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

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BUSINESS JOURNAL BUDAPEST

VOL. 26. NUMBER 9

MAY 4 – MAY 17, 2018

SPECIAL REPORT Offices

NEWS

Like Sitting on top of a Volcano

From early 1992 for a little over a year, Les Nemethy headed the transaction unit at Hungary’s State Privatization Agency, engineering key deals that helped set the country on the road to a market economy.  5

BUSINESS

Hungary’s Wage Spiral: The More the Better?

Where will the current wage spiral bring us, and can it be beneficial for Hungary – and Hungarians – in the long run? The Budapest Business Journal asks market experts whether the direction of travel is positive and sustainable.  9

SOCIALITE

Looking Behind “Budapest Noir”

David Holzer slips on his gum-soled shoes and tracks down Vilmos Kondor, author of “Budapest Noir”, the first example of Hungarian noir to have been translated into English.  38

Building on the Office Boom

SP

L EC I A

REP

ORT

Lóránt Kibédi Varga, country manager of CBRE, analyzes Hungary’s office market trends, including whether we will ever see genuine secondary markets in the country.  13

100%

connected, since the community manager is taking care of my networking. myhive-offices.com

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Warsaw

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THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL STAFF: Zsófia Czifra, Bridget Daley, Kester

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IN PRAISE OF LONG WEEKENDS As my colleagues will attest, I spent much of the build-up to May 1 complaining about the upcoming four-day weekend. It’s not that I dislike the idea of paid time off work, you understand, more that I was irritated by what that time off did to our production schedule. This is the third long weekend of the year, and thanks to a quirk of the calendar, each had a greater impact on our work than the last. This time round, we lost the two key production days (Monday and Tuesday) immediately prior to our deadline. In other words, we came straight back from the long weekend onto a deadline. To cap it all, this is the biggest paper of the year to date. But when my wife suggested we do that most Hungarian of things, grab the kids and head for her family’s weekend home down by Lake Balaton, I decided the only rational thing to do was to stop complaining and instead to make the most of the time off. An added attraction of the home in Balaton is it has no internet connection. I am so thankful I decided to embrace the four-day break. Judging by the social media feeds I was able to spot from time to time, many Budapest-based managers did BBJ-PARTNERS

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exactly the same thing in heading for the “Hungarian Sea”. The Balaton season has yet to enter full swing, and not everything is open. That makes sense; the tourist numbers are not yet there, and neither is the water temperature. (The lake level itself is high right now, and the water quality good, but such a large body of water takes a long time to warm through. You could see the occasional swimmer, but none stayed in the water for long, and you suspect in most cases they only took a dip in the first place to say they had been there.) This was the perfect combination: busy enough for the main restaurants to be open, but not heaving with holidaymaking tourists. We didn’t even have to reserve tables at our favorite eatery, an essential part of holiday planning later in the year. Rather than musing on the passing waves of a lakeside tourist season, however, what the four days made me realize was how important a long weekend can be. We all of us lead stress-filled lives, and the higher up the corporate food chain you are, the more that is so. Switching off from work when you have the opportunity is just as important as applying that laser focus as required. However you spent the time and wherever you were, I hope you were able to make the most of the break, either to reconnect with family if you have one, or simply to recharge the batteries if you do not. I will do my best not to complain about long weekends in future. That is helped by the fact that the next national holiday, Whit Monday or Pentecost on May 21, is just about perfectly placed to limit its impact on our production cycle! Robin Marshall Editor-in-chief

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News

///macroscope

New EU Budget Outlined: Trouble Ahead for Hungary?

ZSÓFIA CZIFRA

Macroeconomic figures from the first two months of this year indicate livening economic activity, GKI Gazdaságkutató said in a recent note. In its prognosis, the thinktank now says that Hungary’s GDP growth will reach 4% in 2018, although it expects the expansion of the construction and retail sectors to slow down, mainly due to the rising statistical base of the previous year. The research institute also highlights the fact that the Hungarian government is encouraging corporate and residential lending, rather than strengthening the conditions of the private sector, which could create new problems down the line. According to GKI, exports expanded at a faster rate than imports in the first two months of the year. However, with investments due to rise by 7%, and consumption by around 4%, imports will grow more rapidly than exports

in

2018.

Thus, the otherwise very high foreign trade surplus will be lower than last year. As for the labor market, the GKI also predicts a slight setback. According to its forecast, the growth rate of gross earnings will slow from 13% in 2017 to 10% in 2018, entailing a still very fast growth rate of real

Photo: MTI/Zoltán Máthé.

While Hungary’s short-term economic performance is seen as quite remarkable, the longer-term outlook depends greatly on available European Union funding. The EU just presented its draft plan for the new budgetary period of 2021-27, which shows, among other novelties, that the Union aims to find a way to tie EU funding to judicial freedom in certain countries.

earnings of about 7%, albeit less than its two-digit increase last year.

Minimum Wage Slows

Labor shortages and the fact that this was an election year will nonetheless have a significant effect on the minimum wage, although it will grow at a slower rate than in 2017, GKI says. The research institute predicts that the minimum wage will go up only 8% in 2018, after a 15% increase in 2018. The GKI also draw attention to the shortcomings of the public work scheme. It mentions that in the first two months of 2018, the wage increase in the private and public sectors was similar (discounting those employed in public workfare schemes). Unemployment fell by 0.7 percentage points to 3.9% in one year. In addition, the number of those employed in public workfare schemes decreased by more than 20%. The unemployment rate is one of the lowest in the EU. However, if those employed in public workfare schemes were considered unemployed – their number is almost equal to the number of statistically unemployed people –, the Hungarian unemployment rate would be

around

7.4%,

higher than the EU average, GKI points out. The GKI predicts a shrinkage in the current account balance. It recalls that after its huge surplus of EUR 6.8 billion in 2016, the current account balance dropped to EUR 3.6 bin in 2017 due mainly to a fall in the foreign trade surplus, and it will probably shrink further, to EUR 2.5 bln in 2018. Although the external financing capacity declined to EUR 5.1 bln in 2017 from EUR 7 bln in 2016, it will recover in 2018 to its 2016 level due to the inflow of EU transfers. FDI in Hungary has increased by only EUR 3 bln since the beginning of 2008. Net FDI dropped from 50% of GDP before the crisis to around 45% in 2016, and no increase can be expected in 2018 either.

Government Deficit

In the first quarter of 2018, a cash-flow deficit of HUF 872 bln accumulated in the general government, almost 64% of the annual target, mainly due to budgetary advance payments of EU transfers. Although this does not fundamentally jeopardize the general government deficit in terms of GDP as calculated by EU methodology, it may threaten the sufficient reduction of government debt, GKI writes. According to its estimations, the general government deficit is expected to be around 2.5% of GDP in 2018, and the government debt ratio will decrease by about 0.5 percentage points, to 73%. While there are relatively accurate assumptions for the economic performance in the short-term, the prognosis for the longer-term depends

on several as yet unknown factors, but one of which is the inflow of available EU funds after 2020. However, the future (or a possible version of it, at least) just became a bit clearer, as on May 2, the European Commission proposed an EU budget

of EUR

1.279 trillion

for 2021 to 2027. This is especially important news for Hungary, as earlier media speculations said that the European Commission planned to shift tens of billions of euros in EU funding away from Central and Eastern Europe, diverting money from countries such as Poland, Hungary and Czech Republic to those hit hard by the financial crisis such as Spain and Greece. The plan, dubbed the Multiannual Financial Framework (MFF), calls for increased budget payments by the EU’s ADVERTISEMENT

Erik Bogsch, chairman of the board of directors, speaking at the annual general meeting of drug maker Gedeon Richter at the Honvéd Cultural Center in Budapest on April 25. Shareholders approved payment of a HUF 68-per-share dividend on last year’s earnings at the meeting, tozsdeforum.hu reported. Richter will start paying the dividends on June 11. The dividend fund comes to HUF 12.67 billion. Richter had IFRS after-tax profit of HUF 6.3 bln on revenue of HUF 328.5 bln in 2017. Consolidated revenue was HUF 444.356 bln, with after-tax profit of HUF 10.07 bln. The company has also announced the launch of a HUF 2 bln project to develop biotechnology medicines, profitline.hu reported.

wealthiest countries, and for cuts to agriculture subsidies, which currently make up nearly 40% of spending, and to cohesion spending, which is roughly one-third of the budget. The MFF translates into 1.11% of the EU27’s gross national income. Meanwhile, it seems that earlier fears that the EU might try to cut off its funding to countries that it says do not respect the rule of law have come true. According to politico.eu, the proposal is intended to put pressure on Poland and Hungary in particular, which have clashed with Brussels over their alleged democratic backsliding, and send a signal to other countries who might be considering following their path. The long-term budget requires unanimous support of EU countries, but the funding oversight mechanism needs the support only of a “qualified majority” to be adopted into law.


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Budapest Business Journal | May 4 – May 17, 2018

Csodalámpa: Hoping for More 1% Returns Act of Goodwill

Like many of the more than 29,000 NGOs eligible to be beneficiaries of the government’s 1% tax initiative, Csodalámpa, “the Magic Lamp Wish Granting Foundation” that grants wishes for seriously ill children, experienced a sharp decline in income tax donations in 2017. Donations received from the annual 1% initiative make up 15-16% of its annual income, and this year it hopes to prevent more declines. BRIDGET DALEY

“We intend to better schedule and target our advertisements [on] social media,” Éva Patzauer, managing director of the organization, told the Budapest Business Journal. She said the organization’s target for 2018 is HUF 13 million, the same amount it received last year, but “of course we hope – and [will] do everything – for a better result”. The wish-granting organization said its 20% decline in 2017 donations was contiguous with the entire sector, and it is easy to identify why.

“The peak was near HUF 20 [million] in 2010, then the income tax regime was drastically changed to a flat rate tax and [it] dropped to HUF 12 million in 2012. Then we slowly ‘climbed back’ to HUF 16 million, then came another tax regime change, causing another decrease.”

When asked about the large number of taxpayers who do not donate the 1%, Patzauer noted a “lack of trust [in] the NGO sector, laziness, lack of information about NGOs that would be ‘near to their heart’ if they knew [they] existed,” as possible reasons why they skip the simple act of goodwill. Asked about fixing this public lack of trust in NGOs, Patzauer explained that Csodalámpa does what it can, noting that its annual reports have been audited by PwC

since

2007

Csodalámpa granted Csaba’s wish of meeting Balázs Dzsudzsák of the national soccer team. “The peak was near HUF 20 [million] in 2010, then the income tax regime was drastically changed to a flat rate tax and [it] dropped to HUF 12 million in 2012. Then we slowly ‘climbed back’ to HUF 16 million, then came another tax regime change, causing another decrease,” Patzauer told the BBJ.

and are fully disclosed on its website. The 1% initiative essentially provides Hungarian taxpayers the opportunity to allocate 1% of their income tax to a nonprofit organization of their choice at no cost to themselves. The donation can be made while filing income tax returns from the previous year. This year’s deadline for 2017 tax returns is May 22.

For more information on Csodalámpa’s mission, and details on its 1% campaign, visit its website (csodalampa.hu/ csodalampa/English).

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Sitting on top of a Volcano: Les Nemethy on his Time at the State Privatization Agency From early 1992 for a little over a year, Les Nemethy headed the transaction unit at Hungary’s State Privatization Agency (SPA), engineering key deals that helped set the country on the road to a market economy. Hungary, then the posterboy of the former communist bloc, was attracting would-be investors from far and wide. Today, despite continuing economic growth, the Hungarian-Canadian financial adviser warns that the country risks falling into the “middle-income trap” – relative economic stagnation – unless it tackles some knotty structural issues like transparency, rule of law and education. KESTER EDDY

BBJ: Did you know what you were getting into when you joined the SPA? Les Nemethy: Yeah. It was like sitting on top of a volcano for a year! I was involved in a lot that did good things for this country. The Danubius [hotel group] public offering, I helped bring in Alcoa to Székesfehérvár, Pepsi, Heinz. There were lots of high-profile transactions. BBJ: Do you have a gross figure for what you privatized? LN: Privatization numbers went up from about USD 200 million in 1991 to about USD 1 billion in ’92. We had a team of 150, so it wasn’t about me, it was about the whole team. [There was] one policy change that I drove through: I had a weekly meeting with the six people that reported directly to me, and it became

apparent they were a bottleneck. They were doing just about everything, doing, not delegating. So, I said: we’re having a change here. Thou shalt delegate and supervise – I think that probably had as much to do with the increase in throughput as anything. BBJ: Did they understand the word ‘delegate’? LN: Well, we had long discussions about what was involved. All six of them took it on. I know that in hindsight there are quite a few people today who look at privatization as some kind of less-thanpatriotic activity, but at the time, speed was the main objective, as opposed to maximizing revenues. BBJ: Because the assets were losing value with time? LN: Exactly. The total patrimony was valued in the range of USD 20 bln-30 bln back then and estimates as to how

1992 Meant Deal Making in Strange Places The men’s room of today’s Budapest Marriott Hotel seems an unlikely location to broker a vital USD 3 mln deal, but in the rough and tumble of Hungarian privatization in 1992, needs must. “We were selling the hotel, then run by InterContinental [the British hospitality group] which had an [open-ended] management contract to run it,” Nemethy recalls. The contract presented a seemingly insurmountable barrier to selling the hotel via a

competitive tender – as required by Hungarian law. But such was the pressure to unload state assets that Nemethy – in something of a gamble – had promised bidders the SPA would take care of the contract. If InterContinental won, the contract issue would resolve itself. Yet in the first two bid rounds, the UK group had bid the lowest price, and the SPA was potentially facing a long, expensive legal wrangle. Then fate took a hand.

much was being lost due to anything from deteriorating market positions to downright corruption was in the range of USD 2 bln-3 bln per year. Time was not in the government’s favor. (See separate box.) BBJ: And the state had debt to pay off. LN: Correct. Plus, I spent more than half my time preparing the ground work for the subsequent infrastructure privatizations, like Magyar Telekom. Remember, in ’92, there was a 12-13 year waiting list for a telephone! The country desperately, urgently needed investment into the telecom sector. That was by far my highest priority of that year, although the transaction was completed considerably later, after I’d left. BBJ: You now run financial advisory Euro-Phoenix. How do business conditions today compare to the ’90s? LN: In most developed Western countries, right-wing is typically associated with small government. Here, it’s associated with large government. It’s interesting how in everything from publishing school books to banks, the role of government is expanding again, quite substantially. I think... we’ve lost the compass as to what left or right mean any more. Having said that, I think there are a lot of positive things happening.

“I know that in hindsight there are quite a few people today who look at privatization as some kind of less-than-patriotic activity, but at the time, speed was the main objective, as opposed to maximizing revenues.” Economic growth has been reasonably robust in recent years. GDP per capita in Budapest has surpassed the EU average, the national debt is being paid down.

“I happened to bump into the InterContinental representative in the men’s room before the last round of bids,” he says. So there, twixt the white ceramics, Nemethy conjured up an offer: Let the SPA pay compensation for nixing the management contract – which sum InterContinental could then add to their bid to improve their chances of winning the tender. “He started off at USD 10 mln: I said it couldn’t be worth more than USD 1 mln. Before stepping out of the wash room, we had shaken hands on USD 3 mln,” he says.

But I think that the role of government, particularly in the banking sector, brings back worrying memories of Postabank [which failed in 1997, requiring a state bail-out]. The increasing scope of government, along with transparency issues, means that it’s harder for the private sector to avoid issues of government and transparency. BBJ: What about investor interest in Hungary today? LN: Hungary is a market of ten million, it doesn’t have particular geo-strategic significance, certainly nothing like back in ’92-’93. There has definitely been a tapering of interest. BBJ: It’s inevitable that others have caught up. It’s also not a cheap country, in terms of total wage costs. LN: Yeah, that’s true. Hungary has to be concerned about the “middle-income trap”. You need higher value-added skills in the country. We now have very few universities that are in the Top 500 globally, and even they risk falling out of the Top 500. These are areas where Hungary could do a lot better.

The outcome? In the final round, “InterConti added the USD 3 mln to their bid – but still lost,” says Nemethy. When the winning bid was announced, “There was actually a hush in the room,” he recalls. “It was about USD 14 mln higher than InterConti’s first bid. Back in those days, that was real money. “And that,” he concludes, “is how the hotel ended up as Marriott.” (InterContinental were back within a few years, of course, moving upstream a couple of hundred meters and taking over the former Forum Hotel.)


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Business

Atenor Starts Aréna Business Campus

Atenor has started development of the 72,000 sqm Aréna Business Campus, its latest largescale Budapest office project. The phased development will consist of four buildings in a green environment in District VIII. GARY J. MORRELL

Construction of the first 21,000 sqm BREEAM accredited phase of the project has started and is scheduled to be completed in the third quarter of 2019. The EUR 80 million-100 million project is being developed on a speculative basis and is financed from Atenor’s own resources. The various phases will be available to investors, as is the practice of the company. The campus is located in Hungária körút in what is considered to be an emerging

also due to be completed in fall 2019, with the 23,000 sqm Building F scheduled to be delivered in early 2021, completing the second 45,000 sqm phase of Váci Greens.

Growing Confidence

The announcement of such a largescale project reflects the confidence in the Budapest office market and is a continuation of Atenor’s policy of developing large-scale office developments that give the opportunity to existing Atenor tenants to expand in addition to welcoming new tenants, according to Zoltán Borbély, country manager at Atenor Hungary. “The office market in Hungary is extremely strong and this is shown by the fact that we have zero space available at Váci Greens,” said Borbély. “We have four completed buildings at the complex and Zoltán Borbély, left, country manager at Atenor Hungary and Botond the last phase has just been handed over, Sára, Deputy Mayor of District VIII, at the stone-laying ceremony. the building is leased out and I have never seen such a strong market as this in my career. The strong economy in Hungary is Atenor Hungary. “It is a problem for us really a dream for developers, so we have business development area. The two hectare if a project is located in a less developed to go ahead and build developments as the plot is the site of a former bakery that has part of the city because we are here to investors are there,” he added. been in disuse for several years, located improve the area with development of the Atenor has presold Váci Greens D to a infrastructure and a new office building.” private Hungarian investor. The 15,700 Atenor has recently completed and fully sqm Building A was purchased by a leased the BREEAM “Excellent” accredited, private Hungarian investment group, the 14,000 sqm Váci Greens D, part of the 25,000 sqm Building B was sold to OTP Real Estate and the 19,000 sqm Building C has been acquired by Slovakia’s ZFP Investments. meters Atenor now has 19 projects in Europe. from a metro station. District VIII Mayor The 75,000 sqm Hermes Business Máté Kocsis emphasized the developing Campus in Bucharest, Romania, for infrastructure and the improving economic example, is a phased speculative office conditions in the area at a ceremony to project that has been constructed, let phased mark the start of construction. and sold on to investors. The company project. The company is now developing the has now commenced development “Our priority with plot selection is 22,000 sqm, TIBA Studio-designed Váci accessibility and we have a preference of the 12,000 sqm Dacia One office Greens E in parallel with the first phase for a metro connection,” commented redevelopment project at an older of Aréna Business Campus. Building E is Nikolett Püschl, leasing manager at historical building in Bucharest.

300

130,000 sqm

Tippin Corp Readies to Redevelop Exchange Palace The Canadian Tippin Corporation is moving ahead with redeveloping the landmark Exchange Palace into 25,000 of office and 10,000 sqm of retail space. Michael Tippin, president and CEO of Tippin Corporation, says the project will regenerate both the historical building and the surrounding park area in Szabadság tér in central District V. The development will include cafés and restaurants in public areas of the building. GARY J. MORRELL

Plots in the Central Business District are regarded as very difficult to source and redevelopers of existing buildings face a potentially long and expensive planning and development process, as

it has to be undertaken in accordance with both the local municipality and the heritage protection authority. However, if a development is successful then it provides a use-value while at the same time persevering a piece of history. “The stock exchange building is a landmark historic building located

in the CBD where there is a limited supply of office space, a drawback for the market. Exchange Palace is undoubtedly one of the most unique and desirable offices in Hungary,” said David Johnston, head of advisory & transactions at CBRE Hungary.

Unique Profile

“This unique profile means we are approaching the marketing in a far more sophisticated manner, in line with Tippin and the leading architects, BBB [Beyer Blinder Belle]. We are enjoying some good discussions with potential occupiers and remain confident of the building’s success,” Johnston added. CBRE and JLL are leasing agents on the project. The project is planned to deliver 25,000 sqm of office space in addition to 10,000 sqm of retail and an underground parking area. The New York-based BBB designed the concept and the Canadian Hungarian CMA Architects are working

on the development. The Tippin Corporation purchased the building

12 years

ago, since when planning, permitting and preparation work has been undertaken. “The restoration of historic landmark buildings is more rewarding than developing glass box office developments,” said Michael Tippin. The listed Beaux Arts Exchange palace building, designed by Ignác Alpár, was formally the headquarters of the Budapest Stock Exchange (from 1905-1948) and subsequently housed Hungarian TV (MTV) after which it fell into disuse. The Tippin Corporation specializes in the redevelopment and renovation of historic buildings and in the region undertook the redevelopment of a Stalin-era building at Tbilisi Airport in Georgia. The EUR 120 million speculative Exchange Place project is being financed through the company’s own resources. Construction is expected to start in 2019.


