Budapest Business Journal 2617

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

HUF 1,250 | €5 | $6 | £3.5

BUSINESS JOURNAL BUDAPEST

VOL. 26. NUMBER 17

SEPTEMBER 21 – OCTOBER 4, 2018

SPECIAL REPORT Green Business SPECIAL REPORT

Office Market Leads Commercial Real Estate, Public Sector Lagging Zsombor Barta, vice-president of the Hungarian Green Building Council (HuGBC) and responsible for international relations at the National Council for Sustainable Development, about progress in Budapest and the wider region  14

SPECIAL REPORT

Market Talk: How Green is my Valley?

We asked several of the leading names in the property development business to assess Hungary’s green credentials when it comes to commercial real estate.  20

SOCIALITE

Sustaining Business

Bükk’s Merry Band of Winemaking Talent

The discovery of relatively unknown wine regions and vintners who ply their trade well off the beaten track is one of the great joys of being into wine. Friends, both Hungarian and foreign, actually asked if they even make wine in Bükk.  31

NEWS

12 Hungarian Startups Proud to Pitch to a Prince Twelve startups had the opportunity to pitch to royalty and an influential audience of around 400 business people when the Duke of York brought his Pitch@Palace concept to Hungary  5

SP

LR EC I A

EPOR

T

Attila Chikán Jr., president of the BCSDH, explains how 81 companies (with some 400,000 staff and contributing about 30% of Hungary’s GDP) are helping spread sustainability through the country’s economy. 13

BUSINESS

Ford Expands Regional Business Service Center

Ford has opened its expanded Regional European Business Service Center in Budapest. The company says it will create 100 more new jobs by the end of this year, with another 100 added by the end of 2019.  7

2 | 1 News BBJ

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Budapest Business Journal | September 21 – October 4, 2018

THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL STAFF: Zsófia Czifra, Kester Eddy, Bence Gaál,

David Holzer, Christian Keszthelyi, Gary J. Morrell, Rob Smyth, Bálint Szőnyi, Zsófia Végh, Ágnes Vinkovits.

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

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

CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu

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

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

News Services Hungary A.M., Energy Today, Regional Today 1 year, from HUF 179,000+VAT 6 months, from HUF 104,900+VAT 3 months, from HUF 58,900+VAT Book of Lists 2017-2018: HUF 19,120+VAT DigiBOL HUF 39,900+VAT Call +36 1 398-0344 or email circulation@bbj.hu

BLUE BLOODED STARTUP EVENT Taken in isolation, the concept of monarchy today seems, at best, anachronistic, perhaps especially if, as in the case of the United Kingdom, it is an institution that that can trace its roots back to the conquest of Anglo-Saxon England.

Years ago, I interviewed a then very sprightly 92-yearold Otto Habsburg, at an event marking the christening of his latest grandchild. I asked him where he stood on the idea of a return of the monarchy in Hungary’s case. Possibly he was just being diplomatic, but his answer – essentially that time was the most important factor in play – surprised me. I paraphrase, but what he said amounted to this: “It is as hard for me to image Hungary with a monarchy today as it is to imagine the United Kingdom without one.”

But, as is my wont, I digress. The point I really wanted to make is that the concepts of monarchy, steeped in its traditions and the tried and tested, and the startup world, full of innovation and disruption, might well seem to be diametrically opposed. Which made it all the odder that Prince Andrew, Duke of York, seventh in line to the British throne, was in town in early September for BBJ-PARTNERS

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

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a startup event. And not just any startup event, but his own, known as Pitch@Palace, first launched in the United Kingdom in 2014, and now with a truly international footprint. (For more on this, see our story 12 Hungarian Startups Pitch to a Prince.)

In truth, perhaps it should not have been such a surprise.

The Duke has long been involved in the promotion of British businesses; it was, indeed, in that capacity that he came to Budapest for his only other visit in 2005. One of my more obscure claims to fame is that I was “busted”

by Prince Andrew having a crafty cigarette after he had delivered his keynote speech. A partner from one of the Big Four consultancy firms and I had slipped outside to discuss what we had heard over nicotine and caffeine, when the Duke, unusually alone, walked passed us.

He stopped for a brief chat (but not a cigarette), before carrying on his way.

This time his visit was less about promoting British business, and much more about Hungarian entrepreneurs. “You only need create the culture for them to live and work in and they will bubble up within it,” the Duke said. He noted that entrepreneurs were not much concerned about national boundaries, but said Pitch@Palace Hungary was “in the country, for the country and with the country”. Although there were plenty of British and Hungarian establishment figures on hand, the room was far more international than just that. The background may have been something of a surprise, but it made for an evening of positivity, excitement and great ideas.

Robin Marshall Editor-in-chief

VISIT US ONLINE: WWW.BBJ.HU

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SPAR BUDAPEST MARATHON® FESTIVAL

6-7 October 2018.

BUDAPEST, PÁZMÁNY PÉTER SÉTÁNY NEW VENUE FOR THE 33RD SPAR BUDAPEST MARATHON® FESTIVAL

The 33rd instance of the SPAR Budapest Marathon Festival once again provides various opportunities to test your strength on 6-7 October. On Saturday, short-distance running and walking plays the main role, while Sunday is for the runners facing the challenge of completing the classic marathon distance.

This year, the title sponsor is going to promote the SPAR Lifestyle (SPAR Életmód) programme throughout the Danube Promenade of “Pázmány-sétány” in Budapest (this year’s start-finish section), also offering a wide range of gastronomy offerings to runners and visitors.

RUN WITH NÓRI! This year’s speciality will be SPAR hostess and TV presenter Nóri Ördög offering online advice to help runners who complete the 10 km distance, presenting her own preparation and training efforts, and joining the race herself.

STORYBOOK DONATIONS SPAR and the Hungarian Maltese Charity Service are going to join hands this year once again to collect donated children’s storybooks on site. Storybooks in a good condition, if they are not needed any more at home, can be donated at the tent of the Hungarian Maltese Charity Service.

1

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Budapest Business Journal | September 21 – October 4, 2018

News///macroscope

Numbers to watch in the coming weeks The second estimate of July retail trade data is expected to be issued today (Friday, September 21). The Central Statistical Office will publish employment and unemployment figures for the June-August period on September 27. First estimates of August retail trade will be out on October 3, followed by the August performance of the Hungarian industry on October 5.

Central Bank Signals Tightening Policy

ZSÓFIA CZIFRA

The Monetary Council of the National Bank of Hungary left the base rate on hold, keeping it at the record low 0.9% level that was first set back in the spring of 2016. The council also left the O/N central bank deposit rate at -0.15% and the O/N collateralized loan rate at 0.9% at the meeting on September 18.

But what caused a stir on the market was the accompanying statement. In this, the council announced that it had reviewed its monetary policy instruments and was “prepared for the gradual and cautious normalization of monetary policy, which will start depending on the outlook for inflation. [...] The set of unconventional instruments affecting short-term yields will be simplified, and the Monetary Council will publish the background material to the [MNB’s] instrument strategy. In addition, the set of unconventional instruments affecting long-term yields will be finetuned,” the council said.

As for the inflation target, it is still expected to be sustainably reached in

mid-2019.

To ensure this, in the council’s assessment, maintaining the base rate and loose monetary conditions is necessary, the statement noted.

Phasing Out

Another important decision the council made is a change in one of its main instruments. The council has decided

Inflation in EU Member States (August 2018)

to phase out the three-month deposit, previously the central bank’s main sterilization instrument.

According to the statement, the current stock of three-month deposits will decline to zero by the end of December 2018. In the future, mandatory reserves will be the main policy instrument, the council said. The interest rate on mandatory reserves and preferential deposits will remain equal to the central bank base rate.

“Looking forward, the [MNB] will adjust the monetary conditions necessary to achieve the inflation target in a sustainable manner by creating an optimal combination of two of its instruments: swaps providing forint liquidity and the interest rate corridor,” the council added.

The council decided to phase out tenders of the MNB’s monetary policy interest rate swaps (MIRS) as well as its mortgage bond purchase program by the end of 2018. The council set the maximum annual stock of MIRS for 2018

at HUF

1.1 trillion.

At present, MIRS stock stands close to HUF 935 billion. The mortgage bond purchase program will be phased out in two stages: purchases on the secondary market will continue until September 30, those on the primary market until December 31.

One Anchor

The council reiterated that inflation remains the MNB’s “single anchor”.

However, under the flexible inflation targeting regime, rate-setters take into account all the factors that may affect inflation developments on the five- to

eight-quarter horizon of monetary policy, it added. Among those factors the council included commodity prices, changes in the external inflation environment, labor market conditions, the position of the real economy, developments in the exchange rate and credit market conditions.

“By taking into account all these factors, the [MNB] is able to assess the likely magnitude and persistence of future price changes, which in turn determines the monetary policy response,” the council said.

Based on the statement, it is clear that the MNB has left behind its ultraloose monetary policy stance, as it decided to drop those non-conventional instruments it introduced recently, and the tone of communication has also ADVERTISEMENT

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Estonia

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Slovakia

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Source: Eurostat/MTVA Sajtóadatbank/MTI

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August 2017- August 2018: 12 Monthly Change in Consumer Price; EU-28; Eurozone; Member States

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The National Bank of Hungary kept the base rate at 0.9% at its latest rate setting meeting. But more importantly, it revealed moves to simplify and finetune its set of policy instruments. Analysts say that it might signal the start of a tightening cycle in the longer run. In the short-term, however, the central bank is expected to stick to its dovish stance.

*Data from July 2018.

changed, Equilor said in a press release reacting to the monetary council’s decisions.

The planned changes in the MNB’s instruments can be seen as an early sign of tightening, said Erste Bank junior analyst Zsombor Varga, adding that in the medium-term, the conditions of the current loose monetary policy are expected to remain at place. According to him, a raise in the base rate would first be possible in 2020.

Others are being more exact: CNBC, for example, quotes in its story on the matter several analysts saying they expect the first MNB base rate hike to come in the second half of 2019, although its median forecast sees no change in the base rate next year, and predicts an increase to 1.6% by the end of 2020.

4 | 1 News

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Budapest Business Journal | September 21 – October 4, 2018

Budapest Airport Expands Terminal 2 by 10,000 sqm Budapest Airport has inaugurated “Pier B”, a passenger terminal section of more than 10,000 square meters adjoining Terminal 2B. The facility will handle non-Schengen flights, including wide body aircraft flying intercontinental long haul routes to North America, China and the Persian Gulf.

BBJ STAFF

Construction of the HUF 7.8 billion HUF (EUR 25 million) development took just one and a half years, Ferenc Liszt International operator Budapest Airport Zrt. said. The first concrete slabs were broken on March 1, 2017 by the main contractor, KÉSZ Építő Zrt.; the first flight to use the new facility,

From left to right: László Szalados, Tamás Menczer and Jost Lammers. a Wizz Air service to Astana, departed through the new gates just

17

months

later, on August 1. Since then, the building has been opened to passenger traffic gradually.

The new facility, which Budapest Airport financed from its own resources, was badly needed; Ferenc Liszt International has seen double-digit growth in passenger numbers consistently during the last four years, with an even greater increase in non-Schengen traffic. This summer saw another record broken in August, as 1,527,620 arriving and departing passengers were registered.

“All this makes Budapest Airport one of the fastest growing airports in

Europe over the last few years and it clearly demonstrates the success of our aviation strategy and all our related airline marketing and route development initiatives and efforts,” said Jost Lammers, CEO of Budapest Airport.

Modern and Functional

László Szalados, deputy CEO of KÉSZ Építő, spoke about the technology behind the building at the official opening on September 13.

“Pier B is not a palace, it is not a piece of art, but rather a very modern and very functional building that allows safe and secure airport operations and serves the comfort of the ever increasing number of passengers,” he said.

“Still, we have implemented a series of sustainable and state-of-the-art technical innovations while constructing this building.”

Tamás Menczer, Minister of State for Communication and Hungary’s international image at the Ministry of Foreign Affairs and Trade, told guests at the opening: “We highly appreciate the role Budapest Airport plays in the development Liszt Ferenc International Airport, since the quality of the airport, the extensive logistics capacity here is of great importance in attracting tourists, or bringing new foreign direct investment to Hungary and thus supporting the success of the local economy.”

The newly opened passenger facility is the flagship project of the five-year BUD 2020 airport development program. Pier B was drawn by a team of architects and engineers from Hungarian design bureau KÖZTI Zrt., led by Zoltán Tima. As part of the overall development project, the airport operator says it has

spent HUF

55 bln-60 bln

(EUR 160 mln-180 mln) in improving airport infrastructure, modernizing instrument landing systems, expanding aircraft maintenance hangars, handing over new logistics bases in the vicinity of Terminal 1 and opening the new airport hotel near Terminal 2.

The next stage of the BUD 2020 program, the construction of a multi-story car park, will commence in the parking area in front of Terminal 2 in a few weeks’ time. Work on Cargo City, a dedicated, 20,000 square meter air cargo handling facility, will also start this month.

PRESENTED CONTENT

BMW CEO Experience you are provided with a lot of supporting information and help when needed.

For example, the heads-up display in combination with the road-sign recognition and the 360° view are just two highlights.

Though the children found the possibility to change the color of the illumination the best feature of all: every single color I tried prompted a big “Wow!” from the backseats.

With Markus Hilken, SAP Labs Hungary BBJ: How did you like the X4 overall?

Markus Hilken: First of all, the car in this combination of color and with its shape makes a nice bold statement; it is definitely an eye-catcher! It usually takes me not more than 30 seconds when getting into a car to feel comfortable and at “home” or not, and here I felt immediately good!

BBJ: What was its most surprising or most useful feature?

MH: After checking several of the many features, I realized there is an analogy between BMW’s ConnectedDrive and SAP’s intelligent ERP: you not only get insight information whenever you want it, but

BBJ: What kind of driver do you consider yourself to be?

MH: Considering that as a German I am used to – and utilized intensively – the famous German Autobahn network and that I privately drive a 400 bhp sportscar from Zuffenhausen, you can call me a sporty driver.

Nevertheless, I also enjoy cruising a lot, and in a pulsating city like Budapest, you had better stay calm no matter what personalities you have to deal with on the street.

BBJ: Would you recommend the X4 as a business or family car?

MH: According to my experience, I would definitely recommend this for a family.

The car provides not only a spacy and comfortable interior but also sufficient space in the trunk for a longer family trip.

BBJ: What did your family think of it?

MH: As I mentioned earlier, the combination of color, shape and all the features (including weather forecast and inductive charging), meant the entire family enjoyed the car a lot and liked it very much.

BBJ: Would it suit an executive fleet?

MH: I can definitely imagine that this car will be offered in several cases, although the price-tag of the fully equipped car I had the pleasure to enjoy will give the control department a tough challenge!

BBJ: Where did you take it and why?

MH: The trip started in the forenoon bringing the children to horse-riding north of Budapest, and afterwards we continued along the Danube south via Szentendre back to Budapest; and on the next day it was through the city. So, I experienced the country roads as well as the city traffic with the car and it is well suited in both cases.

BBJ: What kind of manager would you describe yourself as?

MH: It’s a combination of several styles, mainly of visionary and coaching leadership, but you also, in today’s business world, need

to provide transformational support to your people in their continuous development.

BBJ: How long has SAP Labs been in Hungary?

MH: SAP Labs Hungary was founded in 2005, initially with 50 developers.

BBJ: What is your current staff headcount?

MH: It has grown further from 500 when I became the managing director in 2013 to 1,100 employees today.

BBJ: Are there any special attributes about SAP’s presence in Hungary?

MH: SAP Labs in Hungary is SAP’s biggest development location in the region. In addition, we are focusing on having the whole lifecycle from development, cloud operations, maintenance and support for dedicated products at our locations, which enables us to provide the best customer experience with our products.

1 News | 5

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Budapest Business Journal | September 21 – October 4, 2018

12 Hungarian Startups Proud to Pitch to a Prince Twelve startups had the opportunity to pitch their businesses to royalty and an influential audience of around 400 business people when the United Kingdom’s Prince Andrew, the Duke of York brought his Pitch@Palace concept to Hungary for the first time at the Pest Vigadó on September 11.

ROBIN MARSHALL

Pitch@Palace Hungary 1.0 (the naming convention suggest the intention already is that there will be more) was hosted

by Design Terminal, which describes itself as the leading social impact incubator in Central Europe, along with its partners Századvég and Big Four consultancy KPMG. The winner on the evening was GlovEye, a device intended to assist the blind and visually impaired by helping them read any printed text as brail. The runner up was CollMot Robotics, dedicated to breathtaking drone shows, with Cogito, a note sharing app focused on education, coming third and also named the Pitch@ Palace Hungary People’s Choice Award.

