Budapest Business Journal 2709

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BUSINESS JOURNAL BUDAPEST

VOL. 27. NUMBER 9

MAY 10 – MAY 23, 2019

SPECIAL REPORT

Real Estate: Offices

SPECIAL REPORT

Low Vacancy Continues to Shape Budapest Office Market Demand in the Budapest office market continues to boom with vacancy falling to some of the lowest levels on record.  14 NEWS

Hungary Keen to Catch up in Innovation While Hungary is doing reasonably well compared to its regional competitors, the country, and most especially its SMEs, still lag behind Western European standards in terms of innovation.  6 SOCIALITE

Snatam Kaur and the Rise of Kundalini Yoga David Holzer interviews Snatam Kaur, who performed in Budapest on May 7 and 8, and may well be the most visible face of Kundalini Yoga in the world after Yogi Bhajan, who brought the practice to the West.  37

Cloud Concerns Drifting Away

BUS

I NES

S

Microsoft Hungary boss Christopher Mattheisen says business resistance to the cloud has all but gone in a new 4G world that promises “connectivity almost everywhere”.  12

60min more time for myself since the concierge has been running my errands.

Vienna

Warsaw

Prague

Budapest

Bucharest

A brand of IMMOFINANZ .

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THE EDITOR SAYS

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

Bence Gaál, David Holzer, Levente Hörömpöli-Tóth, Christian Keszthelyi, Gary J. Morrell, Robert Smyth, Zsófia Végh.

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By one of those curious quirks of timing, there have been a number of events dealing with AI and digitalization in the past few of weeks. That should come as no great surprise, seeing how “trending” the topics are, as they say on social media, but nor should it diminish their importance, for they hold the promise of significant development for Hungary.

At the most basic level, that of functionality, they offer at least a partial answer to the labor crisis that besets the region.

Simple, repetitive jobs are better done by machines than man.

Pretty soon, the former will also be cheaper than the latter.

But AI and digitalization offer so much more than that, not least the chance to shine of a world stage. For once, size does not matter, or at least it need not, as Finland, Israel and Singapore can all attest. More than size, what counts here is brain power and adaptability. Hungary, with its reputation for producing talented engineers and programmers, clearly has the former. Surprisingly, for a people skilled at finding the “little gate”, the back door that makes the system work for you, the problem actually lies with the latter.

Hungary performs on par with its regional neighbors when it comes to innovation, but lags behind more established states further west. It is heading in the right direction, in that it is moving back up the table, but the crucial words there are “moving back up”, for Hungary today is behind where it was in 2011.

The problem is the lack of innovation among Hungarian SMEs. R&D spending is increasing, but that is largely the result of large multinationals. Spending in state bodies and by SMEs has stagnated. There are grants available, but they are not being accessed, and for once you cannot blame this on the government, which has found it hard to

give the money away (again, a surprise given the general Hungarian willingness and talent for accessing what is available). The root of the problem lies in the shorttermism that has plagued Hungarian SMEs for years. Most are happy simply to survive today; far too few are prepared to invest in tomorrow.

The good news is that the government is aware of this, and it is also aware of the potential dangers of having a society of digital haves and digital have nots, which will only accelerate the growing wealth gaps already evident.

The creation and promotion of the AI Coalition is a good step, but what is required more than anything is the sort of joined-up thinking that coordinates education with market needs and global trends, that provides an agile workforce and rewards those prepared to innovate and, as Cole Porter would have it, experiment.

It is at this point that the professional cynic in me will take a deep breath. Governments, regardless of nationality or political persuasion, do not have a universally great track record when it comes joined-up thinking. Like Hungarian SMEs, they are prone to short-termism and chasing votes.

The optimist in me does, however, take heart from the groundwork that is being laid. It is a start, and only a start, but it is at least that. Multinationals will continue to innovate and push the R&D boundaries because that is what they do, and increasingly because the Hungarian government also rewards them for doing so. Now all Hungary has to do is persuade its SMEs to follow suit.

Robin Marshall Editor-in-chief

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

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AI, DIGITALIZATION COULD OFFER HUNGARY A PLACE AT THE TOP TABLE

THEN & NOW

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The color photo to the right shows people attending a “Retro march” on May 1 at the town of Felsőtárkány (115km northeast of Budapest), celebrating the national Labor Day holiday. The black and white picture from the Fortepan archive (left) shows May Day celebrations in Budapestʼs Népliget in 1990.

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News///macroscope

Skyrocketing Industrial Output Promises Higher Annual Growth

Although credit rating agency Moody’s chose not to update Hungary’s sovereign rating at its scheduled review at the beginning of May, the country did receive an optimistic prognosis from the European Commission. The latest industrial output data seems to justify increased expectations for this year’s GDP growth.

Industrial Production in Hungary, 2001-2019 (January-March) Producer Volume Index +3.7 +3.2 +6.9 +7.8 +6.8 +9.9 +7.9

+10.6 +5.6 -1.8 +1.1 +7.7 +7.4 +0.9 +4.6 +3.6

There is no logical explanation why Moody’s Investors Service missed reviewing Hungary’s sovereign rating, although it was scheduled for May 3, analysts said after the agency did not issue an update on the country’s rating.

At the previous review, on November 23, 2018, Moody’s left the rating unchanged at Baa3, one notch above the investment grade threshold, with a stable outlook. S&P Global Ratings and Fitch both upgraded Hungary to ‘BBB’, two notches above the investment grade threshold, in February of this year.

Not completing the scheduled review was absolutely groundless, said Gergely Suppan, head analyst at Takarékbank. He added that credit rating agencies are lagging behind Hungary’s economic progress.

“The Hungarian economy expands dynamically and sustainably, and also in a balanced way, external debt ratio sharply falls due to the strong external financing abilities, and the government debt will also decrease substantially and it could fall

below

60%

of the GDP within two years,” Suppan emphasized.

The generally deteriorating external environment could explain the cautious approach of Moody’s, but Zoltán Török, head analyst at Raiffeisen Bank, believes there is still a good chance that Moody’s will upgrade the country soon, to bring it back in line with the other two international credit rating institutions. The balanced economic growth, the status of the current account and the relatively low inflation all support a positive decision in the future, he added.

+6.2

Source:

Unexplainable

Török also said that no significant changes are expected in the above mentioned positive economic data, even in the midst of deteriorating external circumstances. These factors were enough for Standard & Poor’s and Fitch to upgrade Hungary’s sovereign rating in February, which makes the Moody’s decision even more surprising and unexplainable.

Gábor Regős, head of the macroeconomics division of economic research institution Századvég Gazdaságkutató was equally unable to explain why Moody’s did not review Hungary’s debt rating on May 3. He mentioned the dynamic GDP growth, the decreasing state debt ratio, and also the increasingly safe financing of the state debt as positive factors. He also emphasized that the markets now trust in the Hungarian economy, which is clearly shown in yield levels.

While most analysts were taken by surprise by Moody’s move, or perhaps more accurately lack of a move, K&H Bank analyst Dávid Németh voiced a different opinion.

“One couldn’t have expected an upgrade by Moody’s,” the analyst told a television program on the day after.

According to him, Moody’s cited several risk factors in its latest review last fall, and as it hasn’t received reassuring

to

3.7%

from 3.4% in a quarterly forecast released on May 7. It also raised the forecast for next year’s growth to 2.8% from 2.6%.

The Commission noted that low unemployment and continued minimum wage rises are projected to keep wage increases above productivity growth. It added that households are expected to spend an increasing share of their income on housing due to rising home prices and expanded government support targeting first-time home buyers.

Balanced Risks

The EC did warn that there are some risks to the forecast as well, but says these are balanced, with external risks on the downside and domestic risks on the upside as the tight labor market could sustain even higher wage and consumption growth.

Consumer price inflation is set to rise to 3.2% in both 2019 and 2020, driven by rapid growth of unit labor costs and consumption. The EC sees the general government deficit narrowing to 1.8% of GDP in 2019 and 1.6%

in

0.0 -17.8

ZSÓFIA CZIFRA

The European Commission raised its projection for Hungary’s GDP growth this year

data regarding such risks, it was not surprising that it had not issued an update. The risks Moody’s listed includes the overheated labor market and the impact of the slowing automotive sector in Europe.

However, just a few days after the disappointing non-news from Moody’s, another positive opinion was issued regarding Hungary’s growth potential.

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2020,

but said that a more rapid growth of public investment and a potentially higher take-up of government measures that aim to boost the birth rate do pose risks.

Hungary‘s updated Convergence Program, which was presented to the European Commission in early May, puts GDP growth in both years at 4%. Such expectations might be well-grounded, especially in the light of the latest industrial data: in March 2019, the volume of industrial output – both in raw terms and according to working dayadjusted figures – grew by 8% year-on-year, according to a first reading of data from the Central Statistical Office (KSH).