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Budapest Business Journal | May 4 – May 17, 2018

Conquering Europe’s Flower Delivery Market The recipe is simple: sign as many florists and unique gift shops as possible and present their products on a single platform. Netflorista is working on doing just that on a European scale – and in an American fashion.

From left: Viktor Várhegyi, CEO and co-founder; Dóra Medgyasszay, CMO and co-founder; and Patrik Vida, CTO and co-founder. BÁLINT SZÖNYI

Ambitious Plans

Future plans are even more ambitious; the As the story goes, the founders of startup idea is to build up a portfolio where business BloomNation funded the launch of their customers can buy all their supplies from website with poker earnings back in 2012. Netflorista to run their own florists. “This By now, the company has signed more than would give extra dynamics to our already promising growth curve,” says Várhegyi. Hild seems impressed, noting: “Netflorista florists is constantly innovating and pivoting, and in the United States. The idea that propelled thus their story is a telling tale about how it to the top was rather straightforward: it to continuously improve and grow.” created a marketplace where customers Hungary is only a springboard. At this could access the product portfolio of brickstage a sales team is already ranging the and-mortar florists from all over the country. Austrian and German markets to sign the It seems hard to believe that the same first wave of foreign partners. “We are concept has not taken root in Europe yet, but received with trust and enthusiasm, but that situation is about to change. Hungarian we need to move fast before competitiors startup Netflorista set up shop four months from the United States decide to move ago with no less of a plan than to shake over to Europe,” says Várhegyi. up the floral industry and reach supremacy Not every florist may join the Netflorista on the continent in BloomNation fashion. galaxy, though. Potential stores are all “Netflorista is conquering a market that subject to stringent screening as only has been right under our nose for decades,” those that offer a diverse product choice explains Imre Hild, a renowned figure of qualify. Another condition is to have highthe Hungarian startup ecosystem, who end gifts for sale beyond flowers since not only mentored the team but also has a they trigger more spending. stake in the company. Hiventures, a venture capital fund “We are signing partners in growing owned by the Hungarian government has numbers and revenues are skyrocketing provided seed funding with additional accordingly,” says CEO and co-founder funds in the pipeline that might go as high Viktor Várhegyi. The commission-based business model is attractive because million florists win simply by being present on in total. The ultimate goal is to funnel supply Netflorista. However, having an extra and demand of the European flower delivery revenue stream is not the only hook. market to one single platform, just as NetPincér “Many companies don’t have the has done with food delivery in Hungary. technology required to operate a stateAnd do you know what happened with of-the-art webpage, so we provide such a that onetime startup? NetPincér grew to platform for them,” explains Várhegyi. Of be market leader here and was acquired by course, should a florist want to upgrade German giant foodpanda for an undisclosed their own portal, an additional webpage amount after 15 years of operations in 2014. rental service is at their disposal.

2,000

as HUF 139

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MÁV Racing to Keep Pace With Innovation As companies compete in applying the latest innovative solutions to keep up with the modern trends in satisfying customers, Hungarian State Railways company MÁV Group is also doing its best to meet the ever growing requirements of partners and passengers, it tells the Budapest Business Journal. CHRISTIAN KESZTHELYI

“Investment in information and communication technology (ICT) is one of the most important aims for all companies today,” the Communication Directorate of MÁV says in a statement sent to the BBJ. MÁV says ICT is the most visible field of innovation within the group. Efforts to strengthen ICT operations have been ongoing since 2010. “After a significant organizational reform, a large amount of financial funds have been expended on developing ICT,” the company says. “Firstly, our IT infrastructure has been improved in order to meet the latest expectations. Private cloud technology has been implemented including a brand new server, storage, backup environment and disaster recovery sites.” This was followed by applying a unified system to handle data. “As a next step, the application portfolio has been improved, shifting from dozens of small, separate IT-systems to several state-of-the-art, standardized systems in order to [better] fulfil the needs of the business.”

Keeping Customers in Mind The railway company says the key to innovation is in thinking about the millions of passengers who roll on its rails on a daily basis. “ICT can help to increase customer satisfaction a lot with passenger information systems, easy and automated ticketing opportunities, improved on-board communication, and so on,” the company says. At the same time, MÁV believes that a 21st century railway company must have detailed and real-time information on its infrastructure status and must have the opportunity to react in near real-time. “Centralized, up-to-date systems and new IoT opportunities can help [us] switch from reactive maintenance to proactive maintenance while saving money and time,” the company points out. Besides being cost and time efficient, bringing innovation into a business

model can give a company a significant competitive advantage in the transport market. “Yes, it means technology, it means new ways of managing people, it means an ever-increasing customer satisfaction and many other factors which result in the title of an ‘innovative company’,” MÁV pinpoints.

“Centralized, up-to-date systems and new IoT opportunities can help [us] switch from reactive maintenance to proactive maintenance while saving money and time.” The company still believes, however, that human resources play a key role in the age of ICT transformation. On the one hand, HR “must be given a prominent role which emphasizes innovative solutions, reveals inner innovation ideas and delivers the latest knowledge in the field of personnel development and process management.” On the other hand, MÁV emphasizes that innovation does not necessarily lead to the cutting of jobs with robots replacing the flesh and bone human workforce. “Of course, there are certain areas where digitization can and will replace human activities,” the company admits, but adds that the challenge in such cases is to find the fields where automation will increase efficiency. At the same time, “Education of employees is also important in order to make them more familiar with newer technologies and also to motivate them.” Looking to the future, MÁV says it plans to implement a “first-to-market” philosophy. “Whatever comes from the R&D industry, we have to examine its effectiveness and implement it as soon as possible if it is appropriate”. This regular column looks at how some of Hungary’s biggest companies involve innovation in their daily practice.


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Business

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Budapest Business Journal | May 4 – May 17, 2018

Budapest Law Firms Win International Recognition Dentons’ Budapest office has won the “National Law Firm of the Year” title for Hungary for the third year in a row at the annual International Financial Law Review (IFLR) European Awards, held on April 19 at the Savoy Hotel in London. BBJ

The next day, Dentons was also named “Central and Eastern Europe Law Firm of the Year” and “Russia Law Firm of the Year” at the annual Chambers Europe Awards 2018, presented in Madrid on April 20.

CMS Budapest was named “Hungary Law Firm of the Year”. “Dentons’ strategy for CEE/CIS is to be a top firm in all key markets across the region, and this award is a testament to the success of that strategy,” said Tomasz Dąbrowski, CEO of Dentons Europe. In the last year, Dentons says it advised on many of the largest transactions in CEE, including Budapest Airport’s USD 1.6 billion debt restructuring. Gabriella Ormai, managing partner of CMS Budapest, said the law firm of the year title reflected an outstanding year. “This award is one of the most prestigious in the

legal sector and we are very proud to earn it. We have had a fantastic year and expect to have an even better one, celebrating the 30th anniversary of the firm in 2019,” she said. Meanwhile, DLA Piper Budapest has reported it has achieved top rankings in all categories in the latest release of TheLegal500 EMEA 2018. The independent legal directory has been publishing law firm rankings for almost 30 years based on peer and client recommendations.

Top Ranked

DLA Budapest was top ranked in all 12 categories and ranked in TIER 1 in five.

“Our rankings this year are clear reflections that our clients and the market appreciates our hard work,” commented András Posztl, country managing partner of DLA Budapest. Three DLA Budapest lawyers have also been nominated to TheLegal500 EMEA Hall of Fame: partners András Nemescsói and Gábor Molnár, and leading lawyer Gábor Simon. Kinstellar, which won the Central Europe Law Firm of the Year title for the third year running at The Lawyer’s annual European Awards gala in March, has also seen a number of recognitions. The Budapestbased Andrékó Kinstellar earned seven firm rankings in the 2018 Chambers Europe directory, and was recognized as a leading firm for Banking and Finance, and Projects and Energy. Six lawyers were named in the highly ranked lawyers list, including managing partner Csilla Andrékó. Andrékó Kinstellar is also top ranked by Legal 500 in nine fields, while Legal 500 EMEA recognized eight Andrékó Kinstellar attorneys. The firm has been ranked in the highest band by the IFLR 1000 in two areas. Commenting on the 2018 rankings, Andrékó said: “We are delighted that Andrékó Kinstellar is consistently recognized for our key specialisms, as well as the strong importance we place on providing innovative legal services to all our clients. We will continue to deliver the outstanding service that has served our clients over the last 10 years.” See also Erika Papp Appointed Managing Partner at CMS Hungary on page 11.

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Business | 9

Hungary’s Wage Spiral: The More the Better? Where will the current wage spiral bring us, and can it be beneficial for Hungary – and Hungarians – in the long run?

Gross monthly salaries (HUF) and percentage changes compared to the previous year Public sector

308,994

7.8%

Source: KSH

5%

220,210

252,664

The hunger for labor is still on the rise in Hungary, while the main bottleneck to growth already appears to be the lack of workers. According to the “conjuncture index” conducted by economic research company GKI and published in April, half of the construction businesses and onethird of the service sector have reported being held back by the labor shortage. Following the classic principals of demand and supply, most companies are trying to solve the problem by increasing wages, but their efforts have also been supported by tax cuts. Gross salaries rose by 4% in 2015, by 6% in 2016 and

5.4%

237,494

4%

ÁGNES VINKOVITS

1.2%

276,973

262,731

209,706 2015

2014

by

in 2017, while this year has brought an 8% increase in unskilled minimum wages and a 12% growth in guaranteed minimum wage for skilled workers. However, with wages growing at most companies, the tendency for the long run is simply to reconstruct the same situation at a higher wage level without solving the recruitment issues. Beyond that, the lack of workforce is deeply rooted in demographic reasons, given that the society is aging while 300,000-400,000 active and enterprising people have immigrated to Western Europe. If there are simply not enough workers here, wage increases are not likely to solve the issue on a large scale. At the same time, those companies which are not able to produce at a higher efficiency in order to cover the increased wage expenditures will “bleed to death”,

as Ferenc Rolek, the vice president of the Confederation of Hungarian Employers and Industrialists pointed out graphically, adding that Hungarian SMEs are the most threatened. The time spent on finding talents is becoming crucial under the pressure of labor shortage, Gergely Hacsi at Trenkwalder tells the Budapest Business Journal. “Both HR agencies and companies are more flexible regarding the candidates’ skills and experience; however, the current wage spiral partly comes from the limited quality knowledge and skills,” Hacsi points out.

Structural Thinking

Still, all may not be lost. According to Gábor Gosleth of HR company Adecco, while payment is a primal element for first and foremost physical workers, satisfactory working conditions and a couple of words of appreciation are also undoubtedly important for all people, and nowadays good employer branding is inevitably linked to the nice paychecks in order to attract and keep workforce. “Many companies still do not understand that if there is a hole on my fuel tank, I first stop it leaking and only

GRL_bbj_252x77_Layout 1 2018. 03. 06. 14:03 Page 2

2016

afterwards go to the fuel station,” Gosleth tells the BBJ, adding that workforce management takes structural thinking. Long-term career options as well as extras like flexible working hours and family days should always be emphasized. (For more on employer branding, see the April 20 issue of the BBJ.) According to fluctuation expert Katalin Csikós-Nagy, offering the average wages of the given sector should be enough to keep staff, provided salaries are kept on a competitive level not only for the new arrivals but also for the existing workforce. Discrepancies between the wages of experienced and new employees is usually discovered, is extremely demoralizing and often causes the biggest fluctuation wave, Csikós-Nagy warns. From a national economic point of view, the picture is even more complex. While the two-digit wage increases make people happy and have probably contributed to the governing parties’ overwhelming victory at Hungary’s general elections in April, when this wage spiral might peak and what its long-term effects will be are harder to predict. “On the whole I can say that if wage growth is accompanied by economic

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political changes that increase productivity at a corresponding level in order to compensate the higher workforce expenditures, then competitiveness is not

“Many companies still do not understand that if there is a hole on my fuel tank, I first stop it leaking and only afterwards go to the fuel station.” threatened. This seems to have happened in 2017-18,” Zoltán Török, senior analyst at Raiffeisen bank says. He adds that the decrease in social security contributions has played a major role in this tendency. However, tax cuts are a limited tool and, according to Török, wage increases can be sustainable only with more sophisticated policies to increase competitiveness, more effective regulations, and a radical increase in the quality of education.


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Business

WHO’S NEWS

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Budapest Business Journal | May 4 – May 17, 2018

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

Tamara Szántó

Anikó P. Kovács

Attila Szekér

István Rézsó

Dóra Budai

Enikő Erhardt-Tomor

Lóránd Gárdonyi

Gábor Dybisewsky

Attila Tarcsai

Marcell Kollár

Ádám Csikós

Cushman & Wakefield Makes 11 Promotions

Real estate services firm Cushman & Wakefield has announced the promotion of a group of professionals inside the company, of which two became partners as of April 1. Cushman & Wakefield, which describes itself as Hungary’s market leading and continuously growing real estate advisor, currently employing over 100 professionals in eight service lines, has promoted Tamara Szántó and Ádám Csikós to partners, with effect from April 1. C&W has also appointed Anikó P. Kovács, Attila Szekér and István Rézsó to associates, while Dóra Budai, Enikő Erhardt-Tomor, Lóránd Gárdonyi, Gábor Dybisewsky and Attila Tarcsai are promoted to seniors, and Marcell Kollár to valuer. “Our Budapest office has never before celebrated the appointment of 11 professionals at the same time,” commented Gergely Pados, international partner and head of Hungary at Cushman & Wakefield. “Taking on a higher managerial role is a fantastic achievement, an increased responsibility and a very important milestone in a career. I wish all of them continued success,” he added. ADVERTISEMENT

Ready for a charitable challenge? Join now and run, swim or cycle for a good cause. Élménykülönítmény (Troop of philanthropists) is a charity sport community whose members take part in various events and raise funds for the Bátor Tábor Foundation. One can join Élménykülönítmény individually, but in the past seven years, besides the 2,000 individual sportsmen, more than 30 company teams have joined the program. Teams of 4-20 colleagues prepare together for different events and raise funds for seriously ill children together. In the weeks preceding the event, they contact friends, colleagues and families and ask for contribution to their fundraising goal. Joining a charity team is an excellent motivation to accomplish a sporting challenge you have set for yourself. Besides, it is a great health program and provides meaningful help for children suffering from a serious disease.

Swim across Lake Balaton this summer as part of our team! Every summer, thousands gather to swim across the “Hungarian Sea”, Lake Balaton. Last year, 30 swimmers decided to put on the purple swimming hat of the Élménykülönítmény and helped seriously ill children with their swim. Together they gathered more than HUF 3.5 million, which covers the camp’s food costs for a summer session.

• You will receive your own fundraising page on elmenykulonitmeny.hu/en/, plus a list of brilliant fundraising tips and tricks. • You will be invited to weekly running training so, if you want, you can prepare for the race together with other charity sportsmen. • You will get a purple charity T-shirt, the symbol of the program, and continuous support from the Bátor Tábor team before, and during the race. Please, make sure that you apply at least a month before the selected race. Experience tells us that for successful fundraising you/ your team will need a minimum of fouror-five weeks.

What is Bátor Tábor?

The traditional Cross Balaton Swim is 5.2 kilometers long between Révfülöp and Balatonboglár, and is usually on the bucket list of every Hungarian swimmer. Don’t miss the chance; accomplish this challenge in a unique way! “For those, who weren’t there I can only tell you that the people from Bátor Tábor, and the cheerleaders who supported us during the race, are an amazing team. It was really nice to meet them, make new friendships and start the swim together.” – One of our charity swimmers

Interested in joining? It’s easy. • Select a race. • Recruit team members if you would like to run/swim/bike in a team. • Select your fundraising goal. (HUF 150,000 is the minimum individual fundraising goal, while teams usually target HUF 50,000/member.) • Go to elmenykulonitmeny.hu/en/ join-us/ to apply – it takes only two minutes.

Bátor Tábor (“Camp of Courage”) Foundation organizes therapeutic recreational camps and programs for seriously ill children. Campers take part in programs they otherwise miss out on due to their illness. They do archery, high-rope courses, drama and music sessions, horse-riding and many more activities to prove that they are less different from their healthy peers than they had believed. All programs are completely free of charge; costs are covered from funds raised by companies and individuals. Bátor Tábor is the only Central European member of the SeriousFun Children’s Network founded by the late Paul Newman.


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Budapest Business Journal | May 4 – May 17, 2018

Business | 11

Erika Papp Appointed Managing Partner at CMS Hungary From May 2018, Erika Papp, head of the CMS banking and finance team in Budapest, has assumed the position of managing partner at CMS Hungary, according to the law firm. She replaces Gabriella Ormai, managing partner for the past 22 years, who will continue in her role as co-head of the Budapest commercial team. BBJ

Ormai has been with CMS Hungary since its formation in 1989 and has a strong market profile and reputation, working on many of the transactions that have shaped Hungary and its economy over the course of her career to date. “In the last 30 years, CMS has grown to become the largest law firm in Hungary. We have cemented our position as a leading law firm in all of the major international legal directories and work on some of the most high-profile transactions and projects, both in Hungary and across CEE,” says Ormai.

She added: “I know that Erika will be a terrific leader. She has an impressive track record built up over the last 20 years, and I am confident that her drive, personality and leadership acumen will bring the very best out of our great team moving forward, ensuring the office continues to thrive.” Papp has been with CMS since 1996 and will continue to head the Budapest banking and finance team.

Incredible Journey

“It has been very exciting to see and be part of CMS’ incredible journey in Hungary to date. I am honoured and excited about the new role, and the opportunity to continue

New managing partner Erka Papp. to shape CMS’ bright future, together with the Budapest partners and our talented team here,” says Papp. “We have exciting times ahead; in today’s rapidly developing technological environment, law firms more than ever need to be agile and innovative. The CMS Budapest team has always believed strongly in leading the way rather than following the

pack; we are in a great position, and I look forward to seeing where we can take the office in the coming years.” Papp has many years’ experience of practicing business law in Hungary, particularly in transactional and banking law and securities law, and has considerable knowledge relating to finance transactions, regulatory issues, derivatives and investments. She participated in developing the so called “Budapest rules”, that is the Hungarian adaptation of the London rules, a system of support for companies in financial difficulties, usually involving the co-operation of a number of creditor banks. She is an arbitrator at the Permanent Arbitration Court attached to the Hungarian Chamber of Commerce and Industry and she is a member of AmCham’s Regulatory Committee. She is listed by Legal 500 and Chambers and Partners in several categories, including Banking and Finance, Project Finance, Capital Markets and Restructuring and Insolvency. According to Chambers Global, she is a lawyer who clients say “always understands the intention of the business and provides flexible solutions to problems raised by the other party. […] Her oversight and international experience is quite invaluable, and she’s always happy to integrate our expectations.” See also Award-Winning Budapest law Firms, page eight.

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Special Report Real Estate Office Market

YOUR HOME YOUR OFFICE YOUR LEISURE #BUDAPARTI

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2018. 04. 26. 16:04:38

Office Development Market Talk  14-17 Growing Competition for Development Plots  18-19 Interior Spaces Integral to Office Design, Management  24

What are the latest trends influencing the Budapest office market, and how long might the current boom last?


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Budapest Business Journal | May 4 – May 17, 2018

Budapest (and Hungary) Riding an Office Development Boom How is Hungary’s office market positioned? What are the trends? Will we ever see genuine secondary markets in Hungary? The Budapest Business Journal asked Lóránt Kibédi Varga, country manager of CBRE Hungary, one of the leading real estate consultancies to drill down deeper into the local data. ROBIN MARSHALL

BBJ: How would you describe the Hungarian office market in Q2 2018? How do you think it will develop across this year and further into the future? Lóránt Kibédi Varga: The office market is enjoying great activity and momentum. There is a positive expectation regarding business confidence for 2018 and we can confirm that, based on our demand pipeline, we expect take-up level to remain solid in the coming quarters. As of April 2018, vacancy rates are at historic lows across most submarkets and there is a growing need for quality office space. We see that the supply side of the market is changing in 2018: There is a great recovery in development volume and we expect completions to reach 250,000 sqm this year – up from 80,000 sqm last year. Although the majority of the completions scheduled for 2018 are already preleased, there will be new availability coming to the market. Based on experts’ consensus, the CEE region is expected to produce the strongest economic growth in the coming years, giving strong confidence that the Hungarian economy can keep outperforming the eurozone and converge to the core countries. This momentum will be supported by increasing EU funding in the coming years, in which regard Hungary traditionally excels among the region with high absorption rates. This further enforces our view of a healthy business environment for the coming one-two years, which helps office demand grow further. BBJ: Most new office developments still take place in Budapest, with relatively very little happening in the provincial cities. Do you see any signs of growing development in the countryside, and when do you think we might be able to talk about genuine secondary markets in Hungary?