GlovEye will now go on to the third Pitch@ Palace Global event at St. James’ Palace, London on December 12.

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The dozen startups with the Duke of York (at center).

Speaking at Vigadó on September 11, the Duke said, “This event is about showcasing Hungarian talent, entrepreneurs and entrepreneurship. There are huge benefits to learning and listening and hearing and working with entrepreneurs. It is an enormous pleasure to welcome these 12 entrepreneurial businesses into our program and I hope we will be able to help all of them in one way or another. We’re looking forward to helping these businesses over the coming months and years.”

The other participants were: Aeriu, which uses drones for inventory management; EVA Vision intended to assist the blind and visually impaired; Clavicont, finding methods for the early detection of the Parkinson’s disease; Hallid.AI, which can be used for e-sports training; Intellyo, an SaaS system for creating content at scale; OrthoPred, which uses AI diagnostic software to predict injury recovery times; Phonic Chat, an app for multidimensional social music production; Revealu, which maps your data footprint; and Walter’s Cube, a digital archive of art exhibitions using VR.

Amplify and Accelerate

The Duke of York founded Pitch@Palace in 2014 to provide a platform to “amplify and accelerate” the work of young,

innovative technology enterprises.

Pitch@Palace has since grown into a global network which spans 53 countries across five continents, building access and connectivity around the world. According to the organization’s own figures, 95% of its 600 startups have survived, creating 2,314 jobs and more than GBP 600 million in economic activity.

Pitch@Palace not only provides a platform from which to pitch and creates a global network of companies, but also guides, helps and connects entrepreneurs and early-stage businesses with potential supporters. One of the most notable success stories from Pitch@Palace is technology business Magic Pony, which met its investors through the program.

It was sold to Twitter in June 2016 for a reported USD 150 million.

Speaking after the event to a select group of publications that included the Budapest Business Journal, the Duke said: “This is about showcasing the talent and entrepreneurs that Hungary has, and to encourage another generation to follow on.

This is only a start; it is a matter of being able to carry on that follow up activity. If we can support these business and create for them success, not just through events but through follow up – and it is just as

important for the audience as well to be able to follow up –, then we can perhaps persuade the next generation… that ‘we can do this, because it is perhaps not quite as frightening as we thought’.”

Asked if he thought entrepreneurship, well established in the United Kingdom, was alive and well in Europe, the Duke was emphatic: “Oh, yes!” he laughed.

“Certainly, nobody in Britain has what I would describe as cornered the market on entrepreneurialism. No, it is more about the culture and the education system.

If the education system is culturally sensitive towards people thinking about entrepreneurship, then the sky’s the limit.

And it’s not about teaching anybody how to be an entrepreneur, it’s about letting them live in a culture so some of the learning they do is entrepreneurial, some of the experiences they have are entrepreneurial, so that they learn about decision making, leadership, and understanding that actually starting a business requires people to work as a team. They may be slightly airy fairy, long-term grown up things to talk about, but actually you can do that in school very easily and it is not difficult to achieve that sort of culture whilst teaching them the normal day-to-day things that need to be taught.”

6 | 1 News

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Budapest Business Journal | September 21 – October 4, 2018

Industrial Demand Continues to Rise The Central European industrial and logistics market is continuing to record high demand, reflecting the indicators in the wider European industrial markets.

Speculative vs BTS

GARY J. MORRELL

Demand for industrial and logistics space has seen an expansive first half year with average vacancy rates of 5.7% across the European markets surveyed according to Colliers International.

“Limited development pipelines and availability will continue to push the drive to landlord-favorable markets over the remainder of 2018, and most likely into 2019,” says Colliers.

“Development activity continues unabated in Hungary, with demand outstripping supply in the fastgrowing market. The commercial real estate developer and manager CTP has started the construction of new premises. The retail sector was an important demand engine, as Auchan Retail Hungary is moving into an

87,000 sqm industrial park

built and managed by the operator and developer, Goodman,” Colliers adds.

Poland and Czech Republic continue to be the dominant Central European markets with an estimated industrial stock of around

Analysts see the necessity for more development to meet growing demand in the industrial sector in Hungary.

Indeed, regional developers such CTP, Prologis, P3 Logistic Parks and Wing all have substantial plans in Hungary.

Login Business Park 14 million sqm and seven million sqm respectively. This compares to 2.8 million sqm in the Budapest area.

Leading CE Market

With regard to new supply, Poland was the leading Central European industrial market with 734,000 sqm in the first half year, followed by Czech Republic with 383,000 sqm and Hungary with 30,000 sqm according to Cushman & Wakefield.

The average vacancy for the region stood at 4.4% with the lowest vacancy in

Hungary at

3.5%,

compared to 4% in Poland and 3.7% in the Czech market.

Although the Budapest industrial market has high demand, take-up is lower in comparison with its Central European neighbors. In contrast to Poland, Czech Republic and Slovakia, a functioning commercial industrial market has not developed outside the capital in Hungary and companies establishing light industrial facilities have tended to develop their own facilities.

Gross take-up in the Hungarian industrial market was 163,000 sqm in the first half of 2018 according to Cushman & Wakefield; this compares to a gross take-up of 733,000 sqm in Czech Republic and a massive two million sqm for Poland.

“Demand is continuing to be strong with Czech and Poland leading the pack.

But Hungary, Slovakia and Romania are also doing great,” comments Ferdinand Hlobil, head of CE industrial at Cushman & Wakefield.

With high demand limiting supply the differential between speculative and BTS development has become more difficult to define, as most speculative space is let before completion.

“The difference between BTS and speculative is a bit misleading nowadays, as most of the delivery is taken by tenants at the planning stage or during the construction phase. So there is not as much typical speculative construction as there was in the past,” explains Hlobil.

Prologis was the leading CE developer with 25% of market share in H1, followed

by Panattoni

with

22%

and Hillwood with 9% according to Cushman & Wakefield. Panattoni and Hillwood do not currently operate in Hungary. Panattoni was the leading CE developer with regard to new construction, with a 25% market share, followed by CTP with 18% and P3 Logistic Parks with 11%.

P3 have plans to enter the Hungarian market.

“Right now the vacancy across Central Europe is very low, but developers are ready to deliver on a BTS basis in numerous locations. We only expect more [truly] speculative development if demand slows down, as developers are now under pressure to match demand size,” concludes Hlobil.

First CEE BIM-designed Logistics Center Started by Prologis Prologis has begun development of what it describes as the first Building Information Modeling (BIM)-designed logistics center in Central and Eastern Europe at Prologis Park Budapest-Harbor.

GARY J. MORRELL

The system is a 3-D model-based process that arguably gives architecture, engineering and construction professionals the tools to more efficiently plan, design, construct and manage buildings and infrastructure. This reflects the increasingly sophisticated requirements of tenants, as well as the trend for developers to gain sustainability accreditation for their projects.

The complex will be submitted for BREEAM “Very Good” accreditation.

According to Prologis, sustainable features of the development will include high grade insulated wall panels and

roof systems that, together with high performance gas fired heaters can cut

heating costs by

30%.

Further, energy efficient LED lighting and large skylights reduce electricity costs by 40% compared to the latest lighting standard. Smart metering will also optimize water, gas and electricity consumption.

Essential Platform

“In response to customer demand in this area, we have decided to expand the park by an additional 10,000 sqm, from which we look forward to furthering the business operations of our new

customers,” comments László Kemenes, country manager at Prologis Hungary.

“For Prologis, BIM is the essential platform for smart buildings and data governance, which in turn enhances customer experience and drives energy sufficiency as part of our commitment toward carbon neutral developments.”

Prologis Park Budapest-Harbor is located on the southern border of Budapest and comprises

130,000 sqm of space

in ten buildings, with a further development potential of 27,000 sqm. The new 10,000 sqm speculative complex will be delivered in March after a six month construction period.

International logistics developers and park operators such as Prologis, Panattoni, P3 and CTP are becoming increasingly concerned with sustainability issues in the design and management of their centers in response to the increasingly complexed requirements of tenants.

Prologis, a leading international logistics park operator and developer, now has 10.4 million sqm of sustainability accredited space in 304 buildings across 17 countries, the company says.

“Prologis strives to lead the industry in sustainable development with buildings designed to minimize waste, as well as energy and water usage. Since 2006, Prologis has built more than 50 BREEAM accredited buildings worldwide,” the developer comments.

Prologis Park BudapestHarbor BIM building

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www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Business

HR. Along with a center in Mexico, and another in India, the new HR department will provide services to Ford’s business operations around the world.

Shifting Perceptions

Ford Expands Regional European Business Service Center in Budapest

Ford has opened its expanded Regional European Business Service Center serving the EMEA region (Europe, Middle East and Africa) in Budapest.

The company says it will create 100 more new jobs by the end of this year, with another 100 added by the end of 2019.

ZSÓFIA VÉGH

With the inauguration of its service center at Váci Greens in Budapest, Ford has opened its largest business service center in Europe. As a result, Ford is now present in three locations in Hungary: two in Budapest and one, its headquarters, in Szentendre.

With the new service center, Ford says it currently employs more than 500 “highlyqualified people”. By the end of this year, that number will increase to

nearly

600,

making the company the largest U.S.based automotive employer in Hungary, said Viktor Molnár, regional director of Ford, at the official opening of the center.

Approximately 99% of Ford employees are Hungarian, 98% have a degree (many more than one) and between them they speak 17 languages overall, he added.

Access to a pool of well-qualified, foreign language-speaking workers was one of the main considerations for Ford deciding to bring new functions to Hungary.

(In Hungary, there are about 110 business or shared service centers employing nearly 46,000 people, according to information by the Hungarian Investment Promotion Agency. Language command is essential, with some centers provide services in up to 30 different languages.)

Viktor Molnár, regional director of Ford.

Milestone Moment

“This is a milestone in the history of Ford Hungary, and the coronation of almost two years of negotiations,” said Molnár. The expansion and the introduction of some new services is also the acknowledgement of the quality of the work Hungarian employees have done. HIPA also played a role in the process; the organization acted as a coordinator between the government and the company.

The decision is in line with Ford’s strategy of streamlining its European operations and making them more cost effective. The company, which has been present in Hungary for

18 years,

first started to expand its Hungarian team by moving the European financial

unit to the country in 2012. The next step, in 2015, saw the establishment of the Business Service Center in Szentendre.

The new office at Váci Greens office building houses many of the functions already present in Budapest. Among them are production planning – the staff of this department is charged with determining which models, and how many, will be sold in Europe’s countries two years in advance.

European finance is a function that has been in Hungary for three years now. After sales and customer literature are somewhat newer – this latter takes care of, for example, the preparation and translation of various manuals into 22 languages.

The new office center will also house what is a new function for Hungary: Global

From a strategic viewpoint, it is positive that ever more centers of excellence or functions requiring decision-making are being established in Hungary, László Vizkeleti, team manager of engineering, manufacturing, logistics and supply change at Hays Hungary told the Budapest Business Journal.

This all helps “shift the perception of the country as being a low-cost labor market to that of being a best-cost one”, he added.

These areas include supply chain, cost engineering, logistics or, as in the case of Ford, human resources.

With the expansion, the value of the experts needed for functions brought here

by Ford and the competition for them will likely increase. Depending on the availability of these professionals, this may even bring about a salary raise, according to the expert.

One major reason why companies are selecting Hungary as a location for these operations is the lower cost of workforce and office space compared to Western Europe, the United States, and sometimes even Asia. At the same time, companies have access to highly-qualified workforce, meaning there is little or no need to employ expats. Hungarian employees have the necessary language command, but there are many foreigners too who come to live in Hungary and can be employed as well, albeit they tend to be counted as local hires.

“The location of the country also makes it attractive for automotive companies: being halfway between the United States and Asian markets makes communication easier,” Vizkeleti said.

Ford says it also supports a continuously expanding supplier network in Hungary, currently consisting of

40

companies

and 69,000 employees, manufacturing and supplying parts for Ford production facilities, with a total revenue of HUF 580 billion (USD 2.27 bln) in 2017.

That equates to 1.7% of Hungarian GDP, the carmaker says. Ford has been the market leader in overall vehicle sales in Hungary since 2010, with a strong market share in the passenger car segment with 10% and more than 22% share of the commercial vehicle market.

Ford’s Regional European Business Service Center.

8| 2

Business

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Taking Regional Entrepreneurs on the Road The Budapest Business Journal follows the latest group of Visegrad Four startups on their roadshow to Tel Aviv.

The founders, Szabolcs Szilágyi and Márk Boros, aim to target stores, cafés, shopping malls, etc. Not only because this is where most thefts take place, but also as cyclists tend to spend more – on average

EUR 1.7 more

according to Violacity’s survey of bikers – if they know their bikes are safe.

Performing Better

Another is Innoria which, using EEG (electroencephalography) and artificial intelligence, is capable of distinguishing real time between states of mind. What is more, it does so in groups of

up to

4

ZSÓFIA VÉGH

Anyone travelling to Tel Aviv between April and October should not really bother checking the weather report beforehand as temperatures rarely dip below 30ºC (86ºF).

On September 5, it is particularly hot and humid, unfortunately for the attendees of DLD Tel Aviv, an innovation conference organized at the city’s Old Train station – mostly outside.

It’s not clear if it’s the weather, or the fact that the majority of participants are startups but speakers are quite dressed down for the event. Most get away with wearing jeans or even leggings. Presentations held inside what used to be a waiting hall are infiltrated with constant chatter from the audience.

Panel members are introduced with as much fanfare as bands at music festivals.

Roland Dávid, managing director of Innoria Kft. (This feeling only gets stronger when you realize that, in between sessions, an actual band is playing live.)

Outside is a more traditional line-up of booths: enterprises, state innovation agencies with their brochures and freebies piled up are trying to catch the attention of potential investors. Among the participants are four Hungarian startups

that also came in the hope of building some business ties.

One is Violacity, a young urban tech enterprise, whose smart bike rack preventing theft makes carrying a heavy lock unnecessary. The steel arms of the sturdy stationary system lock the bike safely either with a code sent by SMS, or by using fingerprints, or with a loyalty card.

(up to now, only one person at a time could be tested). Based on the results, it is able to tell if the people would make a good team or what could be done to help them perform better under pressure.

The system has already been tested on sporting shooters and will be introduced at Lajos Mocsai’s handball academy. It can also serve HR professionals. The creators are still developing the system: in one year’s time, they promise, it will be able to make recommendations to coaches and later replace them, or at least part of what they do, completely.

The companies arrived in Tel Aviv as part of the Startup Campus V4 Global Tour, a series of study and networking trips organized for entrepreneurs from the CEE region by Startup Campus. As

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part of Enterprise Hungary, Startup Campus supports Hungarian and regional enterprises in their growth, product development and market acquisition.

Yet, unlike similar organizations, incubators and accelerators, which generally focus on one goal, Startup Campus has a more holistic approach.

From running courses at universities, for example at Imperial College London for Hungarians students to encourage them to start/grow their startups, to helping budding enterprises validate their

products/services abroad via its network and foreign representations already operational in Berlin and London, to organizing study and networking trips to foreign markets, they deal with everything.

Modified Models

Thus far, some

32

enterprises

have participated at the Startup Campus V4 Global Tour launched this year: they

Szabolcs Szilágyi, CEO of Violacity

Innovation Flies High at Budapest Airport Ferenc Liszt International Airport has been steadily growing for several years. Mihály Hardy, the Communications Director of operator Budapest Airport tells the Budapest Business Journal about the innovations helping transform the airport into a Central European hub for passengers and cargo too.

CHRISTIAN KESZTHELYI

“Aviation and airports in general are about constant innovation,” Hardy says. “This is, on the one hand, a very customerdriven industry, and on the other hand a battlefield of fierce competition, constant innovation and huge investment, both into the hardware of aviation and the people who operate it,” he adds.

“In our field, everything has changed and continues to change every day. While 15-20 years ago it took weeks to plan a foreign airplane journey, today you can decide in one minute and within ten minutes book an airline ticket, select your seat, book a parking space, rent a car in your chosen destination, pay for the insurance and book your hotel – all just with your mobile phone,” Hardy says.

The ticket itself has morphed from a printed document that would be redeemed

Business | 9

2

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

for a boarding card at the airport on the day of travel, to a barcode stored in an app on your smartphone. “You do not even have to print your boarding pass: you are your own travel and check-in agent in one person,” Hardy points out.

Smart Travel

Based on statistics from the Budapest Airport, 80% of its passengers already use the internet and their smart gadgets to book their travel. “Airports help your way through all the steps with the help of digital solutions, and of course today free Wi-Fi at an airport is almost as important as a baggage conveyor; it is part of our daily life,” he adds.