Suppan said in a note that Takarékbank could now modify upward its annual GDP forecast of 4.4%. Other analysts followed suit: Orsolya Nyeste of Erste Bank emphasized that Hungarian industry had proved to be resistant to international shocks, and she now expects strong GDP growth for the first quarter of 2019, at around 5%. Németh of K&H Bank thinks that the annual growth rate of Hungary’s industrial output might reach 5% this year.

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Budapest Business Journal | May 10 – May 23, 2019

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LogMeIn Names HR Director LogMeIn, the globally recognized IT company founded in Budapest in 2003, has expanded its domestic

Tímea Erdelics management with the appointment of Tímea Erdelics as its new head of HR. Erdelics has more than 20 years of experience in HR management. Prior to joining LogMeIn, she was HR director at Avis Budget Group BSC, and previously held HR director positions at NuanceRecognita, GenPact, and Monsanto.

She completed her studies at the University of Miskolc, ELTE and the Central European University, and gained her professional and business qualifications at the CEU Business School, Duke University in North Carolina, and various coaching schools.

“It is an honor to participate in the management and further development of one of the most successful IT companies related to Hungary,” says Erdelics. “The domestic 400-person center plays a key role in the international ecosystem of LogMeIn, and the company’s most important products are being developed at home. Therefore, it is a particularly exciting professional challenge to involve and develop the best professionals and to establish a company culture that takes into account unique local factors.”

She adds: “Building a corporate culture based on support, empowerment, consensus and consideration of different opinions is a key part of LogMeIn’s HR-oriented goals, attracting proactive, collaborative and self-motivated people and creating an agile, creative environment. I believe that building a conscious, credible and human leadership culture is one of the most important goals of employee engagement today.”

Erdelics is not solely responsible for the management of LogMeIn’s HR area in Hungary, but also performs the duties of co-director of the Hungarian operation with András Láng, the company’s vice president of engineering.

Change in General Manager for Coca-Cola HBC Hungary László Békefi is to take over as general manager of Coca-Cola HBC Hungary from Minas Agelidis, who

has been appointed a member of the operating committee and regional director for a group of Central and North European countries, including Hungary, starting April 1.

Agelidis leaves a company that has seen exponential growth in both revenue and volume, and hands over a firm that has turned into a production hub for many countries within Coca-Cola Hellenic and the Coca-Cola System.

Békefi returns to Hungary as Agelidis’ replacement from an international assignment as sales director for CocaCola HBC Poland. He started his career with Coca-Cola HBC Hungary in 2003 as a management trainee, later holding various sales and marketing roles.

“I am delighted to welcome László back to Hungary,” says Agelidis. “His success in being selected to lead this amazing organization is a true manifestation of the capability of our company to train, develop and nurture talent to the benefit of our group. Hungary has always been a source for talent for the Coca-Cola System, and currently there are more Hungarians working in the world of Coke than nonHungarians in Hungary.” says Békefi: “I am honored and privileged to receive this opportunity to return to my home country

areas at the bank, and for seven years at other French financial institutions.

In 2006, Bandini led the corporate division integration team in Rome for the integration of BNL Italy. Since 2010, he has been head of corporate banking in international retail banking, and as an executive committee member introduced a new strategy to develop corporate banking activities in more than 15 countries in America, Asia, Africa and Europe.

Bandini has been a board member at several subsidiaries in African countries, including Morocco, Senegal and Ivory Coast, and a board member of the global cash management, factoring and trading business lines of the group.

István Szászi Robert Bosch Kft. began automotive development activities in Hungary in 2000, with only five employees.

Today, more than 3,200 people work at the company.

The Budapest Development Center was established in 2005, becoming one of the most important locations for Bosch’s innovations worldwide, playing an important role in automated and electric mobility developments and with some 2,800 employees. The center is the second largest such establishment in Europe in terms of the number of employed automotive engineers. Furthermore, the activities of the Sofia and Cluj-Napoca engineering centers are also controlled from Budapest.

CIB Appoints Head of SME Division CIB Bank has announced the appointment of Tamás Győr as the head of its SME division, returning to the company from Erste Bank.

The 39-year-old Győr first arrived at CIB in 2001, working in the bank’s

BNP Paribas Names CEO for Region, Hungary

László Békefi to lead this outstanding organization.

This company has shown a truly amazing growth ability in the past years, and has become what it set out to be: a center of excellence, an innovation engine, a talent exporter and a home for engaged, devoted and passionate people. I am humbly looking forward to further expand and accelerate the growth of our business and discover new heights of performance and success.”

Jean-François Bandini has taken over the position of CEO of BNP Paribas Hungary Branch, and regional CEO at BNP Paribas Central Europe, from Didier Mahout. The latter has returned to France to fill a different managerial position in the group after spending three years in Hungary.

As regional CEO, Bandini over sees subsidiaries in Czech Republic, Romania and Bulgaria, as well as activities in Slovakia, Croatia, Slovenia and Greece.

Bandini has more than three decades of experience in the international banking sector. Prior to joining

Bosch Budapest Development Center Gets new Boss

István Szászi was appointed to lead German-based engineering giant Bosch’s Budapest Development Center from April 1.

Szászi has been working at Bosch Group for approximately 15 years, having begun his career as a project engineer in Budapest, subsequently working at the firm’s Reutlingen and Abstatt sites in Germany. Szászi’s predecessor, Oliver Schatz, will continue at Bosch in Reutlingen.

Jean-François Bandini Inspection Générale, the internal audit department of BNP Paribas in 2000, he held key management roles in other

Tamás Győr corporate division after receiving his degree from Budapest Business School.

He was appointed to lead the sales team seven years later. After the 2008 crisis, he first led the intensive and preventive client management area of the corporate risk management branch. Later on, he controlled SME claim management.

Győr joined Erste Bank in March 2011, becoming head of the corporate business development directorate in June 2015. He held the position until the end of 2018.

“We are allocating a special role for digital solutions in the service model, which we develop with regards to the partner SMEs’ position in the industry, banking habits, and needs, in order to provide the most customized solutions in each phase of their life cycle,” explained Győr.

He said the first wave of digital transformation will affect internal processes most, and aims at improving efficiency. In the next steps, SME clients will increasingly be able to utilize the advantages of digitalization.

“Tamás’ most important task is building a service model, with the key element being able to give advice as experts in questions that concern our clients most, such as the current state of the labor market and the generation shift, and to be able to offer relevant banking solutions in such situations,” noted CIB Bank Deputy CEO Balázs Szabó.

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Limited Number of Investment Assets Restricts Liquidity Around EUR 1.7 billion in commercial real estate transactions was concluded in 2018 and an estimated EUR 1.3 bln-1.5 bln in investment volume is predicted for this year, according to CBRE. GARY J. MORRELL

“Based on the strong investor appetite and market fundamentals expected for 2019, coupled with a shortage of tradeable products after the unprecedented transactional activity of the three last years, CBRE expects 2019 to bring a somewhat more conservative investment volume,” commented Gábor Borbély, head of research and business development at the 2019 CBRE Investment Breakfast.

Hungary is forecast to record close to 4% growth, the largest growth rate in the EU, for this year and close to 3% for 2020.

With regard to expected investment volumes, at least 90% of the invited commercial property professionals at the annual CBRE event at the Sofitel Budapest Chain Bridge expect 2019 to be at least as successful as 2018.

According to the survey carried out by CBRE, 60% of respondents expect the same volume and 32% slightly better;

33%

of respondents

expect total investment to be EUR 1.7 bln1.8 bln, 32% EUR 1.4 bln-1.7 bln and 27% EUR 1.8 bln-2 bln.

The 2019 CBRE Investment Breakfast.

The breakfast presents data on the Hungarian and CEE investment markets and discusses prospects for the coming year. The consultancy conducted an on-line survey sent to invited guests, consisting of assets managers, developers, private investors, fund managers and financers active in the Hungary and wider CEE markets.

“The expected volume is more due to a lack of stock rather than not enough equity. Rental growth is attracting developers, although development and issues with regard to construction are holding up the delivery of new supply,” Tim O’Sullivan, head of capital markets for CBRE Hungary, commented at the event.

Indeed, some 39% of the questioned property professionals see the lack of

available investment product as the major challenge to the investment market, compared to 19% who see European global politics as the biggest problem.

Labor and Demographics In the wider CEE, Tomas Hegedus, managing director of CBRE in Slovakia, cited the lack of available skilled labor and poor demographics as another challenge to the markets. On a positive note, however, he hoped to see the Slovakia investment market break the EUR 1 billion barrier this year.

CBRE recorded EUR 818 million in investment volume in Hungary for office in 2018, followed by retail with EUR 732 mln and industrial at EUR 106 mln. Asked which asset class offers the most potential with regard to risk profile, 58% opted for the office sector, followed by industrial, chosen by 14% of respondents.

