓

–

✓

–

✓

–

final phase

planning phase

OtheR

electRic/hybRid caR chaRgeRs

gRey WateR Reuse

lOcal Recycling

daylight and mOtiOn sensORs

natuRal ventillatiOn

eneRgy efficiency pROgRam

independent pOWeR supply

OWn seWage management

8,900 10,300

www.immofinanz.com

1052 Budapest, Szervita tér 8. (1) 473-1209 (1) 473-1210 m.takacs@ horizondevelopment.hu

2019

12 1,200 HUF

centRal business centeR

(100) –

addRess phOne fax email

Ÿ Ÿ

szépvölgyi business paRk

www.immofinanz.com, 43 www.iroda.immofinanz.com

public tRanspORtatiOn

5 2,230

www.simmoag.hu

OWneRship (%) hungaRian nOn-hungaRian

LEED Gold/ BREEAM Very Good

blue cube 42

bicycle stORage

9,386 10,665

sOlaR cOllectORs

8 400– 900

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

cuRRent majOR tenants

9,865

szeRvita squaRe

stage Of gReen ceRtificatiOn Rating

gReen seRvices

yeaR established

RiveRpaRk Offices

mOnthly Rental fee On aug. 1, 2016 (euR/sqm) mOnthly seRvice chaRge On aug. 1, 2016 (euR/sqm)

nO. Of levels aveRage level size (sqm)

cuRRent leasable Office space (sqm) minimal lease teRm (yeaR)

net Office space (sqm) tOtal gROss building aRea (sqm)

7 10,000 1,850 5

Rank

www.szervita.com

10,000 30,000

Office building Website

Budapest Business Journal | September 16 – September 29, 2016

2004

1996

–

Starschema, Brendon, Opus, Parvis

–

✓

–

✓

–

✓

–

✓

BREEAM Very Good

–

– IMMOFINANZ AG (100)

✓

BREEAM Very Good

Cushman & Wakefield Kft.

– IMMOFINANZ AG (100)

–

Cushman – BREEAM & CPI Property Group Very Good Wakefield, (100) Eston

balance building

www.balancebuilding.hu, www.cpigroup.hu

www.erstealapkezelo.hu

kinnaRps hOuse

47 www.jarlkonferenciakozpont.hu

liget centeR 48

www.ligetcenter.hu

–

2005

Kinnarps Hungary Kft., Rail Cargo Hungaria Zrt.

2002

Walt Disney, Heineken, Omnicom

–

✓

–

✓

–

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

✓

–

✓

–

✓

–

✓

–

✓

–

Qualified training and conference halls for rent

–

✓

–

the quadRum

5,390 5,961

6 900

2,762 3

12 4.35

2008

cORvin cORneR

5,300 6,200

8 990

– 5

14 3.80

2014

3 1,650

132360 3

14-18 1,420 HUF

www.thequadrum.hu

www.futureal.hu

hegyvidék 52 shOpping centeR

www.hegyvidekkozpont.hu

BBJ_2417_spec_report.indd 27

1,650 6,500

2012

–

✓

–

✓

–

1134 Budapest, Angyalföldi út 6. (1) 920-2193 (1) 235-5889 erstealapkezelo@ erstealapkezelo.hu

– Kinnarps i Falköping AB (100)

1133 Budapest, Váci út 92 (1) 237-1251 (1) 237-1250 recepcio@kinnarps.hu

– CBRE Global Investors (100)

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

Ÿ Ÿ

1052 Budapest, Deák Ferenc utca 3–5. (1) 473-1209 (1) 473-1210 m.takacs@ horizondevelopment.hu

✓

–

✓

BREEAM In-Use/ LEED Gold for commercial interiors

✓

–

White Star BREEAM Real Estate Very good Kft.