Hardy believe that the buzz word for the future will be “flexibility” instead of readymade off the peg solutions. “People will look for a tailor-made travel experience, where you pay only for those services that you really require. We see steadily rising demand for smooth passenger

Startup Campus V4 Global Tour The main sponsor of the Global Tour is the Hungarian Ministry of Foreign Affairs and Trade. The campus is also partnered with the state-owned Hiventures Venture Capital Fund and the old Hungarian National Trading House, but Startup Campus finances most of its programs from tenders and its own capital. Its services, mostly non-profit at this stage, are not restricted to local startups, but offered to regional outfits as well. “Selling” an

have primarily been selected based on their potential to do business on the markets the tour covered including New York/Boston, Hong Kong, Berlin, and Istanbul. Many of the startups have been called back for further negotiations and many have modified their product or business model, based on the feedback received from experts.

In Tel Aviv, too, probably the most valuable session of the trip, which has meetings with local investors or briefings on local business culture, is when the entrepreneurs are pitching for the head of an advisory connecting investors and corporations with tech startups. Some are doing quite badly, but that’s not a problem. After all, they are here to

entire region to foreign investors (especially those from overseas) makes more sense than focusing on just one country. It is also more sustainable in the long run as to be able to continue to expand, the organization is starting to charge for some of its services.

Beyond the existing network and decentralized incubators in destinations like London and Berlin, Startup Campus is planning to open new sites outside Europe as well.

improve and sparking investors’ interest in one minute is no easy job.

“It’s like dating”, says Zsolt Kovács, the CEO of Enterprise Hungary.

“You have about a one-minute window to ask someone out. If you succeed, you’ll have more time to talk later and they may not choose to go out with you based on that first conversation.

But you have to catch their attention to be able to continue.”

At the closing event of the trip, a party at co-working office provider Mindspace’s rooftop terrace, startups have another go at trying the skills they have learnt. In this laid-back setting, networking is easier and some of them do manage to make some connections they can hopefully make good use of in the future.

Future driven innovation

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experience, however in the foreseeable of environmental innovations and now we future the demand for higher security and have set out on the path of reducing our safety standards at airports will always be carbon footprint in the future, i.e. reducing present,” the director says. our energy consumption,” says Hardy.

Keeping up with this maniac pace is only Nor is innovation seen as a threat to jobs. possible if the company focuses on innovation. “On the contrary, we suffer from a shortage So what does innovation mean for the of qualified labor force, as do many other company? “In short: Everything,” Hardy says. companies in Hungary,” says Hardy. He And that even goes as far as sustainability. thinks retaining staff whose work has been “Budapest Airport is one of the leading automated will be the norm. “Airport work companies in not only advocating but also experience is highly valued in all possible implementing technologies that help to fields and presently our greatest concern is reduce the carbon footprint of the airport. retaining our experts rather than making We also encourage our airport partner anybody redundant,” he notes. companies to join through the GreenAirport This regular column, run in association program. Budapest Airport has already with Audi, looks at how some of Hungary’s reached a balance in this field, we have biggest companies involve innovation in become carbon neutral through a series their daily practice.

Ferenc Liszt International Airport

10 | 2

Business

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Making Washing Organic on a European Scale Who said startuppers should have an age cap of 20-something? Two middle-aged couples certainly weren’t bothered by stereotypes when they set up their own innovative venture, Herbow.

BÁLINT SZŐNYI

The idea to start experimenting with natural detergents stemmed from Tünde TakácsRusznyák, who was determined to replace chemical-based materials as her daughter had sensitive skin. Three years

and

4,500 kg

of washed clothes later, the right formula was born in form of a so-called soapnut ball, and hence Herbow was founded to launch production in 2016.

“Soapnut has been used in India and Nepal for thousands of years for washing purposes, but its true potential is only being discovered now,” explains managing director András Szabó. Initiatives to use it for mass production exist in China, for instance, but it hasn’t been embraced worldwide yet.

Herbow’s edge is the ball invention itself.

On its own, soapnut is not that practical for washing since it’s hard to calculate the right

amount. It also needs to be dried before it can be used again. Now all that hassle is gone.

“The ball can be used like a washing capsule, sponge cubes packed in it intensify the end effect, and we managed to get rid of the typical sour smell too,” explains Szabó. “After all, freshly washed clothes are associated with great and mild odor.”

The product is gaining in popularity for many reasons, but environment-friendliness tops the list. It is organic, free of chemicals, recyclable and economical: one ball can be used for up to five washing occasions. On the other hand, since it is free of chemicals, those with skin issues will find clothes treated with it extra gentle.

Organic Does the Job

global behemoths. And in the meantime, a rich product portfolio has been put together with washing perfumes and stain removers among them to further increase revenue opportunities.

“For Herbow, soapnut was the inspiration which is the source of further endless opportunities to do product development,” notes inventor and co-owner TakácsRusznyák who leads the product development process. Unlike many similar startup efforts, Herbow’s online shop is just one of the sales channels. “We are present on the shelves of several multinational chains in Hungary

which helps raise our visibility,” says Szabó.

Cross-border expansion has also started.

Partly thanks to a total

capital injection of

HUF 171 million

from state-owned VC investor Hiventures and Reditus Equity, operations have now been extended to the Czech, Slovak, Slovenian and Austrian markets will be within reach from September on. “Such a change requires a lots of background work to ensure adequate manufacturing capacity, but we are up to the challenge,” says the managing director.

S TA R T U P S P O T L I G H T

“We’re not offering a magic tool here, though,” adds the managing director. “Heavily contaminated textiles would still need strong chemicals for a convincing result. But in 80% of the time this is not the case, and organic does the job.” The pricing policy follows the rules necessary to stay in the game against

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Britannica International School Welcomes new Head of Secondary Greg Barker, the Head of Secondary, joined Britannica International School, at the beginning of this academic year. Barker studied Drama at the University of Leeds and began his teaching career in China and the Middle East.

BBJ

“I am very excited to be here at Britannica and I am very impressed with what I have seen so far; a very welcoming, committed staff and delightful, friendly pupils,” the new head told the Budapest Business Journal .

“I am really looking forward to this year during which I hope we can build on this summer’s examination successes for even better outcomes next year.”

BBJ: What excites you most about joining Britannica?

GB: I was initially drawn to the friendly family atmosphere of the school, it felt a very caring community, small enough that all the children were known by the adults in the school, yet large enough to have a rich diversity of cultures, I think there are 56 different nationalities in the school, which enriches the international school environment.

Greg Barker

BBJ: What would you like expat parents to know about you?

GB: I love education, I love seeing potential realized, I try to keep the student at the center of every decision I make. I’m a parent of three and a grandparent of two and the first question I always ask myself of every lesson I visit is “Would I be happy for my own children to be in here?” If the answer is yes, great; I may have ideas or suggestions but we have some very gifted teachers here at Britannica and I know I will learn much from them.

If the answer is no, then that’s where I need to take action!

BBJ: What do you want to achieve this academic year?

GB: We had a very good set of external examination results this year; I’d like to build on that next summer.

More than one-in-three (36%) of the results achieved by our “A” level students were the very top grades of an A or an A*. This is 10% higher than the United Kingdom average.

With these outstanding results our students gained places in prestigious universities such as UCL, University of Buckinghamshire, University of Sussex and Kingston University, just to mention a few.

We have very high expectations of our students and I’d like to see

every student fulfil their potential.

I’d also like us to keep a strong focus on developing independent learners, helping to grow those skills that are going to be essential at university and to build, a word I use a lot at the moment, resilience!

BBJ: Besides the job, what are you most interested in trying out in Hungary?

GB: I’ve started on a quest to try all the spas in Budapest, so far Rudas

“I love education, I love seeing potential realized, I try to keep the student at the center of every decision I make. I’m a parent of three and a grandparent of two and the first question I always ask myself of every lesson I visit is ‘Would I be happy for my own children to be in here?’” and Gellért are my favorites, but I’m open to any recommendations.

I’m fairly confident I need never be bored here, there seems so much to do and a festival most weekends; what’s not to love!

2

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Business | 11

25 Years in an ‘Important Place Where Growth is Possible’ Hungary), Commerzbank says it plays an important role in both export-oriented Hungarian and German SME sectors.

Revenues in Hungary increased by

Commerzbank Zrt. celebrated its 25th anniversary in Hungary with a number of events for clients and employees.

approximately

10%

ROBIN MARSHALL

Klaus Windheuser (left) and Michael Reuther.

The bank became one of the first Western European financial institutions to found a wholly-owned subsidiary in Hungary in 1993 (for two years prior to that, it had been represented by a local office). Since opening, Commerzbank has been located in a historical landmark building on Széchenyi rakpart.

“As the market leader in Germany’s SME sector and in the financing of foreign trade, we also want to offer our clients personal points of contact for their activities as they navigate business opportunities in Hungary,” said Klaus Windheuser, chairman and CEO of Commerzbank Hungary, marking the anniversary.

“We are pleased to have been able to support our clients in and out of Hungary for

on providing corporate clients with customized financing and cash management solutions, as well as structured interest rate, exchange rate and hedging of country risks. In addition to its Danube-side headquarters in Budapest, Commerzbank is also active in Kecskemét, Miskolc, and Győr.

Importantly, the commercial traffic is two-way. As well as providing German and international clients with a gateway to do business in Hungary, the bank also serves both local and international clients that want to do business in Germany and around the globe. Approximately half of the client base are Hungarian companies while the other half is made up of international clients, the majority of which have a German background, Windheuser says.

Via the Commerzbank Group we are connected with the whole world. Our international positioning and expertise in more than 50 countries worldwide allows us to offer clients access to more markets and strong distribution capabilities – more than many of our competitors do.”

With around 110 staff in Hungary, Commerzbank says it concentrates

As part of the 25th anniversary celebrations, Michael Reuther, a member of the board of managing directors at German parent Commerzbank AG, and the man responsible for Business Segment Corporate Clients, was in town. Among other things, he spoke to an exclusive round table event for local media, to which the Budapest Business Journal was invited. He made the point that the bank was established

25 years.

Commercial DNA

in 1870 by German merchants, an important distinction that remains in the DNA of today’s business.

“Commerzbank’s was not founded by financial people, but by business people, and that is why we are so close to commerce today.”

“So, Hungary is an important place where growth is possible…

The [sectoral bank] taxes are not very helpful, but they have been reduced and they are not preventing is from doing business here.”

As a result of that DNA and the close ties market ties between Germany and Hungary (in 2017, more than one quarter of Hungarian foreign trade was conducted with Germany; 27% of direct investment is accounted for by Germany, with more than 6,000 German companies active in

last year. Alongside the loans business, revenues were largely generated by the trade finance and foreign exchange segment. The loan volume in Hungary currently amounts to approximately EUR 2 billion, Windheuser estimates.

Asked to rate the significance of the Hungarian business, Reuther noted that, after Germany, Poland is Commerzbank’s “second home market” and a place “where we are very strong.

After that, Hungary and Czech Republic are next in terms of importance. So, Hungary is an important place where growth is possible.… The [sectoral bank] taxes are not very helpful, but they have been reduced and they are not preventing is from doing business here.”

Double Digit Growth

Looking to the future, Windheuser said he is targeting “double digit growth” for the bank. “We have sector knowledge and can use this. We understand the business models and challenges of corporates and we can help a lot more. We have a lot of research that is very valuable for this market.” The aim would be to “grow on the profit side with as little capital expenditure as possible”.

Although the German business is heavily involved with startups, and even has a FinTech incubator, Windheuser said that is not the case in Hungary. “But if I saw a good FinTech [in Hungary] I would definitely contact them with the incubator to see if there could be some collaboration.”

Both Reuther and Windheuser noted potential geopolitical instability, particularly the trade war between the United States and China, and the potential of something similar between America and Europe.

“Recession will inevitably come,” Reuther said, but he believes lessons have been learned and the financial world is better placed to whether such a storm, whenever it should come. “There is now much more capital in the banks than in 2008.” But the system “is not completely immune: if you look at the debt markets, there is still a lot of debt out there.”

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Budapest Business Journal | September 21 – October 4, 2018

Special Report Green Business

Office Market Leads Commercial Real Estate In Green Issues, Public Sector Lagging  14

How green are Hungary’s buildings? What are the trends, and does location make a difference?

Sustainability Development now the Regional Norm

 16

Developers Adopting WELL Building Standard

 18

Market Talk: How Green is my Valley?

 20

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

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Special Report | 13

Scalable, Measurable, Impactful and Beyond ‘Business as Usual’ Attila Chikán Jr. president of the Business Council for Sustainable Development in Hungary and CEO of alternative and renewable energy specialist ALTEO Group, talks to the Budapest Business Journal about the impact of the council and the growth of sustainability in Hungary.

ROBIN MARSHALL

BBJ: How and when was the BCSDH formed?

Attila Chikán Jr.: The Business Council for Sustainable Development in Hungary was established in 2007 as the national partner organization of World Business Council for Sustainable Development.

Several companies and private individuals believed that businesses should also take actions for sustainability in Hungary, therefore they founded the BCSDH. Since then, the organization has evolved into a value-creating community of business leaders of companies who presently employ more than 400,000 people and contribute approximately 30% of Hungary’s GDP. Currently our most important task is to promote the incorporation of the principles of sustainable corporate governance into practice, while actively contributing to the achievement of the UN’s Sustainable Development Goals.

BBJ: How has it changed since 2007?

AC: In 2007, BCSDH started with 15 members, and now, 11 years later, the number of member companies has grown to 81. Through the years, the council has become a unique, leading organization in its area, and connects to the government, private and business sectors as well.

BBJ: What is the significance of its membership today?

AC: The members are known to be the biggest companies with the power of influence in Hungary. Under the frameworks like the SDGs and the Paris Agreement, our members work together on big questions, such as: how do we get to net zero emissions by 2050? And how can we avoid wasting a third of the food we produce while millions of people still

Attila Chikán Jr. go hungry every day? Membership gives businesses the value, impact and voice to navigate this change and prosper by transforming themselves and the world.

Members develop business solutions that are scalable, measurable, impactful and beyond “business as usual”.

BBJ: How and why did you get involved with the BCSDH? AC: Personally, I believe that sustainability is the future of businesses. The energy sector, in which ALTEO operates, is strongly linked to sustainability and renewable energy as well. Sustainability is a significant part of ALTEO’s corporate management strategy; we shape our portfolio and investment decisions in line with this attitude. My personal vision and aim is to acquaint people with and spread responsible and sustainable corporate governance principles as widely as possible, and to provide the opportunity for Hungarian companies to become more sustainable on their own area. I also served as the head of the Action2020 Working Group for a couple of years, which has been a great experience and an exciting trip.

BBJ: How has awareness of sustainability and green business changed over the years?

AC: BCSDH was founded almost 11 years ago, which was actually the period of the culmination of corporate sustainability in Hungary. In order to be able to follow the trends, the current state and future prospects of the corporate sustainability of the council’s recommendations, we have carried out a BCSDH survey every year since 2013.

Although our survey indicates that progress with corporate sustainability in Hungary still lags behind global trends, more and more domestic company leaders are reporting that they value environmental responsibility and are preparing for the emergence of a carbon-

neutral economy – one of the significant elements in a corporate sustainability strategy. The adoption of climate-related BCSDH recommendations from 2016 is clearly identifiable in the 2017 survey.

BBJ: Would you say business is driving the sustainability agenda now, or responding to market/public demands?

AC: Our opinion is that, in Hungary, companies are driving the sustainability agenda now, and we know that the global markets go through a slow transformation.

“Our opinion is that, in Hungary, companies are driving the sustainability agenda now, and we know that the global markets go through a slow transformation. Markets move toward true-value pricing and long-term value creation.”

Markets move toward true-value pricing and long-term value creation. Besides the birth of environmental and economic crises and the spread of “green” values by education and the media, these initiatives encourage “One World – People and Planet” behavior in society and individuals worldwide.

BBJ: What are the most important projects the council working on right now?

AC: One of our flagship programs is the “Action 2020 Hungary Program” that calls on the Hungarian business sector to take immediate action. The program is the Hungarian adaptation of the global

program of the World Business Council for Sustainable Development. Within the program, five priority areas (Food and Feed; Sustainable Lifestyles; Employment; Climate Change; and Water) and 20 specific macro-level goals are defined.

This year, this program has a special focus on Sustainable Lifestyles.

The aim of our “Future Leaders Talent Program” is to help potential business leaders, who today are currently talented professionals, to understand the complexity of corporate sustainability and to enable them to incorporate sustainability into their future decisionmaking processes. This program is unique in Hungary.

BBJ: What future sustainability trends do you expect to impact business?