Mátyás Gereben, country manager at CPI Property Group Hungary, commented that he receives a number of phones calls every week with enquires about availability at the Airport City Logistic Park.

In terms of development financing, Zoltán Balázs, head of corporate real estate financing at Erste Bank Hungary, says the lender’s priorities are the office and retail sectors, followed by logistics and then healthcare and education as niche financing sectors.

Domestic funds accounted for 65% of Hungarian investment volume in 2018 and Hungarian capital is thought likely to continue to dominate the local market; CBRE expects as many

as

50%

of acquisitions to be concluded by local funds. At the same time, O’Sullivan also sees more new funds from both the EU and outside Europe entering the market, with office leading the way and more logistics deals. Further, hotels could become a big market sector.

Concerning yields, these could be subject to a maximum compression of 4.95% for office, 4.96% for retail and 6.75% for industrial according to respondents.

CBRE puts current prime yields at 5.47% for office, 5.56% for retail and 7.16% for industrial.

Erste’s Balázs believes that, if yields do not compress, increasing rentals will still cause capital values to rise.

Constricted Industrial Supply Encourages Preleases An estimated 24,000 sqm of space was added to the Budapest industrial market with deliveries at the Airport City Logistic Park

by CPI and at Prologis Park Budapest Harbor.

GARY J. MORRELL

This brings the total modern industrial stock in Budapest to 2.2 million sqm according to the Budapest Research Forum (BRF), consisting of CBRE, Cushman & Wakefield, Colliers International, Eston International, JLL and Roberson Hungary.

From this figure city logistics facilities represent almost 200,000 sqm of space.

“Limited warehouse supply has increased preleases by 19% year-on-year and further increased the share of renewal transactions.

The pipeline promises a 18% increase in supply compared to 2018,” commented Cushman & Wakefield.

Despite rising demand, further development of the Budapest industrial

market continues to be impeded by a limited supply of space, with take-up dominated by renewals. This represented 58% of total demand in the first quarter.

Vacancy has fallen to 3% with only three existing parks offering warehouse spaces of more than 5,000 sqm.

Total take-up for the first quarter is estimated at 83,000 sqm, with only one project signed for more than 10,000 sqm; the largest transaction was a

28,000 sqm renewal

at Prologis Park Budaörs. The biggest prelease was an 8,800 sqm deal at CTPark West. The Czech-based regional CEE industrial developer and park operator CTP says it plans to go

ahead with a 32,000 sqm speculative development at the complex.

Central European Boom

The Central European industrial markets are continuing to boom. The Czech Industrial Research Forum (CIRF), consisting of CBRE, Colliers International, Cushman & Wakefield and JLL, has traced almost eight million sqm of modern developer-led product across the country, with approximately 168,000 sqm delivered to the market in 13 industrial parks in the first quarter.

As elsewhere in Central Europe, vacancy remains at less than 5%. This means there is an estimated 380,000 sqm available for immediate occupation. An estimated 522,000 sqm of space is under construction,

With regard to Budapest, the lack of available warehouse space and the rising costs of construction has put upward pressure on rents, which has resulted in around 19% year-on-year growth according to Cushman & Wakefield. The company estimates prime logistics rents of EUR 4.75 per sqm per month for built-tosuit space, compared to EUR 4.5 per sqm per month for existing stock.

The further Hungarian pipeline for the year is estimated at 118,000 sqm and 13% of this is already prelet.

18% of which

is located in the greater Prague area. In contrast to Hungary a thriving developerled industrial market is established in regional cities beyond the capital.

CTPark Budapest West

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Budapest Business Journal | May 10 – May 23, 2019

Hungary Keen to Catch up in Innovation While Hungary is doing respectably well compared to its regional competitors, the country, and most especially its SMEs, still lag behind Western European standards in terms of innovation, prompting the state to introduce measures to try and improve the situation, according to Deputy State Secretary at the Ministry for Innovation and Technology Ádám Szigeti.

Accademia and Industry

The FIEK (Higher Education and Industry Cooperation Center) program, which promotes cooperation between major industry players and universities, offers grants of

between

Ádám Szigeti While this still behind the 25th place result Hungary achieved in 2011, it is a positive sign that the Innovation Efficiency Ratio sub-index shows Hungary in an impressive eighth, an improvement of

22

places

BENCE GAÁL

Szigeti was speaking at an event in the Budapest Marriott Hotel sponsored by the Swiss, German, Austrian, Canadian, French, British, Swedish, and Dutch chambers of commerce as well as the Danish-Hungarian Business Club, and the Magyarok a Piacon Klub (MAPI).

“All in all, Hungary is not doing well on the European level,” Szigeti remarked regarding the state of innovation in Hungary. “The positive results are not by SMEs, but the multinational companies.”

Indeed, while the Global Innovation Index (GII) compiled by the World Intellectual Property Organization (WIPO) shows that Hungary managed to improve six positions compared to its 2017 results, the country sits firmly in 33rd place globally.

The digitally illiterate get left behind, finding themselves in a bubble.”

One obvious way of improving innovation in Hungary is through the universities. Yet, one can hardly achieve significant results simply by “yelling at universities to innovate,” as the deputy state secretary put it. He noted that the number of PhD scholarships has increased from 1,300 to 2,000 in the near past.

Szigeti also put a number on what would be a satisfactory level of R&D employment, saying: “If the Hungarian economy used 60,000 people in R&D, we would be calm.”

year-on-year. Regional countries such as Poland, Slovakia, and Croatia are all behind Hungary on the overall ranking, while Portugal and Italy are only marginally ahead.

Szigeti noted that neither the EU, nor Hungary will be to achieve R&D spending targets by 2020. In Hungary the goal is R&D spending as high as 1.8% of the GDP, while the realistic achievement will be no higher than 1.4%, according to the deputy state secretary.

Stagnation

“Since 2002, R&D expenditure has been growing constantly,” he said, noting that the growth was driven by multinational companies while state support stagnated.

“This is a symptom,” he added, pointing out that it is only worth spending if there are players who are worthy of and able to absorb the support. “Hungary is a small country with tight finances, we cannot

spend money everywhere and excel at everything,” he argued.

Szigeti revealed a line of new and renewed measures to stimulate innovation, especially among SMEs. The current cycle of the “Befektetés a jövőbe” (Investment in the Future) program which started in 2013 and will end in 2020, is set to be continued between 2021

and

2030,

should the EU give the program the nod. The mission of the new cycle will be bringing Hungary’s R&D potential to the European level.

For the EU, innovation support will also enter a new stage in 2020, as the “Horizon 2020” program will be replaced by “Horizon Europe”, an EUR 100 billion research program. Aims will include encouraging openness towards innovation in the business world, while motivating creative thinking and value creation.

Importantly for the future, success must not become a geographical lottery. “The countryside must be supported as strongly as Budapest,” Szigeti said. “Digitalization and innovation creates huge social gaps.

HUF 1 bln-6 bln.

Notably, the first cooperation center is being built in Győr, marking the start of cooperation between Audi and that city’s Széchenyi István University.

There are a number of other state supported programs available, including the “KKV Start Innováció” (SME Start Innovation) program.

“In the long run, it is important that Hungarian-owned companies become as successful as the international companies operating in our home country,” Szigeti explained. Micro-, small- and mediumsized companies are all eligible for grants of between HUF 10 million-20 million.

Another new program is the “Piacvezérelt KFI” (Market-driven R&D&I) program, where SMEs, large enterprises, and institutions of higher education (as consortium partners) may apply for grants of between HUF 50 mln-700 mln.

Regarding the protection of industrial property rights, the deputy state secretary noted that there is a program offering grants for patenting innovations and intellectual property.

“It exists, but nobody uses it,” he said.

Last year, only approximately HUF 50 mln was handed out in industrial property grants, while available funding was in the region of HUF 1 bln.

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Business

Looking to Make Polo More Popular

Polo (and for the avoidance of doubt, I mean the equinebased version, not that played in a swimming pool) is definitely not a sport of the masses, but that hasn’t stopped a dedicated few from trying to reintroduce it to Hungary.

ZSÓFIA VÉGH

Polo is not cheap, but then neither are sailing, golf or show jumping. An hour of training costs as much as a tennis lesson or a one-on-one session with a coach in a gym, according to experts. But most seem to view it as the preserve of a privileged few.

For centuries, polo was linked to royalty, and several members of the British royal family, including Prince Charles and both his sons, William and Harry, have been keen players in their time. Indeed, it is sometimes called the sport of kings, although that tag is more generally attached to horse racing. What tends to be less well known is that it was also played by soldiers and probably originally served as a preparation for battle.

“Every cavalry regiment had a polo division and they practiced on Margaret Island before World War I,” Zoltán Németh, polo player and founder of the Hucul polo club tells the Budapest Business Journal.

During communism, the sport was regarded a noble, elitist pastime and condemned, and it has never really revived since, he adds.