LKV: Indeed, the office market has an extreme concentration on Budapest. The business services sector is a significant driver on the Hungarian labor market, as attested by double-digit employment growth registered in the sector in previous years. At yearend, there were approximately 110 business service centers across the country, employing some 42,000 people. The dominant hub for the sector remains Budapest with a share of more than 70% in the total. However, large regional cities are proving more attractive to employers. An outstanding example is Debrecen, which won the “Emerging City of the Year” title in the 2017 CEE Shared Service and Outsourcing Awards. Recently, new target cities such as Szeged, Miskolc and Pécs are also appearing on the map. Most of these regional cities fall into the highest tier of subsidy eligibility across the EU, and local authorities or investment promotion organizations are readily available to assist prospective employers with local intelligence and incentives. It is not a coincidence that these cities had a presence at MIPIM this year and are clearly aiming to attract a higher proportion of new business coming to the country. BBJ: For an investor considering Hungary, what advantages does it hold over other countries in the region? LKV: Overall, 2018 could bring similar turnover to that of 2017 based on the pipeline we are now seeing – reinforcing

that Hungarian assets are interesting for money seeking good value and return. Yield levels in Budapest still have a clear advantage compared to those in Warsaw or Prague for an investor. Moreover, we see growing interest for assets outside of Budapest at even more attractive yield levels. Financing conditions have eased significantly over the past two years and terms are expected to remain supportive and possibly even improve further. LTV ratios are edging back towards 70-75% with typical margins compressing to 200-250 bps. Having said that, the market is close to its theoretical ceiling – simply because of the size and depth of the market. We asked our clients this question during our “Investment Breakfast” event this April, and the vast majority of the real estate players expect a rather small change in the volumes for this year. This reinforces how strong the investment sentiment is in Hungary now. In terms of deal-flow, there is an increasing chance for larger, regional platform transactions materializing this year, as owners that have consolidated sizeable portfolios may be looking to reap their rewards. BBJ: Green accreditation is now a given for office developments. What are the upcoming trends in Budapest? How supportive is the government of the construction industry? What more could it do to boost office development? LKV: All new projects in Budapest aim to achieve a certain level of accreditation

Special Report | 13 using one rating system or more. It is not a marketing gimmick but something that has material savings and benefits for the occupiers over the long-term. However, which accreditation system to choose and what level to target, remains more a decision for the developer depending on the individual project. The market is moving towards more added-value developments. Developing quality projects will be more important as tenants are becoming more demanding and are ready to pay for the upside. On the other hand, they expect operational costs to be as rational as possible. The construction market is now in a boom. The current economic cycle intensifies the appetite for new commercial developments, while at the same time the Hungarian government also acts as a big market player by initiating large public funded development projects. Besides these two factors, the temporary reduction of the VAT rate from 27% to 5% on new residential developments acts as an administrative distortion and induces extra demand before this regulation is supposed to end in late 2019. Together, these factors put a strain on construction capacity and lead to price increases. I am not sure that the government needs to make any extra effort to boost development activity in the commercial sector. BBJ: How much of CBRE’s Hungarian business is taken up with the office market, and how has this changed? LKV: CBRE has a dedicated Office Agency team, comprising six full-time professionals, who specialize in the Budapest office market acting for developers, landlords, and occupiers as well as brokering transactions. The office team falls within CBREs Advisory and Transaction department which also includes Retail and Industrial Agency. Given the activity in the wider market, CBRE’s Investment team are very active on the buy or sell side with office Investments, primarily in Budapest. CBRE’s valuation team enjoys a lot of work in the office sector and we also have a Property Management team who manage nearly 98,000 sqm of office schemes and a Project Management team who are deeply involved with several high-profile office fit-outs. All in all, the office sector remains one of the most important for any multiple service line real estate consultancy such as ourselves.

Mini Bio Lóránt Kibédi Varga, who has a 30-year track record in international real estate and banking, has held positions in Brazil, the Netherlands, Hungary and Belgium. Previous senior level positions include CEO of both TriGranit Development Corporation, a CEE-based real estate investment, development and management firm, and CBS Property, a major Hungarian landowner. Since 2014, he has been leading CBRE Hungary as its managing director. In addition, Varga is the chairman of the board of the Netherlands-Hungarian Chamber of Commerce and board member of the American International School in Budapest. He considers charity an essential part of his life and has been an avid supporter of Szent Miklós Children’s Home & School for more than 15 years.


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Special Report

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Budapest Business Journal | May 4 – May 17, 2018

Office Development Market Talk The Budapest office market is going through a development boom with high demand and increasingly complex requirements from tenants; we asked some leading market professionals if the pipeline is sustainable, how they define their development and design strategies, whether new product is meeting tenant demand and what their priorities are when sourcing a development site.

Property. Professionalism. Trust.

GARY J. MORRELL

Gergely Árendás

Managing Director, Property Market

Is the current office development boom sustainable beyond the next two years? The buildings due to be handed over in 2018 already have healthy occupancy rates, which have significantly increased in the past quarters. We anticipate a similar process for buildings to be handed over in the next year. Because of a lack of new

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Deputy Country Manager, GTC Hungary

Contact us CityZen Irodaház, Budapest, H-1134 Váci út 37. Tel.: (+36 1) 225 0912 | www.convergen-ce.com

Kálvin Square Office Building

CityZen Office Building

Are well-located plots becoming more difficult to find? As a minimum, development plots or refurbishment opportunities should be well connected to the city’s public transport infrastructure. To reflect the requirements of the new generations coming into the marketplace, the connection to the city fabric such as leisure, entertainment, culture, and most importantly to high quality public spaces becomes more and more important. There are still some good opportunities out there in terms of new development opportunities; however, finding favorably priced plots has become a major challenge. Does Budapest need more landmark office buildings? I think the way we have approached the BudaPart development shows our strong commitment to architectural quality. The MOL Campus, which will be developed by MOL to be their new Headquarters building is designed by Foster and Partners and will be the highest building in Budapest. Both its design and technical parameters will make MOL Campus one of the most advanced office buildings, not only in Hungary but in the region as well.

Eiffel Square

Eiffel Square Office Building Office Building

speculative office stock supply for more than half a decade, we do not anticipate letting challenges for the new supply coming online in the next few years. In any event, we anticipate vacancy rates to rise in the first generation of as yet unrefurbished buildings. As for our projects, we decide on the exact prelease requirements on a project-by-project basis. Generally, however, the current prelease levels required by lenders give a fair reflection of the situation of the office market. Are exterior, interior and sustainability elements part of the same design process? The design process for a new development must be a unified process which should start with the overall vision for the scheme. Our BudaPart development’s buildings are all designed focusing on delivering a sustainable new neighborhood for those choosing to work and live here.

Is the current office development boom sustainable beyond the next two years? It is difficult to see beyond two years; however, there is definitely a positive sentiment regarding available financing, economic growth and investors’ appetite. The future occupancy rate depends on how much of the pipeline development will be delivered. Do you have prelease requirements before commencing construction or redevelopment? We have built GTC White House on a speculative basis and we were very pleased that during construction we signed preleases; however, it is not a requirement. How are demands from tenants changing regarding specification and the type of office space required? There is more demand for first class quality buildings in Budapest and tenants are willing to pay a premium rent for


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Budapest Business Journal | May 4 – May 17, 2018

provide various services and programs on site that help tenants to preserve their well-being and take care of their day-today matters. BREEAM accreditation is an on-going process in all our buildings. Being a long-term investor, our aim is to create sustainable value in our buildings that is recognized by the tenants and therefore using high quality materials in the construction or refurbishment is part of our core company policies. What are your priorities when sourcing a development plot? Our priorities are price and location. There are still possibilities on the Váci Corridor, although there are fewer than previously.

Attila Kovács MRICS

Managing Partner, Horizon Development Vice President, Real Estate Developers’ Roundtable Association

What are your priorities when sourcing a development plot? Location, location, location…. Metro [connection] is essential and visibility as well. There are still a few plots available, but in the CBD and the popular office destinations it is very difficult to find a development plot that is suitable for office development. Does Budapest need more landmark office buildings? Budapest is a beautiful city. There is no doubt that more landmark buildings in the business areas would help attract new entry international tenants and investors.

Is the current office development boom sustainable beyond the next two years? As a development company that has been working with the same dedication and priorities throughout the good times and the bad (during the last one and a half decades), our firm belief in

Mátyás Gereben

Country Manager Hungary, CPI Property Group

Is the current office development boom sustainable beyond the next two years? With the current requirements from various segments of the office market (SSCs, HQ consolidations, public institutions and local businesses), demand in the Budapest office market is continuing to rise and therefore the market will be sustainable for the next 18-24 months. What happens beyond this period is difficult to predict, especially considering the vast amount of new stock arriving on the market, but I remain optimistic by nature. How are demands from tenants changing with regard to specification and the type of office space required?

CPI is focused on making the work place as comfortable for tenants as possible; this also includes our refurbishment of existing buildings to make new humanoriented services available to tenants. We

continuous growth is unchanged. The proportion of the types of properties developed might slightly change, but we still see great potential in the Hungarian market, both in the short- and medium-term. Do you have prelease requirements before commencing construction or redevelopment? We prefer to secure our planned developments with a definite will from our tenants, and having a prelease also contributes to a smoother financing process. However, sometimes we also develop on a speculative basis, with great confidence that the quality we deliver will meet customer demand. How are demands from tenants changing with regard to specification and the type of office space required? Tenants place great emphasis on the workspace from an employer attraction and retention perspective. Well-being, health and comfort, environmental consciousness and great aesthetics have come to the forefront of priorities, while technical quality, energy-, water- and cost efficiency, visibility and accessibility still play into the final decision of relocating a company. Are exterior, interior and sustainability elements part of the same design process? At Horizon Development, we handle the entire building as a whole, including its core design, the main characteristics Continued on page 16

INSIDE VIEW

Disruptive Technologies in the Real Estate Sector Today Dr. Gábor Helembai

Senior Associate

BIRD & BIRD We can state that blockchain has definitely reached the real estate sector. Bird & Bird, as an international leading law firm in business sectors where technology plays a key role, always keeps an eye out for the most innovative ideas and ground breaking developments in the industry. In this article, we provide some fresh insight into two interesting innovations with reference to certain recent real estate related legal changes in Hungary, which perfectly demonstrate how digital transformation currently affects the real estate industry and what challenges regulators have to face due to disruptive technologies. In adopting of the new Act on Legal Practice and the amendment of the Act on Land Registry, the Hungarian legislator mainly focused on paperbased documentation and offline land registry procedures. The intention, clearly, was to make real estate transactions more secure. The introduction of more severe rules of countersigning by attorneys does not make the parties’ lives easier from a practical point of view and the improved formal requirements also increased the risk of potential trouble arising from occasional imperfect formalities. As a completely different approach, there is demand in the market to use blockchain technology for real estate transactions and to set up digital land registries. A blockchain based land registry system is one of the most exciting projects in the real estate sector nowadays and there are several promising developments. The introduction of such technology in practice is not theoretical: Sweden and Dubai have advanced projects in place on various initiatives (for example ownership verification or smart leasing process etc.). Blockchain could be a perfect technological solution to register transactions without the services of a trusted third party, e.g. a land registry office. The authenticity of the process, the signatures, the file confirming ownership, mortgage deeds etc. will all be secured with a blockchain. The big advantage of the technology is that it eliminates paper documentation

and is replaced with digital records and digitally signed documents. The concerned parties can easily store these files in the cloud or locally thereafter. Certainly, the value of a blockchainbased land registry solution would be substantial for countries without a trustworthy real estate ownership record and land registry; however, a reliable and cost effective digital system would enhance a better, investor friendly legal environment and save significantly large amounts of money for taxpayers in a well-established and competent land registry as well. Another notable development of the Hungarian real estate sector was the long awaited changes of the Hungarian REIT (in Hungarian: “SZIT”) regulation in 2017. The option for Hungarian REITs has become more popular due to the said legal changes: the favorable tax regime (no corporate tax, local tax and reduced stamp duty for transactions) remained, but the legislator recognized that a more flexible regulation that is more suited to everyday life, inevitably puts this theoretic solution into practice. Hungarian companies are now considering using the new REIT rules; concurrently, a novel disruptive technology-based investment solution emerged on the horizon where blockchain is the key world again. Such innovative solution’s aim to revolutionize the investment market via asset tokenization. Basically, the service provider offers a smart contract platform that allows selling and investing in tokenized assets (e.g. real estate) on the blockchain. This is an avant-garde asset trading platform that lets different digital currency holders invest in real-world assets. One of the biggest advantages is that this means of investment can reduce costs dramatically compared to a traditional real estate investment. In addition, geographical trading restrictions (e.g. the need for a bank account) can be eliminated and thus it provides a real investment opportunity in real estate without geographical restrictions. This concept of investment would make the investments into real estate much more attractive for small investors from around the globe. The first successful private tokenized real estate sale occurred in Germany in December 2017.

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top quality design and development. In addition, the offices need to be attractive enough to motivate people to go to work, especially when nowadays anyone can work from anywhere.

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Special Report

Continued from page 15

of the facade and the interiors, the built-in sustainable and technical solutions, and even its impact on the immediate natural and social environment. Looking at the project through this comprehensive, interdisciplinary approach contributes to an end product that is well thought-out and carries the same values inside and out. What are your priorities when sourcing a development plot? With our niche expertise in downtown Budapest developments, our top priority when sourcing a plot is to find an ideal city center location, where both the restoration of heritage buildings and the creation of new architectural value are much appreciated by tenants. Other proven locations – such as the Váci Corridor or District XI – have also entered our development map with their excellent development potential and locational attributes. Are well-located plots becoming more difficult to find? Finding plots that are ideally located has certainly become more of a challenge with so many market players tendering for the same site, but we still have plenty of ideas in mind for the next decades. Does Budapest need more landmark office buildings? We have always had the creation of landmark buildings high on our development agenda. A best-in-class example is Eiffel Palace that received numerous international and local awards for its value creation in architecture and property development. These acknowledgments ultimately helped the entire Hungarian property industry. Currently, we have two office projects

in the pipeline. Our mixed-use Szervita Square building with four complete floors dedicated for the office function, and Buda Gardens planned to serve office tenants entirely are certainly aspiring to become landmark projects in the Hungarian capital.

Nikolett Püschl

Leasing Manager, Atenor Hungary

Is the current office development boom sustainable beyond the next two years? We expect a similar market over the next three years with a favorable economic situation that is reflected in the office market, where there is growth and rentals

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Budapest Business Journal | May 4 – May 17, 2018

Do you have prelease requirements before commencing construction or redevelopment? We have been developing on a speculative basis and in the meantime we expect preleases. Are exterior, interior and sustainability elements part of the same design process? Our aim is to provide 100% sustainable green buildings with low occupancy and service charge costs. What are your priorities when sourcing a development plot? Of course, it should be easily accessible, we prefer a metro connection although this is not a must. It is becoming more difficult and expensive to source plots; we are monitoring all parts of the city and if we find something which is suitable in terms of numbers and development possibilities, we will buy it.

Katalin Sermer

Hungary Country Manager, S IMMO

are increasing. We do not expect as huge a crisis as occurred in 2008; of course there will be downturns, but they will not be as significant.

Do you have prelease requirements before commencing construction or redevelopment? Basically, there are no special prelease requirements. It depends on the market as well as on the project; if all parameters fit well, we also build projects without preleases. How are demands from tenants changing with regard to specification and space requirements? The autarchy of open space seems to be slowly changing. Flexibility of space is decisive for start-ups, co-working hubs etc., while smaller offices are also required where quiet working conditions

are a must. The new WELL environmental accreditation system is spreading as well. Are exterior, interior and sustainability elements part of the same design process? Yes, they are all part of the same design process. All our new developments were – and will be – certified, if possible with the highest or at least second highest standard. In order to guarantee high building standards, all exterior and interior elements are integrated into the planning from the very beginning. What are your priorities when sourcing a development plot? We look very carefully at every plot or property and assess the location according to the principles of due diligence. There has to be a high quality infrastructure and the parameters linked to the location have to be aligned with the intended type of use. Furthermore,

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the legal situation has to be clear and the plot must not be contaminated. It is challenging to find well located available plots, however the city is continuously developing and with creative thinking and planning, new spots and areas may shortly become interesting locations.

Árpád Török CEO, TriGranit

Is the current office development boom sustainable beyond the next two years? This year, with approximately 250,000 sqm GLA of new office stock, represents a peak completion volume on the Budapest

2020, however with around 160,000 and 190,000 sqm GLA of new office space, that represents 4.5-5.5% of the modern Budapest office stock, seems to be a much healthier number, a ratio that could represent a longer market trend. The busy years prior to the crisis can be considered a special period, as a full new office stock had to be developed in Hungary after the late 1990s. The years after the crisis, when in five years between 20112015 only 300,000 sqm GLA of new office stock was delivered to the market, again was a special period. Around 140,000170,000 sqm GLA delivery of new office stock could be a real target for the longerterm, considering that the net absorption was around 130,000-170,000 sqm GLA in 2016-2017 (4-5% of the office stock) and vacancy decreased from 9.5% in 2016 to 7.5% in Q4 2017. Further, the global trend of urbanization also supports this; as with other regional cities, Budapest is expected to attract well qualified workers from the countryside, providing the multinational companies with an educated workforce.

Csaba Zeley

Asset Management Director ConvergenCE

office market – in the past 12 years only 2008 and 2009 have performed better with around 280,000 and 360,000 sqm GLA respectively. The years 2019 and

Is the current office development boom sustainable beyond the next two years? The supply of new space to the market will not represent a potential oversupply until 2020 as long as the current high levels of demand continue. Macroeconomic indicators for Europe remain generally positive, although rising interest rates could present a

threat to growth and therefore sustained occupier demand in the longer term. Do you have prelease requirements before commencing construction or redevelopment? Local banks still require a significant prelet level prior to funding new developments although this requirement has reduced from 50% to around 30% within the last 18 months. As developers we also look for preleases to account for at least 30% occupancy, with the objective to cover as a minimum the interest on any loan. Banks may be more lenient in the case of refurbishment where overall development risk is significantly less. How are demands from tenants changing with regard to specification and the type of office space required? Tenants are more educated when it comes to selecting their new home. They look deeply into the technical specifications and have a clearer vision of their requirements than five years ago. This is a result of improved quality of construction and tenant advice in Budapest as well as the past negative experience of tenants with inadequately specified buildings and poor property and facility management. Are exterior, interior and sustainability elements part of the same design process? Absolutely yes, although this was often not the case in the past. We would include not just the external envelope of the building but also the immediate external environment around the building. Sustainability both in construction and use are now a definite requirement, both from investors and from tenants.

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Special Report | 17

What are your priorities when sourcing a development plot? Location (accessibility, local amenities, environment), zoning and ground conditions. Are well located plots becoming more difficult to find? Well located, well serviced and good sized plots at the right price have always been hard to find in Budapest Does Budapest need more landmark office buildings? If landmark means the effort in planning a building which fits within the historic cityscape I believe Budapest only needs and deserves landmark buildings. Sadly, many buildings constructed in the 1990s – as well as some more recently – ignored this obligation in favor of economy. This is the responsibility of any owner, not just towards the tenants and investors but towards the city and local community.


Special Report

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Budapest Business Journal | May 4 – May 17, 2018

Growing Competition for Development Plots 2nd district

2nd district

2nd district

287 sqm – lot, Ürömi street

134 sqm – 3 rooms + Hall, margit CirCUit

145 sqm – 5 rooms, Kút street

This lot has possibility to build a 4 apartment condominium. Electricity, water and gas are in the street. It is located in a very quiet and green area.

View over the Danube, this very spacious and bright apartment in good condition has balcony and it is situated within a well maintained building with elevator.

This very sunny, garden facing apartment has separate rooms, private gas heating and parking space in the courtyard of the building. It is located in a quiet side street.

75.000.000 HUF

83.800.000 HUF

88.800.000 HUF

+36.1.336.1706

+36.1.336.1706

+36.1.336.1706

2nd district

2nd district

2nd district

210 sqm – 5 rooms, töröKvész slope

270 sqm – 2 rooms, töröKvész slope

300 sqm – 6 rooms, tárogató street

This two storey terraced house benefits of a private garden, garage and parking space. It is located close to the Rózsakert shopping mall.

This duplex semi-detached house has balconies, private garden and two car garage. It is located in a quiet and green area.

This Bauhaus style, two storey detached house is built on 1078 sqm of lot, has 2 kitchens, 3 bathrooms, 2 terraces and garage.

126.000.000 HUF

198.000.000 HUF

110.000.000 HUF

+36.70.376.4138

3rd district

+36.70.376.4138

3rd district

+36.70.376.4138

3rd district

64 sqm – 3 rooms, szőlő lane

36 sqm – 2 rooms, Berend street

57 sqm – 2 rooms, zsámoly street

This well divided, park facing apartment in good condition benefits of a bright kitchen and air conditioning system. It is situated within a condominium with elevator.

This completely renovated, bright, park facing apartment has separate rooms, balcony and private gas heating. It is situated in a well maintained building, in a green area.

In an elegant villa house, this bright, garden facing apartment has private gas heating, 200 sqm of private garden and parking space.

27.000.000 HUF

32.900.000 HUF

+36.1.430.1403

+36.1.430.1403

34.900.000 HUF

+36.70.669.5350

As developers are looking to go ahead with office developments to meet strong demand, there is increasing competition for suitably-sized development sites that provide visibility and meet the requirements of tenants and staff regarding access to amenities and public and road transportation links. GARY J. MORRELL

In this market with high demand and the resulting rising prices, developers need to weigh up the balance between the suitability of plots and the price of land. The evidence is that office workers have a preference for sites within the city, as overall office vacancy rates in Budapest are at a low 7%, compared to the periphery where the rate is more than 30%. “Developers have to consider price, access to transportation, visibility and the ability to construct efficient floor plates when sourcing a development plot,” commented Adrián Limp, head of valuation and advisory at Cushman & Wakefield Hungary. The Váci Corridor remains the most popular development area (with

around

3rd district

3rd district

3rd district

62 sqm – 2 rooms + Hall, szépvölgyi str.