AC: Most business leaders in Hungary feel that the circular economy is the future, in accordance with what we also forecast at the WBCSD. The proposed circular economy directive of the European Union is an obvious sign of its implementation into legislation. Transitioning to a circular economy is one of the greatest business opportunities nowadays. The core of the concept is not yet deeply acknowledged by most companies, although use of this model can increase the flexibility of the economy and facilitate the achievements of the Paris Agreement on Climate Change and the United Nations Sustainable Development Goals.

BBJ: How does Hungary compare with its peers when it comes to sustainability?

AC: If we look over our performance in the context of Sustainable Development Goals, we are at the end of the line compared to the close Western countries.

Concerning our ecological footprint, we exceed our biocapacity, and we have an ecological deficit. Mostly it is these facts that force us to move towards more sustainable lifestyles.

14 | 3

Special Report

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Office Market Leads Commercial Real Estate In Green Issues, Public Sector Lagging Real estate editor Gary Morrell speaks with Zsombor Barta, vice-president of the Hungarian Green Building Council (HuGBC) and responsible for international relations at the National Council for Sustainable Development, about progress in Budapest and the wider region.

GARY J. MORRELL

BBJ: What percentage of office developments in Budapest are LEED and BREEAM accredited?

ZsB: We have no official data for that, but according to some real estate agency estimations, approximately 5-7% of Budapest developments are already certified. As there is not sufficient

data available for the CE region, one can only estimate for the international market. Certifications are generally concentrated in bigger cities or hubs in the region. Rural areas or cities are, unfortunately, not affected by this general market trend.

BBJ: Is it affecting other market segments and the public sector?

ZsB: Other commercial property market sectors are impacted by

the “sustainability movement”, as prestigious projects are also the subject of certifications. The retail sector, especially, is adopting sustainability issues and some logistic and industrial companies are also using certification.

However, this is not yet a common standard for the overall commercial real estate sector. The public sector is very slow in adoption, although the social and overall positive effect would be enormous, therefore there is an urgent need for it.

BBJ: How is green accreditation improving the infrastructure and atmosphere of the city and how could it be further improved?

ZsB: Certifications provides only a framework for a sustainable real estate sector; the behavior of the facility management and end-users is even more important if significant effects are to be demonstrated. There is much to do to educate end-users and the general public. Certifications can be seen as a good tool for this, however there is still a lot more to do in the region. Sustainability is an essential goal for all cities and the built environment, especially for creating a livable environment for the people.

BBJ: Is the market and sustainability regulations impacting the planning, letting and property management of commercial property in the same way and at the same time?

ZsB: The so-called almost net-zero energy use building regulation which will be obligatory from 2020 is already affecting building design. However, this is truly about energy use and overall sustainability issues are not (yet) regulated, or there are no real incentives for developers to take care of the environment and sustainability. This is a missing issue, which should be addressed in the near future by the regulatory bodies.

BBJ: How do you see the WELL system impacting the look and feel of office interiors?

ZsB: As WELL is truly about a healthy internal environment and the wellbeing of the end users, this new certification provides a very good framework for how to create a livable and healthy internal environment, which is also managed in the long-term. This is a clear benefit for end-users. However, to create a really sustainable built environment, it is important to see the boundaries and borders of these systems. The building

Horizon Development Opens Promenade Gardens and Plans EXPO REAL Presence with New Projects The Grand Opening of Horizon Development’s most recent premium Váci Corridor office development took place last Wednesday with the participation of over 200 guests from various fields and sectors related to the property industry. The globally awarded company is also planning its involvement at another prestigious event, exhibiting at the Budapest stand of international real estate fair EXPO REAL to be held on 8-10 October in Munich.

The celebratory occasion of Promenade Gardens’ Grand Opening started with speeches by Dr. József Tóth (Mayor, 13th District of Budapest), Balázs Pázmány

endeavors when he made an official announcement about his development company’s new mandate that will call a new luxury lifestyle hotel into being in the 5th district of Budapest.

The upcoming communication and networking platform of EXPO REAL will also present the opportunity to showcase the diverse and ambitious plans of Horizon Development across segments and borders. These include the ongoing, LEED Platinum certified, mixeduse 7-story Szervita Square Building complete with luxury residential units, as well as premium retail and office spaces; the just announced five-star downtown boutique hotel on Hold Street; as well as a luxury residential project in Marbella, Spain, which now makes the Horizon Development portfolio truly international.

When asked about this major step of branching into new segments and reaching beyond borders, Managing FRICS (President of the Board, ERSTE Partner Attila Kovács responded: “We Open-Ended Real Estate Fund) and Attila truly believe that with our track record of Kovács MRICS (Managing Partner, Horizon developing prime heritage and modern Development), appraising the technical, buildings we can be entrusted to leave a aesthetic and financial success of the supreme architectural footprint in other building from the perspective of the local parts of the World, as well.” community, the investor, the tenants and the developer. The speakers jointly cut the copper-toned silk ribbon that reminded viewers of the building’s unique façade color and premiered a project movie that Promenade showed the entire 2-year development Gardens process of the commercial building from movie link: breaking ground to full completion.

Managing Partner Attila Kovács turned the audience’s focus from the significant achievement at hand to promising future

www.horizondevelopment.hu

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INSIDE VIEW

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Budapest Business Journal | September 21 – October 4, 2018

3

itself should benefit from green building certifications, like BREEAM or LEED, and the interior design and management should benefit from the WELL framework.

WELL is a very new system, which is becoming popular in Hungary, however it is important to emphasize the importance of the long-term facility management and end-user behavior in order to create and to maintain a really healthy and livable built environment.

BBJ: How could the transport system be improved?

ZsB: In terms of Hungary, the public transportation network can be seen as very good, especially when compared to the CEE Region. However, vehicles and smart information system needs to be urgently upgraded in order to make public transportation more popular, user friendly and up-to-date.

Transportation in general needs to be shifted towards alternative and healthy options, including the idea of a shared and circular economy. It is not enough to install, for example, electrical car chargers; it is also important to know where the energy source is generated from. On-site renewable energy production should become a much more important issue than it is nowadays.

BBJ: What should the priorities of developers be in locating a building project?

ZsB: Our built environment has many historical sources and elements, which

Special Report | 15 already at an acceptable level, the built environment’s internal air quality also needs to be improved. This can be done with selected building materials, a healthy indoor environment with plants etc. If all of this can be improved, the livability of the built environment can be improved as well.

BBJ: Is accreditation a pre-requisite for sale to an investor?

ZsB: For many investors, green building certification is within their pre-selection procedure. But not only investors, but also tenants and customers are increasingly requiring certification.

This is helpful for the wider adaptation and implementation of them.

Zsombor Barta should be protected, restored and renovated. Further, existing brownfield sites should be preferred for real estate development rather than green surfaces. Also the creation of new public green sites would be a very important issue, as currently municipal (public) and commercial developers rarely add new green sites to the city (or municipalities).

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BBJ: How can air quality be improved?

ZsB: Air quality is a complex issue.

The overall goal would be to have a healthy environment and good (external) air quality. For this transportation and industry needs to be upgraded and continually monitored.

Further, additional quality green spaces and surfaces help to improve the air quality. If the external air quality is

BBJ: What has the third party accreditation systems achieved?

ZsB: Certifications can help to add quality and to concentrate on holistic sustainable issues. Also, the construction industry has been influenced by the systems as the holistic requirements for general contractors are pushing this sector towards higher quality. Building material selection is also shifting the trend towards quality products with a low environmental impact. This means that building material producers are also influenced by this trend. Endusers and real estate specialists now consider sustainability as a “must-have” issue, which is a significant change and shift compared to the situation approximately ten years ago.

Special Report

16 | 3

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Sustainability Development now the Regional Norm 2nd district

2nd district

2nd district

92 sqm – 3 rooms, Buday LászLó street

79 sqm – 3 rooms, FiLLér street

101 sqm – 3 rooms, zuHatag Line

This very well divided, bright and spacious apartment in good condition benefits of two bathrooms and it is situated within a well maintained condominium, in a quiet side street.

Close to the Millenáris Park, in a new built subdivision with elevator, this very sunny, street and garden facing apartment has separate rooms and two balconies.

Beautiful view over the Buda Hills from the balcony, this spacious apartment has 33 sqm of terrace and parking space in the courtyard. It is situated within a villa house with common garden.

56.900.000 HuF

62.000.000 HuF

86.500.000 HuF

+36.1.336.1706

2nd district

+36.1.336.1706

2nd district

+36.70.376.4138

2nd district

150 sqm – 4 rooms, széHer street

134 sqm – 3 rooms, FrankeL Leó street

300 sqm – 7 rooms, tárogató street

In a very nice villa house, this spacious apartment in good condition has separate rooms, 2 bathrooms, terrace, air conditioning system and parking space in the courtyard.

In a nice villa house, this very spacious and sunny, garden facing duplex apartment has two bathrooms, balcony, terrace and parking space in the courtyard.

This two storey Bauhaus style detached house built on 1078 sqm of lot, has a big terrace, garage and separate entrance to the ground floor.

It is located in a quiet and green area.

89.000.000 HuF

97.000.000 HuF

+36.70.376.4138

3rd district

+36.1.336.1706

3rd district

198.000.000 HuF

+36.70.376.4138

3rd district

52 sqm – 2 rooms, szőLő street

51 sqm – 2 rooms, tímár street

80 sqm – 4 rooms, testvérHegy

Panorama over the Buda Hills, this high floor apartment in good condition has separate rooms and it is situated within a building with elevator and solar panel system.

This street and garden facing, sunny apartment, that needs renovation, has separate rooms and private gas heating.e It is situated within a condominium with elevator.

In a new built subdivision with common garden, this very bright apartment benefits of a living room with open kitchen, 3 separate bedrooms, 2 balconies and parking space.

27.900.000 HuF

32.500.000 HuF

89.900.000 HuF

+36.1.430.1403

+36.1.430.1403

+36.1.430.1403

Accreditation from a third-party sustainability organization such as BREEAM or LEED is now the norm for new developments in the Central European office markets and increasingly in other market sectors such as logistics.

GARY J. MORRELL

With more importance placed on office interiors, as they have become an integrated part of the design process and property management, a growing number of developers are also now seeking WELL accreditation.

Regional and established national developers such as Skanska, Atenor, GTC, HB Reavis and CPI have common sustainable development policies across Central Europe and Western Europe.

Further, Hungarian developers such as Wing, Horizon Development and Futureal have sustainability accreditation policies throughout their portfolios.

According to United Nations estimates, real estate accounts for

about

40%

3rd district

7th district

7th district

210 sqm – 5 rooms, temesvári street

98 sqm – 3 rooms, istván street

98 sqm – 3 rooms, kiráLy street

Close to the Danube, in a beautiful, green street, this very spacious, two storey detached house built on 640 sqm of lot, has two bathrooms, terrace, nice garden and garage.

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.

This very spacious and bright, street facing apartment in good condition has private gas heating and balcony. It is situated within a well maintained building with elevator.

180.000.000 HuF

47.900.000 HuF

56.000.000 HuF

+36.70.669.5350

9th district

+36.70.337.2405

13th district

+36.1.351.0446

13th district

78 sqm – 3 rooms, Ferenc circuit

61 sqm – 2 rooms, tisza street

63 sqm – 2 rooms, ÚjPesti quay

In a renovated period building with glass elevator, this completely renovated apartment has living room with fully fitted open kitchen, 2 separate bedrooms and 2 bathrooms.

This completely renovated, very sunny, street facing apartment has private gas heating and it is situated within a well maintained period building.

In a beautiful, renovated period building with elevator, this very bright, street facing, high floor apartment in good condition has separate rooms and private gas heating.

74.900.000 HuF

33.500.000 HuF

44.900.000 HuF

+36.1.351.0446

+36.70.414.7759

+36.70.414.7759

13th district

üröm

üröm

250 sqm – 6 rooms, st. istván Park

150 sqm – 4 rooms, PiLLangó street

225 sqm – 4 rooms, FüLemüLe street

Breathtaking panorama over the Danube and the Buda Hills, this renovated, luxury, top floor duplex apartment has 131 sqm of terrace, 2 bathrooms, winter garden and 2 parking spaces.

In Pest County, this luxury, eco-friendly semidetached house has 420 sqm of lot, terraces, balconies, solar panel heating and garage.

Handover in spring 2019.

570.000.000 HuF

107.900.000 HuF

This new built, panoramic villa house has 800 sqm of lot, 3 bathrooms, terraces, balconies, solar panel heating, 2 car garage and parking spaces. It is located in Pest County.

+36.70.414.7759

+36.70.669.5350

144.800.000 HuF

+36.70.669.5350

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.

of the world’s energy consumption and a third of all carbon emissions.

“Because of this, achieving double digit reductions in building-related greenhouse gas emissions and buildingrelated energy consumption can have a significant impact on environmental sustainability,” says JLL, the American professional services and investment management company that specializes in real estate.

Conforming to Market Demand Developers therefore need to build in accordance with sustainability requirements in order to conform to a market where tenants require “green” offices and, further down the line, in order to sell a project, as many investors have sustainability accreditation as a pre-requisite. On top of that, of course, there are also legal requirements for environmental impact that they have to stick to “In Hungary, we see that all new constructed class ‘A’ office buildings are now ‘automatically’ certified against one or even more of the international green building schemes.

Existing building renovations are now also seeking certification, as it has become an important tool for repositioning on the market,” commented Zsombor Barta, vicepresident of the Hungarian Green

Building Council, or HuGBC. (For an in-depth interview with Barta, see page 14.)

Hungary now has a total of some

90

BREEAM

accredited office buildings, 48 LEED accredited and three WELL pre-certified projects according to HuGBC. This compares to 147 BREEAM and 55 LEED office buildings in Czech Republic, and 556 BREEAM, 146 LEED and five WELL pre-certified offices in Poland, the largest CEE office market.

“The recently developed class ‘A’ office building stock in the CEE region can be considered to be the same quality as in Western Europe. However, older office stock, especially that which was not constructed and developed in the so-called class ‘A’ category, can be of lower quality.”

The number of sustainability accredited office buildings will continue to grow with substantial pipeline across the region.

Cushman & Wakefield estimate that 168,000 sqm of office space is scheduled to be delivered in the remainder of the year. JLL has traced 320,000 sqm of office space under construction in Czech Republic with scheduled completion of between this year and 2020.

According to Laurentiu Lazar, managing director of Colliers International Romania, close to 50% of the existing stock of quality office buildings in Romania have LEED or BREEAM accreditation, and almost all new buildings seek accreditations. The county has a total of 142 BREEAM accredited offices centers and 39 LEED. The first WELL accreditations are also in the process.

Bucharest is expected to have 2.4 million sqm of office space by the end of the year. In the latest delivery Globalworth has completed phase two of Globalworth Campus, a project that will

3

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Budapest Business Journal | September 21 – October 4, 2018

Special Report | 17

INSIDE VIEW

Future of 5% VAT on residential properties in Hungary Tax Advisor, Partner

Visionary by Skanska, purchased by CA Immo. consist of three BREEAM accredited office towers in a business park environment.

Phase three of the project is due to be completed later this year. The largest pipeline project in Romania is the LEED Gold accredited 37,000 sqm Orhideea Towers by CA Immo.

Noteworthy Transaction A noteworthy recent investment transaction is the acquisition of Skanska’s Campus 6.1 office center in Bucharest by CA Immo, this will deliver 82,000 sqm of LEED “Gold” accredited space in four phases. This is the second office transaction between the two companies after the Visionary deal in Prague; that project is expected to receive LEED “Platinum” and WELL “Core & Shell” certifications.

Speaking about its Campus 6 project, Skanska said: “Located at the intersection of two main boulevards, the property benefits from great visibility and exposure, and is well-served by public transportation.

The metro station is just across the street with bus and tram lines within 50 meters of the complex. Shared e-car facilities are available for tenants, as well as a city bike docking station, which is located in front of the building. Bicycle facilities within the building include lockers and showers.”

Although green accreditation is not a precondition for an acquisition for all investors, it certainly helps and any quality product now tends to have BREEAM or LEED certificates.

The established CEE developer, GTC, for example, has a policy of developing LEED “Gold” office projects throughout its portfolio and therefore has accredited projects throughout the region.

GTC Hungary has just delivered its new Budapest office development,

the

21,500 sqm

GTC White House. In Belgrade, GTC has commenced construction of the Green Heart office complex. The project will include the reconstruction of an existing building in addition to new developments that will in total deliver five buildings totaling 46,000 sqm. Thus, common sustainability standards applied across the region are improving the standard and sustainability of stock.

“The recently developed class ‘A’ office building stock in the CEE region can be considered to be the same quality as in Western Europe. However, older office stock, especially that which was not constructed and developed in the so-called class ‘A’ category, can be of lower quality.