Yet a handful of committed people have been trying to reintroduce it to a wider circle. One such is Gábor Szegedi, founder and owner of La Ballena Horse Polo club at Budakeszi, on the western outskirts of Budapest.

Szegedi stumbled upon polo 15 years ago. A year later he went to Argentina to master its skills and launched the club, which is based at the Lóháton Budakeszin horse school, which he also owns, in 2012.

lot of commitment from people playing it, not only financially but timewise.”

It also needs a lot organizing and structure – polo fields out of necessity are large, to give the horses turning space, although arena polo is played on a smaller area with one fewer rider and horse per team – and people to help with the horses.

Shared Passion

“After playing so many years, you get to know a lot of people – polo is played by 12,000 people in the world – and you meet people you would never meet in normal life, from the Maharaja of Jaipur to Hollywood actor Tommy Lee Jones,” Zimmermann says. Having the same passion for the sport, they are more likely to open up and talk than in other circumstances.

“It does require solid riding skills, for sure.

But it is not more expensive than sailing or showjumping.”

Action from the recent Budapest Arena Polo Masters event.

Market Opportunity

He started to engage in the training of polo ponies, and also takes horses in livery (boarding), mostly out of passion, but also because he saw a market niche.

“In the past four-five years, the number of show games, beach polo, snow polo, etc. has increased in Europe,” he says.

“Many patrons (amateur players who ‘do’ polo out of passion and finance a professional player or even a team) would stop riding in October and wouldn’t start until March. This is where the market opportunity was: I started to prepare these horses in December and they were ready for events like the snow polo game in Kitzbühel by late January.”

Gradually, Szegedi established a reputation; in 2015, he was hiring out horses in St. Moritz, at one of the most prestigious horse polo events in the world, to Argentine players. Fast forward a few years and, together with Gergő Szabó, owner/CEO of Ganz

The Groom’s Story Polo horses are quite different from riding school horse; how they are trained and maintained are key to a successful match. They also tend to be more focused and more co-operative and have an air of peacefulness around them that makes working with them interesting, says Zsófia Somkuti, who works for La Ballena Polo club.

Somkuti started riding at a very early

Kapcsoló- és Készülékgyártó Kft., he organized the Budapest Arena Polo Masters, a major polo show which took place this April, partly with the aim of reaching more people.

Among the players at the Budapest Arena was Uwe Zimmermann, a businessman in private banking, who has been playing polo for

25 years.

Zimmermann is also the founder/owner of La Estancia Polo Club at Etyek (30 km west of Budapest), a private organization mostly for family and friends.

Though he says he plays the sport out of passion, Zimmermann agrees that polo helps build ties in business. It is one of the few sports that has kept its uniqueness, and as such, it serves business purposes very well, he says.

“It will never be a public sport because it is very elite, very difficult to play, very intense and expensive and it requires a

age. After an accident and a few years break, she returned to riding and started polo grooming.

“I am not primarily a polo player because it is not the game I am focused on but the horses,” she says.

Polo is such a complex experience; in order for one to be a really good player you need to trust your horse and be in excellent tune with them, she explains. Somkuti spent years in Australia and recently returned from Argentina, where

Wealth is an inevitable part of this sport, and it is played at a different scale in the more well-off countries. It is, perhaps, not a great surprise that Switzerland has the highest number of polo players in Europe.

From a population of seven million people, around 200 play, the same number as in Germany, which has more than times more population. In Hungary, the number of active players

is

20

at best, with just ten playing it seriously, Zimmermann notes.

Yet that is only part of the reason why polo has not developed very fast in Hungary, a country with strong equine traditions, after all.

“I have not been able to find the reason why. It does require solid riding skills, for sure. But it is not more expensive than sailing or showjumping,” Szegedi insists.

And he does not believe it is particularly elite, saying it is commonly played in the countryside by Argentinian children.

“A solution could be to support the young; there are some very talented young players around,” he adds. Dissension between the very few Hungarian clubs, typical in many sports associations, does not help either.

Stronger cooperation among clubs and a commonly created vision for the future are needed to help advance the sport in Hungary, Szegedi believes.

she worked for professional polo players. “There is a hierarchy among professional players, patrons and grooms but by no means is this sport exclusive,” she insists.

“What we are trying to achieve here at Budakeszi is to debunk this myth of having to have a lot money and wearing expensive clothes to join.

Instead, we are looking forward to involve people interested in riding, in a competitive sport, wanting to spend some fun time outdoors.”

8| 2

Business

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

AI Community Needs Coordination to Thrive There’s a lot more going on in the realm of artificial intelligence in Hungary than you might think. However, isolated efforts must be coordinated so that the country can stick out of the crowd in the race for global AI supremacy.

LEVENTE HÖRÖMPÖLI-TÓTH

ʼEscapeʼ and Reward Ethical, Sustainable Creativity The Budapest Business Journal talks to Alessandro Farina, managing director of the ITL Group, about the Atlas Award he has launched to reward entrepreneurship, sustainability and creativity.

ROBIN MARSHALL

BBJ: What is the inspiration for the Atlas Award?

Alessandro Farina: I come from an Italian family with a long entrepreneurial tradition that goes back two centuries. From a young age I learned that entrepreneurs have a moral obligation to their predecessors and to future generations for building a better world. We call this moral obligation an E.S.C. approach. E.S.C. stands for Ethics, Sustainability and Creativity. And these are the values that inspired the Atlas Award and that we hope the Atlas Award will inspire.

BBJ: Why launch it now?

AF: We live in a fast-changing world and our daily choices have a huge impact on it. After 25 years of passionate work and devoted service to our business community in Hungary, I felt the need to share this vision. I believe that leading a company is a responsibility towards society at large. Therefore, I chose to create an award to inspire and reward those entrepreneurs who are shaping a better world thanks to their ethical, sustainable and creative approaches.

BBJ: What are the selection criteria?

AF: The winner will be identified through a two-step process: an open nomination and a jury discussion. The first phase has already started. Anyone can nominate an entrepreneur who they believe deserves to

be rewarded for their E.S.C. approach and the positive impact of his/her company, based here in Hungary. On May 28 we will close the nomination period and afterwards a qualified jury will verify the requirements and identify the winner from the ten highest-ranking entrepreneurs nominated.

BBJ: How can people nominate candidates?

AF: That is super easy. You can nominate a candidate by filling in the simple form at the bottom of our webpage: www. atlasaward.itlgroup.eu In the form, people are asked to support their nomination by explaining how the entrepreneur is driven by ethical, sustainable and creative approaches. We believe this is the most important phase, because people can make the difference by highlighting these positive examples.

BBJ: Who is on the jury and how will they pick the winner?

AF: The jury will be formed by us, some prominent partners of the BB19, the upcoming edition of our annual Budapest Business Party, and Silvia Merighi, founder of MSP Group as a partner of the Atlas Award. The jury will discuss and vote to identity the winner from the ten entrepreneurs who have received most nominations. It will be an interesting discussion, but what we really care about is that it will be an opportunity to “press” the ESC button to Escape mediocrity and the status quo, to Start thinking out of the box and to Create a better world!

BBJ: What will the winner receive?

AF: We are really proud to say that the winner will receive a unique art masterpiece designed by the well-known international artist Marco Veronese, specifically for the Atlas Award. The prize is a hybrid sculpture in which Atlas (the Titan of Greek mythology who supported the world on his shoulders) and Leonardo da Vinci’s Vitruvian man (depicting the ideal human body proportions) are blended together, with two precious stones (a ruby and an emerald) placed one on the heart of the man and the other one on Hungary. The prize-giving ceremony will be held at the 2019 edition of the Budapest Business Party on June 6.

A major initiative by the Hungarian government to prepare the economy for digital disruption strives to gather stakeholders from business, research and academia under the AI Coalition.

The aim is to draw up a comprehensive strategy for the potential impact and use of artificial intelligence so that local enterprises gain on competitiveness and Hungary could turn into an AI stronghold in Europe.

As professional leader of the

175 member

strong AI Coalition, Gergely Szertics said at an earlier innovation summit that, although it all feels like a race, the idea is to find mutual benefits for players from public and private sectors alike.

“There’s so much happening already, from research to app development to product launches around here, yet these efforts are isolated,” he noted.

However, it is no longer only the research centers of multinational companies like Continental, Bosch or Nokia that promise impact. Targeted research by local players also prepares the ground to go global. Take self-driving car solutions by AImotive, emotions-based ad analysis by RealEyes, or SignAll’s sign language translation toolkit.

Platform technology is being built into products as well. Just think of Indivizo, a disruptive online recruitment service, or iLex, which handles the entire corporate legal process through algorithms. Add early adopter heavyweights such as MOL, Vodafone or Telekom, and you get the idea that AI is, indeed, all around.

“And yet you can’t talk about an ecosystem here, not to mention the lack of visibility or a common effort to build markets based on AI,” Szertics complains.