130 sqm – 4 rooms, szentendrei street

112 sqm – 3 rooms, dósa street

In a well maintained building with elevator, this street and garden facing apartment, that needs renovation has big kitchen with dining room, separate rooms and air conditioning system.

This very well divided, spacious, duplex apartment has separate rooms, 2 bathrooms, terrace, private garden and garage. It is situated within a nice villa house.

In a very nice villa house, this well divided, garden facing apartment has private gas heating and parking space in the courtyard of the building. It is located in a beautiful, green side street.

34.900.000 HUF

49.900.000 HUF

54.900.000 HUF

+36.1.430.1403

6th district

+36.70.669.5350

7th district

+36.70.669.5350

7th district

83 sqm – 3 rooms, rózsa street

98 sqm – 3 rooms, istván street

132 sqm – 4 rooms, damJaniCH street

In a completely renovated building with elevator, this very sunny, top floor, duplex apartment has separate rooms, air conditioning system and a very nice, spacious terrace.

This completely renovated, very spacious, street facing apartment has private gas and underfloor heating. It is situated within a nicely renovated period building, close to the City Park.

Very close to the City Park, in a beautiful period building, this very sunny, garden facing apartment in good condition benefits of a living room, 3 separate bedrooms and private gas heating.

67.000.000 HUF

49.900.000 HUF

55.000.000 HUF

+36.1.351.0446

+36.1.351.0446

13th district

13th district 55 sqm – 3 rooms, pannónia street

83 sqm – 4 rooms, Katona JózseF street

Close to the Lehel Market Hall, in a renovated building, this street and garden facing apartment in good condition benefits of a parking space.

Very close to the St. István Park, this completely renovated, very sunny, street facing apartment has living room with open kitchen and two separate bedrooms.

20.900.000 HUF

36.500.000 HUF

In a Bauhaus style building with elevator, this bright, street and garden facing, high floor apartment in very good condition benefits of a balcony.

+36.70.414.7759

Forward Purchased

Futureal Group has started the construction of the second 8,000 phase of Advance Tower in the Váci office corridor and Skanska is developing the 13,000 sqm third phase of Nordic Light.

“Developers have to consider price, access to transportation, visibility and the ability to construct efficient floor plates when sourcing a development plot,” In addition, the speculative 25,000 sqm Promenade Gardens on Váci út, forward purchased by the Hungarian Erste Open-ended Real Estate Fund from Horizon Development, is due to be delivered by this summer. HB Reavis has started construction of the large-scale, phased Agora Budapest,

+36.1.351.0446

35 sqm – 2 rooms, taKsony street

+36.70.414.7759

30%

of the total, according to CBRE), followed by South Buda (about 22%), with Districts IX and VIII also attracting office development. A lack of suitable development sites in the historic core of the city is restricting development of the Central Business District. Around 140,000 sqm of office space is currently under construction in Váci út including the recently completed Váci Greens D according to David Johnston, head of advisory & transaction services

at CBRE Hungary. The area has seen as much as one million sqm of office development and an additional one million sqm of residential development according to József Tóth, Mayor of District XIII. This has seen the creation of around 70,000 new jobs.

13th district

55.900.000 HUF

+36.70.414.7759

grUppo t.F.m. KFt. 1068 BUdapest, Király U. 102. each agency independently owned and operated. • these offers are valid, till the apartments are sold. • these information do not constitute a contractual element.

Exchange Palace


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Budapest Business Journal | May 4 – May 17, 2018

Budapest One Business Park the first phase of which will deliver 60,000 sqm of space at the

end of

2019

on a three hectare site next to a metro station. The company emphasizes the role of the public squares and services that can be utilized by local residents and therefore integrate the office project into its surroundings. “Large, well located plot sizes on a similar scale to the Agora plot are difficult to find in Budapest, although in the current economic situation such big projects do not present a large development risk,” said Jan Hübner, country CEO at HB Reavis Hungary, recently. On the western edge of the city, Futureal has started development of the speculative

Budapest ONE Business Park located at a transport hub at Etele tér, adjacent to the Kelenföld Railway Station and Metro. The first phase of the 68,000 sqm complex is scheduled to be completed in the second half of 2019 and will deliver 25,000 sqm of office space in addition to 2,500 sqm of retail and service units. Budapest ONE Business Park will form part of the Kelenföld urban redevelopment project that will also include the Etele Plaza retail center. Futureal aim to create a business, service and leisure hub on the 22-hectare site. Futureal waited until the Metro 4 link was completed before going ahead with the project. The historical center of Budapest is a difficult area in which to work due to the very strict planning regulations. Horizon

Development is currently developing the mixed-use Szervita Square, a rare office development in District V. Horizon has already delivered 5,700 sqm of office space in Vörösmarty tér at Váci 1, a classic Central European heritage building. The project reflects Horizon’s strategy of developing high-end office space in historic buildings in central Budapest. “Finding plots that are ideally located has certainly become more of a challenge with so many market players tendering for the same site, but we still have plenty of ideas in mind for the next decades,” said managing director Attila Kovács. In Szabadság tér the Tippin Corporation is redeveloping the “Beaux Arts” style Exchange Palace (purpose built home to the stock exchange from 1905-1948) into 25,000 of office and retail space. Michael Tippin sees the project as regenerating both the classic historical building and the surrounding park area in District V.

Significant CBD Development

Another significant CBD office development is the 8,600 sqm Hold 17 on Hold utca. The existing building has been demolished and completion is expected in fall 2019 according to James Kinnell, one of the developers. He says development plots in the CBD are practically impossible to source. In District XI, where Wing is developing the 57,000 sqm Magyar Telekom headquarters at a metro and road network hub on the road to the Budapest international airport, it has also acquired

Special Report | 19 another development plot at the site and there is the possibility for a circa

20,000 sqm office

development. Also in the area close to the ring road, Atenor has started development of the 72,000 sqm Aréna Business Campus; the two-hectare plot is a former bakery that has not been used for several years. In South Buda, Property Market is due to deliver the 18,000 sqm BudaPart Gate, the first phase of its mixed-use office,

“With regard to development sites, the metro is essential and visibility as well. There are still a few plots available, but in the CBD and the popular office destinations it is very difficult to find a plot that is suitable for office development.” residential and leisure project on the bank of the Danube with access to a large park area. “With regard to development sites, the metro is essential and visibility as well. There are still a few plots available, but in the CBD and the popular office destinations it is very difficult to find a plot that is suitable for office development,” concluded Bori Gedai,” deputy county manager at GTC Hungary.

INSIDE VIEW

Horizon Development projects regionally acclaimed, Keynote speaker Attila Kovács at Zagreb RE Conference Attila Kovács held his keynote speech in this session, setting the right tone for the event from the very beginning. With a main emphasis on heritage restoration Managing Partner, and redevelopment, but also touching on Horizon Development modern architecture, sustainability and Vice President, well-being, he shared the development Real Estate Developers’ stories of Eiffel Palace, Váci 1 and Szervita Roundtable Association Square Building with his audience. Visuals of the landmark projects included archive floorplans, sections and photos, as well as Horizon Development’s managing movies showing the complete development partner Attila Kovács MRICS process, and a great selection from recent just returned from the 14th photoshoots. After the extremely wellAnnual International Real Estate received session that generated excellent Conference that took place in questions and a cross-regional dialogue Zagreb on 24-25 April. As a Keynote during the event, Mr. Kovács had further opportunities in the Budapest panel to Speaker of the event, as well as a share his professional credo as a Hungarian panelist in the Budapest roundtable architect and businessman. discussion, he had unique platforms Featuring special invitees Szilvia Bősze to talk about Hungarian real estate, (Director for Business Development, including the projects of the Paulinyi-Reith & Partners Inc.), Balázs Jelinek (Deputy CEO, Liget Budapest), company he established in 2006. Attila Kovács MRICS (Managing Partner, His Excellency Mr. W. Robert Kohorst, Horizon Development), Dr. Mihály Schrancz Ambassador of the United States to the (Development Director, Property Market Republic of Croatia officially opened Real Estate Development), and moderated the 2018 edition of ZagRE, a traditional by Gábor Borbély MRICS (Head of Research property event featuring over 20 panels and Business Development, CBRE), the with a focus on real estate in the CEE and Budapest panel took both a synchronic SEE regions, attracting over 100 speakers and diachronic approach to introduce the and 600 participants from the European Hungarian development market of the last Union, the United States of America, the decade. After a thorough, macroeconomic United Kingdom and South Africa. analysis comparing the differing drivers,

characteristics, tendencies and realities of the CEE countries, the panelists tackled various questions and issues of the building industry prior to, during and after the economic crisis; shared their personal stories from all three periods; and compared learnings from ongoing benchmark projects representing the private and public sectors. They also posed the quasi-philosophical question of ‘How to measure success in real estate’, and provided a wide variety of answers, listing quantitative and qualitative measures, key performance indicators, as well as the development’s short-, medium- and

long-term impact on the physical, social and natural environment, and the urban landscape as a whole. Regardless of their scale, strategy, business model or stakeholder structure, all these bestin-class projects will definitely earn the acknowledgement of the Hungarian and regional real estate communities.

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Attila Kovács MRICS


20 | 3

Special Report

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Budapest Business Journal | May 4 – May 17, 2018

Speculative Office Development Boom Office development activity is accelerating as vacancy in the Budapest office market currently stands at a record low of 7.5%. In this landlord dominated market, more developers are opting for speculative development against a background of high demand.

also translates into real absorption, as indicated by the past three years’ net absorption volumes, that have largely outperformed most Western European cities with similar stock. Even in Budapest and Warsaw, where there is a development boom, the net absorption volume of the last three years largely covers the pipeline under construction,” added David Johnston. By way of comparison, the Prague Research Forum (CBRE, Colliers International, Cushman & Wakefield, JLL and Knight Frank) has traced 334,000 sqm of office space under construction with a vacancy rate of 6% in a city with a total quality office stock of 3.4 million sqm. According to JLL,

770,000 sqm of

office space is under construction in Warsaw with a current vacancy rate of 11%.

Real Target

Agora Budapest.

GARY J. MORRELL

With positive market indicators, some developers are now undertaking large multi-phased projects. Colliers International put the 2018 pipeline at 244,000 sqm and the 2019 pipeline at 163,000 sqm with around 20 office projects due to deliver in 2018-2019.

“We estimate that 260,600 sqm of new office space is scheduled for completion in 2018 and 57% of this space is already committed through preleases. Looking further ahead, the completion volume in 2019 looks similar and is expected to gradually decrease afterwards,” said David Johnston, head of advisory and transactions at CBRE Hungary. “We are seeing a supply revival across CEE. However, the region’s strong take-up

Árpád Török, CEO of TriGranit, estimates pipeline for 2019 and 2020 at 160,000 and 190,000 sqm GLA respectively. He argues that an around 140,000-170,000 sqm GLA delivery of new office stock could be a real target for the longer-term. In its latest completion, Atenor has officially handed over the 14,000 sqm Váci Greens D, the first component of phase II of an office project that will consist of 130,000 sqm of space in six buildings upon completion. The Budapest Research Forum (consisting of CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary) put total Budapest

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Business District and slightly over EUR 15.25

in the ever popular Váci Corridor. There is “We are seeing a supply upward pressure on effective rents in this revival across CEE. However, landlord friendly market. the region’s strong take-up Pipeline Important also translates into real In the next scheduled delivery by the established CEE developer, GTC is absorption, as indicated by due to complete the LEED “Gold” prethe past three years’ net certified, 22,000 sqm White House on Váci út. The company is planning a absorption volumes, that further development in District XIII; the have largely outperformed Twist – Budapest City Tower will deliver 37,000 sqm of office space. “We see it as most Western European important to have a pipeline so that we can provide space for our existing as well as cities with similar stock. new tenants,” said Bori Gedai, sales and Even in Budapest and marketing director at GTC Hungary. Futureal is due to deliver the first 12,000 Warsaw, where there is a sqm phase of Advance Tower on Váci út development boom, the and has commenced construction of a second 7,000 sqm phase of the project. net absorption volume of Also in the Váci Corridor, Skanska is the last three years largely developing the 13,000 sqm phase III of Nordic Light. covers the pipeline under As confidence in the market grows, construction.” developers are undertaking more ambitious modern office stock at a little over 3.5 million sqm with a record low vacancy rate of 7.3%. The south Buda area has the lowest vacancy at a little over 3%. In this landlords’ market,

60% of office

space under construction is already preleased. Prime rents are increasing and are estimated at EUR 24 per sqm per month in the Central

Tower will deliver 60,000 sqm of office, retail and service space by the end of 2019. In the historical center of Budapest, Horizon Development is currently developing the mixed-use Szervita Square, consisting of 15,000 sqm of office, residential and retail space; the LEED “Platinum” accredited project is due for completion in 2019. This is a rare office development in the central District V. The project reflects Horizon’s strategy of developing high-end office space in historic buildings in central Budapest. In addition, the speculative 25,000 sqm Promenade Gardens on Váci út, forward purchased by the Hungarian Erste Openended Real Estate Fund, is due to be delivered by summer.

Special Report | 21 Wing has tended to opt for the builtto-suit development option. In District XI of Pest, Wing is working on the 57,000 sqm Magyar Telekom headquarters. The project, designed by TIBA Építész Stúdió, is due to complete later in the year. This is the largest single block office center under construction in Budapest, according to Wing. Skanska, is due to complete the twinphased, 35,000 sqm Mill Park in District IX. The project is letting well, according to Skanska and has been made available to investors. In the current economic environment, the office development boom looks set to continue as developers are able to source finance, conclude the necessary preleases and sell on to investors.

projects. In a major phased development in the Váci Corridor, HB Reavis is constructing the 136,000 sqm Agora Budapest. The long term, phased development project, designed by the London-based Make architects and the Hungarian Finta Studio, is scheduled for completion

in

2023.

The first speculative phase of the development, Agora Hub and Agora

White House.

INSIDE VIEW

As the years go by and new generations enter the world of work, employee wellbeing is becoming more and more popular. The Y and Z generations increasingly expect and even consider it natural that working hours should not mean keeping your nose to the grindstone for eight hours without a break; they need short breaks of relaxation during the day and the ability to choose more informal workstations. Designers of the office buildings of the future are fully aware of this, therefore they create workstations accordingly and the office buildings of BudaPart, including BudaPart Gate, were designed taking these expectations into account. The development by Property Market, BudaPart is a unique project in Hungary, thanks to its location and the high ratio of green areas and water surfaces. By the establishment of a professionally built environment, and

the provision of direct access to the public park on the banks of the River Danube, the development will offer an outstanding quality of life, a motivating work environment and opportunities for recreation. However, BudaPart is not only exceptional because its developers have taken into account the special environmental features of Lágymányosi Bay to the fullest extent to create a place that offers a new lifestyle for the individuals living and working there, but also because it organizes them into a real community. In fact, by the end of the project, a total of 15 residential and 14 office buildings, a hotel, restaurants and retail units will have been created, surrounded by public parks, playgrounds for children of different ages, a dog track, a bicycle track and sports courts on a 20-hectare area. The 20,000 sqm office building of BudaPart Gate will be situated at the gateway of the

main square of BudaPart, the construction of which commenced in the summer of 2017, and will be completed in 2019. The office building will simultaneously provide the urban infrastructure necessary for quality work and proximity to nature, for the sake of inspiration. Constructed by Market Építő Zrt., one of the largest civil engineering companies in Hungary with a 21 year history, the high quality BudaPart Gate is situated just an arm’s length from the Danube, thus the employees working here in the future will get a daily dose of the creative energy provided by the unique site and its characteristics. When BudaPart Gate was designed, the developers wanted the built environment to contribute to concentration and reduce stress levels. There is a great emphasis on public space – an essential element nowadays – and well-being within the building. In the LEED “Gold” qualified office building with an energy saving certificate, ideal spaces with optimal solar exposure will be provided, where the employer can customize their own office space efficiently and according to their requirements. BudaPart project will serve multiple purposes hallmarked by human-centered living spaces and workstations, dominated by environment-friendly cutting-edge technology and careful engineering design. This will be further emphasized by the construction of the 120 meter tall MOL Campus, to be built on the main square of BudaPart, designed by Foster + Partners, who have built a number of iconic buildings, such as the visitor center at Apple Park.

3 arguments for your company to become #budaparti Borbála Csuhay, sales and asset management director of Property Market Real Estate Development Ltd.: 1. Nowadays, the remuneration of the labor force and the additional costs of employee fluctuation impose a significant burden on companies, compared to which office rental costs are negligible, therefore businesses proactively anticipate the needs of employees. According to our experiences, good access, quality buildings, practical, easily adaptable spaces and economical operation are the most important basic expectations of tenants in the office market, and these are the aspects we also focus on. 2. As employees do not work solely in isolation, but rather they form a community, these spaces must be suited for brainstorming during work, in order to significantly increase creativity and efficiency. In the case of BudaPart Gate, real community spaces are located not only inside, but also outside the buildings! 3. In line with the growing trend of culinary experiences, BudaPart Gate also breaks with the dull monotony of the usual cafeterias serving the needs of office workers: employees will be treated to a high-quality canteen with a special focus on healthy nutrition. The dishes made with quality raw materials will serve the well-being of those enjoying them.

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

BudaPart Gate – Gateway to the Future


22 | 3

Special Report

www.bbj.hu

PARTNER CONTENT

Budapest Business Journal | May 4 – May 17, 2018

Europa Design has won the national title for Hungary in the “Workplace and People Development” award category of the European Business Awards for its work in establishing an efficient and humanfocused working environment. BBJ

This new category was introduced for the 11th European Business Awards to deal with issues such as how the working environment contributes to the efficiency of the company, and how office furniture (hardware), as a one-time investment,

Photos: Tamás Bujnovszky

Europa Design, a Motivating Workplace

can pay off on the more expensive side of human resources (software). Not to mention the trending concept of well-being, which does not even appear on the balance sheet, being difficult to express in numbers. The underlying principles of the European Business Awards are innovation, fair operation and success. The primary purpose is to support the development of a stronger and more successful business community throughout Europe. Last year the EBA drew in entries from 33,000 businesses across 34 countries competing

in 12 categories. Some 2,210 Hungarian companies entered the “Workplace and People Development” category, of which the leading 90 were listed as Ones to Watch. Europa Design was one of 12 national winners selected and will now be attending the grand final in Warsaw on May 22-23. Check outbusinessawardseurope.com for more details on all the national winners. Otto Feuertag, founder and CEO of Europa Design, says his company has been developing the working environment of Hungarian businesses for 24 years.

Around 1,000 references have been collected over that time, proving its dedication to establishing workplace ergonomics, and an efficient, healthy and comfortable working environment.

Outstanding Example

“The cohesive, developing role of office centers has recently become crucial in attracting and keeping workforce. Europa Design’s office building with its showroom is an outstanding example that establishes a connection among people, annuls the border of exterior and interior, natural and artificial environment, creating public space indoors and out,” Feuertag explains. He says the company leads by example in the creation of its own multifunctional office space, which is inspirational and innovative not only for the staff of Europa Design, but also provides educational and community-building functions to the wider community. “We are convinced that furniture which provides one with a high level of ergonomics and comfort helps the efficient and productive workflow. Creative community and collaboration areas contribute to the establishment of connections and cooperation. Our aim is to increase the number of Hungarian workplaces which can quickly and flexibly adjust to the human-centered, collaborative norms of the 21st century. We have still got a lot to do, but our successes on the market justifies us. We are immensely honored to receive one of the most prestigious European awards for our efforts,” Feuertag adds.