Developers, investors and owners of such buildings are now more and more concentrating on the redevelopment and refurbishment of these buildings. This is already conducted to a much higher level and quality and can therefore help to reposition the building and to fulfill higher quality standards as well,” concludes Barta.

GTC White House

LeitnerLeitner

The reduced 5% VAT rate on residential properties undeniably played an important role in strengthening the real estate industry. Although from the outset the reduction was incorporated for a fixed period of four years, between 2016-2019, many expected the long-term continuation of the rule. The Minister of Finance’s summer announcement cut an end for these hopes. The return of 27% VAT on such real estate will significantly affect the overall market; the consequence may be the further increase of property prices, but also the reduction of investors’ profits.

Certain prepayment constructions may help to extend the validity of the reduced VAT period, but these require due care and attention from developers, buyers and financing banks.

Supply of new and unused residential property, including the land on which it stands, falls under a reduced 5% VAT rate according to the actual legislation. Although the advantage covers only residential properties within certain terms, it had an impact on the whole sector. The synergy of the reduced VAT and the increase of state support for buying homes (the so-called CSOK program) accelerated growth in the real estate industry, and spurred the quality replacement of residential buildings. According to the Hungarian central bank’s analyses, the takeover of new flats increased 44% from last year, while bank financing for residential purposes also rose by about 40%. These trends will likely slow from 2020. In recent years, increasing demand for new flats and houses, combined with capacity problems in workforce and materials, resulted in increasing market prices. Therefore, the financial impact of the VAT rate reduction was divided between sellers and buyers. Considering the high square meter prices, property investors and foreigners play a significant role on the purchaser side of the market, which was not the original intention of legislators when they introduced the advantageous taxation.

Based on the announcement of the Ministry of Finance, the 5% reduced VAT will come to an end

on December 31, 2019, in line with the original plans. Therefore, many building projects will need to speed-up to finish and sell the properties within the deadline.

Increased VAT will burden real estate unfinished by that time, and also the supply of finished buildings that are not older than two years. VAT treatment of partial or advanced payments will depend on certain legal and tax-related circumstances.

The financial impact of the VAT rate amendment will again be shared between seller and buyer, the proportion of which will highly depend on the agreement and the gross-net calculation between the parties.

Certain prepayment constructions may help to extend the validity of the reduced VAT period. Practically, it is the discretion of the contracting parties to agree on prepayment before the supply takes place, with the VAT rate determined at the time of the money transfer. However, the tax authority will consider the overall circumstances of the case and will decide about the transaction according to substance over form, for example, it will be considered as unrealistic to pay almost the full amount for real estate when only the land is available without any significant building elements. Payment to a deposit account may also not provide sufficient solution, as it is not the date of the transfer to the deposit account itself but the withdrawal of the money that will create the tax point date. Therefore, these special contractual constructions require high degree of care from developers, buyers and financing banks alike; it is worth involving a tax advisor to check the planned deal from the aspect of VAT compliance.

This is especially so, since penalties arising from mistakes in value-added tax may have an adverse effect on the budget of corporations, particularly in a member state that applies the European Union’s highest VAT rate. It is, therefore, important to properly assess transactions and review the VAT treatment of the businesses regularly. In LeitnerLeitner’s staff you will find an excellent partner in addressing all your VAT issues. With the help of our EU-wide VAT network, we open a window to Europe as a whole through one single contact person.

LeitnerLeitner is a member of the VAT Expert Group set up by the European Commission, which is a further guarantee of our expertise.

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Judit Jancsa-Pék

18 | 3

Special Report

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Budapest Business Journal | September 21 – October 4, 2018

Developers Adopting WELL Building Standard Green or sustainability accreditation is now a pre-requisite for the successful development, letting and management of office projects at the higher end of the market, with regional office developers having common development policies across CEE and Western Europe.

GARY J. MORRELL

Developers have now become increasingly concerned with interiors and the perceived wellbeing of staff in office centers, and are beginning to seek WELL accreditation in addition to BREEAM and LEED certification.

Sustainability-accredited, and imaginatively designed, office interiors are now regarded as necessary for the improved performance and retention of staff: with a lack of skilled labor, the demands of employees increasingly have to be taken into account. Exterior and interior elements are increasingly part of the integrated design, construction, and property management phases of office developments. Currently three projects in Budapest are WELL pre-certified.

The Washington-based International WELL Building Institute’s system examines the impact of buildings on the human body in terms of health and wellbeing and rates buildings based on

Swedish Hospitality

“Employee wellbeing was also at the forefront when designing Nordic Light Trio and this will be our first office project in Hungary to receive WELL certification. The office complex will be completed with this last phase, which, with its warm and comfortable lobby, will provide an experience into Swedish hospitality and offers an inspiring and stimulating space for productive discussions,” said Marcin Łapiński, managing director of Skanska Property Hungary.

According to Skanska, the building will provide a 2,400 sqm of landscaped garden, also open to the public, bicycle storage facilities, changing rooms and charging stations for electric cars. In its latest deal in Prague Skanska is expected to receive LEED “Platinum” and WELL “Core & Shell” certifications for the 23,000 sqm Visionary office building in Prague 7.

seven categories: air; water; healthy nourishment; natural light; fitness; comfort; and mental freshness. The IWBI’s building standard thus aims to create offices that have a beneficial impact on the health, well-being and comfort of employees in addition to environmental protection.

Employee Focus

The demographic outlook and the current tight situation on the labor market in Hungary and Central Europe is causing employers to focus more on their employees with an aim to provide the work environment that will support productivity and well-being of their people.

“As such, tenants are evaluating which location will be most suitable for their current and future employees, how to structure office space in order to decrease noise, what is the infrastructure in the building or in the vicinity, from gastronomic to fitness choices, including additional services such as laundry collection or electrical cars sharing,” commented Blanka Vackova, head of office agency at JLL in Czech Republic.

In Budapest the household appliances company Electrolux has set up its

new

1,700 sqm

Hungarian headquarters in the LEED “Gold” and BREEAM “Very Good” 25,000

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RIVER ESTATES ADDRESS: 1134 Budapest, Váci út 35.

BUILDING YEAR: 1998 FREE SPACE: 9200 sqm PUBLIC TRANSPORT: metro line M3, trolley bus No. 75, 79 CONTACT: Kudlacsek Janka: +36 20 331 6400 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.

Nordic Light (at top) and Promenade Gardens (above). sqm Promenade Gardens on the so-called Váci Corridor. The new tenant emphasized the attractiveness of the interior, designed

by DVM, in its choice. The complex has been sold by the developer, Horizon Development to the Hungarian Erste Real Estate Fund.

“I consider it a great success to have been able to conclude a mutually beneficial contract with Horizon Development in the state-of-the-art, dual certified sustainable building they developed. Our new, healthy workspaces will contribute to the wellbeing of our employees and increase both individual and team efficiency,” commented András Tamássy, general manager, sales area south CEE at Electrolux.

“The business driver of the Electrolux office relocation was to find a real estate solution that primarily represents Electrolux’s brand but also supports employee empowerment.

The quality and architectural value of Promenade Gardens is a significant upgrade for Electrolux that better reflects the brand and its core corporate values,” said Kata Mazsaroff, head of occupier services at Colliers International, who worked with the tenant on the deal.

With regard to the first WELL precertified developments in Budapest, Skanska is developing the third 14,000 sqm phase of the Nordic Light office complex to meet the WELL Building Standard.

In another WELL pre-certified project, Futureal Group is undertaking development of its largest Budapest office project to date,

the

65,000 sqm

Budapest One Business Park. The first phase of the WELL “Building Platinum” pre-certified complex is scheduled to be delivered in the first half of 2019 and will offer 25,000 sqm of office space and 2,600 sqm of commercial and service space.

The complex, designed by PaulinyiReith & Partners Architectural Studio, will include a 5,000 sqm open interior green area, meditation room, green roof garden, bicycle storage facilities with showers, nanotechnology car wash, rooftop running track and electric car charging facilities.

“In Hungary we have a good base for WELL buildings, because with reasonable focus we can fulfill the requirements of clean air and water preconditions and optimizations,” says Regina Kurucz, an architect and WELL building energy assessor.

“The Hungarian culture is open for changes in nourishment and movement activities. According to my view, a big challenge will be to convince offices of the need for quiet spaces for relaxation and private phone calls. Relaxing areas help to reduce stress and improve work quality.

The WELL Building Standard can help companies to attract and keep the best workforce. I think this is an invaluable accomplishment when the workforce is scarce,” Kurucz concludes.

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Budapest Business Journal | September 21 – October 4, 2018

PRESENTED CONTENT

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Special Report | 19

Millennium Gardens: An Astonishing Location on the Danube TriGranit’s newest development, Millennium Gardens, which is the final element of the twotime FIABCI Awardwinning Millennium City Center in Budapest, can accommodate tenants from 2020 on approximately 37,000 sqm of GLA. BBJ STAFF

The two-winged building with unique architecture is constructed next to MÜPA Budapest, the National Theater and the K&H Headquarters on the banks of the Danube, offering a remarkably spectacular view for its future tenants.

The concept for the complex, with its modern architecture and overall glass surface, joined by a compelling glass bridge over the ground floor, was conceived by Finta Studio to suit a uniquely located area with an outstanding neighborhood. The white, blade-shaped elements situated between each level and along the sides not only make the four-sided facade extraordinary, but also enable a clarity of design and unique dynamics for the building. This design solution supports both natural shading and comfort, in accordance with the building’s energy-saving operation.

Adapting to latest needs with sustainability

Adapting to the newest city utilization trends and to the Millennial employee’s needs, the ten-story “Class-A” office building will offer facilities for more than 200 bicycles including changing rooms and showers. Additionally, the office complex will have electric car chargers, facilitating environmental awareness. The spacious, green garden with water surface promotes recreation and a healthy work-life balance as well as work at an alternative location, and can also function as a public space, a meeting point and a place for employees to have lunch.

Green, open spaces on the ground floor will be accessible for pedestrians, while the large garden, to be constructed on the rooftop, will provide comfort just for employees. The office complex will also provide a place for a restaurant on the ground floor, with seating for 300 people, alongside further service units.

The building’s design was planned in consideration of sustainability, using modern architectural solutions secured by the developer, TriGranit, as well as in correspondence with the BREEAM “Very Good” certification.

Office, or hotel, or both?

Despite the intensive office development boom of last years, new office stock is still required in Budapest. The Millennium City Center with its good accessibility and good infrastructure is a popular and proven destination among tenants. This continuously growing submarket, with thousands of international companies, creates a real demand not only for further office space, but also accommodation opportunities. In addition to this, considering the growing importance of Budapest as tourist and cultural destination, the neighborhood’s intense cultural life makes the Millennium City Center on its own an especially attractive location. Due to the lack of quality hotels around the development, TriGranit is constructing the building in such a way that it can suit both office and hotel purposes. Wanna try?

Location, location, location

The location of the building is excellent in terms of public transport. Four tram lines, several bus routes, two suburban rail lines and the prospective fifth metro line are situated nearby. Through these, the city center can be reached within 15 minutes, and long-distance commuters also have a wide variety of options available when reaching the complex.

City in the city

In addition to all of this, Millennium City Center has become a real town inside Budapest over the past decade: accessible nearby facilities include cafés, restaurants, fast food restaurants, kindergarten, fitness centers and even a health center. Thanks to service units in the neighborhood, employees can arrange several of their everyday tasks as well. The office building will be located in a uniquely maintained green area along an almost 1 km long green promenade on the banks of the Danube with a spectacular view, wellprotected from car traffic and offering plenty of places nearby for relaxation, leisure and recreational activities, while the adjacent MÜPA Budapest, National Theater and the nearby Budapest Park support cultural re-charge.

After almost 20 years of intense rehabilitation work, the area has become a popular, secure and comfortable residential, office and cultural area. And there are still places and detailed plans for further projects in the close vicinity

Mónika Takács, Leasing Manager of Millennium Gardens, TriGranit

What is special for you at Millennium Gardens?

• institutional quality building • sustainability • Millennium Gardens offers a special way of working and living • reputable completion of Millennium City Center • contemporary architecture and design • cultural dynamism of the neighborhood • spectacular Danube view

of the project to be realized: mixed-use, residential and institutional.

TriGranit in other countries

Besides Millennium Gardens, one of the biggest office development projects in Budapest to be handed over by 2020, TriGranit remains active abroad as well; the company’s pipeline projects, together with Millennium Gardens, reach 107,000 sqm GLA in the CE region, including the construction of 77,000 sqm of GLA office space that will start within the coming 12 months in Budapest, Krakow and in Katowice.

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Special Report

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Budapest Business Journal | September 21 – October 4, 2018

Market Talk: How Green is my Valley?

We asked several of the leading names in the property development business to assess Hungary’s green credentials when it comes to commercial real estate.

Here are the thoughts of Nikolett Püschl, development and leasing manager at Atenor; Mihály Schrancz, development director at Property Market Ingatlanfejlesztő Kft., and Árpád Török, CEO of TriGranit.

ROBIN MARSHALL

BBJ: How “green” would you say the construction business is in Hungary now?

NP: The evolution of the Hungarian commercial real estate related construction business to be green started eight-toten years ago, and since then it has been continuously developing and beginning to

real estate industry, and today more than 30% of the whole Budapest modern office stock is certified green. While in the case of older buildings, the lack of a green certification is more common, each new office building delivered to the market nowadays has one of the three main green certificates: BREEAM, LEED or WELL. Constructing green is also a serious business aspect, as disregarding sustainability may lead to losing environmentally-conscious tenants or not gaining new ones. Although smalland medium-size clients may focus less on sustainability, there is a possibility that multinational companies will highly consider only certified buildings as potential headquarters. Neglecting sustainable aspects in the longer run may also negatively affect the exit, as investors are most probably looking for sustainable offices.

MS: To be green is a mindset, and if someone is determined to accomplish a green project, recently no special effort is required to reach the goal.

The golden rule is that the earlier involvement of sustainable principles,

“It is definitely driven by the markets. In the case of commercial developments, building green is a “must have” for a developer, but building “truly green” is not yet paid for by the Budapest market.” the easier it is to create a successful green project. In the case of BudaPart, the green principles were declared in the master planning phase, and we are devoted to them.

Location is crucial in Hungary: there’s a huge gap between Budapest and the rest of the country in terms of green thinking; however, multinational companies help to promote sustainable techniques all over the country.

AT: Currently, not only due to tenant requirements, but to more restrictive energy efficiency regulations, new office buildings are subject to strict technical requirements and solutions, and they are

BBJ: How easy is it to be “green”, to build sustainably? Does location within Hungary have any effect on this?

NP: Being green was never easy. It is a question of thinking in the longterm, investing more money and taking responsibility. Of course it is more complicated and challenging, but

Mihály Schrancz drive the market. Green certifications are the future as 100% of the newly-built office buildings have green certification, most of them already by the design stage. So green and sustainable solutions have become basic criteria for a modern office building.

Moreover, the role of green certificates will further grow in the future as it is a necessity to make a successful leasing or selling deal.

MS: Greener day-by-day. The huge construction companies who have office building references in Budapest have been aware of the requirements of sustainable construction for nearly a decade. Others, operating in the countryside or working on non-commercial projects are still facing challenges on this topic. As for the developers, the formula is about the same.

AT: Over the last few years, sustainability and green buildings have moved to the mainstream in the

“Being green was never easy.

It is a question of thinking in the long-term, investing more money and taking responsibility. Of course it is more complicated and challenging, but fortunately developers have realized that this is the future of this market, and this is the future of the planet.” fortunately developers have realized that this is the future of this market, and this is the future of the planet. The location of Hungary is good, it is easily accessible.

Due to its good –and developing – infrastructure, I would say that yes, definitely the location and amenities of Hungary have an effect on this.

consumption must be covered from renewable energy, Millennium Gardens’ whole cooling and the heating above 0ºC will be supplied by airborne heat pumps.

The cost of reaching the mandatory renewable energy ratio at a building depends both on the built-up density and the plot size. The smaller the plot, the more expensive it will be to realize the required sustainability.

BBJ: Is this being driven by developers or the markets?

NP: Absolutely. Developers like Atenor have recognized the need and importance of sustainability. Therefore, from the beginning, Atenor has delivered real estate projects that meet very strict criteria in terms of location, diversification, technical quality and efficiency.

MS: It is definitely driven by the markets. In the case of commercial developments, building green is a “must have” for a developer, but building “truly green” is not yet paid for by the Budapest market.

AT: I would say both. Environmentalfriendly construction can arise from cost-efficiency considerations, or from the aim to reduce greenhouse gas

“Although companies are more and more devoted to creating healthy working environments to keep and to get new employees, when it comes to realization, unfortunately the financial aspect often takes the lead.