– (100)

2220 Vecsés, Lincoln út 1. (1) 382-5100 (1) 382-5101 info@thequadrum.hu

✓

–

BREEAM Very Good

(100) –

1082 Budapest, Futó utca 31–33. (1) 266-2181 (1) 688-5498 office@futureal.hu

–

www.vaci1.hu

–

(100) –

BREEAM Robertson in Use, Hungary Very Good

vÁci 1 49

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

–

✓

BREEAM Very Good

Futureal

–

WING Zrt. (100) –

1124 Budapest, Apor Vilmos tér 11–12. (1) 951-0578 – info@ hegyvidekkozpont.hu

2016. 09. 14. 21:10

4 Socialite BBJ

Robert Graves in Hungary

DAVID HOLZER

In 1929 the English writer Robert Graves moved to a remote mountain village called Deià on the Spanish island of Mallorca. Apart from the years 1936 to ’46, spent in exile because of the Spanish Civil War, he was to live in the village for the rest of his life. As an English writer living in Mallorca I became fascinated by Graves. But it was only when I came to Hungary that I discovered this country had a special place in his heart.

Graves and poetic Hungary Graves first visited Hungary in 1968. PEN, the world’s oldest human rights organization and longest-standing international literary body invited him. Graves “was given a rapturous reception. Photographs from the visit show that there were queues a street long in Budapest for his autograph.… He also told [the Hungarians] that [they] had the same understanding of the poetry as the Irish and Welsh, a declaration which was intended, and received, as the highest of compliments.” (Miranda Seymour, “Robert Graves: A Life on the Edge”) “The Address to the Poets of Hungary” is one of the pieces collected in Graves’s “Difficult Questions, Easy Answers”. Graves was to go back to Hungary again in 1970, ’71 and ’73. In 1970, the Robert Graves Prize for Poetry was established. The prize came about because the forints Graves received in royalties for his work here were worthless outside Hungary. Regarded as highly prestigious and valuable to Hungarian poets, the Robert Graves Prize for Poetry ran until 1999.

On one of his visits to Hungary in either 1968 or ’70, Graves met the Hungarian poet, writer, literary translator and classical scholar Gábor Devecseri. Devecseri had translated most of the classics into Hungarian, including the “Iliad” and the “Odyssey”. The two men managed to end up in an argument over some obscure aspect of Greek mythology so fierce that people watching thought they were going to come to blows. A boat trip from Budapest to the town of Szentendre had been arranged for the next day. The argument between Graves and Devecseri began again and it looked like one or both was going to end up in the river. Instead, somehow, they became fast friends. When the boat docked, Graves and his new pal went off in search of peach pálinka, followed by a relieved bunch of poets and dignitaries.

Greece. So many of these found their way to Szentendre that there’s even a Greek Street there. There has also been a flourishing artists’ community in the town since 1929 – the year Graves first arrived in Deià. It turns out that the bar in which Graves and his new friend found peach pálinka was the Dionysos Taverna, then called the Görög Kancsó or “Greek Conch”. The bar I didn’t go in. Graves, Devecseri and the poets proceeded to get plastered on pálinka before, several hours later, taking the boat back to Budapest. Graves and Devecseri remained great friends. Devecseri visited Deià more than once and Graves helped with the translation of his book “Bikasirató” into English. Devecseri died in 1971, the year the book was published. Graves remains popular in Hungary with 11 of his books available in translation.

Mediterranean Szentendre

The 1983 Hungarian invasion of Deià

Szentendre was one of the first places I visited in Hungary. It was the evening of New Year’s Day 2015, bitterly cold and crystal clear. Pieces of ice the size of dinner tables floated down the Danube. The town is utterly unlike any other place I’ve been to in the country since and felt oddly Mediterranean. One of the few restaurants that were open was the Dionysos Taverna, a Greek joint. We popped our heads round the door, were assailed by aggressively blue décor and backed out fast. I remember finding it bizarre that there was a Greek restaurant in the middle of Hungary. I wasn’t wrong about the Mediterranean influence. It’s estimated that in the second half of the 18th century around 10,000 Greeks immigrated to Hungary because of economic conditions in