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Everything changes STRABAG Property and Facility Services Zrt. H-1095 Budapest, Máriássy u. 7. Tel +36 1 299 2150 Fax +36 1 210 0095 info@strabag-pfs.hu www.strabag-pfs.hu 1_2_V1.indd 1

Hungary

17

Hungary

2018.04.26. 17:38:54


New Jewel at the Danube

Planned completion: 2020 LEASING: www.millenniumgardens.hu | mgs@trigranit.com | +36 1 456 6200


24 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

Interior Spaces Integral to Office Design, Management The interior design and property management of office centers is increasingly regarded as an integral element of the overall successful design, development, letting and operation of office buildings. GARY J. MORRELL

Sustainability and imaginatively designed office interiors are now regarded as necessary for the improved performance and retention of staff by building occupiers, with the tight labor market meaning the demands of staff increasingly have to be taken into account. Exterior and interior elements are ever more seen as part of the integrated design, construction and property management phases of office developments. The concern with interior specification and quality is reflected in the number of office developers designing their buildings in accordance with WELL interior accreditation. “Tenants have a higher demand for efficient and cost-effective solutions such as community spaces,” says Tamás Sellyey, general manager of the DVM Group. “Most companies are very cost conscious with regard to fit out and efficiency; however, on the other hand, we have some very demanding clients who require design and fit out work for very unique and ‘moody’ offices such as Mastercard and Viacom. All companies are increasingly taking the needs of employees into consideration,” he adds.

precertification. “Futureal Group’s Advance Tower, Corvin Technology Park (Corvin 5) and Budapest ONE office buildings account for more than 100,000 sqm of office space,” says Tibor Tatár, CEO at Futureal. “These complexes are being realized based on the factors that have a beneficial impact on employees’ health and well-being. Innovations driven by WELL Building Standard will define the office markets over the next decade,” he says. HB Reavis, Skanska and Horizon Development are all applying for WELL certification for their projects. “At HB Reavis we think that it is not enough to create sustainable buildings anymore. The whole planning and design procedure is now led by the wellbeing of people. The WELL building standard focuses on enhancing people’s health and wellbeing through the built environment,” HB Reavis says. The World Green Building Council (WGBC) calculates that staff

constitute

Office designers are becoming more adventurous in their office designs. The Dealogic headquarters (Eiffel Square Irodaház, Teréz körút 55-57), designed by the Gábor Miklós Szőke Studio, contains an old tram that is used as a meeting place. Such designs are seen as reflecting the efforts of designers and employers to create an environment that increases the wellbeing of staff who work less regular

“Most companies are very cost conscious with regard to fit out and efficiency; however, on the other hand, we have some very demanding clients who require design and fit out work for very unique and ‘moody’ offices.” hours but often spend more time in the work place. Szőke, who specializes in both urban and interior design, describes his aim as to provide green areas and an

interesting environment that reflects a feeling of the history of the industrial city and its transport system. “Tenants are getting smarter in terms of their requirements in office buildings and how the office space which they occupy should look and what it should contain,” comments Valter Kalaus, manager partner at Cresa Hungary. “Obviously, the location remains one of the most important aspects; beyond this, tenants require bicycle parking and changing facilities, restaurants, green areas and additional services such as banking. It is also important to have a well-planned and appropriately designed interior of the working environment. Tenants require community spaces where they can meet in a comfortable environment and discuss a project in addition to small conference areas where they can make a private phone call. Also, appropriate lighting and the ability to control the temperature are important,” Kalaus adds.

Defining the Market

Futureal Group has started the construction of the second phase of the 8,000 sqm Advance Tower office building in the Váci Corridor and the complex has been awarded WELL Building “Platinum”

90%

of office business costs and therefore it is in the interest of the employer to create the conditions that maintain and enhance the health and well-being of

“Tenants are getting smarter in terms of their requirements in office buildings and how the office space which they occupy should look and what it should contain.” office occupants, who spend a large proportion of their time in their place of work. The WGBC lists eight features of green office buildings such as thermal comfort and independent temperature controls that increase overall productivity by 3%. Further, access to daylight in the office allows people to sleep comfortably at night, resulting in lower sick leave. Higher quality air results in higher quality cognitive reactions from office staff according to research.

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RIVER ESTATES

TERRAPARK C + D ADDRESS: 1134 Budapest, Váci út 35. BUILDING YEAR: 1998 FREE SPACE: 9200 sqm PUBLIC TRANSPORT: metro line M3, trolley bus No. 75, 79 CONTACT: Zoltán Fábián: +36 20 497 2181

River Estates, this grade A office building, is situated at the intersection of Váci út and Dózsa György út. The building has a perfect setting to work in. Be our tenant and enjoy the comfort of abundant services such as a restaurant, a fitness and wellness center, a renewed landscaped garden, shower rooms for cyclists and 357 parking places.

ADDRESS: 2040 Budaörs, Liget utca 3/2. BUILDING YEAR: C Block 2008; D Block 1995-2000 PUBLIC TRANSPORT: Bus 40, 140, 240, 88, 188, 287, Terrapark shuttle bus CONTACT: Tel: +36 20 9848 999, info@terrapark.hu Terrapark C + D , Hungary’s first office park of Western European quality, currently is home to more than 80 companies in Budaörs. Thanks to its excellent accessibility and favorable location, it offers high-quality office space in a natural environment. Terrapark offers office solutions at flexible conditions from 15 sqm to as much as 2,000 sqm on one floor.


www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

PRESENTED CONTENT

3

Special Report | 25

25 Years of Keeping Pace With a Dynamic Market preliminary occupancy of offices under construction is very attractive. Rents are on the rise while yields are still diminishing and development lots are in great demand. Developers still believe in expansion and I also see opportunities, niches, in the market where value may be generated. I think landlords may maintain their strong negotiating power in 2018, which would be reflected in a growing difference in rents in different office classes.

Eston started life in 1993 as a real estate company called Biggeorge’s, and has been evolving ever since. Today it counts Property Management among its most dynamically growing (and award-winning) departments. We spoke with CEO-owner Adorján Salamon. Congratulations on celebrating 25 years in business. What have been the highlights? The company started operations in the real estate market in 1993 and begun expanding its range of services very early on. As a declaration of its professional approach, the company narrowed its focus to commercial real estate in 2004. ESTON has earned – and maintains – a strong market position in this sector where the main competitors are local offices of the biggest global real estate service providers. Since 2010, ESTON offers customized solutions in the property management industry as well; in fact, this has become one of ESTON’s most dynamically evolving departments. In September 2017, ESTON and Savills formed professional association with the aim of extending the company’s services to institutions and property companies looking to invest in Hungary, as well as to introduce Hungarian clients to the wider European market through Savill’s extensive network of offices. By now, ESTON’s team and market share, as well as our annual turnover, are the largest in the company’s history and I am sure we can further grow in the current market situation. How has the market changed since company’s establishment? We saw a full round of the CRE market life cycle with an accelerating upswing starting in the early ‘90s, only to be hit by the crisis. And again, market fundamentals are continuously improving, market players are optimistic as the overall health of the sector has been restored and available funding seems to be abundant. As I see it, the market has become more segmented, both in geographical terms and by means of product features and, following a refreshment of the investors’ and developers’ scenes (exchange of many market players), the activities and market shares of domestic companies have strengthened remarkably. In short, the

And what is the picture for the investment market? How has this changed over the years and what do you predict for the future? Historically, Germany based investors dominated the market for a long period. After the crisis, and following a restructuring of the portfolios, new

Flexibility and trustworthiness are the foundations of our professional services and this is especially true in property management. We hire experts who pay attention to details and are committed to deliver the highest standard of services to our clients.

We saw a full round of the CRE market life cycle with an accelerating upswing starting in the early ‘90s, only to be hit by the crisis. And again, market fundamentals are continuously improving, market players are optimistic as the overall health of the sector has been restored and available funding seems to be abundant. Hungarian property market is mature and much more professional than 25 years ago and the same applies to ESTON as well. How do you evaluate the Budapest office market in 2018? How do you think it will develop?

The Budapest office market is evolving with increasing dynamics and as such, it is a very interesting, yet challenging environment for property professionals. Class “A” offices are sought after and time management of office lease transactions has become extremely important as landlords are still in a strong position at negotiations. We must emphasize the importance of careful planning, as we have gained special expertise in representing tenants and landlords. As such, ESTON was awarded for closing Nokia Networks’ 25,000 sqm deal with the title “Office Transaction of the Year”; on the other hand, by means of a 10,300 sqm prelease agreement, we successfully contributed to the relocation of Fundamenta to the Hill Side Offices scheme, which was the biggest prelease in 2017. Development activity intensifies this year, which could bring a temporary, though not lasting, stop to market trends. Are there any obvious trends to be identified? Dynamically decreasing vacancy has been a clear indicator of office demand exceeding supply. In 2018, more offices may be completed than in the last three years together (260,000 sqm); on the other hand,

investors appeared with different risk sensitivity. It is clear now that the Hungarian real estate investment market has recovered and investment volumes have returned to a healthy level. Also, the increasing importance of local investors can be identified; Hungarian entities’ investments grew to 40% out of the annual investment volume as their focus shifted towards pricier assets. I think, this latter trend continues in 2018 as well. Compared to your 25 years in business, Property Management is a relatively new area for you, yet you have already won several prizes. What do you put your success down to? Flexibility and trustworthiness are the foundations of our professional services and this is especially true in property management. We hire experts who pay attention to details and are committed to deliver the highest standard of services to our clients. The portfolio of office buildings we manage, now more than 200,000 sqm, has continuously and dynamically expanded since the establishment of our PM department and we are confident that we can further grow our market share in 2018 as well.


26 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

Category 'A' office buildings in greater Budapest

www.futurealgroup.hu

MILLENNIUM GARDENS 3

www.millenniumgardens.hu

500 5

32 1,500

14–15 800–1000 HUF

8

250 5

26

Ÿ

Ÿ Ÿ

11

500 5

12 630

Ÿ Ÿ

Ÿ

9

160 5

16 580

14 3.86

ExxonMobil, Honeywell, GE, Industrial Solution, Ecolab

35,900 50,800

9

250 5

4+3+3 426

11.9–12.9 3.5

Atmedia, KRKA, Magyar Posta, NSC, Orbico, Samsung

– CPI Property Group (100)

32,000 38,000

9

200 5

18 640

13–14.5 1,250 HUF

Aesthetica, KCI, Ferrero, Regus, De Lage Landen, ALD

Cushman&Wakefield Kft., www. cushmanwakefield.hu

– CA IMMO (100)

1133 Budapest, Váci út 76. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1134 Budapest, Váci út 45. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

55,429 65,372

37,000 74,844

CENTER POINT 4

www.gtc.hu

36,867 42,681

Ÿ

RESTAURANT, CAFÉ

WELLNESS AND SPORT SERVICES

24-HOUR RECEPTION AND SECURITY SERVICES

GREEN ENVIRONMENT

SUITABLE FOR DISABLED PEOPLE

IN-HOUSE FACILITY MANAGEMENT

BANK BRANCH/ATM

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

JLL, CBRE

CBRE Leasing, www.cbre.hu

INDEPENDENT POWER SUPPLY

Underground+8

BICYCLE PARKING

65,514 72,000

LEASING AGENT, NAME, WEBSITE

WASTE RECYCLING

CURRENT MAJOR TENANTS

SERVICES

NATURAL LIGHT AND AIR VENTILATION

AVERAGE MONTHLY RENT ON APRIL 1, 2018 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APRIL 1, 2018 (EURO/SQM)

2

BUDAPEST ONE

www.atenor.be

NO. OF ELEVATORS NO. OF PARKING SPACES

ARÉNA BUSINESS CAMPUS

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

1

NO. OF LEVELS

COMPANY WEBSITE

GREEN TECHNOLOGIES

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDINGS (SQM)

RANK

Ranked by net office space (sqm)

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

Hungária Greens Kft. (100) –

1087 Budapest, Hungária körút 30. (1) 785-5208 – info@atenor.hu

(100) –

1112 Budapest, Boldizsár utca 1–3. (1) 266-2181 (1) 688-5498 office@futureal.hu

– TPG Real Estate (100)

1095 Budapest, Lechner Ödön fasor 10/B (1) 456-6200 (1) 456-6295 mgs@trigranit.com

Ÿ Ÿ

1139 Budapest, Váci út 81. (1) 412-3697 (1) 412-3681 leasing@gtc.hu

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

GATEWAY OFFICE PARK www.gatewaybc.hu 5

6

CAPITAL SQUARE

www.caimmo.com, www.capitalsquare.hu

MYHIVE ÁTRIUM PARK 7

www.myhive-offices.com/hu

31,200 38,400

Underground+6

180 5

25 733

13–17 1000 HUF

Ÿ

JLL, Robertson

– Immofinanz AG (100)

7

– 5

14 443

Ÿ Ÿ

NAV

Ÿ Ÿ

Aventus Real Estate, www. aventusrealestate. com

– (100)

8

SPIRAL

30,549

9

BANK CENTER

30,041 52,184

10

200 3

17 480

17–22 4.40

BÉT, BorsodChem, Citibank, Regus, Weil

10

EUROPE TOWER

30,000 38,000

15

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Erste Bank Hungary Zrt.

29,800 31,500

16

152 5

10 413

13–15 4

IBM, Huawei, Metlife, Ford, TMF Group

9

250 5

8 232

19–24 –

Ÿ

8

350 5

16 538

Ÿ Ÿ

Ÿ

www.gtc.hu

www.bankcenter.hu

www.erstealapkezelo.hu

DUNA TOWER 11

12

www.dunatower.hu

ROOSEVELT

www.roosevelt-budapest.com

Ÿ

29,000

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ

Cushman&Wakefield, www. cushmanwakefield.hu

Cushman&Wakefield Kft., www.cushmanwakefield.hu

Ÿ Ÿ

1138 Budapest, Népfürdő utca 22. (1) 412-3697 (1) 412-3681 leasing@gtc.hu

Ÿ Ÿ

1051 Budapest, Széchenyi István tér 7–8. (1) 473-1209 – tamara.szanto@eur. cushwake.com

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

1095 Budapest, Soroksári út 44. (1) 382-9100 (1) 382-9129 leasing@skanska.hu

– IMMOFINANZ AG (100)

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

MILL PARK 13

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

14

PMS Black 90% C0 M0 Y0 K90 R64 G64 B64

www.skanska.hu, www.millpark.hu

MYHIVE HALLER GARDENS

www.myhive-offices.com/hu

28,550 62,800

28,520 34,300

Underground+7

410 5

15 618

13–17 1,000 HUF

Ÿ

JLL, C&W

Erste Ingatlan Alap (100) –

1134 Budapest, Dózsa György út 128-130. (1) 412-3697 (1) 412-3681 leasing@gtc.hu 1054 Budapest, Szabadság tér 7. (1) 302-9010 (1) 302-9020 anett.eles@bankcenter.hu 1138 Budapest, Népfürdő utca 24–26. (1) 920-2161 (1) 920-2151 antal.garamvari@ erstealapkezelo.hu


Special Report | 27

3

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

NO. OF LEVELS

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

NO. OF ELEVATORS NO. OF PARKING SPACES

AVERAGE MONTHLY RENT ON APR. 1, 2018 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2018 (EURO/SQM)

CURRENT MAJOR TENANTS

RESTAURANT, CAFÉ

WELLNESS AND SPORT SERVICES

24-HOUR RECEPTION AND SECURITY SERVICES

GREEN ENVIRONMENT

SUITABLE FOR DISABLED PEOPLE

IN-HOUSE FACILITY MANAGEMENT

BANK BRANCH/ATM

NATURAL LIGHT AND AIR VENTILATION

WASTE RECYCLING

BICYCLE PARKING

INDEPENDENT POWER SUPPLY

28,065 43,000

7

Ÿ

12 399

Ÿ Ÿ

Ÿ

Ÿ

Ÿ Ÿ

PARKWAY

27,600 31,200

9

Ÿ 3

8 554

Ÿ Ÿ

Ÿ

Robertson Hungary, www.robertson.hu

Ÿ Ÿ

17

SCIENCE PARK

27,278 29,450

7

600 5

10 388

13–14 1,130 HUF

Ÿ

CBRE, www.cbre.hu

– Heitman (100)

18

IP WEST

26,500 30,100

8

350 3

15 841

12.5–13.5 1,350 HUF

Siemens, British Telecom, Transcom

CA IMMO

– CA IMMO (100)

18

NORDIC LIGHT

www.erstealapkezelo.hu

26,500 44,000

7

400

Ÿ

12 404

Ÿ Ÿ

Schneider, Mercedes, Monsanto, Harman

(100) –

20

PARK ATRIUM

26,000

Ÿ Ÿ

10 377

Ÿ Ÿ

Ÿ

Ÿ Ÿ

RANK

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDINGS (SQM)

GREEN TECHNOLOGIES

COMPANY WEBSITE

15

WEST END BUSINESS CENTER

16

www.westendbusinesscenter.hu

www.robertson.hu

www.sciencepark.hu

www.caimmo.com

www.park-atrium.com

Ÿ

8

5

SERVICES

LEASING AGENT, NAME, WEBSITE

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

1132 Budapest, Váci út 20–26. (1) 451-4760 (1) 451-4289 office@mompark.hu 1087 Budapest, Könyves Kálmán körút 54–58. (1) 327-2050 – office@robertson.hu 1117 Budapest, Irinyi József utca 4–20. (1) 374-3040 – office.hungary@cbre.com 1117 Budapest, Budafoki út 91–93. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1133 Budapest, Váci út 96–98. (1) 920-2161 (1) 920-2151 erstealapkezelo@ erstealapkezelo.hu 1068 Budapest, Dózsa György út 84/B

Ÿ –

Ÿ 3

250 3

6 538

11.5 1,390 HUF

Shell, LeasePlan, Reckitt Benckiser, Mars, Medtronics, KUKA Robotics, MSX, Viacom

10

335 5

12 365

11.5 1,250 HUF

Ericsson, DHL, Fressnapf, 4Flow, Papyrus, MÁV

Ÿ

8

Ÿ 3

12 360

Ÿ Ÿ

Ÿ

25,000 50,000

Underground+8

750 5

13 1,000

25

21

DOROTTYA UDVAR

25,887 28,659

21

NÉPLIGET CENTER

www.nepliget-center.com

25,887 28,659

23

BSR CENTER

25,000

23

EXCHANGE PALACE

www.dorottya.net

www.bsr.hu

Ÿ

Krisztina Enzsöl, www.cushmanwakefield.com

– (100)

Krisztina Enzsöl, www.cushmanwakefield.com

– (100)

Ÿ

OTP Ingatlanbefektetési Alap (100) –

CBRE, www.cbre.hu, JLL, www.jll.hu

– Tippin Corporation (Ÿ), Optimum (Ÿ)

PROMENADE GARDENS www.promenadegardens.hu 23

26

25,000

Ÿ

VÁCI GREENS B ÉPÜLET www.vacigreens.hu

24,770 25,303

6

Ÿ 5

18 340

Ÿ Ÿ

Celanese

Ÿ Ÿ

1133 Budapest, Váci út 80. (1) 473-1209 (1) 473-1210 leasing@ horizondevelopment.hu

Cushman&Wakefield Kft., www.cushmanwakefield.hu, Robertson Hungary Kft., www.robertson.hu

OTP Prime Ingatlanbefektetési Alap (100) –

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

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

7

300 5

12 399

14 3.22

GE, Givaudan, Accenture

24,200 47,000

8

– –

12 370

14–16 3.70

Bank of China, Citi, Vodafone

– CPI Property Group (100)

23,749 27,390

8

250 5

12

Ÿ

Ÿ Ÿ

Ÿ

(100) –

1113 Budapest, Bocskai út 134–146. (1) 268-1288 (1) 268-1289 dorottyaudvar@eur. cushwake.com 1097 Budapest, Könyves Kálmán körút 11. (1) 268-1288 (1) 268-1289 – 1138 Budapest, Váci út 135–139. (1) 412-8300 – – 1054 Budapest, Szabadság tér 17. (1) 374-3040 – richard.vigh@cbre.com

ARENA CORNER

www.arena-corner.hu 27

28

CORVIN TECHNOLOGY PARK 1. ÜTEM

29

BARTÓK UDVAR II.