But the trend is positive, as tenants are open to pay more money for being green. “ emissions, or also from the determination of tenants to be more environmentally aware. But, overall, market and client demands are the major forces driving green constructions.

Árpád Török

built in a green way. In other worlds, each new office development is green nowadays.

And this is and will be the future.

Furthermore, due to EU regulation, buildings receiving an occupation permit after the end of 2020 will be subject to much stricter technical requirements, and as an effect, buildings will tend to reach zero commission.

Our Millennium Gardens development on the banks of the Danube is also constructed along these high technical standards. For example, as after 2021 at least 25% of a building’s whole energy

BBJ: What are the latest trends today in sustainability in the industry?

NP: About two-thirds of green certificated offices have BREEAM certificates, onethird of them have LEED certificates and some have chosen [German] DGNB system. Nowadays WELL certification, which is a tool for advancing health and well-being in buildings globally, is getting more and more popular. These international certificates are not only available for new buildings, but also help older properties improve their energy efficiency.

MS: The trend is to increasingly focus on the wellbeing of the users, beside or before the technical aspects. The latest green building assessment system, called the WELL Building Standard, proposes to change the way people think about buildings. It explores how design, operations and behaviors within the office building can be optimized to advance human health and well-being. BudaPart is following this trend.

3

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

newer and newer high-tech environment conscious solutions.

MS: Priority will be given to users’ wellbeing, for sure. It also seems that the pace and the severity of the climate change is accelerating rather than slowing down, therefore the measures of projects in the near future should reflect this. All developers should consider the realities of more extreme climate patterns, so we might create more climate change-resilient and adaptable buildings.

Nikolett Püschl AT: Apart from the compulsory green and sustainable solutions, like the overall energy consumption of the building or the usage of renewable energy, the standard features on the Hungarian market are tools that serve tenants’ and employees’ wellbeing needs, like relaxation areas on green roofs, bike storage, showers and changing rooms or e-car chargers.

BBJ: What might we see in five years’ time?

NP: More and more green buildings with

BBJ: Are tenants really prepared to pay extra for green features?

NP: Yes. For most of the multinational tenants only newly built green certificated buildings are an option.

These occupiers understand that being accommodated in a sustainable environment as the efficiencies of the technical specifications of these buildings are resulting in long-term benefits for them, for which they are definitely ready to pay more.

MS: Tenants are still not qualified enough in terms of sustainable features. They have low-key expectations, for example to work in a certified building, but they are still not willing to pay more for extra sustainable features.

AT: Although companies are more and more devoted to creating healthy working environments to keep and to get new employees, when it comes to realization, unfortunately the financial aspect often takes the lead. But the trend is positive, as tenants are open to pay more money for being green.

BBJ: Is there anything else you would like to add?

MS: Sustainability in a neighborhoodscale project as BudaPart is a more complex and interesting question. We use future-proof smart city solutions

Viktor Nagy that help the buildings to interact with each other and, counter to a standalone sustainable building, our model will have a multiplicative effect in terms of sustainability.

Special Report | 21 Sustainability and Property Management Not all the players on the market are developers, of course. We also asked Viktor Nagy, country manager operations Hungary for IMMOFINANZ, about the property management angle.

BBJ: What role does sustainability and “being green” play in the buildings that you manage?

VN: We are fully dedicated to environment protection. Almost all of our Hungarian office portfolio already has, or is proceeding with, the BREEAM “In-Use” certificate.

IMMOFINANZ is committed to the responsible use of natural resources, the utilization of climate-friendly technologies, a systematic energy savings strategy, the refurbishment of building substance that is worth preserving and the construction of efficient new buildings. These central points reduce operating costs and emissions and also make an important contribution to environmental protection and tenant satisfaction. The goal is to continuously reduce the consumption of resources while maintaining or improving the quality of building use through energy savings measures and, in this way, realize energy savings and reduce environmental impact and risks.

Skanska’s Journey to green András Schmidt Sustainability Manager

Skanska Property Hungary

Skanska, the Swedenbased multinational construction and development company, embedded green thinking into its culture and ways of working. András Schmidt, sustainability manager of Skanska Property Hungary, translates this commitment to sustainability into action.

Skanska has been strategically following its journey towards sustainable development. How can the building industry push sustainability in practice?

We believe in developing sustainable buildings in order to minimize the impact on the environment, as well as to create sustainable communities.

Nevertheless, Skanska’s green focus is in line with the growing demand from our clients in this perspective.

This trend doesn’t only come from the positive attitude of saving the environment, but there’s also a cost advantage to a greener construction.

Even though building green is slightly more expensive, the reduced operation and maintenance costs of green buildings make them cost-efficient in the long-term. Tenants can even save up to a half of their water and energy bills, compared to other conventional office buildings.

What are the latest innovative solutions that have recently emerged in green buildings?

When it comes to innovations, Skanska’s commercial development unit in CEE will be the first developer worldwide to cover office buildings with semi-transparent perovskite solar cells on a commercial scale. This will revolutionize the approach towards energy self-sufficient buildings.

Skanska and Saule Technologies, the institute that we are developing this innovation with, are testing the product now on a larger scale.

Skanska will complete its Mill Park office development in Budapest soon.

New buildings today are expected to adhere to the highest sustainability standards. What sustainable solutions were applied at this project?

Construction is a carbon-intensive industry. One-fifth of the embodied carbon emission of the whole building life cycle is generated during construction, therefore it is essential to focus on sustainable solutions during this phase, using local and energy-friendly materials and decreasing the carbon footprint of transportation, etc.

At Skanska, water is considered a priority, both during the construction phase and Mill Park was designed to fulfil LEED use of buildings. Skanska is a pioneer “Gold” certification criteria. The green on the local market with the reuse of area ratio exceeds the local regulation harvested soil and rainwater. Waterby 20%, being one of the largest green efficient solutions are widely used in our spaces amongst Budapest office projects, however in CEE these are not projects. Mill Park’s inner courtyard commonly used technologies. is unique of its kind, the 5,500 sqm

multifunctional garden having several wellbeing features: relaxation area with swings, an outside fitness facility, table tennis and table football, an auditorium as well as outdoor workspaces with plugs and Wi-Fi. If you were to encourage developers to create development projects with sustainability in mind what tips would you give?

Focus on long-term savings and use local materials. When selecting new construction products, put more emphasis on how they will reduce costs over the long-term. Purchasing from local suppliers helps reduce the energy used for transportation. This means a smaller amount of greenhouse gases are released into the environment and, in the meantime, it helps the local economy.

Prepare for the future by developing flexible projects. Ensure that your development is prepared not only for the needs and possibilities of today.

Sustainability focused developers should consider a building over its whole lifetime and be ready to implement future green solutions and incorporate new sustainable materials.

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

INSIDE VIEW

22 | 3

Special Report

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Budapest Business Journal | September 21 – October 4, 2018

Business ///briefs Green

Gov’t to Impose tax on Plastic Bags The government is to impose an environmental product tax on plastic bags from the beginning of 2019, azuzlet.hu reported.

According to the Ministry of Innovation and Technology, from 2021, plastic bags will be completely banned in Hungary.

The tax will be payable not only on single-use plastic shopping bags but also on single-use plastic cups, containers, straws, forks,

Hungary to see Record PV Growth in 2018 The Hungarian solar market is on track to see record growth this year, with up to 400 megawatt (MW) of new capacity expected, according to president of the Hungarian Photovoltaic Industry Association (MANAP), Ádám Szolnoki.

In an interview with pv-magazine, Szolnoki said that this year’s growth will

forecast growth volumes are confirmed by official statistics, total installed PV power in the country may surpass 700 MW, or even reach 800 MW, by the end of this year, pv-magazine reported.

OLAF Probes Solar Panel Plant in Csorna The European Anti-Fraud Office (OLAF) has decided to investigate Hungarian solar panel manufacturer EcoSolifer because it received HUF 1.9 billion in funding from the European Union three years ago but production has not started yet, hvg.hu reported. The company has one employee, a security guard.

EcoSolifer says it has no knowledge about the investigation and Eximbank, which has provided a significant amount of credit to the investment, refused to disclose any information. Locals at the plant in Csorna, 155 km west of Budapest, say that the value of the production hall and the equipment does not exceed HUF 1.5 bln.

spoons and knives. the purpose of the tax is to encourage people to replace these products with more environmentally-friendly solutions.

be mainly driven by large-scale solar projects developed under the FIT scheme (KÁT), which expired in mid-2016.

Overall, these projects are expected to contribute between 200 MW and 300 MW of capacity, while net metered projects under 50 kW will provide around another 100 MW. The country’s cumulative installed PV capacity stood at around 310 MW, as of the end of December 2017. This means, if the

PannErgy Revenue Down 5%, Profit up 7% Net income of geothermal energy company PannErgy narrowed to HUF 29 million in the first half year from HUF 350 mln in the base period as revenue fell and margins narrowed, an earnings report released late on September 3 shows, tozsdeforum.hu reported. Revenue declined 5% to HUF 2.4 billion. The direct cost of sales edged down just 2%

to HUF 1.87 bln, dragging gross profit down 14% to HUF 535 mln. Operating profit, however, rose 7% to HUF 472 mln, lifted by a decline in other costs and an increase in “other incomes”. PannErgy booked a net financial loss of HUF 439 mln, swelling from HUF 62 mln in the base period.

Alteo Shares Reclassified as ’Prime’ The CEO of the Budapest Stock Exchange said yesterday that the ordinary shares of alternative energy company Alteo Energiaszolgáltató Nyrt. are being reclassified into the Equities Prime Market from September 12, at the request of the company, bse.hu reported. The product list of the BSE will be modified from September 12. The prime category now contains 18 companies, including Alteo.

Hungary Launches Flood Forecasting Project Hungarian water experts are the leading partners in an international initiative involving 12 countries in which they will set up an information system to align the exchange of hydrological data along the Danube’s river basin, profitline.hu reported. The three-year development project, called Danube River Basin Enhanced Flood Forecasting Cooperation (DAREFFORT), will hold its first meeting in Budapest. The European Union has supported the project with EUR 1,149,114.

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Budapest Business Journal | September 21 – October 4, 2018

PRESENTED CONTENT

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Special Report | 23

Helping Tenants Achieve Office Wellness The WELL certification system could be a “game changer” in terms of office fit out, says Péter Takács, a partner at specialist tenant representative firm VLK Cresa.

ROBIN MARSHALL

Takács says WELL, a relative newcomer on the certification block, is important because, while the older, better-known BREEAM and LEED systems deal with the building, WELL is “all about the work space a client is creating within the building, and how well that office serves the purpose of affecting the health of workers”.

And while BREEAM and LEED are the sole responsibility of the building developer, WELL, from the New Yorkbased International WELL Building Institute – represents a more collaborative approach between tenant and landlord, Takács says.

The benefits to the tenant are obvious: a work space that helps keeps staff healthy and productive makes them more effective, happier to come to work and less likely to job hop. For the landlord, and most especially for a landlord who may be looking at the need to renovate and upgrade an older building, working towards WELL certification will help keep the tenant happy, and happy tenants tend to be tenants who stay.

“If we go to a landlord and say ‘We are representing a large company and they really like your building but they want to achieve WELL certification’, that certainly has an impact on the landlord. If you have a building that is 10-, 15- or 20-years old, the mechanical background is going to need refreshing in any case.”

Attract and Retain

Takács believes WELL certification can be a game changer because, as awareness of it grows, “it will enable employers to attract and retain high-quality employees”, while driving improved employee performance and productivity, and reducing absenteeism. Promoting improved health for employees will help companies boost their brand, and supporting tenants in doing that will help landlords achieve differentiation on the market place.

Beyond the mutually beneficial cooperation, there is one other benefit for both tenants and landlords, Takács says. “We think WELL is the first certificate where you can see a return on investment, where you can make a business case out of it.”

Emese Kovács The challenge with other certificates is that it is hard to see a tangible benefit from, for example, harvesting rainwater to irrigate a communal garden. It is a nice idea, and may well contribute to office workers feeling good about working in such a place, but it is virtually impossible to pin down a cost benefit.

With WELL, tenants know how much it will cost to achieve certification, as long as the building itself is capable of providing

“Well v2 is based on the ‘essential elements of what a healthy building must be and introducing new options for what a healthy building could be’.

The changes are based on the previous experiences and lessons learned from WELL v1. We can call it an evolution.” the technical background required. And that can be measured against staff retention and the associated costs in head hunting and training required every time someone needs replacing.

By way of example, Takács says the cost of getting WELL accreditation for a 500-1,000 sqm office (say 50-100 working places) is USD 11,000-12,000

for the certificate itself, with the advisory fee on top making it in the region of USD 15,000-20,000 all told.

The Budapest Nine

For all that older buildings can, in most cases, be brought up-to-date to support WELL certification (or to get BREEAM or LEED in-use certification, for that matter), it is obviously easier when starting from scratch. According to Emese Kovács, of the MN6 Energy Agency, there are nine office buildings in Budapest that have WELL precertification: Advance 1; Advance 2; Agora Tower; Agora Hub; Budapest One; Corvin 5 – Corvin Technology & Science Park; Nordic Light Offices Trio; Skandinavian Gardens; and Europa Design Office & Showroom (a project MN6 is working directly on). Eight of these projects are new buildings, in coreand-shell phase, while the ninth involves the interior of a refurbished building originally built in the 1930s.

MN6 and VLK Cresa have been partners for a couple of years, and were initially introduced to one another on the recommendation of a mutual client. Takács says Cresa initially used MN6 to conduct energy audits to increase transparency around the service charges and other nonrent costs of landlords. But Takács says the agency is also something of a pioneer when it comes to certification, and that on the back of this partnership they are “winning more business” through offering cost savings and alternative plans.

For her part, Kovács says industry professionals are well aware of WELL by now. That’s not generally the case for tenants, although the concept of healthy workspaces is gaining ground.

“Tenants in office buildings are often faced with problems with the indoor air quality or poor thermal comfort, we have to solve problems caused by the high sound levels

Péter Takács of mechanical equipment or bad acoustic planning in office spaces,” she points out.

“Some have irritated eyes, or allergies because of insufficient air filtration, bad maintenance of ventilation systems or extremely low humidity in the office. So, yes, they are aware of the importance of wellbeing in the office, but they are not quite sure of the solutions and their opportunities as a tenant in a building.

When we talk about the WELL certification, they are happy to hear that this can be a solution for their problems. It is possible to create healthy spaces, leveraging design strategies, operational protocols, personnel policies and performance thresholds, all in one system,” she says.

An update of the WELL ratings (WELL v2) was introduced this summer. “Well v2 is based on the ‘essential elements of what a healthy building must be and introducing new options for what a healthy building could be’,” Kovács explains. “The changes are based on the previous experiences and lessons learned from WELL v1. We can call it an evolution. The aim of WELL v2 is to better accommodate diverse project types and geographies and in response to new evidence and ever-evolving public health imperatives.”

Kovács makes one final important point.

WELL, she says, is both science-based and compatible with other systems. “As the performance of buildings, like the indoor air quality, and the maintenance protocols must be measured and reported, the system is evidence based and controlled, so the operation must be taken more seriously. Healthy building certification systems complement – and in some cases overlap – with green-building rating systems such as LEED and BREEAM. As Takács puts it, “There’s more to this than simply installing table tennis tables and cool carpets.”