When Tomás, Graves’s son, was studying typographic design at the London School of Printing, he spent ten days with the type and book designer Tibor Szántó in Budapest. Szántó, who ran the Magyar Helikon publishing company, was a friend of Robert’s and had designed several of the Hungarian editions of his books. Ten years later, when Tomás was ready to set up his private press in Deià, he printed a letter handset in lead type, inviting Szántó to help him print his first book. “Tibor turned up unannounced in the middle of August 1983 wearing a jacket and bow tie and asking to be shown to his lodgings,” Tomás told me. “You can imagine what that entailed in the middle of an overbooking crisis.” Szántó had chosen the poems that were to be published, 11 of Robert’s

Disagreement over mythology

Robert Graves. “songs”, poems written to be set to music. “Within three weeks, with all the paper and ink suppliers in Spain on holiday, we managed to set and print the first pages,” Tomás said. After deciding that the bookshop Tomás’ wife Carmen owned was a “tyrant”, Szántó told her she should sell it and learn bookbinding. A year later, Tomás and Carmen were in Békéscsaba studying the art. Tomás continues: “In exchange for his help with my press, Tibor insisted I bring some copies of “Eleven Songs” for the top brass in the government. I personally gave one copy to János Kádár, the old hardline Communist leader, who told me he had read my father’s poetry while in prison and it had helped keep his spirits up. I was also introduced to the members of the Hungarian PEN Club, who were responsible for giving the Robert

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BBJ_2417_socialite.indd 28

2016. 09. 14. 20:55

4 Socialite

www.bbj.hu

Budapest Business Journal | September 16 – September 29, 2016

UNIKUM SEASON TICKET 2016/2017

Walking in the footsteps of Robert Graves through Szentendre. Graves Prize for Best Hungarian Poem of the Year. This prize not only carried a great prestige and a fairly generous sum of forints, it was also one of the few opportunities for non-party line poets to receive public recognition. The PEN club members suggested that I should print an edition of the prizewinning poems plus one from each of the jurors, in English, while Tibor printed a Hungarian edition. When Tibor died in 2001, at the age of 89, the year I closed down the New Seizin Press, he had still not published the Hungarian version. At least I had never seen a copy.” After Tomás and Carmen got back from Hungary, Carmen sold her business

and bought bookbinding equipment. A few months later they built a bindery onto the side of their house. “Winged By Their Own Need”, a limited edition collection of the winners of the Robert Graves Prize for Best Hungarian Poem of the Year, translated into English, was the third book the New Seizin Press produced. There are many good reasons to visit Szentendre but what makes the village even more special for me is that I’m walking in the footsteps of one of my literary heroes. If you’re a lover of poetry – or indeed pálinka – why not raise a glass in honor of Graves and Devecseri next time you’re in Szentendre?

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2016. 09. 14. 20:55

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Budapest Business Journal | September 16 – September 29, 2016

Budapest Wine Festival marks quarter century

The Budapest Wine Festival celebrated 25 years of presenting the best of Hungarian viniculture in grand surroundings of Buda Castle. Here are some of the highlights. ROB SMYTH

After several years of being hit by bad to awful weather, the sun finally decided to shine on the Budapest Wine Festival on the occasion of its 25th anniversary. While (unconfirmed) rumors abound that this will be the last festival in the sumptuous surroundings of Buda Castle, at least for some time, and producers appeared a little thinner on the ground than in past vintages, there were nevertheless some exciting new wines to be found. The Neszmély region showed that there’s much more to it than the largescale Hilltop winery via a brace of upcoming smaller producers. The Kősziklás winery, which was established in Dunaszentmiklós close to the town of

Tata in 2008 by Szabolcs Emer and Ákos Béger, has pretty much flown under most people’s radar, but the wines are worthy of wider attention. Emer, who spends most of his time in the vineyards as Kősziklás’ viticulturalist, believes that if there’s one wine that can best convey what the Neszmély region is about, then it’s Királyléanka. He feels it captures the vibrant aromas and tingling acidity that characterize this cooler, northern wine region with its acid-retaining limestone soils, and also loess soils that encourage fruitiness. He describes Királyléanka as “the Sauvignon Blanc of the Carpathian Basin”. It certainly has some of the aromatic attack of Sauvignon Blanc and similar zesty acidity, but is still very much its own wine. Kősziklás’ Királyléanka 2015 is made reductively in the tank via controlled fermentation and oozes orange blossom, melon and white-fleshed peach aromas followed by a juicy palate. The acidity is high enough to balance the four grams per liter of residual sugar, which provides a soft landing on the finish. This is an excellent example of the grape and a bargain at around HUF 1,500. I find Királyléanka is somewhat underappreciated by Hungarians themselves, but it is a grape whose wine can strike a captivating balance between fragrance and fruitiness.