23,000 37,300

7

500 5

11 478

13.5–14.5 3.2

Ÿ

Infogroup Csoport (100) –

30

CORVIN TOWERS

22,305 24,137

6

250 5

Ÿ

17

Ÿ Ÿ

Ÿ

(100) –

31

CITY GATE

22,000 23,000

8

300 5

9 407

13–13.95 1,300 HUF

IBM

Cushman&Wakefield, www. cushmanwakefield.hu

– CA IMMO (100)

www.futurealgroup.com

www.bartokudvar.hu

www.futurealgroup.com

www.citygate.hu

1082 Budapest, Bókay utca (1) 266-2181 (1) 688-5498 office@futureal.hu 1115 Budapest, Bartók Béla út 105-113. (1) 481-4530 (1) 481-4531 info@infogroup.hu 1082 Budapest, Futó utca 35-45. (1) 266-2181 (1) 688-5498 office@futureal.hu 1092 Budapest, Köztelek utca 6. (1) 501-2800 (1) 501-2801 office@caimmo.hu


www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

www.ersteingatlan.hu 32

21,500 29,000

12

300 5

7 222

teRRapaRk C+d www.terrapark.hu

21,282

33

34

Ÿ

váCi CoRneR offiCes www.vacicorneroffices.hu

21,047 33,000

35

alkotás point

www.alkotaspoint.hu

20,500 25,100

35

vision toWeRs

20,500

www.erstealapkezelo.hu

Ÿ

independent poWeR supply

biCyCle paRking

Waste ReCyCling

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

1088 Budapest, Rákóczi út 1–3. (1) 235-7770 (1) 235-7767 info@ersteingatlan.hu

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

S&T, Partner in Petfood, Flaga, GDF Suez, Ricoh, Kaiserfood, Diversey, Groupe SEB, Gemma, Goodmills, Bioderma, Hell Energy, Hypred, Rockwell, ✓ Controltech, Dexon Systems, Trane, Vasútautomatika, Honda, PBA Praeventio, Innoveng, HPIX, Patona és Tsa, Magyar Innováció Kft (MI6)

Terrapark Kft., www.terrapark.hu

– Terrafinanz GmbH (100)

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

Váci Corner Offices Kft. (100) –

1138 Budapest, Váci út 144–150. (1) 580-2280 – info@vacicorneroffices.hu

White Star Real Estate Kft., www.whitestarrealestate.hu

5

15 3

13 398

7–10 2.5–3

9

200 5

9 363

Ÿ

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

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

3

leasing agent, name, Website

natuRal light and aiR ventilation

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

14.5–15.5 1,355 HUF

Sberbank, Cognex, Air France/KLM, Thomson Reuters, Magnetbank

RestauRant, Café

CuRRent majoR tenants

east-West business CenteR

gReen teChnologies

seRviCes

aveRage monthly Rent on apR. 1, 2018 (euRo/sqm) aveRage monthly seRviCe ChaRge on apR. 1, 2018 (euRo/sqm)

no. of elevatoRs no. of paRking spaCes

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

Company Website

no. of levels

Special Report net offiCe spaCe (sqm) total gRoss size of buildings (sqm)

Rank

28 | 3

6

492 5

9 395

15–15.5 4.45

Bayer, Eclipse, Euronet, HOLD Alapkezelő, Medicover, NuSkin, Signal

6

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

KPMG, Teva, Provident, Medicover

7

500 5

14 299

13.5–16 980 HUF

Erste Ingatlan Kft. (100) –

Ÿ Ÿ Ÿ Ÿ

– Heitman (100)

(100) –

1123 Budapest, Alkotás utca 50. (1) 382-5100 (1) 382-5101 info@whitestar-realestate. hu 1134 Budapest, Angyalföldi út 6. (1) 920-2161 (1) 920-2151 antal.garamvari@ erstealapkezelo.hu

gtC White house

www.gtcwhitehouse.hu 20,404 21,574

37

38

váCi gReens f épület www.vacigreens.hu

20,394 27,112

www.simmoag.hu

20,245 30,141

40

váCi gReens e épület

20,205 25,311

41

váCi gReens C épület

18,920 20,035

42

R70 offiCe Complex

43

44

– (100)

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

City Tower Kft. (100) –

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

– IAD Investments (100)

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

10

700 5

11 357

12–14 3.7

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

Robertson Hungary, JLL

6

12.5–13.85 2.6

18,700 19,000

10

250 3

9 450

11–13 1,300 HUF

Keler, Develor

mom paRk iRodák

18,638 48,000

6

230 5

13 486

Ÿ Ÿ

Ÿ

offiCe gaRden ii

18,600 27,000

8

6 310

Ÿ Ÿ

TATA, Syngenta, Pirelli

www.erstealapkezelo.hu

6–9 301

www.momparkoffice.hu

– 5

www.caimmo.com

Ÿ

7

www.vacigreens.hu

14–15 2.6

14–15 2.60

www.vacigreens.hu

7

12 359

12 365

Ÿ

Ÿ

GE

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

City Tower Kft. (100) –

500 5

500 5

1134 Budapest, Váci út 47. (1) 412-3697 (1) 412-3681 leasing@gtc.hu

Cushman&Wakefield Kft., www.cushmanwakefield.hu, Robertson Hungary Kft., www.robertson.hu

RiveR estates 39

BlackRock

Ÿ Ÿ

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

Cushman&Wakefield Kft., www.cushmanwakefield.hu, Robertson Hungary Kft., www.robertson.hu Cushman&Wakefield Kft., www.cushmanwakefield.hu, Robertson Hungary Kft., www.robertson.hu

Cushman&Wakefield Kft., www. cushmanwakefield.hu

– CA IMMO (100)

Cushman&Wakefield Kft., www.cushmanwakefield.hu

Ÿ Ÿ

Erste Ingatlan Alap (100) –

1074 Budapest, Rákóczi út 70–72. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1123 Budapest, Alkotás utca 53. (1) 487-5501 (1) 487-5542 office@mompark.hu 1117 Budapest, Alíz utca 2. (1) 920-2161 (1) 920-2151 antal.garamvari@ erstealapkezelo.hu


Cetelem Bank, Medicover, Dealogic, Iberdrola, Grundfos, ESAB, Costa, Agoda, CPL Jobs

46

47

MILLENNIUM TOWER III

18,000 21,000

9

– 5

8 250

Ÿ Ÿ

Morgan Stanley, MSD Pharma, Lexmark

www.caimmo.com

17,638 20,092

12

300 5

9 405

14.5–17.5 1,100 HUF

Ÿ

8

Ÿ

Ÿ Ÿ

Ÿ

INDEPENDENT POWER SUPPLY

20 4.2

BICYCLE PARKING

10 365

www.eiffelsquare.com

WASTE RECYCLING

7

250 5

EIFFEL TÉR IRODAHÁZ

LEASING AGENT, NAME, WEBSITE

NATURAL LIGHT AND AIR VENTILATION

18,500 23,500

Ÿ

BANK BRANCH/ATM

STRABAG Zrt., IBM, SEMCON

IN-HOUSE FACILITY MANAGEMENT

12.5–12.75 3.2

SUITABLE FOR DISABLED PEOPLE

7 350

GREEN ENVIRONMENT

200 3

24-HOUR RECEPTION AND SECURITY SERVICES

7

WELLNESS AND SPORT SERVICES

AVERAGE MONTHLY RENT ON APR. 1, 2018 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2018 (EURO/SQM)

CURRENT MAJOR TENANTS

RESTAURANT, CAFÉ

NO. OF ELEVATORS NO. OF PARKING SPACES

18,526

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

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

INFOPARK D ÉPÜLET

GREEN TECHNOLOGIES

SERVICES

NO. OF LEVELS

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDINGS (SQM)

RANK 45

COMPANY WEBSITE

Special Report | 29

3

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

– TRIUVA (100)

1117 Budapest, Gábor Dénes utca 2. (1) 382-7560 (1) 382-7570 office@gamma-am.hu 1062 Budapest, Teréz körút 55–57. (1) 225-0912 (1) 375-0445 bzadori@ convergen-ce.com

GAMMA Properties Kft.

ConvergenCE, www.convergen-ce. com

– KGAL (100)

– CA IMMO (100)

1095 Budapest, Lechner Ödön fasor 8. (1) 501-2800 (1) 501-2801 office@caimmo.hu

Cushman&Wakefield Kft., ESTON International Zrt.

BudaPart Auratus Kft. (100) –

1117 Budapest, Dombóvári út 27. (1) 241-0080 – sales@budapart.hu

(100) –

BUDAPART GATE www.budapart.hu 48

49

ADVANCE TOWER I-II

17,487 19,981

7

250 5

50

KRISZTINA PALACE

www.erstealapkezelo.hu

17,300 18,000

6

280 –

7 399

Ÿ Ÿ

Ÿ

Cushman&Wakefiled Kft., www.cushmanwakefield.hu

(100) –

51

MARGIT PALACE IRODAHÁZ

17,138 20,323

6

300 3

6 240

12.5–14 3.9

EMEA, Getronics, Fővárosi Ítélőtábla, EPAM, Oberbank

– Bluehouse (100)

52

TERRAPARK NEXT B

17,042 20,055

4

250 3

5 245

8.5–11 3.5

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

Eston International Zrt., www.eston.hu

– Bluehouse (100)

53

BARTÓK HÁZ

17,000 30,000

9

360 3

5 406

12.95–13.95 1,150 HUF

Novartis, Lidl

– CA IMMO (100)

53

MILLENNIUM TOWER II

17,000 18,600

9

– 5

6 300

Ÿ Ÿ

Morgan Stanley, Oracle Hungary, Nestlé, KLM, Lexmark

– CA IMMO (100)

55

OFFICE GARDEN III

16,922 18,500

7

Ÿ 5

5+ 427

Ÿ Ÿ

Ÿ

GRT Group (100) –

56

GREEN HOUSE

16,800 30,200

10

– 5

6 252

Ÿ

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

Torony Ingatlan Befektetési Alap (100) –

– IMMOFINANZ AG (100)

www.futureal.hu

www.margitpalace.com

www.terraparknext.com

www.caimmo.com

www.caimmo.com

www.officegarden.hu

www.diofaalapkezelo.hu

MYHIVE THIRTEEN (GLOBE)

www.myhive-offices.com/hu

16,644 17,310

58

CORVIN ONE

59

60

57

980 HUF

Underground+9

434 5

6 254

11.5–12 1,000 HUF

16,352 17,867

7

250 5

6

Ÿ

Ÿ Ÿ

Ÿ

(100) –

MILLENNIUM TOWER I www.caimmo.com

16,300 18,800

11

370 5

6 264

Ÿ Ÿ

Boehringer Ingelheim Pharma, Cognizant, Vodafone

– CA IMMO (100)

GTC METRO

16,192

9

– 5

6 222

Ÿ Ÿ

Budapest Bank

Ÿ Ÿ

www.futurealgroup.com

www.gtc.hu

Ÿ

Ÿ

JLL

1134 Budapest, Váci út 43. (1) 266-2181 (1) 688-5498 office@futureal.hu 1123 Budapest, Nagyenyed utca 8–14. (1) 920-2161 (1) 920-2151 antal.garamvari@ erstealapkezelo.hu 1027 Budapest, Henger utca 2. (70) 884-4099 (1) 375-0445 pholy@ bluehousecapital.com 2040 Budaörs , Puskás Tivadar utca 4. (70) 884-4099 (1) 375-0445 pholy@ bluehousecapital.com 1114 Budapest, Bartók Béla út 43–47. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1093 Budapest, Lechner Ödön fasor 6. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1117 Budapest, Alíz utca 4. (1) 382-7020 (1) 382-7020 grtgroup@grtgroup.hu 1134 Budapest, Kassák Lajos utca 19. (1) 888-4120 (1) 888-4171 alapkezelo@ diofaalapkezelo.hu 1139 Budapest, Teve utca 1/ A-C (1) 451-8040 (1) 236-0435 offices_hu@ immofinanz.com 1082 Budapest, Futó utca 47–53. (1) 266-2181 (1) 688-5498 office@futureal.hu 1095 Budapest, Lechner Ödön fasor 6. (1) 501-2800 (1) 501-2801 office@caimmo.com 1138 Budapest, Váci út 193. (1) 412-3697 (1) 412-3681 leasing@gtc.hu


Special Report

Ÿ

Cushman&Wakefield Kft., www.cushmanwakefield.hu

VG 117 Ingatlankezelő Kft. (100) –

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

M.E.F.G Zrt. (100) –

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

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

6

269 5

8 258

14 2.6

Unilever, Costa Café

15,600 29,000

10

130 5

6 291

13–14 3.3

Lufthansa Systems, EIT, National Instruments, 3M

offiCe gaRden iv

15,373 17,532

7

Ÿ 5

Ÿ Ÿ

Ÿ Ÿ

offiCe gaRden i

15,022 26,000

7

110 3

6 320

12 3.5

6

Ÿ 5

7 300

Ÿ Ÿ

7

300 5

11 430

13.5–15.5 1,100 HUF

Ÿ Ÿ

Ÿ Ÿ

Ÿ

Ÿ

63

váCi gReens d épület

15,635 17,721

64

infopaRk e épület

65

66

www.vacigreens.hu

www.vacigreens.hu

www.diofaalapkezelo.hu

www.officegarden.hu

www.robertson.hu

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ

Ÿ

independent poWeR supply –

13 3.2

biCyCle paRking ✓

8 269

Robertson Hungary, www.robertson.hu

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

533 5

15,693 24,803

addRess phone fax email

Underground+6

váCi gReens a épület

oWneRship (%) hungaRian non-hungaRian

Ÿ Ÿ

Enterprise Communications Kft., SYKES Central Europe Kft., GE Infrastructure Hungary Holding Kft.

62

Cushman&Wakefield Kft., www.cushmanwakefield.hu, Robertson Hungary Kft., www.robertson.hu Cushman&Wakefield Kft., www.cushmanwakefield.hu, Robertson Hungary Kft., www.robertson.hu

Waste ReCyCling

leasing agent, name, Website

natuRal light and aiR ventilation

bank bRanCh/atm

in-house faCility management

11.5–12.5 2.75

suitable foR disabled people

4 177

gReen enviRonment

250 3

24-houR ReCeption and seCuRity seRviCes

Underground+8

CuRRent majoR tenants

Wellness and spoRt seRviCes

aveRage monthly Rent on apR. 1, 2018 (euRo/sqm) aveRage monthly seRviCe ChaRge on apR. 1, 2018 (euRo/sqm)

16,000 23,800

gReen teChnologies

seRviCes

RestauRant, Café

no. of elevatoRs no. of paRking spaCes

www.cushmanwakefield.hu

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

61

business CenteR 140

no. of levels

Company Website

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

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

Rank

30 | 3

(100) –

Ÿ Ÿ

(100) –

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

Kopaszi Gát Kft. (100) –

1117 Budapest, Hengermalom út 70. (1) 241-0080 – sales@budapart.hu

City Tower Kft. (100) –

szeRvita squaRe building www.szervita.com 67

14,900 30,000

Ÿ

Cushman&Wakefield Kft., ESTON International Zrt.

budapaRt offiCes "a" www.budapart.hu

14,600 17,588

68

Ÿ

1117 Budapest, Neumann János utca 1/E (1) 888-4120 (1) 888-4171 alapkezelo@ diofaalapkezelo.hu 1117 Budapest, Alíz utca 3. (1) 382-7020 (1) 382-7020 grtgroup@grtgroup.hu 1117 Budapest, Alíz utca 1. (1) 327-2050 (1) 327-2055 office@robertson.hu

1138 Budapest, Váci út 117-119. (1) 785-5208 – info@atenor.hu 1134 Budapest, Róbert Károly körút 54–58. (1) 451-4280 (1) 451-4289 sales@wing.hu

68

City toWeR

14,600 15,200

7

300 5

70

skylight City

14,459 20,305

7

1,200 5

6 228

10–11.5 1,250 HUF

Ÿ

ESTON International Zrt., www.eston.hu

Wing Zrt. (100) –

14,413 15,700

8

400 5

6 355

14 3.85

Ÿ

CBRE, www.cbre.hu

– CPI Property Group (100)

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

13,900 24,000

287 5

9 215

11.5–13.5 4

UNICEF, Gfk, ASUS, McCann Erickson, Hortonworks, AddVal Kft.

AddVal Kft., www.addvalgroup. com

rav Central Udvar Kft. (100) –

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

www.vacigreens.hu

balanCe hall

www.balancehall.hu 71

LOGO | colors | primary

CentRál udvaR 72

www.centraludvar.com

73

lauRusPantone iRodaházak Silver C

13,858 Black 27,000

6–7

90 3

8 248

11 3.5

Ÿ

CE Land Holding Kft., www.celand.hu

K1A Real Estate Management Kft. (Ÿ) Erste Group Immorent (Ÿ)

74

infopaRk g épület

13,800 14,666

6

2,000 5

Ÿ

200

Ÿ

3.8

Magyar Telekom

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

75

v188

13,637 14,175

6

Ÿ

7 252

Ÿ Ÿ

Ÿ

Ÿ Ÿ

www.laurusoffices.hu

www.diofaalapkezelo.hu

www.v188.hu

3

1103 Budapest, Kőér utca 2/A (1) 392-4075 (1) 392-4081 info@celand.hu 1117 Budapest, Magyar tudósok körútja 9. (1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu 1138 Budapest, Váci út 188. –


AVERAGE MONTHLY RENT ON APR. 1, 2018 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2018 (EURO/SQM)

6 266

11–12 1,000 HUF

3–8–6

Ÿ 1

3 350

Ÿ Ÿ

Ÿ

9

– –

6 221

11.9–12.9 3.6

EOS, IFRC, Samsung, Swiss Clinic, Trigranit, WHO

13,000 14,600

7

350 5

5 230

13–14 1,250 HUF

Leitner&Leitner, Swedish embassy

BANK BRANCH/ATM

IN-HOUSE FACILITY MANAGEMENT

SUITABLE FOR DISABLED PEOPLE

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

RESTAURANT, CAFÉ

INDEPENDENT POWER SUPPLY

NO. OF ELEVATORS NO. OF PARKING SPACES

– 5

LEASING AGENT, NAME, WEBSITE

BICYCLE PARKING

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

Underground+7

CURRENT MAJOR TENANTS

WASTE RECYCLING

NO. OF LEVELS

13,600 15,550

GREEN TECHNOLOGIES

SERVICES

NATURAL LIGHT AND AIR VENTILATION

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDINGS (SQM)

RANK

COMPANY WEBSITE

Special Report | 31

3

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

– IMMOFINANZ AG (100)

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

(100) –

2040 Budaörs, Szabadság út 117. (20) 381-3917 – info@psg-irodahazak.hu

– CPI Property Group (100)

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

MYHIVE GREENPOINT 7 76

77

www.myhive-offices.com/hu

BUDAÖRS OFFICE PARK www.budaorsofficepark.hu

13,315 18,115

Ÿ

CBRE, www.cbre.hu

Ÿ

QUADRA

www.quadra.hu 13,000 19,800

78

Cushman&Wakefield Kft., www. cushmanwakefield.hu

– CA IMMO (100)

1027 Budapest, Kapás utca 6–12. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1027 Budapest, Kacsa utca 15–23. (1) 346-6405 (1) 346-6448 julianna.marta@ raiffeisenevolution.com 1023 Budapest, Árpád fejedelem útja 26–28. (1) 888-4120 (1) 888-4171 ingatlan@ diofaalapkezelo.hu 1118 Budapest, Rétköz utca 5. (1) 309-0909 (1) 309-0900 info@budawest.net 1062 Budapest, Váci út 1–3. (20) 369-1111 (1) 374-6571 lease@westendiroda.hu, office@eston.hu 1117 Budapest, Infopark sétány 1. (30) 787-0000 – leasing@strabag-pfs.hu 1117 Budapest, Neumann János utca 1. (1) 888-4120 (1) 888-4288 alapkezelo@ diofaalapkezelo.hu 1075 Budapest, Madách Imre út 13–14. (1) 268-1900 (1) 269-6684 info@madachtrade.hu

78

VÍZIVÁROS OFFICE CENTER

81

RESIDENCE 1 IRODAHÁZ

12,900 21,200

6

500 3

5 177

Ÿ Ÿ

Ÿ

– (100)

81

ÓBUDA GATE

12,900 13,942

6

200 5

5 265

10.99–13.2 1,190 HUF

L'Oréal, Regus, Orbico

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

Torony Real Estate Investment Fund (100) –

83

BUDAWEST IRODAHÁZ www.budawest.net

12,680 27,000

Underground+8

Ÿ 3

6 280

12–14 4

Ÿ

(100) –

84

WESTEND CITY CENTER OFFICES

12,500 16,600

6

250 5

6 160

13.75–14.5 4.50

Ÿ

ESTON International Zrt., www.eston.hu

Ÿ Ÿ

85

INFOPARK C ÉPÜLET

12,478 13,250

9

1,000 5

4 320

13.5 3.5

Ÿ

Strabag PFS Zrt., www.strabag-pfs.hu

– HGA Capital (100)

86

INFOPARK A ÉPÜLET

12,200 13,600

5

100 3

6 375

12.75–13 1,200 HUF

IBM, ATOS Magyarország Kft., Invitech

Cushman&Wakefield Kft., www.cushmanwakefield.hu

(100) –

87

MADÁCH TRADE CENTER

12,000 14,500

7–9–12

– 1

4 250

Ÿ Ÿ

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

– (100)

88

FLÓRIÁN UDVAR

11,922 28,500

4

16 1

6 240

12–13 3.5

Index, Portfolio, Femina Media, Totalcar, Mapsolution, G4S, Elit Securiti, Budapesti Fesztiválzenekar

(100) –

1033 Budapest, Polgár utca 8–10. – – info@bif.hu

Ÿ

Cargill Magyarország Zrt., Tech Mahindra, Doktor24, Otis Felvonó Kft., FrieslandCampina Service Centre EMEA Kft. HostLogic

– KGAL (100)

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

www.caimmo.com

www.residenceirodahaz.hu

www.obudagate.hu

www.westendiroda.hu

www.infopark.hu

www.diofaalapkezelo.hu

www.madachtrade.hu

www.bif.hu

CITYZEN OFFICES

www.cityzenirodahaz.hu 11,736 12,581

89

90

AKADÉMIA BUSINESS CENTER

90

92

9

250 5

6 151

3.9

ConvergenCE, www.convergen-ce. com

11,700 13,500

Underground+8

110 5

5 142

18.5 5.4

Ÿ

Ÿ Ÿ

MOM PARK TOWERS

11,700 13,500

Underground+7

240 5

9 230

16.5–17 4.19

Ÿ

Ÿ Ÿ

V48

11,500 13,500

6

Ÿ

Ÿ Ÿ

Ÿ Ÿ

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ Codic International

www.cushmanwakefield.hu

www.cushmanwakefield.hu

www.v48.hu

5

S.A. (100)

1054 Budapest, Akadémia utca 6. (1) 268-1288 – info.budapest@ eur.cushwake.com 1123 Budapest, Csörsz utca 45. (1) 268-1288 – info.budapest@ eur.cushwake.com 1132 Budapest, Váci út 48/E-F (1) 266-6000 (1) 266-6002 info.hungary@codic.eu


Special Report

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

Company Website

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

no. of levels

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

no. of elevatoRs no. of paRking spaCes

aveRage monthly Rent on apR. 1, 2018 (euRo/sqm) aveRage monthly seRviCe ChaRge on apR. 1, 2018 (euRo/sqm)