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Special Report

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Budapest Business Journal | September 21 – October 4, 2018

Green Office Buildings CuRRent leasable offiCe spaCe (sqm) minimal lease teRm (yeaR)

monthly Rental fee on aug. 1, 2018 (euRo/sqm) monthly seRviCe ChaRge on aug. 1, 2018 (euRo/sqm)

yeaR established

solaR ColleCtoRs

biCyCle stoRage

publiC tRanspoRtation

oWn seWage management

independent poWeR supply

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natuRal ventillation

daylight and motion sensoRs

loCal ReCyCling

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inteRnal yaRd With paRk

gReen Roof

planning phase

final phase

ClassifiCation of existing building

Result of validation (bReeam)

Real estate agenCy (agenCies) of agent(s)

oWneRship (%) hungaRian nonhungaRian

70,557 5

14–15 800 HUF

2019

Ÿ

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

–

–

BREEAM Excellent

CBRE, CW

Atenor Hungary Kft. (100) –

1087 Budapest, Hungária körút 30.

(1) 785-5208 – info@atenor.hu

Ÿ Ÿ

–

Ÿ

–

✓

✓

–

–

✓

✓

✓

✓

–

✓

✓

✓

✓

–

–

BREEAM Very Good

–

Futureal (100) –

1112 Budapest, Boldizsár utca 1–3.

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

–

BREEAM Very good

Monika Takács, mtakacs@ trigranit.com, CBRE Leasing, office. hungary@ cbre.com

Ÿ Ÿ

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

✓

LEED Gold

–

Ÿ Ÿ

1139 Budapest, Váci út 81.

(1) 412-3697 (1) 412-3681 leasing@gtc.hu

✓

BREEAM Very Good

–

– CPI Property Group (100)

1138 Budapest, Dunavirág utca 2–6.

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

LEED Gold

–

– CA IMMO AG (100)

1133 Budapest, Váci út 76.

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

BREEAM Very Good

JLL, Robertson

– Immofinanz AG (100)

1134 Budapest, Váci út 45.

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

– (100)

1054 Budapest, Szabadság tér 7.

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

65,313 70,557

8 2,500

55,429 65,372

8

Ÿ

aRéna business Campus 1

2

www.atenor.be

budapest one

www.futurealgroup.hu

millennium gaRdens 3

4

www.millenniumgardens.hu

CenteR point www.gtc.hu

Ÿ

5

37,000 74,844

11 3,650

37,000 3

36,867 40,900

9 2,700

200 3–5

12–14 3.86

Exxon-Mobil, 2004/ Honeywell, Nalco, 2006 GE Hungary

AmRest, Atmedia, Centrade, Chiesi, CPI Hungary, KRKA, Magyar Pos– 2008 ta, Mortoff, NSC, Orange, Orbico, Prémium Pénztárak, Samsung

www.gatewaybc.hu, www.cpipgroup.hu

6

Capital squaRe

www.caimmo.com, www.capitalsquare.hu

Ÿ

35,900 50,800

9 1,500

4,500 3–5

11.9– 12.9 3.50

32,000 38,000

9

Ÿ

Ÿ

10–14.5 1,250 HUF

31,200 38,400

9 4,500

1,536 5

13–14.5 1,100 HUF

5

myhive átRium paRk 7

www.myhive-offices.com/hu

gReen seRviCes

14.5–16

gateWay offiCe paRk

5

2018

–

2009

8

bank CenteR

30,041 52,164

11 1,405

Ÿ 3

Ÿ Ÿ

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9

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29,800 31,500

16 800

320 5

13–16 4

2006

– 5

13–13.5 1,100 HUF

www.bankcenter.hu

www.dunatower.hu

myhive halleR gaRdens 10

www.myhive-offices.com/hu

28,520 34,300

8 4,000

doRottya udvaR 11

28,500 28,500

4 1,200

1,605 5

13 3.70

sCienCe paRk 12

27,278 29,450

7 1,910

– 5

Ÿ Ÿ

www.dorottya.net

www.sciencepark.hu

stage of gReen CeRtifiCation Rating

CuRRent majoR tenants

no. of levels aveRage level size (sqm)

Company Website

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

Rank

Ranked by net office space (sqm)

Ÿ

Albemarle, Regus, Ferrero, KCI

Ÿ

–

IBM, Huawei, Metlife, Ford

Ÿ

2002

Shell Hungary Zrt., Viacom International Hungary Kft., KUKA Hungária Kft., Leaseplan Hungária Zrt., Mars Magyarország Értékesítő Bt., PPD Magyarország Kft.

Ÿ

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–

Citibank, REGUS, ✓ BÉT

2009

2002

–

–

–

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✓

✓

✓

✓

✓

–

✓

✓

–

✓

–

–

–

–

✓

BREEAM Very Good

Aventus Real Estate, www. aventus-realestate.com

✓

✓

–

–

✓

✓

–

✓

–

–

–

–

–

–

✓

BREEAM Very Good

Cushman & Wakefield Kft.

Ÿ Ÿ

1138 Budapest, Népfürdő utca 22.

(1) 412-3697 (1) 412-3681 leasing@gtc.hu

✓

BREEAM Very Good

JLL, Cushman& Wakefield Kft.

– IMMOFINANZ AG (100)

1095 Budapest, Soroksári út 32–34.

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

✓

BREEAM Excellent

Cushman & Wakefield Kft.

Dorottya Udvar Holding Kft. (100) –

1113 Budapest, Bocskai út 134–146.

(1) 888-0395 – –

✓

BREEAM Very Good in Use

CBRE

– Heitman (100)

1117 Budapest, Irinyi József utca 4–20.

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

✓

✓

✓

✓

✓

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–

–

–

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15

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www.nepliget-center.com

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16 épület www.vacigreens.hu

váCi gReens f 17 épület

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18

baRtók udvaR ii. www.bartokudvar.hu

CoRvin teChnology 19 paRk 1-2 www.futurealgroup.com

20

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City gate 21

www.citygate.hu

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–

BREEAM

Cushman & Wakefield

– (100)

24,770 25,303

6

Ÿ

– 5

14 2.60

2016

GE Corporate

✓

✓

✓

✓

✓

✓

✓

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✓

✓

–

–

–

✓

Excellent

Cushman, Robertson Hungary

OTP Prime Ingatlanbefektetési Alap (100) –

1138 Budapest, Váci út 117-119.

(1) 785-5208 – info@atenor.hu

24,179

Ÿ

7

Ÿ

Ÿ

14 2.60

City Tower Kft. (100) –

1138 Budapest, Váci út 117-119.

(1) 785-5208 – info@atenor.hu

24,000 37,300

7 2,5004000

8,000 5

13,5– 14,5 3

8

Ÿ

23,749 27,390

Ÿ

5

5

23,311

6 4,300

Ÿ

23,000 25,000

9

Ÿ

Ÿ

Ÿ

5

5

Ÿ Ÿ

Ÿ Ÿ 13– 13.95 1,350 HUF

3.90

2018

–

2017

1999

Ÿ

–

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

–

✓

–

–

Excellent

Cushman, Robertson Hungary

Ÿ

–

✓

✓

✓

✓

–

✓

–

✓

–

✓

✓

–

–

✓

–

BREEAM Very Good

Robertson Hungary

Infogroup Csoport (100) –

1115 Budapest, Bartók Béla út 105-113.

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

–

BREEAM Very Good

–

(100) –

1082 Budapest, Bókay utca (1) 266-2181 (1) 688-5498 office@futureal.hu

–

BREEAM Very Good+ LEED Gold

–

Erste Ingatlan Alap (100) –

1133 Budapest, Váci út 80.

(1) 920-2193 – erstealapkezelő@ erstealapkezelo.hu

–

– CA IMMO AG (100)

1092 Budapest, Köztelek utca 6.

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

BREEAM Excellent

–

Váci Corner Offices Kft. (100) –

1138 Budapest, Váci út 144–150.

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

LEED Gold

–

Ÿ Ÿ

1134 Budapest, Váci út 47.

(1) 412-3697 (1) 412-3681 leasing@gtc.hu

Ÿ

–

Erste Ingatlan Alap (100) –

1134 Budapest, Angyalföldi út 6.

(1) 920-2193 – erstealapkezelo@ erstealapkezelo.hu

Ÿ

Citi, Celanese

IBM

✓

–

✓

✓

✓

✓

–

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

–

✓

✓

–

–

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

2014

Ÿ

–

✓

✓

–

–

–

✓

–

✓

✓

✓

Ÿ Ÿ –

Ÿ

BlackRock

–

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

Ÿ Ÿ Ÿ

LEED Gold

6

Ÿ

Ÿ Ÿ

20,205

Ÿ

7 3,200

Ÿ 5

14 2.60

–

Ÿ

–

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

–

✓

–

–

Excellent

Cushman, Robertson Hungary

City Tower Kft. (100) –

1138 Budapest, Váci út 117–119.

(1) 785-5208 – info@atenor.hu

20,145 30,140

10 2,700

8,900 5

13–14 3.75

1998

Citibank, DIGI, HostLogic, Danone, Erzsébet Táborok, GildaMax, PDussmann, DM

–

✓

✓

–

–

–

✓

✓

✓

–

–

✓

–

–

–

✓

BREEAM Very good

JLL, Robertson Hungary

– (100)

1134 Budapest, Váci út 35.

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

✓

✓

✓

–

–

✓

✓

✓

✓

✓

✓

Ÿ Ÿ –

✓

–

Pre-LEED Gold

–

Erste Ingatlan Alap (100) –

1133 Budapest, Váci út 96–98.

(1) 920-2193 – erstealapkezelo@ erstealapkezelo.hu

–

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

–

–

✓

Excellent

Cushman, Robertson Hungary

– ZFP Realitní Fond (100)

1138 Budapest, Váci út 117-119.

(1) 785-5208 – info@atenor.hu

✓

BREEAMVery Good, BREEAM– Applicable

–

(100) –

1134 Budapest, Váci út 41–43.

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

LEED Gold

–

– CA IMMO AG (100)

1074 Budapest, Rákóczi út 70–72.

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

20,312 25,178

váCi gReens e

Ÿ

5

2014 KPMG, Medicover

www.erstealapkezelo.hu

19,639 19,668

8 3,500

Ÿ 5

Ÿ Ÿ

2016

Cofidis, Mercedes-Benz, Schneider Electronic

váCi gReens C

18,935

6

– 5

14 2.60

2015

GE

www.caimmo.com

loCal ReCyCling

–

www.erstealapkezelo.hu

R70 offiCe Complex

daylight and motion sensoRs

–

RiveR estates

30

natuRal ventillation

✓

Ÿ

www.futureal.hu

eneRgy effiCienCy pRogRam

✓

160 3–5

advanCe toWeR i-ii 29

independent poWeR supply

✓

8 2,882

28 épület www.vacigreens.hu

oWn seWage management

Ericsson, Philips, DHL, COOP

20,404 21,300

noRdiC light

publiC tRanspoRtation

2010

gtC White house

27

biCyCle stoRage

13 4

23

www.simmoag.hu

solaR ColleCtoRs

Ÿ

Ÿ Ÿ

26

1117 Budapest, Budafoki út 91–93.

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

6,391

Ÿ Ÿ

25 épület www.vacigreens.hu

– CA IMMO AG (100)

8

9 2,300

vision toWeRs

–

Ÿ

21,047 25,100

24

LEED Gold

addRess phone fax email

Ÿ

26,000

váCi CoRneR offiCes

www.gtcwhitehouse.hu

oWneRship (%) hungaRian nonhungaRian

1097 Budapest, Könyves Kálmán körút 11.

(1) 374-3040 (1) 919-0107 office.hungary@ cbre.com

22

www.vacicorneroffices.hu

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Real estate agenCy (agenCies) of agent(s)

2009

ClassifiCation of existing building

12.5– 13.5 1,350 HUF

final phase

Ÿ Ÿ

gReen seRviCes

planning phase

CuRRent majoR tenants

stage of gReen CeRtifiCation Rating

Result of validation (bReeam)

Ÿ

yeaR established

8

monthly Rental fee on aug. 1, 2018 (euRo/sqm) monthly seRviCe ChaRge on aug. 1, 2018 (euRo/sqm)

www.caimmo.com

26,500 30,100

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

ip West

no. of levels aveRage level size (sqm)

13

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

Rank

Company Website

Special Report | 25

3

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Ÿ

18,920 19,981

18,700 19,000

Ÿ

7

Ÿ

10

Ÿ Ÿ

Ÿ

Ÿ

5

Ÿ Ÿ

–

Ÿ

11–13 1,300 HUF

2002

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

✓

✓

–

–

✓

✓

–

✓

–

✓

✓

✓

–

✓

–

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Special Report

www.bbj.hu

– 3

Ÿ Ÿ

32

18,500 23,500

7 3,200

– 5

20 4.50

kRisztina palaCe 33

17,856 30,001

6 3,000

Ÿ

Ÿ Ÿ

34

17,638 20,092

11 2,400

11,891 5

14.5– 17.5 1,100

baRtók ház 35

17,000 30,000

9

Ÿ

12.95– 13.95 1,150 HUF

2003

HP, Novartis

2008

Nestlé, KLM

www.eiffelsquare.com

www.erstealapkezelo.hu

5

Ÿ

1999

Eaten, J&J

–

– CA IMMO AG (100)

1114 Budapest, Bartók Béla út 43–47.

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

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

BREEAM in Use Very Good

–

– CA IMMO AG (100)

1093 Budapest, Lechner Ödön fasor 6.

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

–

GRT Group (100) –

1117 Budapest, Alíz utca 4.

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

–

Erste Ingatlan Alap (100) –

1095 Budapest, Soroksári út 44.

(1) 920-2193 – erstealapkezelo@ erstealapkezelo.hu

–

(100) –

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

✓

✓

✓

✓

✓

✓

✓

gReen Roof

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

LEED Gold

–

✓

✓

inteRnal yaRd With paRk

1117 Budapest, Dombóvári út 27.

(1) 241-0080 – sales@budapart.hu

–

✓

✓

eleCtRiC/hybRid CaR ChaRgeRs

Kopaszi Gát Kft. (100) –

✓

–

✓

gRey WateR Reuse

Cushman & Wakefield Kft., Eston International Zrt.

✓

–

✓

loCal ReCyCling

–

LEED GOLD

–

✓

✓

daylight and motion sensoRs

–

Erste Ingatlan Alap (100) –

✓

✓

natuRal ventillation

✓

BREEAM in Use Very Good

Cetelem Bank, Medicover, 2008 Dealogic, Invitech, – Tesco, Grundfos, ESAB, Costa

✓

eneRgy effiCienCy pRogRam

✓

BREEAM Excellent

–

independent poWeR supply

– TRIUVA (100)

oWn seWage management

GAMMA Properties Kft.

publiC tRanspoRtation

✓

LEED Silver

biCyCle stoRage

oWneRship (%) hungaRian nonhungaRian

solaR ColleCtoRs

yeaR established

Real estate agenCy (agenCies) of agent(s)

eiffel téR iRodaház

2007

Result of validation (bReeam)

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

CuRRent majoR tenants

Ÿ Ÿ Ÿ Ÿ –

–

–

–

–

✓

✓

–

Ÿ Ÿ –

–

–

–

ClassifiCation of existing building

Ÿ

7 2,500

gReen seRviCes

final phase

monthly Rental fee on aug. 1, 2018 (euRo/sqm) monthly seRviCe ChaRge on aug. 1, 2018 (euRo/sqm)

18,526

stage of gReen CeRtifiCation Rating

planning phase

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

infopaRk d épület

Rank

Company Website

no. of levels aveRage level size (sqm)

Budapest Business Journal | September 21 – October 4, 2018

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

26 | 3

addRess phone fax email

1117 Budapest, Gábor Dénes utca 2.

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

ConvergenCE

– KGAL (100)

1062 Budapest, Teréz körút 55–57.

(1) 225-0912 (1) 375-0445 bzadori@ convergen-ce.com 1123 Budapest, Nagyenyed utca 8–14.