Therefore, a comprehensive country strategy is needed where best practices from abroad can be utilized. Major pillars include education, research, infrastructure building and regulation. Special priority needs to be given to handle the national data asset pool by establishing a National Data Capital Agency.

‘Immense Value’

“We are sitting on vast piles of data that has immense value. It is time to craft structured models for data use and to collect more existing data,” Szertics says. Pushing for more widespread use of AI technology is another objective.

A dedicated website, miagyakorlatban. hu (which stands for AI in practice) allows anyone to upload and share their related solutions, thus help the public get acquainted with the latest tech available.

The same purpose is served by an interactive exhibit that was due to take place the day after this issue of the Budapest Business Journal went to print.

Ultinous Zrt.’s AI solution is a great example of the depth of local efforts. The company combines old-fashioned video tech with algorithms to provide the same metrics as user behavior statistics in online stores.

As commercial director Balázs Horváth said, in offline stores it can precisely track who goes where, and how much time customers spend at a certain spot, so you can easily measure engagement.

Other data, such as gender or age, is also available. The system determines age with a four-year degree of accuracy, on average, and re-identification of individuals is also pretty much flawless once they enter the screen. Even mass events pose no bottlenecks.

“Mass head detection in challenging environments like at festivals is a regular feature, together with blurring faces real time to comply with privacy laws,” Horváth explains.

One impressive asset of the tech is how it helps cut lines at check-out counters.

The AI-powered video analysis predicts whether one will form in the first place. If that is about to happen, cashiers are alerted to open up fresh tills to prevent the lines.

“In Rossmann, long lines have completely disappeared thanks to our service, whereas short ones were cut by

up to

80%.

This is what the combination of an existing CCT infrastructure, cloud-based or locally installed servers as well as structured data and real time alerts and insights are capable of,” concludes Horváth.

Business | 9

2

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

Asset Classes: Common Stocks In this fourth article in a series on asset classes, Les Nemethy and Sergey Glekov aim to demonstrate that even in today’s “low interest” environment, one can generate reasonable returns on a diversified portfolio. (Of course, bets are off should there be a recession or depression).

Given that debt holders generally enjoy priority over equity holders, equity is higher risk and, therefore, over the longterm, is rewarded with higher returns than debt. Investment in stocks is one of the most widely used strategies for building high-return investment portfolios. When we talk about “equities” in this article, we refer to stocks in publicly listed companies, not equity in private corporations.

The array of possibilities for equity investments is truly dazzling. There are thousands of equities in publicly listed companies all over the world, with various levels of risk, some that pay out generous levels of dividends, others that pay no dividends, often companies that reinvest their earnings into growth. In general, stock prices are volatile and may rise or fall dramatically. We emphasize again: investment in stocks carries risk.

Over virtually any long-term time horizon, a diversified portfolio of equities generally brings excellent returns. One would have seen spectacular returns in the Dow Jones Industrial Average or Standard & Poor’s 500 if one had invested in one or the other index since 1989.

S&P 500 Sectors Performance as of May 1, 2019 Sector name

Performance 1 Day

5 Day

1 Month

3 Month

YTD

1 Year

3 Year

5 Year

10 Year

Consumer Discretionary

-1.13%

-1.23%

+4.46%

+9.28%

+20.46%

+14.06%

+49.72%

+86.00%

+412.98%

Information Technology

-0.27%

-0.42%

+6.07%

+18.47%

+26.62%

+20.67%

+97.76%

+130.59%

+410.36%

Health Care

-0.30%

+2.13%

-3.03%

-1.68%

+2.91%

+8.31%

+27.77%

+53.10%

+267.27%

Industrials

-0.75%

-1.26%

+3.27%

+8.16%

+20.45%

+7.55%

+33.91%

+42.76%

+242.21%

Financials

-0.86%

+1.43%

+7.91%

+7.23%

+16.44%

+1.23%

+46.97%

+55.66%

+217.04%

Consumer Staples

-1.17%

0.29%

+1.13%

+7.07%

+12.42%

+13.42%

+9.53%

+29.27%

+160.27%

Materials

-1.84%

-1.63%

+1.72%

+5.76%

+11.56%

-0.98%

+19.49%

+17.58%

+129.53%

Utilities

-1.06%

0.55%

-0.19%

+6.09%

+9.67%

+12.70%

+19.86%

+34.21%

+124.97%

Communication Services

-0.67%

-0.58%

+5.51%

+8.92%

+19.88%

+12.23%

-0.45%

+7.31%

+59.18%

Energy

-2.17%

-3.85%

-2.19%

+1.68%

+12.89%

-12.09%

-4.71%

-30.24%

+34.47%

Real Estate

0.04%

0.66%

-0.53%

+4.78%

+16.01%

+17.09%

-

-

-

S&P 500 Index

-0.75%

-0.12%

+3.15%

+8.12%

+16.63%

+10.41%

+41.56%

+55.19%

+234.98%

Source: Fidelity, Sectors & Industries – Performance

It should also be emphasized that if one purchases near a peak prior to a recession or depression, for example before the dotcom bubble or the 2008 financial crisis, one might experience quite a fall in value and need to wait for quite a few years just to recoup the initial investment.

Some investors deal with this by investing a constant amount per year, rain or shine. Others try to determine whether they are buying on a dip that will recover relatively soon, or “catching a falling knife”, e.g. a stock that will continue to fall, perhaps bloodying you in the process.

As Baron de Rothschild famously said, “buy when there is blood in the streets, even if the blood is your own.”

Warren Buffet warned: “You pay a high price […] for a cheery consensus.” These thoughts constitute the essence of contrarian investing.

Bull Market

According to Goldman Sachs, the current ten-year trailing annual return for the S&P 500 of 15% ranks in the 94th percentile of all ten-year

periods going all the way back to 1880.

In terms of the best performance sectors, consumer discretionary and information technology significantly outperformed other sectors and the S&P500 for the last ten years.

The United States still dominates global stock markets in terms of trading volumes, number of listed shares, even equity returns over the last years.

Besides building a stock portfolio for themselves, investors may use Exchange-Traded Funds (ETF’s) to establish a low-cost, well-diversified portfolio of stocks. ETFs allow investors to gain portfolio exposure to specific sectors, industries, or countries even if investors do not have expertise in those areas.

ETF’s may also be leveraged. For example, a 3X fund means that the amplitude of both the upside and downside variations is multiplied by a factor of three. This is achieved by leveraging the ETF portfolio.

As the saying goes, past performance is no guarantee of future performance.

After a ten year bull market, investing in equity warrants extra caution (e.g. consider reducing or eliminating leverage, investing in less risky assets, hedging with gold, etc.) Nevertheless, equities still have their place in any balanced portfolio.

Disclaimer: This article is intended for informational purposes only, and should not be relied upon for investment advice. It is important to do your own investigation and analysis before making any investments based on your own personal circumstances.

Les Nemethy is CEO of EuroPhoenix (www.europhoenix. com), a Central European corporate finance firm, author of Business Exit Planning (www. businessexitplanningbook.com) and a former president of the American Chamber of Commerce in Hungary.

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1054 Budapest, Hercegprímás u. 11. info@madoffbar.com madoffbar.com MADOFF_OroszBarbi_hirdetes_252x77mm_04v.indd 1

2019. 05. 08. 13:57

10 | 2

Business

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

Company ///news

published on the website of the Budapest Stock Exchange. The company generated HUF 144 bln in EBITDA in Q1, 18% less compared to the same period of the previous year. Net profit was HUF 48.6 bln.

Total operating revenue rose 14% to HUF 1.145 trillion, but total operating costs outpaced that growth, increasing 16% to HUF 1.088 tln. Operating profit slipped 17% to HUF 57.3 bln. A net financial loss of HUF 4.2 bln – widening from HUF 1.9 bln in the base period – weighed further on the bottom line. Earnings per share came to HUF 69. “Earnings declined from a high base as refinery margins were substantially weaker and this was only partly mitigated by our strong internal performance across all businesses,” said chairman-CEO Zsolt Hernádi. He added that MOL is “on the right track” in meeting 2019 guidance and funding transformational investments, tozsdeforum.hu reported. Meanwhile, MOL has laid the cornerstone of a HUF 3 billion rubber bitumen plant in Zalaegerszeg (227 km west of Budapest), economic news portal portfolio.hu reported. Minister of Finance Mihály Varga said the government has awarded MOL HUF 750 million for the investment from monies it uses to support big companies ineligible for European Union funding. MOL’s Hernádi said the plant would start production in 2020, turning out an annual 20,000 tons of rubber bitumen made from half a million old tires. The output will be sufficient to pave 200 km of roads a year with material that is stronger and quieter, he added.