CuRRent majoR tenants

RestauRant, Café

Wellness and spoRt seRviCes

24-houR ReCeption and seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

natuRal light and aiR ventilation

Waste ReCyCling

biCyCle paRking

independent poWeR supply

gReen teChnologies

Rank

32 | 3

93

studium iRodaház

10,676 36,000

7

320 5

6 408

13.5–14.9 1,290 HUF

Ÿ

ESTON International Zrt., www.eston.hu

Wingprojekt 6 Kft. (100) –

94

v17

10,600 18,000

11

170 5

6 209

14 1,242 HUF

Ÿ

Torony Ingatlanbefektetési Alap (100) –

95

váCi utCa CenteR www.vaciutcacenter.hu

10,245 21,100

10

Ÿ

6 133

Ÿ Ÿ

Ÿ

Váci Utca Center Kft., ✓ www.vaciutcacenter.hu

Váci utca Center Kft. (100) –

96

millennium toWeR "h" épület

10,000 12,300

8

Ÿ

6 247

Ÿ Ÿ

K&H

– CA IMMO (100)

96

vigadó palota iRodaház

10,000 15,500

7

Ÿ 5

350

Ÿ

16–22

Ÿ

Ÿ

BIF (100) –

RiveRpaRk iRodák

9,865

Ÿ

8

120 3

4 133

14.5 3.2

Huawei, Bisnode, Sigma, OTP Mobil

GAMMA Properties Kft., Robertson

– TRIUVA (100)

98

www.wing.hu

www.v17.hu

www.caimmo.com

www.bif.hu

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

3

5

seRviCes

leasing agent, name, Website

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

1093 Budapest, Czuczor utca 2–10. (1) 451-4280 (1) 451-4289 sales@wing.hu 1134 Budapest, Váci út 17. (1) 888-4120 (1) 888-4289 alapkezelo@ diofaalapkezelo.hu 1056 Budapest, Váci utca 81. (1) 411-0442 (1) 235-0007 vaciutca@ vaciutcacenter.hu 1095 Budapest, Lechner Ödön fasor 9. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1033 Budapest, Polgár utca 8–10. – – info@bif.hu 1093 Budapest, Közraktár utca 30–32. (1) 382-7560 (1) 382-7570 office@gamma-am.hu 1122 Budapest, Krisztina körút 6. (1) 792-2611 – – 1134 Budapest, Dévai utca 26–28. (1) 327-2050 – office@robertson.hu

99

buda palota

9,852 15,000

Underground+8

Ÿ

5+2 179

Ÿ Ÿ

Ÿ

CBRE, www.cbre.hu

Optimum-Penta Ingatlanbefektetési Zrt. (100) –

100

dévai iRodaház

9,665 11,700

9

Ÿ 3

3 145

Ÿ Ÿ

Ÿ

Robertson Hungary, www.robertson.hu

Ÿ Ÿ

9,469 15,290

5

400 5

5 185

10.5–12 4.2

UFB, Novodata, Herbioticum Distributor, StreamNet, Fővárosi Vízművek

S IMMO APM Hungary Kft., Zoltán Fábián

– (100)

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

9,400 14,450

10

– 5

3 170

10.9–11.5 3.7

Starschema, Brendon, Interticket, Greenpass, Mall.hu, Advisesoft

– CPI Property Group (100)

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

9,393 12,158

Underground+8

1,318 5

4 208

11.5–12.5 1,000 HUF

Ÿ

– IMMOFINANZ AG (100)

1027 Budapest, Horvát utca 12–26. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com

KDB Bank, Agrár-Vállalkozási Hitelgarancia Alapítvány, KLIK, MFB

www.optimabudapest.hu

www.robertson.hu

5

blue Cube

www.simmoag.hu 101

balanCe building www.balancebuilding.hu 102

CentRal business CenteR 103

www.immofinanz.com

C&W

– (100)

– Bluehouse (100)

– (100)

1051 Budapest, Bajcsy-Zsilinszky út 12. (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 1124 Budapest, Csörsz utca 49-51. (1) 336-4200 (1) 336-4201 angela.jojart@colliers.com

Roche, Continental Hungaria Kft., John- ✓ son Diversey

Eston International Zrt., www.eston.hu

4 100

16–17 4.2

Tumlare, AFP, Itochu, Jetro, Sopron Bank, Belgian Embassy Walloon Region, Samsonite, Reed

S IMMO APM Hungary Kft., Zoltán Fábián

– 5

8 280

11.5–12.5 1,200 HUF

Ÿ

– IMMOFINANZ AG (100)

400 5

4 142

15.5–17 3.2

Ÿ

Colliers International, www.colliers.hu

Csörsz utca Ingatlanfejlesztő Kft. (100) –

9,174 9,907

3

20 1

5 199

8,956 11,686

8

100 5

8,900 10,300

Underground+4

8,700 11,000

7

City CenteR

www.colliers.com/hu-hu/ hungary/properties/p-62009/ momentum-irodaház

7.5–9.5 3.5

teRRapaRk next a

momentum offiCes

105

108

14 4.83

107

3+1 107

www.immofinanz.com

– 5

szépvÖlgyi business paRk

7

106

9,240 14,824

www.simmoag.hu

atRinova

www.terraparknext.com

Robertson Hungary, www.robertson.hu, Cushman & Wakefield Kft., www.cushmanwakefield.hu

104

www.atrinova.hu

1054 Budapest, Bajcsy-Zsilinszky út 42–46. (1) 382-5100 (1) 382-5101 info@ whitestar-realestate.hu 2040 Budaörs, Puskás Tivadar utca 4. (70) 884-4099 (1) 375-0445 pholy@ bluehousecapital.com


109

www.kalvinsquare.hu

INDEPENDENT POWER SUPPLY

BICYCLE PARKING

WASTE RECYCLING

NATURAL LIGHT AND AIR VENTILATION

BANK BRANCH/ATM

– KGAL (100)

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

– IMMOFINANZ AG (100)

1095 Budapest, Gubacsi út 6/B (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com 1117 Budapest, Infopark sétány 3. (30) 787-0000 – leasing@strabag-pfs.hu 1053 Budapest, Károlyi utca 12. (1) 411-0434 – szvass@t-online.hu

Strabag PFS Zrt., www.strabag-pfs.hu

– HGA Capital (100)

Szilvia Vass, Y.B.L. Lindner Kft., www.yblpalota.hu

Y.B.L. Lindner Kft. (100) –

4 116

3.9

8,330 12,158

Underground+3

354 5

6 349

11–11.5 1,000 HUF

7

180 5

3 130

13.5 3.5

Ÿ

ADDRESS PHONE FAX EMAIL

Robertson, CBRE, www.cbre.hu

300 5

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

9

LEASING AGENT, NAME, WEBSITE

ConvergenCE, www.convergen-ce. com

8,448 9,139

IN-HOUSE FACILITY MANAGEMENT

SUITABLE FOR DISABLED PEOPLE

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

Ÿ

Philip Morris, Aegon Hungary, Safeguard, Faludi Wolf Theiss, GEOX, Alpiq Energia, Union, Aegon EDC, Kelly Services

RESTAURANT, CAFÉ

CURRENT MAJOR TENANTS

KÁLVIN SQUARE

GREEN TECHNOLOGIES

SERVICES

AVERAGE MONTHLY RENT ON APR. 1, 2018 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2018 (EURO/SQM)

NO. OF ELEVATORS NO. OF PARKING SPACES

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

NO. OF LEVELS

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDINGS (SQM)

RANK

COMPANY WEBSITE

Special Report | 33

3

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

OFFICE CAMPUS 110

www.immofinanz.com

INFOPARK B ÉPÜLET 111 www.infopark.hu

8,045 8,617

Ÿ

112

YBL PALOTA IRODAHÁZ

8,009 12,000

5

130 3

4 56

15 4.2

CMS Magyarországi Fióktelepe, Oppenheim Law Firm, Grafton Recruitment Kft., Magyar Pénzváltó Kft., Lohn Law Firm

113

KINNARPS HOUSE

7,947 9,018

8

Ÿ Ÿ

4 108

Ÿ Ÿ

Kinnarps Hungary Kft., Rail Cargo Hungaria Zrt., JoeFalat Kft.

– Kinnarps I Falköping AB (100)

114

Ü48 IRODAHÁZ

7,648 8,145

6

Ÿ 5

5 126

Ÿ Ÿ

Ÿ

Appeninn Holding (100) –

115

7,326 8,636

6

– 5

5 161

– –

LogMeIn, Armani, Silka

– CPI Property Group (100)

DEXAGON IRODAHÁZ 116

7,300

6

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Omixon, Invenshure, Imhaus

www.yblpalota.hu

www.kinnarpshouse.hu

www.appeninnholding.com

1133 Budapest, Váci út 92. (1) 237-1251 (1) 237-1250 recepcio@kinnarps.hu 1082 Budapest, Üllői út 48. (1) 346-8869 – info@appeninnholding.com

ANDRÁSSY PALACE www.andrassypalota.hu

www.erstealapkezelo.hu

TERRAPARK BUDAÖRS

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ

Erste Ingatlan Alap (100) –

1061 Budapest, Andrássy út 9. (1) 225-6600 (1) 225-6601 hungary@cpipg.com

1117 Budapest, Fehérvári út 50–52. (1) 920-2161 (1) 920-2151 antal.garamvari@ erstealapkezelo.hu 2040 Budaörs, Puskás Tivadar út 7–11. (1) 477-8490 (1) 477-8499 irodaberlet@raiffeisen.hu 1117 Budapest, Infopark sétány 1. (30) 787-0000 – leasing@strabag-pfs.hu

117 (D5-8, D13 TÖMBÖK) www.raiffeisenirodak.hu/ ingatlan/terrapark

7,288 8,387

3

Ÿ 3

5 151

Ÿ Ÿ

Ÿ

Raiffeisen Ingatlan Alap (100) –

INFOPARK I ÉPÜLET

7,285 8,361

7

30 5

3 100

13.5–16 4

Ÿ

Strabag PFS Zrt., www.strabag-pfs.hu

– HGA Capital (100)

7,170 11,200

5

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Walt Disney, OmnicomMediaGroup, OMD, PHD Hungary, Tbwa Budapest Reklámügynökség, Heineken, Café Frei

Ÿ Ÿ

1068 Budapest, Dózsa György út 84/A (1) 413-2700 – agnes.kantor@cbre.com

120

7,000 48,200

3

180 5

3 200

9 (office), 3.85 (warehouse) 700 HUF

Agility, Airmax, Benteler, Bolloré, Fedex, Kühne+Nagel, Panalpina, UPS

– CPI Property Group (100)

2220 Vecsés, Üllői út 807. (1) 225-6600 (1) 225-6601 hungary@cpipg.com

HUNGÁRIA CENTER 121

6,930 7,200

6

500 5

3+1 130

13.5–14.5 3.5–4

Cushman&Wakefield Kft., www.cushmanwakefield.com

OTP Ingatlanbefektetési Alap (100) –

1143 Budapest, Hungária körút 17–19. (1) 236-6400 – alapkezelo@ otpingatlanalap.hu

www.myhive-offices.com/hu

6,900 9,200

Underground+7

336 5

3 216

11–11.5 1,000 HUF

Ÿ

JLL

– IMMOFINANZ AG (100)

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

OKTOGON HÁZ

6,811 7,280

7

160 5

4 339

13.5–14.5 3.5

Ÿ

Strabag PFS Zrt., www.strabag-pfs.hu

– HGA Capital (100)

1062 Budapest, Aradi utca 8–10. (30) 787-0000 – leasing@strabag-pfs.hu

118

www.infopark.hu

LIGET CENTER 119

www.ligetcenter.hu

AIRPORT CITY LOGISTIC PARK www.airportcity.hu

MYHIVE THIRTEEN (XENTER) 122

123

www.oktogonhaz.hu

Ÿ


Special Report

90 5

4 69

12.5–13.5 3.85

Oktatási Hivatal, Vialto Consulting

7

584 5

3 104

12.5–14 3.8

Ÿ

6,600 9,000

5

250 5

2 75

9–10.5 3.5

IQ Soft, Kom Zrt., Mattel, Regus

6,500 7,325

4

350 5

2 80

12.5–13.5 3.5

BetVictor, Buchbinder, Colonnade, Starschema

6,163 7,212

5+1

Ÿ

4 72

Ÿ Ÿ

Immigration and Asylum Office

RESTAURANT, CAFÉ

WELLNESS AND SPORT SERVICES

24-HOUR RECEPTION AND SECURITY SERVICES

GREEN ENVIRONMENT

SUITABLE FOR DISABLED PEOPLE

IN-HOUSE FACILITY MANAGEMENT

BANK BRANCH/ATM

INDEPENDENT POWER SUPPLY

AVERAGE MONTHLY RENT ON APR. 1, 2018 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2018 (EURO/SQM)

8

BICYCLE PARKING

NO. OF ELEVATORS NO. OF PARKING SPACES

6,741 8,891

LEASING AGENT, NAME, WEBSITE

WASTE RECYCLING

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

CURRENT MAJOR TENANTS

GREEN TECHNOLOGIES

SERVICES

NATURAL LIGHT AND AIR VENTILATION

NO. OF LEVELS

COMPANY WEBSITE

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDINGS (SQM)

RANK

34 | 3

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

– (100)

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

1065 Budapest, Nagymező utca 46–48. (1) 479-6020 (1) 479-6020 office@addvalgroup.com

MAROS BC

www.simmoag.hu 124

S IMMO APM Hungary Kft., Zoltán Fábián

AddVal Kft., www.addvalgroup. com

Artemis Corner Acquisition Kft. (100) –

– CPI Property Group (100)

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

– CPI Property Group (100)

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

S IMMO APM Hungary Kft., Zoltán Fábián

– (100)

1135 Budapest, Szegedi út 35. (1) 429-5050 (1) 429-5055 office@simmoag.hu

Magyar Posta Takarék Real Estate Investment Fund (100) –

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

– (100)

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

– (100)

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

Ÿ Ÿ

1052 Budapest, Deák Ferenc utca 5. (1) 473-1209 (1) 473-1210 leasing@ horizondevelopment.hu

CORNER6 BUSINESS CENTER 125

www.addvalgroup.com

6,698

Ÿ

BC91

wwww.bc91.hu 126

BALANCE LOFT

www.balanceloft.hu 127

TWIN OFFICE CENTER www.simmoag.hu 128

129

BUDA BUSINESS CENTER www.diofaalapkezelo.hu

6,000 6,500

3

7

80 3

3 167

10–12 3.65

Takarékinfo Zrt., Ad Novum

7

80 5

2 65

10–12 4

Radio Plus, ProMontel, Rustler, Rewart, Oase, Emineo, Straumann, Aktuál Bau

14–16 3.85

Geometry Global, Code Cool, Black Swan, Egon Zehnder, Team Red, Magyar Államkincstár

11

Ÿ

Ÿ Ÿ

H&M, Hard Rock Café Budapest, Szamos Gourmet Palace, DVM group, St. Andrea Wine & Skybar, Play'n GO, Mastercard, Ostermann, Cushman & Wakefield, OTP

265

4 23

Ÿ Ÿ

Prezi.com Kft., Magyar Telekom Zrt., Apacuka

BUDA CENTER

www.simmoag.hu 130

5,913 7,944

PÓDIUM

www.simmoag.hu 131

5,739 8,119

9

350 5

2 87

VÁCI 1

www.vaci1.hu 132

5,700 13,800

MERKUR PALOTA 133

5,609

www.merkurpalota.com

Ÿ

6

5

Ÿ Ÿ

Ÿ

S IMMO APM Hungary Kft., Zoltán Fábián

S IMMO APM Hungary Kft., Zoltán Fábián

GAMMA Properties Kft., www.gamma-am.hu

Ÿ Ÿ

134

MÁRIÁSSY MODERN

5,500 7,000

5

Ÿ 3

4 118

10.75–11.25 1,308 HUF

Ÿ

ESTON International Zrt., www.eston.hu

Máriássy Ház Kft. (100) –

134

RESIDENCE 2 IRODAHÁZ

5,500 9,600

6

624 3

2 79

Ÿ Ÿ

Ÿ

– (100)

5,455 6,023

Underground+5

– 5

2 87

11 1,000 HUF

– IMMOFINANZ AG (100)

www.wing.hu

www.residenceirodahaz.hu

OPTIMA A 136

www.immofinanz.com

Ÿ

Robertson

1065 Budapest, Nagymező utca 54–56. (1) 382-7560 (1) 382-7570 office@gamma-am.hu 1095 Budapest, Máriássy utca 7. (1) 451-4280 (1) 451-4289 sales@wing.hu 1027 Budapest, Ganz utca 16. (1) 346-6443 (1) 346-6448 krisztina.major@ raiffeisenevolution.com 1138 Budapest, Váci út 189-191. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com


independent poWeR supply

biCyCle paRking

leasing agent, name, Website

Waste ReCyCling

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

CuRRent majoR tenants

natuRal light and aiR ventilation

gReen teChnologies

seRviCes

RestauRant, Café

aveRage monthly Rent on apR. 1, 2018 (euRo/sqm) aveRage monthly seRviCe ChaRge on apR. 1, 2018 (euRo/sqm)

no. of elevatoRs no. of paRking spaCes

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

no. of levels

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

Rank

Company Website

Special Report | 35

3

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

globe 3 137

www.immofinanz.com

oWneRship (%) hungaRian non-hungaRian

addRess phone fax email

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

5,410 5,575

Underground+5

766 5

2 93

10.9 1,000 HUF

Ÿ

C&W

– IMMOFINANZ AG (100)

138

the quadRum

5,390 5,961

5

200 3

2 459

12 4.50

Bergwerff Transport, Finn Wellness, KEF, Secops, TRUMPF

White Star Real Estate Kft., www.whitestarrealestate.hu

– (100)

139

CoRvin CoRneR

5,384 6,122

6

250 5

Ÿ

3

Ÿ Ÿ

Ÿ

(100) –

140

andRássy 12

5,007 6,218

5

170 5

Ÿ

2

13.5–14.5 3.5

Ÿ

Strabag PFS Zrt., www.strabag-pfs.hu

– HGA Capital (100)

5,000 8,500

5

150 5

3 93

14.5–16 3.22

Swietelsky Magyarország Kft., Kulcs Soft Nyrt.

Cushman&Wakefield Kft., www.cushmanwakefield.com

Redwood Holding Kft. (100) –

www.thequadrum.hu

www.futureal.hu

www.andrassy-11-12.hu

eCodome

141 www.redwoodholding.hu/ ecodome-irodahaz

142

mbC business CenteR

4,930 7,166

6

Ÿ

2 88

Ÿ Ÿ

Ÿ

Robertson Hungary, www.robertson.hu

Ÿ Ÿ

143

büRoCenteR West

4,825 6,900

4

Ÿ

2 66

Ÿ Ÿ

Ÿ

Robertson Hungary, www.robertson.hu

Ÿ Ÿ

www.robertson.hu

www.robertson.hu

3

3

áRpád CenteR 144

www.immofinanz.com

4,700 5,373

Underground+6

104 5

3 72

10.5–11 1,000 HUF

Ÿ

JLL

– IMMOFINANZ AG (100)

– CA IMMO (100)

145

Canada squaRe

4,600 5,000

6

150 5

2 51

13–13.95 1,420 HUF

Canadian embassy

146

alphagon

4,350 4,600

5

2,000 5

3 59

13–14 2.9

147

n97

3,625 4,500

4

– 2

2 80

9–10.5 4.5

Ÿ

ESTON International Zrt., www.eston.hu

Ÿ Ÿ

148

panoRáma ház

3,300 4,000

4

Ÿ 3

1 60

Ÿ Ÿ

Ÿ

Ÿ Ÿ

8

45 3

2 40

10–12 4.4

Kantar Hoffmann, Fox, Takenaka, Gemalto

AddVal Kft., www.addvalgroup. com

– Wigan Acquisition (100)

3,015 3,500

10

Ÿ

2 29

Ÿ Ÿ

Ÿ

Robertson Hungary, www.robertson.hu

Ÿ Ÿ

2,327 2,511

6

Ÿ 3

1 47

Ÿ Ÿ

Ÿ

Ÿ Ÿ

3

100 3

– 70

7–9 3.5

SmartX Solutions, IT Ware, Ultinous, Brother

– CPI Property Group (100)

www.caimmo.com

www.eston.hu

www.indotek.hu

ausztRia ház 149

www.addvalgroup.com

Ÿ

Westpoint business

150 CenteR www.robertson.hu

151

3,218

mozsáR tRade CenteR www.mozsartc.hu

3

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

CBRE, www.cbre.hu

Ÿ Ÿ Ÿ Ÿ

Alphagon Ingatlanfejlesztő Kft. (100) –

budafoki business CenteR www.bc209.hu

2,258 2,600

152

153

maRkó iRodák 9 www.mi9.hu

2,201 2,630

154

andRássy 93 iRodaház

1,801

www.gamma-am.hu

Ÿ

(100) –

Ÿ Ÿ

5+2 galleries

2,201 5

2 19

22 4

Ÿ

White Star Real Estate Kft., www.whitestarrealestate.hu

3

Ÿ

1 12

12.5–14.5 4

Ÿ

GAMMA Properties Kft.