(1) 920-2193 – erstealapkezelo@ erstealapkezelo.hu

budapaRt gate www.budapart.hu

www.caimmo.com

35

millennium toWeR ii www.caimmo.com

offiCe gaRden iii 37 www.officegarden.hu

Ÿ

5

17,000 18,600

8

Ÿ

Ÿ 5

14–15.5 1,495 HUF

16,922 18,500

6 2,300

Ÿ Ÿ

Ÿ Ÿ

mill paRk b

16,739 17,745

8 2,350

Ÿ

Ÿ Ÿ

CoRvin one 39

16,352 17,867

7

Ÿ

Ÿ Ÿ

millennium toWeR i 40

16,300 18,800

7

Ÿ

8

Ÿ

38

www.millpark.hu

www.futurealgroup.com

www.caimmo.com

41

millennium toWeR iii www.caimmo.com

infopaRk e épület

16,000 21,000

Ÿ

Ÿ

Ÿ

5

5

5

5

2019

2017

2018

Ÿ

Ÿ

ITSH

–

–

✓

✓

✓

✓

✓

✓

✓

–

–

–

–

✓

–

–

–

✓

–

✓

✓

–

✓

✓

–

–

✓

–

✓

✓

–

✓

–

✓

✓

✓

✓

–

✓

✓

✓

–

✓

✓

✓

–

–

–

–

–

–

LEED Gold

–

–

✓

BREEAMVery Good

–

– CA IMMO AG (100)

–

– CA IMMO AG (100)

1095 Budapest, Lechner Ödön fasor 8.

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

LEED Silver

–

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

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

Excellent

Cushman, Robertson Hungary

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

– CPI Property Group (100)

1139 Budapest, Váci út 99.

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

–

Ÿ

13.75– 15.5 1,400 HUF

2006

Cognizant, Vodafone

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

BREEAM in Use Very Good

14–15.5 1,440 HUF

2008

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

BREEAM in Use Very Good

2009

Lufthansa Systems, EIT, National Instruments, 3M

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

15,800 17,600

10 2,500

1,100 5

13–14 3.30

váCi gReens 43 a épület

15,693 24,803

6

– 5

14 2.60

váCi gReens d 44 épület

15,635 17,721

6

Ÿ

– 5

14 2.60

–

Ÿ

–

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

–

–

–

✓

Excellent

Cushman, Robertson Hungary

15,520 28,500

8 1,800

13,845 5

13.7– 14.5 3.75

2019

Ÿ

–

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

–

BREEAM Very Good

–

42

www.diofaalapkezelo.hu

www.vacigreens.hu

www.vacigreens.hu

Ÿ

2013

Ÿ

–

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

–

–

✓

–

✓

–

–

–

–

–

–

✓

✓

balanCe hall

www.balancehall.hu 45

15,500 18,300

10 2,500

– 5

980

offiCe gaRden iv 47

15,073 17,522

7 2,870

Ÿ Ÿ

Ÿ Ÿ

www.diofaalapkezelo.hu

www.officegarden.hu

Ÿ

2019

Ÿ

✓

–

✓

✓

✓

✓

–

–

–

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

✓

–

–

–

✓

–

✓

✓

–

Result of validation (bReeam)

ClassifiCation of existing building

final phase

planning phase

gReen Roof

inteRnal yaRd With paRk

eleCtRiC/hybRid CaR ChaRgeRs

gRey WateR Reuse

loCal ReCyCling

daylight and motion sensoRs

natuRal ventillation

eneRgy effiCienCy pRogRam

independent poWeR supply

oWn seWage management

publiC tRanspoRtation

biCyCle stoRage

2012

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

solaR ColleCtoRs

CuRRent majoR tenants

–

LEED Platinum

–

LEED Gold

Real estate agenCy (agenCies) of agent(s)

gReen house

46

stage of gReen CeRtifiCation Rating

gReen seRviCes yeaR established

monthly Rental fee on aug. 1, 2018 (euRo/sqm) monthly seRviCe ChaRge on aug. 1, 2018 (euRo/sqm)

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

no. of levels aveRage level size (sqm)

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

Rank

Company Website

Special Report | 27

3

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

oWneRship (%) hungaRian nonhungaRian

addRess phone fax email

–

Torony Ingatlan Befektetési Alap (100) –

1134 Budapest, Kassák Lajos utca 19.

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

–

(100) –

1117 Budapest, Alíz utca 3.

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

szeRvita squaRe building LEED Platinum

Ÿ

(100) –

1052 Budapest, Szervita tér 8.

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

LEED SILVER

Cushman & Wakefield Kft., Eston International Zrt.

Kopaszi Gát Kft. (100) –

1117 Budapest, Hengermalom út 70.

(1) 241-0080 – sales@budapart.hu

www.szervita.com 48

14,900 30,000

6 1,850

Ÿ Ÿ

Ÿ Ÿ

2019

14,600 17,588

7 2,500

14,600 5

13.5– 15.5 1,100

2020

Ÿ

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Ÿ

–

✓

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Ÿ Ÿ

budapaRt offiCes "a"

www.budapart.hu 49

50

skylight City

14,459 20,395

8 2,400

Ÿ Ÿ

Ÿ Ÿ

–

51

lauRus iRodaházak

13,858 27,000

6–7 550– 1160

Ÿ Ÿ

Ÿ Ÿ

2011

13,600 15,550

8 2,000

213 5

11.5– 12.5 1,100 HUF

euRopolis paRk 53 budapest aeRozone

13,000 65,000

4

Ÿ

Ÿ Ÿ

Ÿ Ÿ

vÍziváRos offiCe 53 CenteR

13,000 14,600

7

Ÿ

Ÿ 5

13–14 1,250 HUF

2004

Ÿ

12,680 27,000

6 2,700

Ÿ Ÿ

Ÿ Ÿ

2010

Ÿ

–

www.laurusoffices.hu

myhive gReenpoint 7 52

www.myhive-offices.com/hu

–

www.caimmo.com

55

56

budaWest iRodaház www.budawest.net

infopaRk a épület www.diofaalapkezelo.hu

v17 57

www.v17.hu

12,200 13,600

5 4,000

1,300 3

13–14 1,350 HUF

11,840 18,000

11 1,636

170 5

15.5 1,242 HUF

2003

2004

–

v48

www.v48.hu

✓

✓

–

✓

–

✓

–

✓

–

✓

✓

–

Ÿ

–

✓

✓

–

–

✓

✓

✓

✓

–

–

–

–

Ÿ

Ÿ

IBM, Invitel

–

–

–

✓

✓

✓

–

–

–

–

–

–

✓

✓

–

–

✓

✓

–

–

✓

✓

✓

✓

–

–

–

✓

✓

✓

–

✓

✓

–

–

✓

✓

✓

✓

–

✓

✓

–

✓

✓

✓

✓

✓

14 3.50

1996

11,500 13,500

6 2,000

Ÿ Ÿ

Ÿ Ÿ

2006

Ÿ

✓

–

✓

✓

– 5

✓

–

✓

✓

9 1,450

✓

–

✓

–

11,736 12,581

Friesland Campina EMEA, Otis Felvonó Kft., Cargill, Tech Mahindra, Invitel, Doktor24 Egészségközpont

–

–

✓

–

✓

–

–

Ÿ

ESTON International

Wing Zrt. (100) –

1134 Budapest, Róbert Károly körút 54–58.

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

✓

BREEAM in Use Very Good

CE LAND Holding Kft.

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

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

✓

BREEAM Very Good

CBRE

– IMMOFINANZ AG (100)

1075 Budapest, Kéthly Anna tér 1.

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

Ÿ

Ÿ Ÿ

2220 Vecsés, Lőrinci út 59–61.

– – –

LEED Gold

–

– CA IMMO AG (100)

1027 Budapest, Kapás utca 6–12.

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www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Socialite Bopping With Bartók: How Jazz and Hungary’s Greatest Composer go Together Today (Friday, September 21, Hungarian pianist Péter Sárik and his trio will perform a jazz interpretation of the music of Béla Bartók at the art nouveau Liszt Music Academy in Budapest.

DAVID HOLZER

A thoroughly versatile musician, Sárik (he doesn’t use the accents on his name on his website) plays classical, pop, Latin and world music as well as jazz. The Péter Sárik Trió, formed in 2007, is one of Hungary’s leading jazz bands.

Bartók was born in Nagyszentmiklós on March 25 1881. His German mother Paula claimed he could tell the difference between the different rhythms she played on the piano before he learned to speak in complete sentences. By the time he was four, Bartók could play 40 piano pieces.

20th century

composers. Also, he’s Hungarian so he’s a hero to us. We’re proud of him. He’s the standard by which all others are judged,” Sárik tells me.

I wondered if Sárik felt any special connection to Bartók. “Definitely. I often go to Transylvania, where Bartók collected folk music. I like the beautiful landscapes and the feeling of the place. I believe I have this in common with Bartók. When I meet people whose family might have met with him, or when I give a concert where he taught or might have listened to music, I feel myself to be very close to him.”

Perfect Match

His mother began teaching him formally the next year.

He first performed in public

aged

11.

One of the pieces he played was a composition he had written when he was nine.

Bartók’s lifelong love of folk music began in 1904 when he heard a young nanny singing Transylvanian folk songs. More formal influences included Richard Strauss, Claude Debussy and Brahms.

Anti-fascist

In 1940, Bartók fled Hungary for the United States. A dedicated anti-fascist from the time

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the constraints of tradition”, which is as much present in the work of a jazz pioneer like John Coltrane as it is in Bartók.

Bartók also believed in taking risks, in innovating, just as the jazz greats have always done. He was also a master of rhythm.

As Szabó writes, “Polymetric structures, asymmetric patterns, unexpected stresses, rapid movements filled with astounding rhythmic energy, and the importance of rhythm as an organizing element – all these raise Bartók above his contemporaries.”

Now that I knew a little bit about Bartók and jazz, I got in touch with Péter Sárik to find out about his approach to jazzing up the composer.

Now that I knew a little bit about Bartók and jazz, I got in touch with Péter Sárik to find out about his approach to jazzing up the composer.

“Bartók is one of the greatest

9/17/2018 2:19:55 PM

Why did he think jazz and Bartók went The Péter Sárik Trió together so well? “They’re a perfect match.

Today, jazz takes a lot from Bartók’s music, including harmonies, and it’s also the Nazis came to power in Germany, his derived from ancient music, just like his views had put him in danger from Hungary’s was. The relationship is even more true political establishment. But, as a patriot, he for Hungarian jazz musicians, because we left for America reluctantly. Bartók never grow up in the same kind of musical and really felt at home in the country and, in his cultural environment as he did. It’s much lifetime, it failed to fully embrace him. easier for me to improvise on Bartók’s work Bartók was diagnosed with late-stage than, say, Beethoven.” leukemia in 1944. Despite this, he managed The new album is called “Péter Sárik to complete his “Concerto for Orchestra”, Trió x Bartók”. Is this the first time they’ve regarded as a masterpiece. He died on recorded jazz versions of Bartók?

September 26, 1945 and was initially “I started three years ago, just interred in a New York state cemetery. experimenting, beginning with “Allegro In Barbaro”, maybe his best-known piece of music for piano. I was pleased with the result, so I decided to make a whole album. he was reinterred at Budapest’s Farkasréti Now the real adventure begins – playing Cemetery after a state funeral arranged by live. This will, I think, be the end result.” the government.

The Trió will be performing their jazz Award-winning Hungarian performer, version of “Allegro Barbaro” as well as the composer and educator Dániel Szabó, who original. They’ll also play something from teaches at the UCLA Herb Alpert School of “Piano Concerto no.3”, another major Bartók Music in California, has written extensively piece, and some adaptations of folk music. about the connection between Bartók and jazz.

I finished by asking Sárik why he thought “I reckon,” he writes, “that some sort of Bartók was still so important. “He becomes intense spiritual affinity can be observed more important as time goes on,” the between Bartók and jazz musicians… musician told me. “Classical and jazz music However ‘refined’ the music of Bartók, fans know this. They know Bartók was beneath it there is a raw and honest force ahead of his time. I hope that people who that derives from folk music (and, naturally, come to the concert, who didn’t know his the personality of Bartók), a ‘beat’ that is work before or think they don’t like classical as much a part of Afro-American music music, will appreciate him. It’s important as that of Hungarian peasant music or any that more and more people know Bartók.”

Central Eastern European folk music.”

1988,

Jazz Enthusiast?

Although Bartók was interested in AfroAmerican music, he isn’t on record as being especially enthusiastic about jazz.

For Szabó, the connection is more about feel and approach. It all comes down to “the duality of soaring creative freedom and

The Bartók Béla Museum, on the outskirts of Buda, is well worth a visit. Find out more www. bartokmuseum.hu. For more about The Péter Sárik Trió, go to www.petersarik.com.

4

www.bbj.hu

Budapest Business Journal | September 21 – October 4, 2018

Bükk Benefiting From a Merry Band of Winemaking Talent The discovery of relatively unknown wine regions and vintners who ply their trade well off the beaten track is one of the great joys of being into wine. When friends, both Hungarian and foreign, noticed that I’d been getting bibulous in the Bükk region, several actually asked if they even make wine there.

ROBERT SMYTH

The region sits silently, and all but forgotten, between the really rather famous, not to say legendary regions of Eger (to the west) and Tokaj (to the east), and was previously known in professional circles as a region to overlook, to put it mildly, for its paint-stripping, acidic excuses for wines.

However, a number of boutique producers are now turning out some rather fine and subtle stuff, which often strikes a balance between vibrant aromas, ripeness of fruit and zesty (but not bitingly sharp) acidity. Bükk, with its broad range of soils and nicely positioned vineyards that gain ideal exposure to the sun for ripening, is, therefore, something of a hidden treasure, especially when the winemakers treat the terroir with respect. The bad news is that some of the winemakers know they’re onto a good thing and have priced their limited supply of wines accordingly.

All regions need their own identity and grape varieties and a number of Bükk producers are backing Zenit for white and Zweigelt for red. Zenit is a Hungarian grape that was created by Ferenc Király in 1951, when he crossed Ezerjó and Bouvier in Pécs, and is sometimes referred to as Badacsony 7, in reference to the wine region in which it was developed.

It is one of several grapes made by the crossing of these two varieties – the others being Zeus and Zengő. Like children that are conceived by the same parents,

From left: Zsolt Sándor, Roland Hajdu and Roland Borbély toast this year’s harvest. there are differences in the subsequent offspring, as well as similarities.

Incidentally, the fourth ‘Z’ of Hungarian white grapes – Zafir – is an unrelated crossing of Hárslevelű and Leányka.

While the Ezerjó grape is associated in particular with the Hungarian region of Mór, where it can make some impressive wines, Bouvier (which has its origins in present-day Slovenia) has more pedigree as a parent of new grapes – it was also crossed with Hárslevelű to bring Tokaj’s exciting Kabar grape into being.

Fresh and Well Made

Back to Bükk, where Roland Hajdú’s Zenit 2017 (expected to cost around HUF 2,000 direct from the cellar) is a fresh, reductively made white wine with grape juice and lime aromas, and a floral feel on the palate. This wine comes from Bogács, which is known for cellar rows with wines of questionable quality, but this is well made.

Gallay Nyékládháza 2015 (HUF 3,990 from www.onlinebor.hu), a wine made 100% from Zenit, comes from limestone and clay soils from Nyékládháza and was vinified in oak with the fermentation carried out spontaneously at a higher temperature than usual for whites. It is concentrated with a nice creamy finish, with a touch of bitterness and good acidity; solid proof that you can make a big wine from an overlooked grape.

Gallay’s wines are made by Roland Borbély, who is also the owner. He has worked in two wineries in California’s Napa Valley and has clearly brought back a wealth of winemaking knowledge to Bükk.

Borbély also helps make the wine at K.T. Kézműves Pince, another Nyékládházabased winery, whose Zenit 2016 exuded lime peel and grapefruit aromas and flavors, with exciting spicy and floral touches, and with good body.

Zsolt Sándor, whose organic wines are made at his cellar (Sándor Zsolt

Socialite | 31

Kékfrankos, Hungary’s most widely planted red wine grape.

Some of the wines tasted from Gallay and Zsolt Sándor are worthy of being placed on the same table as the best of Austria. Gallay’s single vineyard Zweigelts, from the Lippa and Zúgó vineyards, show how the grape can articulate its terroir. Zsolt Sándor’s Zweigelt 2013 is in fine shape and still retains a bright purple color. It has aromas of plum (suggesting a bit of age), sour cherry (retaining its youth), spices and potpourri, with the same on the palate which finishes with a chalky note.

His 2015 (HUF 4,500) is still pumping out fresh and concentrated primary red fruit.

Roland Hajdú also has a varietally pure and zesty Kékfrankos (HUF 2,150).

The above merely serves as an introduction to a potentially very exciting region. Also check out, Zsolt Sándor’s nutty and rich Ezerfürtű 2017, a crossing of Hárslevelű and Tramini; as well as his extremely elegant, expressive and rather expensive Irsai Olivér, called Lou Lee 2017 (HUF 6,500), as well as the whole Gallay range. For example, Bistronauta Fehér 2015 (HUF 2,990), a blend of 60% Pinot Blanc, 40% Zenit, which has a yeasty, slightly cidery note and that spontaneous fermentation edginess in spades.

Organikus Szőlőbirtok és Pincészet, at Arnóti sor 115) on the atmospheric hill of Kis-Avas close to the center of Miskolc, made a semi-sweet wine with his Zenit 2016 (HUF 2,500 from the cellar). It actually comes from over in Nyékládháza, from the Pittyén vineyard – a mix of limestone, volcanic tuff and sandstone soil – and was harvested on September 22 and has 29 g/l of residual sugar but long and subtle and not at all cloying. All the four Zenits were nice representations of the grape and easily identifiable, yet reveal their own nuances, with the winemakers’ individual styles strongly coming nicely across.

Meanwhile, red Zweigelt is an Austrian grape, a crossing of Blaufränkisch (Kékfrankos) and St. Laurent, carried out by Dr. Fritz Zweigelt in 1922 at the Teaching and Research Center for Viticulture and Horticulture (LFZ) in Klosterneuburg, close to Vienna. It can almost be considered a local grape, due to one of its parents being the same grape as

Putting Bükk on the Map The two Rolands and one Zsolt are being joined by other similar minded people. These include Gábor Galuska, who makes wine for the organic Gajdos cellar in Eger, but also owns Palmetta Pincészet in Bükk. Borbély says that the articles for the Association for the Bükk Wine Region has been signed by 14 members who: want to do something for the region’s wine quality (including setting two levels such as “Terroir” and “Classic Bükk”); to list, protect and save the region’s culture; and to help and teach the winemakers of the association, by sharing knowledge and experience

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