Terrán Inaugurates HUF 2 bln Expansion Tile maker Terrán Tetőcserép Gyártó Kft. laid the cornerstone of a HUF 2 billion expansion at its base in Kunszentmiklós (64 km south of Budapest) on May 7. The government is supporting the investment with a more than HUF 480 million state grant, Minister of Finance Mihály Varga said at the

ceremony. Varga added that the Hungarian construction industry is constantly expanding, with output growing 49% in February compared to the previous years.

That is why there is a great demand for companies offering high added value products and services, Varga said, index.hu reported.

OTP Acquires SocGen Slovenian Unit Attila Gódi, managing director of Terrán (left) and Mihály Varga, Minister of Finance at the cornerstone ceremony.

Guardian Glass in HUF 4.1 bln Investment

American-owned Guardian Glass inaugurated a HUF 4.1 billion laminated glass production line at its plant in Orosháza (195 km southeast of Budapest) on May 7, state news agency MTI reported.

Guardian Glass vice president Guus Boekhoudt said demand by corporate and retail clients for laminated glass products is growing. Capacity of the production line will be 150 truckloads of products per month, around 80% of which will be sold abroad. The company’s plant in Orosháza

has 330 workers, in 2017 revenue reached HUF 25 billion and grew further last year.

Guardian Glass is a member of Guardian Industries and an indirect subsidiary of Koch Industries Inc.

MOL Earnings Decline on Narrower Margins Hungarian oil and gas company MOL’s first-quarter net income fell 19% to HUF 48.6 billion from the same period a year earlier as margins narrowed, tozsdeforum.hu reported, citing an earnings report

OTP Bank says it has signed an agreement to acquire a 99.73% stake in SKB Banka, the Slovenian subsidiary of France’s Société Générale Group and other local units held by SKB Banka, magyarnemzet. hu reported. OTP did not disclose the transaction price. SKB Bank is Slovenia’s fourth-biggest bank with a nearly 9% market share. It is active in the retail and corporate segments. The transaction is expected to be closed “in the coming months” subject to regulatory approval.

OTP has acquired former SocGen unit in almost all of the neighboring countries.

CEO Sándor Csányi said that, in terms of expansion, the only challenge is the euro-zone member Slovakia with a very low interest margin. It is a very saturated market with only a few dominant players, providing small growth options, he added.

Takarék Launches new Commercial Bank The new universal commercial bank of Hungary’s integrated saving cooperatives, Takarékbank, has opened with 139 units in seven of Hungary’s 19 counties as well as Budapest, news portal portfolio.hu reported. The lender, created from the merger of Mohácsi Savings Bank, Pannon Savings Bank and B3 Savings Cooperative, has more than 140,000 retail and 28,000 corporate clients. The ratio of agribusinesses among the corporate clients stands close to 10%. Takarékbank also serves 173 local councils. By the end of October, 11 more savings cooperatives as well as Takarék Commercial Bank, formerly called FHB Bank, will merge with Takarékbank, giving it more than one million clients and lifting its total assets over HUF 2.3 trillion. With 750 branches, it will have the country’s largest banking network. Takarék Group, which, in addition to Takarékbank, counts 11 regional savings cooperatives, Magyar Takarékszövetkezeti Bank (MTB) and savings cooperative integrator SZHISZ among its members, has total assets of close to HUF 2.5 tln. Its market share is more than 6.5%, making it the fourthlargest banking group in Hungary.

Tungsram to Invest USD 1.5 mln Hungarian lightning business Tungsram Group announced that it will spend USD 1.5 million to add an aircraft engine parts maintenance facility at its plant in Kisvárda (282 km northeast of Budapest), business daily vg.hu reported.

GE Aviation Hungary, a unit of General Electric (GE), Tungsram’s former owner, will transfer all aircraft engine pipe and tube maintenance to Tungsram in the course of 2019, said Casey Ott, who heads GE Aviation Hungary’s plant in Veresegyház (32 km northeast of Budapest). Tungsram will get the necessary accreditation for the work from the European Aviation Safety Agency (EASA) and the United States’ Federal Aviation Administration (FAA). Tungsram Group employs more than 4,000 employees. Some 95% of its manufactured products are for export. It operates subsidiaries in 22 countries and has a network of 110 international markets.

In Hungary the group has five factories.

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Budapest Business Journal | May 10 – May 23, 2019

Lubricating the way to Brand Awareness In an exclusive interview with the Budapest Business Journal, Alexander Sokolov, managing director of URT Oil Trade Kft. talks about the firm’s fiveyear relationship with Russia’s GazpromneftLubricants, bringing its products to the Hungarian market and the goal of achieving more than 5% market share.

BBJ STAFF

BBJ: How would you categorize the lubricants market in Hungary today?

How is it evolving?

Alexander Sokolov: The Hungarian lubricant market is overstocked. Annual calculated national market capacity is 84,000 tons, but the actual figure for 2018 was around 100,000 tons. International majors cover around 30% of the market share, Hungary’s MOL holds another approximately 50% and the rest is occupied by local no-name private brands.

The lubricants’ market in the country is heavy and highly competitive, thus it is unlikely to grow in the near future. The major challenge here is product quality control, given that the local small private brands tend to present the market with poor products. A government regulatory initiative might highlight the difference between the responsible players that produce lubricants in accordance with the requirements of equipment manufacturers (automotive and industrial), possess the latest approvals and the rest, actors that should be banned from the market due to the substandard products quality. This would increase the quality of average lubricants and provide customers with the most relevant product.

BBJ: Who are the biggest players in the market?

AS: On the global market, the major players are Exxon Mobil, Shell, Total, and Gazpromneft-Lubricants. On the Hungarian market it is MOL, Shell, Total, Eni.

Business | 11

AS: Gazpromneft-Lubricants was established in November 2007; our company, URT Oil Trade – a little bit later. But we signed the cooperation agreement in 2014, when both companies already had sufficient expertise. Since that time we have worked very closely and now I can say that over five

“The major challenge here is product quality control, given that the local small private brands tend to present the market with poor products.”

Alexander Sokolov BBJ: How was your 2018 business year?

AS: 2018 was a good year: Gazpromneft-Lubricants market offer was increased with a large range of industrial and fully synthetic automotive products. One of our customer campaigns brought in some 6,000 participants from around Hungary competing for a new passenger car. The winner was announced in late December.

This campaign helped us increase premium products sales and scale up brand awareness. Its success is proved by our market competitors starting similar projects this year. Still, there’s a lot to come in 2019 and we hope for a further boost in sales.

really needs to be changed. It can also monitor what is going on inside the engine and thus prevent engine troubles that may even have no connection with lubricants.

BBJ: Could you share some of the history of both Gazpromneft-Lubricants and URT Oil Trade?

years of collaboration we gained high results in sales and marketing projects.

Gazpromneft-Lubricants products have become well-known and we can see the loyalty of our consumers. We are proud to present Gazpromneft-Lubricants products to such famous retail chains as Tesco, Auchan and Praktiker.

I would also like to underline one special project we have launched: in 2016 the first G-Energy Service Station was opened in Hungary. G-Energy Service is a rapidly growing international chain of more than 170 service stations in 16 countries. Since Hungary has joined the project not only can our car owners enjoy car maintenance services at international standards and for a reasonable price, but independent workshops owners can join the chain, get marketing support and attract additional clients to their business.

BBJ: URT Oil Trade is the official distributor for Gazpromneft-Lubricants.

How and when did this relationship come about?

AS: This decision was undertaken on the basis of Gazpromneft-Lubricants’ international performance awareness. We put our trust in the brand when one of the company’s current partners offered us this opportunity. Starting from scratch, we’ve built Gazpromneft-Lubricants product awareness across the country and hope to achieve 5-7% Hungarian market share in five years.

BBJ: What plans do you have for the future?

AS: On the way to our 5-7% market share, we plan to introduce to the market new products and services. One will be the launch of our first Technical Competence Center, in cooperation with Gazpromneft-Lubricants. It will provide technical support for enterprises and fleet owners that use Gazpromneft and G-Energy products. The technical center will allow us to provide clients with a service that is in high demand: express oil analysis. Such type of analysis is important for clients as it helps them to cut costs: they can change oil when it

Racing Ahead: From left, Alexander Sokolov, managing director of URT Oil Trade Kft.; Roman Zimovets, deputy general director for foreign assets at Gazpromneft-Lubricants; Tamás Tóth Gender, team leader of the Hungarian Gender Racing Team; and Gender Racing team pilot Tamás Ronai.

12 | 2

Business

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

Gathering Clouds may Pave way for More AI Cloud-based solutions are becoming increasingly common in the Hungarian business world, as fears and suspicion fade away, with AI as the next big thing just around the corner, according to a joint research

by Microsoft, the ITC Association of Hungary (IVSZ), and Bell Research.

BENCE GAÁL

The results of the survey conducted among large enterprises were presented at the Microsoft Headquarters in Graphisoft Park

by Microsoft CEO Christopher Mattheisen, Microsoft large enterprises branch head Gabriella Bábel, Bell Research’s Áron Jakab, and Ákos Mácz from IVSZ.