The Zévé Trilógia of wines feature three different takes on the Zöldveltelini grape.

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2016. 09. 14. 20:55

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www.bbj.hu

Budapest Business Journal | September 16 – September 29, 2016

Pilis may be more associated with hiking but it forms part of the Neszmély region. The same winery’s Sauvignon Blanc 2015 is also very good with quite intense but not over- the-top aromas and flavors of passion fruit and elderflower. Unlike some Sauvignon Blancs, it doesn’t give it all on the nose only to let you down in the mouth, but delivers a long and balanced palate. Other standouts at Kősziklás include a remarkably intense Sárgamuskotály 2015 and Juhfark 2015 – the latter being both fermented and aged in oak – 40% in new and 60% in used barrels with malolactic fermentation carried out in an attempt to soften the sharp acidity so typical of the Juhfark grape by converting the harsher malic acid to the softer, milkier lactic acid. I had been blown away by the Juhfark 2013

from this same winery at a blind tasting last year and actually wondered whom the heck I’d rated so highly. The 2015 version confirms this wine was no fluke, but it could do with a bit of bottle ageing to take the edge off the still marked acidity. Regarding the prospects for the 2016 vintage, Emer believes that it is set to be an excellent one, providing rains don’t suddenly rock in and ruin the party. There have been some problems with fungal infections this year across Hungary, but a dry spell until harvest should prevent serious trouble, he adds. While the Pilis may be more of a place you associate with hiking than fine wine, it is in fact part of the Neszmély region.

The fledgling Szivek winery is located the heart of the Pilis and has released a trio of wines made from the Zöldveltelini grape. Zöldveltelini is the same grape as Austria’s über trendy Grüner Veltliner grape, which is sometimes shortened to the very groovy GruVe. Szivek has come up with the catchy Magyarized diminutive moniker of Zévé. Zévé Trilógia I 2015 comes from the foot of Pilis Hill from a September 15 harvest and the grapes were crushed and destemmed before pressing. It’s the lightest of the trilogy and was made entirely in the tank but aged on its fine lees to bring an extra mouthfeel. It is very clean, varietally pure with citrus, apple (Granny Smith), grape and floral (white flowers) notes. It’s also zesty and fresh but while the lemony acidity is a tad on the pointy side, it is nevertheless cool and refreshing. Trilógia II 2015 was also made in the tank and comes from the middle rows of the hill where the limestone becomes thicker and was picked on October 8. Part of the grapes were crushed and destemmed before pressing, while part where pressed in whole bunches (which can lead to purer, less bitter juice being extracted). It is rounder with more body and juicy pear, peach and citrus notes, while the acidity is more restrained but still there and holding everything together. Everything came together nicely here in this wine, which has no rough edges, and it was the best of the three. Trilógia III 2015 comes from higher up the hill from an October 27 harvest, was only whole bunched