3

2220 Vecsés, Lincoln út 1. (1) 382-5100 (1) 382-5101 info@thequadrum.hu 1082 Budapest, Futó utca 31–33. (1) 266-2181 (1) 688-5498 office@futureal.hu 1061 Budapest, Andrássy út 12. (30) 787-0000 – leasing@strabag-pfs.hu 1016 Budapest, Mészáros utca 13. – – office@redwoodholding.hu 1012 Budapest, Vérmező út 4. (1) 327-2050 – office@robertson.hu 1111 Budapest, Nagyszőlős utca 11–15. (1) 327-2050 – office@robertson.hu 1133 Budapest, Árboc utca 6. (1) 451-8040 (1) 236-0436 offices_hu@ immofinanz.com 1027 Budapest, Ganz utca 16. (1) 501-2800 (1) 501-2801 office@caimmo.hu 1117 Budapest, Dombóvári út 9. (30) 397-6247 – mz@bischoffcpn.hu 1124 Budapest, Németvölgyi út 97. (1) 877-1000 (1) 877-1001 office@eston.hu 1134 Budapest, Váci út 19. (1) 688-1700 – – 1052 Budapest, Vármegye utca 3–5. (1) 479-6020 (1) 479-6029 office@addvalgroup.com 1131 Budapest, Váci út 18. (1) 327-2050 – office@robertson.hu 1066 Budapest, Mozsár utca 16. (1) 301-0186 (1) 301-0185 info@mozsartc.hu

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

1051 Budapest, Markó utca 9. (1) 382-5100 (1) 382-5101 info@whitestar-realestate. hu 1062 Budapest, Andrássy út 93. (1) 382-7560 (1) 382-7570 office@gamma-am.hu


36 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

Facility and Property Market Talk What is the difference between facility management and property management? How do the roles overlap? What is the importance of sustainability in the market and how are demands changing? The Budapest Business Journal asked a brace of local experts to explain the market scene. GARY J. MORRELL

László Vágó

CEO, Strabag Property and Facility Services Zrt.

How would you define FM and PM Facility management is a set of services relating to the property that make day-today operations possible from a technical and infrastructural perspective providing safe, healthy and productive environments to its users, whilst enhancing overall organizational performance. Property

To what extent do the roles of FM and PM overlap? In our portfolio, we have multiple assignments where we provide integrated PM and FM services. Our experience shows that where these two activities are in one hand, they support one another. A further advantage is that owners and tenants can reach out to one company, and in this way the procedures become quicker

To what extent do the roles overlap? The scope of services depends on the landlord’s requirements and internal structure. Many areas can be overlapped, such as fit out works, tenant relationship, capex measure management. It is

“We believe that in order to ensure efficient and quality facility management, it is essential to understand the business targets, needs and priorities of the owners, tenants and partners.”

Attila Kovács

Head of Facility Management, AddVal Kft. How would you define FM? This year is our 25th anniversary of providing a full range of facility management services in the Hungarian market, since 2001 under the present company. In the portfolio handled by us there have been several changes in ownership structures in the past few years, but the assignments have remained unchanged. We believe that in order to ensure efficient and quality facility management, it is essential to understand the business targets, needs and priorities

How central is sustainability to FM? The sustainability of the management of the asset is becoming more and more important for all parties: landlords, tenants and also for FM service providers. On the one hand, its role is central from a costeffectiveness perspective; on the other hand it is important from the perspective of meeting the expectations of owners/ tenants.

How does FM need to change to meet the more sophisticated needs of tenants? Progress must be made in knowledge (for example technical innovations) related to all fields connected to the property. FM should cooperate in a more proactive way, accepting the fact that not only landlords but also tenants are keen to have more and more data and data analysis. Preventive measures and professionalism in every covered field is the definition of a good FM service provider.

“The sustainability of the management of the asset is becoming more and more important for all parties: landlords, tenants and also for FM service providers. On the one hand, its role is central from a cost-effectiveness perspective; on the other hand, it is important from the perspective of meeting the expectations of owners/ tenants.” and more transparent, while the reaction time is reduced. An important target of our company while harmonizing these tasks is to ensure the balance of the economic and technical needs and their handling. How central is sustainability to FM ? We continuously monitor energy consumption and the costs of the buildings that we handle and optimize them. Part of our service is to apply a well-planned and effective energy purchasing strategy. We use environmentally friendly materials and we also require this from our subcontractors.

important to clarify in advance which service provider is responsible for which services in order to avoid any misunderstanding.

How do companies decide whether to outsource FM or do it in-house? It depends on the company structure and strategy: is there capacity and knowledge in that specific company, do they want to concentrate on the facility management services or would they rather focus on their core business?

management is a set of services relating to the property that are necessary for the property and property company acting on behalf of the owner.

tenants, and beside this we are proactive and search for innovative solutions for any problems raised.

of the owners, tenants and partners. We put an emphasize on the satisfaction of the tenants and owners. For us, it is important to provide a continuous, quick and quality level of service. How would you define PM? Our PM activity started 25 years ago and we are very proud of having kept two office properties in our portfolio since then, despite various changes in the building’s ownership (for example we have just concluded a new PM and FM agreement with the sixth owner of Central Udvar). Our mission is professionalism, legal operation, tenant satisfaction, and added value for the landlords (owners). We are always accessible for our business partners and

How do companies decide whether to outsource FM or do it in-house? It depends on the organization, how it wants to operate its business and real estate, how it wants to control the operation and costs, whether it has enough manpower in-house or it is better to assign FM to a service provider who has all the practice, knowledge and liability insurance. For example, the new asset management company of the Allee Shopping Center decided to outsource its FM activity, therefore we had the opportunity to provide Allee with Hard-FM services by winning the tender. How does FM need to change to meet the more sophisticated needs of tenants? It is important that our FM professionals increase effectiveness beside their daily basic activities. Our workforce consists of well educated, experienced colleagues, who are being trained continuously, in order to be able to navigate efficiently and quickly in the rapidly changing legal, technical and economic environment. Technology changes continuously and FM cannot be an exception, therefore it is central to be able to tackle this challenge.


3

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

Special Report | 37

Facility management companies YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON APRIL 1, 2018

www.kraft-fm.hu

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

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

István Jászberényi István Ádám Dóra Papp

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

ENERGY MANAGEMENT, ENERGY AUDIT

3

Ferenc Batári, József Schmidt – –

Magyar Telekom Nyrt., MOL Nyrt., WING Zrt., MÁV Zrt.

Ÿ

Budapest Airport, Szombathely prison, Vodafone Magyarország Zrt.

2007 154

2003 65

B-SEVEN Befektető Kft. (Ÿ), Drexler & Co Holding Kft. (Ÿ) –

Gábor Décsi Zsolt Jurecska Kinga Kurta

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

1990 36

Kogen-Term Kkt. (100) –

István Jászberényi István Ádám Dóra Papp

1139 Budapest, Pap Károly utca 4-6. (96) 512-770 (96) 512-773 iroda@szigma.hu

(100) –

Ernő Nagy – –

1031 Budapest, Szentendrei út 216/B (1) 490-0103 – info@fakultasfm.hu

2004 38

BÁV Zrt. (50), VIREX Kft. (50) –

Balázs Tóth – –

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

2012 40

Individuals (100) –

András Sólyom Péter Farkasházi –

2000 Szentendre, Vasúti villasor 49/B (30) 854-1388 – office@smartfm.hu

Tibor Balogh (100) –

Szabolcs Pataki György Osváth –

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

www.future-fm.hu

KRAFT FM ÜZEMELTETÉSI ÉS SZOLGÁLTATÓ KFT.

(100) –

TAKING OUT INSURANCE POLICIES

Ÿ

1095 Budapest, Máriássy utca 7. (1) 299-2150 (1) 210-0095 info@strabag-pfs.hu

CONSTRUCTION MANAGEMENT

Ÿ

László Vágó Gyula Jászai Gábor Landi

COLLECTION OF PUBLIC UTILITY FEES

Ÿ

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

HOUSE ORDER PREPARATION

FUTURE FM LÉTESÍTMÉNYGAZDÁLKODÁSI ZRT.

2004 648

OPERATION

REAL ESTATE DEVELOPMENT

35

MAINTENANCE

38

ADDRESS PHONE FAX EMAIL

FINANCE MANAGEMENT

2

www.strabag-pfs.hu

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

INFRASTRUCTURAL SERVICES

27

MAJOR CLIENTS IN 2017

STRABAG PROPERTY AND FACILITY SERVICES ZRT. 1

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TECHNICAL SUPERVISION

9,770

OTHER

9,770

LOGISTICAL AND TRADE FACILITIES (%)

13,075

INDUSTRIAL FACILITIES (%)

17,810

SERVICES

OFFICE BUILDINGS (%)

NET RENVENUE FROM FACILITY MANAGEMENT IN 2017 (HUF MLN)

COMPANY WEBSITE

PORTFOLIO

TOTAL NET REVENUE IN 2017 (HUF MLN)

RANK

Ranked by total net revenue (HUF mln) in 2017

3,405

2,419

38

15

14

33

Audi Hungária Zrt., Apollo Tyres, BNP Paribas Real Estate Zrt., White Star Real Estate Kft.

2,474

2,474

40

40

20

Audi, Raiffeisen Ingatlanalap, CBRE, Eston International

20

AGC Glass Hungary Kft., U-Shin Europe Kft., OSI Food Solutions Hungary Kft., SICK Kft.

1991

Ÿ

DOME FACILITY SERVICES GROUP KFT. www.domefsg.com 4

5

6

SZIGMA HUNGARY ZRT.

2,308

FAKULTÁS FM LÉTESÍTMÉNYGAZDÁLKODÁSI KFT.

959 (2016)

www.szigma.hu

www.fakultasfm.hu

7

AREX FM KFT.

8

SMARTFM INGATLANÜZEMELTETŐ KFT.

9

MILLENIA LÉTESÍTMÉNYÜZEMELTETŐ ZRT.

809

www.arexfm.hu

www.smartfm.hu

www.millenia.eu

749

641

1,823

Ÿ

Ÿ

726

5

Ÿ

14

83

75

Ÿ

66

6

Ÿ

20

11

Ÿ

Ÿ

Ÿ

1999 55

2001 19

AddVal Kft. (100) –

Hubert Mühringer Ágnes Horváth –

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

2008

– Rustler Gruppe GmbH (100)

Valentin Langbein – –

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

– TPG Real Estate (100)

Árpád Török Agnieszka Turowska Dániel Pazsitzky

1132 Budapest, Váci út 30. (1) 456-6200 (1) 456-6295 info@trigranit.com

2005

EPF Terra Park Kft., EPF Margit Palace Kft., IMMOBILIA Zrt., Flextronics International Kft.

Ÿ

641

10

30

60

Logicor, CTP, Dachser, UPS

Ÿ

60

40

Savills Fund Management, List Group, IHG, Goodman, GalCap Europe, Wigan Acquisition

Ÿ

90

5

5

GTC Magyarország, List Group, Erste Immorent, S'Immo

Euroclear, AT&T, Lufthansa, State Street

ADDVAL KFT.

www.addvalgroup.com 10

11

534

RUSTLER KFT.

494

www.rustler.hu

TRIGRANIT FEJLESZTÉSI KFT. NR

www.trigranit.com

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

Ÿ

Ÿ

64

36

Ÿ

1997 70

This list was compiled from responses to questionnaires received by May 2, 2018 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14. or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu.


www.bbj.hu

Socialite

Budapest Business Journal | May 4 – May 17, 2018

Looking Behind “Budapest Noir” Whenever I discover a new city, I’m always looking for its darker corners, its seamy underbelly. Hop On-Hop Off buses don’t stop where I want to go. This is why the cover of the book in the window of the excellent Atlantisz Könyvsziget bookstore on Budapest’s Király utca jumped out at me. After I read and thoroughly enjoyed “Budapest Noir” I decided to track down its author, Vilmos Kondor.

“I read newspapers, magazines and novels from the mid-1930s. I watched movies and listened to records from that period. It was like discovering an unknown continent. I got to discover not just the setting of the novel but also my own past. You have to be aware that the attitude of socialism for 40 years was to erase the past for good.”

DAVID HOLZER

Noir is French for “black” or “dark”. Film noir refers to a style of movie that reached its classic period in Hollywood between the early 1940s to the late 1950s. John Huston’s “The Maltese Falcon” (1941), which introduced America to the Austro-Hungarian actor Peter Lorre, is definitive film noir. Noir now also encompasses a certain style of fiction, originally called “hardboiled”. Hardboiled or noir writers include the great Dashiell Hammett and Raymond Chandler. The hero of “Budapest Noir”, crime reporter Zsigmond Gordon, is in the mold of Hammett’s hero Sam Spade: a good man going down mean streets. His dogged investigation of the murder of a young woman

in

1936

Budapest pits him against pornographers, gangsters, Communist cells, big business and the government itself. It’s not surprising that “Publishers Weekly” called the book “classic noir”.

Vilmos Kondor

Born in Budapest in 1954, Kondor (pictured above) studied physics in Szeged and went on to study at the Sorbonne. He currently

Seventh [Erzsébetváros and Terézváros], plus parts of the Eighth [Józsefváros].” How, I wondered, did “Budapest Noir” come to be published in English. “I had a wonderful agent named Andrew Nurnberg who believed in me,” Vilmos said. “Claire Wachtel, then my editor at HarperCollins, loved the book. It’s thanks to them that mine is the first and, so far, only Hungarian noir published in the U.S. in English.”

teaches math and physics in a high school. Before “Budapest Noir”, he had pretty much burned everything he’d written because it was “so, so bad”. He is currently finishing a short story collection and getting ready for a new novel set in 1931. I began by asking when and why Kondor came up with the idea for “Budapest Noir”. “More than ten years ago, I was walking down Nagy Diófa utca in the Seventh. In front of an apartment block, I spotted something that looked like a body. It was just a pile of clothes. But the night was dark, the air was cold and the street was deserted so I started to wonder. What if it was a young girl and it wasn’t today but maybe 70 years earlier? Who might that girl be? Who would investigate her death? Would it be a policeman? No, maybe a journalist. I liked that. I went to our National Library, started reading newspapers from 1936 and I knew what I wanted to do and how.” Would Kondor say the book is particularly Hungarian? “I wanted it to be specifically Hungarian while universal in its themes and bound by the rules of the genre. The characters are what make the novel so Hungarian. For instance, the grandfather who’s into making jams. The fact that Zsigmond Gordon refuses to

accept defeat and believes there must be a solution to the mystery of the girl’s murder is also very Hungarian. We Hungarians believe there’s always a way. And there is.” I asked Kondor how he did his research. “I didn’t read history books. I spent countless hours at the library reading microfilms. I read newspapers, magazines and novels from the mid-1930s. I watched movies and listened to records from that period. It was like discovering an unknown continent. I got to discover not just the setting of the novel but also my own past. You have to be aware that the attitude of socialism for 40 years was to erase the past for good.” Great crime writing often has a hidden agenda. Is this true of “Budapest Noir”? “I didn’t set out to have another agenda, but it happened. I realized that I wanted to show that this was and is our past, not someone else’s. My other agenda, if you want to call it that, was never hidden. Or maybe it was. In plain sight.”

City of Mystery

Does Kondor think Budapest is especially noir-ish? “It is a mysterious city with those dark streets and alleys, shadows and shades, old buildings and cobblestones. I think Budapest is the most perfect setting for noir. The most noir-ish districts are the Sixth and

When I asked about Hungarian crime writers, Kondor explained that the genre is not so well established in this country. “I think that our critics have never really embraced popular culture as a natural part of our heritage,” he told me. “So, without a proper nurturing system like you have in the U.S. or U.K. – with good publishing houses, excellent editors and well-read reviewers – the whole genre could never really blossom. And it got worse during socialism when crime writers served the system and betrayed their readers. Today, the list of Hungarian crime writers is short but it does exist. I’m thinking of László Csabai and Katalin Baráth.” So now I’m trying to find out if the novels of Csabai and Baráth are translated into English. Fortunately, the Massolit bookstore on Nagy Diófa – the street that initially inspired “Budapest Noir” – has a decent selection of books. It’s a great excuse to go back.


4

www.bbj.hu

Budapest Business Journal | May 4 – May 17, 2018

Bidders Thin on the Tokaj Ground as Unique Lots go Under the Hammer The air was thick with excitement at the blind tasting that preceded the sixth Great Tokaj Wine Auction, held on April 21, which helped prospective bidders to evaluate the quality of the lots they were about to bid for as the winemakers poured each other’s unknown wines. ROB SMYTH

A full-house for the auction at Tokaj’s renewed former synagogue that featured a record number of lots (33 wines from 24 producers) appeared highly promising. However, when just half a dozen or so bidders were identified in the audience (including bids also coming in from the prestigious London wine club 67 Pall Mall), one wondered whether there would be any significant competition among the bidders for individual lots. Only a couple of times did bidders go head to head and all too often the starting price was the final price if the wine was sold at all. Nevertheless, a total of more than EUR 60,000 was brought in, which was just over half of last year’s record of EUR 116,000. As it happened, a considerable number of very good to excellent wines remained left on the shelf (only one wine was left unsold in 2017), with some pretty frustrated winemakers with glum

Socialite | 39

puttonyos Tokaji Aszú for which the region is most famous. Incidentally, if you buy a barrel of wine and the wine is still in the barrel, the winemaker will bottle it for you. The next Great Tokaj Wine Auction will be held April 27, 2019.

A Rising Star?

faces to be seen afterwards. However, “shelf” might be the keyword here as one had the feeling that some of the prices asked as starting prices equated with what the wines would fetch on the shelf – bearing in mind that these are one-of-akind bottlings not made for commercial release. One dejected winemaker even admitted that he’d made a mistake in setting the minimum price at the shelf price. If I was buying a whole Gönci barrel of a dry wine, I would expect a bit of a discount, even if the given wine is a unique one-off. (Sweet wines come in one Gönci or half Gönci barrels (respectively 136 liters and 68 liters).

Elevated Prices

Although 2017 looks like an excellent vintage, dry Furmints tend to be lemony, austere and sharp, and quite frankly not that appealing when young. In an earlier column in March, I noted how Barta’s Öreg Király Dűlő Furmint 0929 2017 was round and balanced, but I hadn’t seen the price. The starting price of HUF 10,50011,500 per bottle for a dry wine may have been considered a tad elevated, despite the fact that making wine from grapes grown on the steep hillside takes considerable effort. It’s not that it isn’t worth that, but highend dry wine is still a relatively new thing in Tokaj, and I can see why bidders were not enticed. An exciting development at the auction was a live video link to London wine club 67 Pall Mall, which effectively saved the day as the London-based bidders

snapped up EUR 20,000 worth of wine. Ironically, the lot from the part Britishowned Royal Tokaji went unsold, despite the efforts of Royal’s sales boss Charlie Mount in helping to assemble a bunch of bidders. Though the majority of the wines were from recent vintages, 12 half liter bottles of five puttonyos Tokaji Aszú 1963 went under the hammer for a record EUR 450 a bottle and this one thankfully saw a genuine bidding war. In 2019, it is hoped that another live link up will see bidders joining from the United States as the organizers look to up the number of participants from outside Hungary. Overall, the event was very well organized by passionate people and there were indeed some bargains to be had. Rather than buying a full Gönci barrel for my own consumption, I would definitely consider teaming up with a couple of friends and scooping up my own stash of bottles of something nobody else has. Lots offered include some still in the barrel and some already bottled and cover the range of Tokaji wines from Furmint and Hárslevelű, late harvests, sweet and dry Szamorodnis, and of course the noble sweet five and six

Up in Eger, the bijoux Egri Csillag Weekend was a cute mini-festival held in the Baroque town’s main square, Dobó tér from April 27-May 1, which showcased Eger’s white wine equivalent to Bikavér (Bull’s Blood). While there were plenty of decent – if not that many genuinely exciting – examples served, it is important that Eger has a viable white partner to Bikavér. While no grape is supposed to stick out in the wine which must be made from a minimum of four grape varieties, some of them were a bit too Sauvingon Blanc-like. The better ones can be very good, however. From the entry-level Classic category, Tibor Gál’s tank-made Titi Csillag 2017 skillfully blends a dizzying assortment of local varieties – Leányka, Olaszrizling, Cserszegi, Zenit, Tramini and Hárslevelű, which make up the majority of the blend, spiced up with international grapes Viognier, Sauvignon Blanc, Pinot Blanc and Pinot Gris. The result is a very clean, delightfully fresh and crispy white with peach, melon and juicy citrus fruit, and as such is ideal for summer imbibing. It is also great value at HUF 1,790 from Bortársaság.

If I was buying a whole Gönci barrel of a dry wine, I would expect a bit of a discount, even if the given wine is a unique one-off. Launched in 2010, the Egri Csillag brand is slowly being built up and it is crucial to develop brands in the wine business. I love to kick off a Bikavér tasting with a thirstquenching glass of Csillag. For a more substantial wine, check out St. Andrea’s Boldogságos Grand Superior 2016 (HUF 3,300), a blend of Olaszrizling, Hárslevelű, Furmint, Leányka, Pinot Gris, Viognier and Sauvignon Blanc from Egerszólát’s Boldogságos vineyard, which was aged for four months in new barrels. Egri Csillag Grand Superior category demands a lower yield and a single vineyard wine.

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100% connected, since

the community manager is taking care of my networking.

T h e s e c r e t t o m y s u cce s s? Pe r f e c t co n n e c t i o n s . T h e co m m u n i t y m a n a ge r ke e p s m e u p t o d a t e o n p o t e n t i a l s y n e r g i e s w i t h o t h e r t e n a n t s . A l s o , s h e e s t a b l i s h e s t h e co n t a c t . Ev e r y t h i n g i s u n d e r o n e r o o f : f r o m f u t u r e p a r t n e r s t o a co m f y l o u n ge , w h e r e w e c a n d i s c u s s o u r p l a n s .

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Budapest Business Journal 2609  
Budapest Business Journal 2609