From left: Áron Jakab, Ákos Mácz, Christopher Mattheisen, Gabriella Bábel.

Some 72% of the surveyed leaders said that digitalization is a revolution in business exceeding the importance of all previous major changes. The number of company heads who say that cloud tech is a natural tool of everyday business processes is also growing, with 88% saying that employees are able to access company systems via mobile devices.

“Only one or two years ago, there was a defensive mindset at a large number of companies,” said Christopher Mattheisen.

“A few heads said: get into the cloud, use AI, change the world,” he added, noting that some early adapters in Hungary such as encryption specialists Tresorit and remote connectivity services company LogMeIn have become worldwide leaders in their business line.

Mobility, and long-distance work patterns, supported by newer technologies

and faster connection speeds, may also offer relief to the region-wide labor shortage, according to Mattheisen.

“Three or four years ago, we were in the 3G world; now we have unlimited 4G connectivity almost everywhere,” he emphasized. Áron Jakab explained that this is the fourth time the survey has been carried out.

“In the first research the question was: ‘Are you familiar with cloud technology?’,” he said, agreeing that mobility is the driving force behind cloud tech.

Baseless Fears

The expert argued that cloud technology has reached an “inflexion point”, where those who already use the technology have realized that their fears, such as data security, have been baseless.

Gabriella Bábel pointed out: “2019 saw a decreasing number of company heads outright refusing clouds. Even they may be using the cloud in their private lives, without realizing it.”

Regarding AI, she added that “AI is not the future, not sci-fi, it is the present. It can relieve people’s burdens to an unprecedented extent. While today, people in the upper management consider AI solutions a luxury, and too expensive, they can choose constructions based on usage as well.”

According to the research, only

34% of

those surveyed believed robots and AI will disrupt the division of work. Mattheisen argued that the situation is akin to that of the cloud a few years ago, saying “Let us sit here for two years, and we’ll see that the numbers will be higher.”

IVSZ’ Mácz added that the negative response is an innate reaction. “They think that ‘this cannot happen to me’,” he noted. “There are trend followers and pioneers,” he added.

Regarding negative IT practices that might delay uptake, Bábel said, “An obsolete IT system is used so long as it does not cause critical problems every day.”

Still, whether this practice is better than facing down fears regarding modern technologies such as cloud and AI is up for company heads to consider.

Sporting Rose-tinted Glasses, but not all the Time In a neat piece of historical symmetry, two anniversaries marking important milestones in Hungarian history have just slipped by, not that the current administration seemed to notice.

KESTER EDDY

Fifteen years ago this month, Hungary achieved what for many politicians, diplomats, one-time dissidents and just ordinary Hungarian folk had been a lifetime’s ambition: on May 1, 2004, the country became an accepted member of the “club” of Western European nations: the European Union.

Fifteen years (minus one day) previous to this, the “reform” communist government had, on May 2 1989, begun dismantling the barbed wire fence separating Hungary from Austria.

The “Iron Curtain”, so symbolic of the division of Europe since World War II, was on its way to the scrapyard.

Perhaps because the accession process for EU membership had been so drawn out and, at least to those not involved, free of angst, the more recent event has not really gripped the public’s imagination.

Sure, there were official celebrations at the time, and some Magyars will have grabbed the chance to work in countries like the United Kingdom and

Ireland that opened their doors to settlement from the off. But

by

2004,

Hungary seemed well on the road to “normalization”, and somehow EU accession felt something of a “given”, hence failing to impinge itself greatly on the national consciousness.

In contrast, for those old enough to remember, the dismantling of the Iron Curtain was an iconic event that ushered in a summer of happy tumult, East German refugees, abandoned Trabants and, a year later, Hungary’s first genuinely free elections.

Yet the harsh economic realities of the early 1990s, when many local businesses closed through lack of sales, soon brought about second thoughts and a yearning among many for the seeming certainties of the previous era.

Rising Prices

People looked at the rising prices in horror, forgetting that just a few years previously they had to pay for a (poor quality) car and then wait four years before being able to turn the ignition. Foreign investors also came in for criticism: allegations

LIN E M O T T O B TH E swirled of worker exploitation, of enjoying excessive tax breaks, of buying and closing plants to capture markets and, at worst, plain shysterism.

Were such accusations true? In some cases, probably. At the same time, protests from foreign managers that staff expected handsome rewards while continuing to use their workplace as a private office to manage freelance activities fell on deaf ears. Everyone certainly wanted higher pay, but not all were aware of the expectations that accompanied such remuneration.

With time, and rising salaries, such resentments have largely disappeared.

Today, Hungarians intent on a big pay packet can freely work in Western Europe.

Post-EU accession, a certain disappointment with Union membership has also taken hold in Hungary. In a recent public survey by Závecz Research for website 24.hu, respondents were asked to rate how their expectations of membership had been met on a five-point scale. The average grade

was

3.2,

dropping to just 3.0 for the rural population with only primary school education.

Yet somehow, despite much government criticism of Brussels and loss of sovereignty to the Union, more than 75% of Magyars still consider Hungary’s EU membership “beneficial” or “very beneficial”.

Unlike the political order pre1945, and in spite of its weaknesses, cumbersome decision making and inefficiencies, the EU has been fundamental in avoiding armed conflict between members throughout its existence. It seems in today’s Hungary, despite some personal disappointment, people may appreciate that. Long may it continue. It is certainly good for their bottom lines.

The Bottom Line is a monthly column written by Kester Eddy, a long-standing and well respected Budapest-based business and economic journalist, who has written for the Financial Times and many regional publications. The opinions expressed in the column are not necessarily those of the Budapest Business Journal. To comment on this column, or on anything else in the BBJ, email the editor at robin. marshall@bbj.hu

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Budapest Business Journal | May 10 – May 23, 2019

Special Report Real Estate: Offices

The battle to source good plots, the rise of new business areas, design trends and investment opportunities: welcome to the Budapest office market.

Low Vacancy Continues to Shape Budapest Office Market 14 Market Talk: How is the Office Market Developing? 16 Competition for Development Plots Increasing 20 Interior, Exterior Design Carving-out a Higher Profile 22 Office the Sector of Choice for Investors 24 PM and FM Play Increasingly Central Role 35

Special Report

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Budapest Business Journal | May 10 – May 23, 2019

Low Vacancy Continues to Shape Budapest Office Market 2nd district

2nd district

2nd district

29 sqm – 1 room, AttilA street

58 sqm – 2 rooms, HAnkóczky J. street

154 sqm – 3 rooms, UtAs street

Close to the Buda Castle, beautiful view over the Vérmező Park, this very sunny apartment in good condition is situated within a nice, Bau­ haus style building with elevator.

Nice view over the Buda Hills, this very sun­ ny and well divided apartment has private gas heating, 8 sqm of balcony and parking space. It is located in a quiet and green area.

In the Buda Hills, great location, this very sun­ ny, garden facing, two storey terraced house has balcony, private garden, swimming pool and garage.

31.500.000 HUF

52.000.000 HUF

95.000.000 HUF

+36.1.336.1706

2nd district

+36.1.336.1706

2nd district

+36.1.376.6080

2nd district

125 sqm – 4 rooms, szilágyi e. AvenUe

200 sqm – 6 rooms, endrődi street

545 sqm – 7 rooms, PestHidegkút

Close to the Mammut shopping mall, this street and garden facing, very sunny and well divided apartment has separate rooms, 2 bathrooms and 17 sqm of terrace.

Breathtaking panorama over the Buda Hills, this three storey, very sunny, well divided, luxu­ ry apartment benefits of two parking spaces and it is located in the diplomatic area.

Close to the French School, in a quiet and green area, this panoramic, luxury detached house benefits of solar panel and private gas heating, beautiful garden, swimming pool and terrace.

125.000.000 HUF

205.000.000 HUF

389.000.000 HUF

+36.1.336.1706

+36.1.376.6080

+36.1.376.6080

Balance Hall by CPI.

3rd district

3rd district

3rd district

80 sqm – 3 rooms, rókAHegy

51 sqm – 2 rooms, rómAiFürdő

120 sqm – 3 rooms, csillAgHegy

In a quiet side street, green area, this well di­ vided apartment has private gas heating, ter­ race and private garden. Garage possibility for 1.800.000 HUF.

This very sunny and quiet, well divided apart­ ment benefits of separate rooms and balcony.

It is located close to the Danube.

Close to the Római Open­air baths, in a quiet side street, this very bright, well divided de­ tached house has 620 sqm of lot, terrace, 40 sqm of outbuilding in the garden and garage.