pressed and is the first wine to involve the use of oak with one-third fermented in a new Kádár barrel. This unsurprisingly has late-harvest notes with more in the way candied citrus and caramel going on with a saline note on the slightly bitter finish. The acidity has dropped off a little in this one. From Tokaj, the Höldvölgy winery appeared to have a constant crowd around it. This creative winery that sells most of its produce abroad showed you could make attractive sparkling wine with the Zéta grape with its Hold and Hollo UPP 2015. Meanwhile, the 2014 version of Vision – a blend of Furmint, Hárslevelű and also Kabar (a fruity and aromatic crossing of Hárslevelű and Bouvier that is permitted in Tokaj) – got the grapes usually destined for the single-vineyard wines in this tricky vintage. The result is a wine that’s fuller than the award-winning 2013. The Bock winery is an ever-present fixture at the wine festival. The latest news from the cellar is that its dramatic looking subterranean chapel is now actually a real chapel after having been sanctified. The event was toasted, appropriately, by Bock Capella 2008, a nicely aged Bordeauxstyle blend. Meanwhile, Bock Cabernet Franc 2014 has cool vintage classiness and leafiness and is certainly one for those who believe that Bock is only capable of making wines that are powerful and concentrated rather than elegant. Bock Kadarka 2015 is another good one from the Villány veteran: light and airy with delicious blood orange, rose hip and raspberry.

Simply too good to try it just once

Lush vegetation, a spacious terrace against the backdrop of the Buda Castle walls and laid-back Mediterranean atmosphere − this is the ambience awaiting you at Riso Ristorante & Terrace. As manager László Takács says, the team here work hard to grab guests’ attention, but once that is done, a large portion of them become devout repeat customers. Apparently, Risoʼs Mediterranean kitchen – reinterpreted with the help of Hungarian spices – works magic. Riso is located in a beautiful part of the Buda Castle area, although it is not a spot typically frequented by tourists. How do you direct guests to your place? It is true that there aren’t that many tourists strolling by, so whoever visits us comes because they have been here before or because somebody has recommended the place. We pride ourselves on the large number of repeat customers who are valued with utmost care. To win the hearts of guests and make them return in the long run must require extra effort. When I took over the place five years ago, it looked totally different inside and out. Ever since we have been striving to improve it step by step. And we wanted to come up with a unique cuisine of our own. The concept is primarily Italian and Mediterranean, but the purpose was to add some Hungarian flavor to it. That means, of course, that we like serving food with characteristic tastes, and spices are used profusely. It is worth checking out our special risottos in this regard, to give you but one example. What got this place going was the

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permanently high level of quality and the immense amount of work invested into running it. Many reviews on TripAdvisor praise the quality of service. What’s the secret behind that? We’ve got a great team; some colleagues Year’s Eve to Carnival or season opening. a Hungarian style, with a lot of spices, have been with us from the original Our Bayer days are a real highlight of and it would certainly be worth trying for opening, and they have embraced an the fall, where original Oktoberfest beer our foreign guests as well. ownership attitude towards their work. brand Paulaner is served chilled from We have many regular guests who also the barrel, and some typical Oktoberfest The press is full of complaints that have need special care and attention. food is added the menu as well. The local ingredients simply don’t comply Whenever there is negative feedback end-of-the-year period gets usually with the highest quality standards, in any way, we always make sure to very busy, partly because of corporate so everything must be supplied from follow it up and put the emphasis on clients who frequent the venue. Up to abroad. Does you experience validate constant improvement. The idea is to 70 guests can be hosted at a time. All this? create a familiar atmosphere where this helps flatten the demand curve of The ingredients for our pizzas and everybody can lean back and enjoy seasonality. pastas, such as flour and tomato, are all imported directly from Italy. It took delicious food in a green environment. I spend a lot of time here myself and Do you have a signature dish you us two years to find the right kind of peeled tomatoes, for instance, which I actively communicate with guests at would highlight? all times in order to make them have a People come to us to enjoy the flavors. satisfied us. We make no compromises great time. I have the experience that large when investing in premium ingredients. restaurants have started to go back to In return, we often get feedback praising Which events draw the largest courses where the food tastes good and the fact that our pizza was better than crowds? it has substance. Our pizza is famously that in Italy! That must have to do, again, Grill parties, held regularly in the garden, loved and so is our pasta, and our with the lavish amount of spices applied. have proved to be increasingly popular, cheesecake has gathered many fans too. But in many cases there is nothing with music played by a DJ. Gatherings If you take our risotto, it’s among the top wrong with local sources; what’s more, are held on many occasions from New hits, but rather because it is prepared in we get whatever we can from Hungary.

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2016. 09. 14. 20:55