31.900.000 HUF

34.900.000 HUF

59.000.000 HUF

+36.70.669.5350

5th district

+36.70.669.5350

5th district

+36.70.669.5350

5th district

53 sqm – 2 rooms, AkAdémiA street

59 sqm – 2 rooms, Alkotmány street

53 sqm – 2 rooms, bAlAton street

Close to the Danube and the Hungarian Aca­ demy of Sciences, this completely renovated, street facing, furnished apartment is situated within a nice period building.

Close to the Parliament, within a beautiful pe­ riod building, this quiet apartment benefits of separate rooms and private gas heating.

Ideal for investment.

This completely renovated, very bright, street facing apartment is situated within a well main­ tained period building with elevator, close to the Danube and the Parliament.

55.900.000 HUF

59.500.000 HUF

71.550.000 HUF

+36.70.414.7759

6th district

+36.1.351.0446

6th district

+36.70.414.7759

11th district

67 sqm – 2 rooms, szondi street

76 sqm – 2 rooms, király street

49 sqm – 1 room, nádorliget sUbdivision

Close to the Heroes’ Square, this very sunny, high floor apartment has separate rooms and it is situated within a building with elevator and very green courtyard.

In a renovated period building with elevator, this bright, spacious, street facing apartment in good condition has private gas heating and it is located close to the Teréz Circuit.

In a quiet side street, this very well divided, completely renovated, park facing apartment has balcony and parking space. It is situated within a new built building.

38.800.000 HUF

52.900.000 HUF

43.200.000 HUF

+36.1.351.0446

11th district

+36.1.351.0446

11th district

+36.70.337.2319

13th district

83 sqm – 2 rooms, nádorliget street

277 sqm – 8 rooms, PéterHegyi sloPe

90 sqm – 4 rooms, kAtonA JózseF street

This completely renovated, very sunny, garden facing apartment has 24 sqm of terrace and it is situated within a new built building.

Panorama over the Buda Hills, this four storey, eco­friendly house benefits of wellness and fit­ ness areas, swimming pool, garage and elevator.

79.900.000 HUF

590.000.000 HUF

This very spacious, street facing apartment, that needs renovation, benefits of separate rooms and balcony and it is situated within a Bauhaus style building with elevator.

+36.70.337.2319

+36.70.337.2319

60.900.000 HUF

+36.70.414.7759

grUPPo t.F.m. kFt. 1068 bUdAPest, király U. 102. each agency independently owned and operated. • these offers are valid, till the apartments are sold. • these information do not constitute a contractual element.

Demand in the Budapest office market has continued to boom with vacancy falling to some of the lowest levels on record. Established Hungarian and international builders are going ahead with speculative, long-term phased projects and built-to-suit (BTS) developments, with a low supply of 5,000 sqm plus contiguous sqm class “A” spaces.

GARY J. MORRELL

Preleases now constitute a significant part of the market; companies looking for large offices in the short-term have very few opportunities. With demand high, some building owners are looking to upgrade older buildings to meet current design and sustainability requirements.

Total supply in the Budapest office market has reached around 3.6 million sqm according to the Budapest Research Forum, consisting of CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary. From this figure, a little more than three million sqm is defined as Class “A” and around 600,000 sqm classified as owner-occupied space.

Vacancy has fallen further to close to 7%. The lowest vacancy has been recorded in non-central Pest

at

3.5%,

while the periphery has continued to suffer from the highest vacancy rate at over 30% according to the BRF.

“As a result of the strong demand in the market, the average vacancy rate in Budapest has fallen to 7.1%. Tenants need to make a quick decision in order to secure quality space,” says Judit Varga, head of office advisory at CBRE Hungary The BRF has traced 25 speculative and owner-occupied projects under construction in Budapest, representing a little more than 530,000 sqm of space.

Atenor, Futureal and Wing all currently have more than one office project in development.

In a large-scale, phased speculative development, Belgium’s Atenor is developing the 50,000 sqm Váci Greens buildings “E” and “F”, the final stages of a 130,000 sqm project that will consist of in six buildings upon completion.

Confidence

In parallel with development of the final phases of Váci Greens, the developer has undertaken construction of the speculative, phased 85,000 sqm Aréna Business Campus in District VIII. Such large-scale projects reflect the current confidence in the Budapest office market.

“With regard to our development strategy, we are following this huge

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Budapest Business Journal | May 10 – May 23, 2019

27,000 sqm phase

of the 65,000 sqm Budapest One Business Park in Kelenföld. The urban mixed-use project follows a similar model to the Corvin Quarter development in District VIII, where Futureal is due to complete the 27,000 sqm phase one and two of the Corvin Technology & Science Park. The developer is also close to completing the second 7,500 sqm phase of its Advance Tower project in Váci út.

Wing has commenced construction of a 21,400 sqm BTS headquarters for evosoft Hungary. In the largest recent completion, the developer delivered the 58,000 sqm Magyar Telekom Group headquarters.

Located in District IX this is currently the largest single office block in Hungary.

Noah Steinberg, chairman and CEO of Wing, says the advantage of a BTS project is that the developer is able to agree a long-term lease with a major tenant, which puts it in a position to be able to tailor the building to the specific needs of the end user. In return for this, the tenant has to commit to a long-term lease of more than ten years.

That contrasts with speculative buildings, which are designed by necessity to a more flexible specification to meet the needs of multiple potential tenants, Steinberg explains.

Largest Prelease

The largest recent prelease in Budapest was a 19,000 sqm deal at Agora Tower

by HB Reavis with Raiffeisen Bank. The 34,500 sqm Agora Tower and the 32,500 sqm Agora Hub represent the first phase of Agora Budapest. Due to be completed next year, the complex is planned to provide a total of 136,000 sqm of office, retail and service space.

CPI, meanwhile, is developing the 16,000 sqm Balance Hall in the Váci Corridor. This represents the third phase of the Balance Office Park on Váci út and is scheduled to be delivered at the end of 2019, bringing the total

space at the complex to 35,000 sqm; there remains the possibility for a fourth phase of development.

Office demand and supply is high across the Central European regions; JLL says it has

INSIDE VIEW

traced

3.5 million sqm

of office stock in Prague, for example.

Vacancy has fallen to around 4% according to the Prague Research Forum (consisting of CBRE, JLL, Cushman & Wakefield, Colliers International and Knight Frank).

An estimated 350,000 sqm is under construction and due to deliver in 2019-2021 and circa 215,000 sqm is scheduled to be completed this year.

There is currently an estimated 4.23 million sqm of office space across

“As a result of the strong demand in the market, the average vacancy rate in Budapest has fallen to 7.1%. Tenants need to make a quick decision in order to secure quality space.”

Czech Republic, which has established secondary office markets in Brno and Ostrava as well as Prague. In Warsaw, JLL has traced 750,000 sqm of office space under construction and due to be delivered by 2021.

Budapest supply is forecast to fall back significantly this year with an estimated 138,000 sqm expected to be handed over, 44% of which is already prelet according to Cushman & Wakefield. This compares to the 230,000 sqm of space delivered in 2018.

“The Budapest office market delivered strong fundamentals in the first quarter as the vacancy rate continued to break record lows. Due to the lack of available units, the market has started absorbing class ‘B’ office space,” commented Cushman & Wakefield.

Prime rents are seen as being under pressure and likely to rise.

Agora by night.

Szervita Square Building: a perfect office and retail hub Gabriella Sasvári Associate Partner Development Director HORIZON DEVELOPMENT

Straddling between being the most modern structure in downtown Budapest and fitting into a historic urban environment, Szervita Square Building offers a premium venue for all its mixed-use functions.

The 12,500 sqm property will house 5 floors of category ‘A’ offices, while also accommodating retail spaces on the ground floor and luxury residences on the top levels of the 7-story property.

The office area – 8,500 sqm spread out on 5 consecutive floors – is a truly premium work environment in the very heart of the city. Located at the intersection of 3 metro lines and accessible by all other means of community transportation and car, Szervita Square Building is within reach for everyone. With a single office tenant who will introduce an innovative and creative workspace concept to Hungary through its internationally proven co-working and serviced office brand, the office areas of the building are 100% pre-leased.

Besides the unbeatable location, there are multiple other reasons why Szervita Square Building is so thought-after among office and retail tenants. The aesthetic beauty, technical excellence, sustainable features, innovative and smart solutions, as well as the attentive

property- and facility management team all add to the unique appeal of the LEED Platinum certified property.

When it comes to the refined exterior, Szervita Square Building features large glass surfaces connected by metal mullions reminiscing the Art Deco style of the neighboring buildings. The lightweight, ethereal, curved structure co-designed by Antal Fekete and DVM group is synonymous with premium elegance. The park in front of the building serves a clear community function. The interior (co-designed by Hungarian DVM group and Milan-based Metrogramma Architecture Studio) makes the best of this international cooperation both in functional complexity and aesthetic choices.

From a retailer’s point of view, Szervita Square Building is equally attractive: guaranteed high footfall numbers combined with an ideal heartof-the-city location are the recipe for success whether one considers opening a dining facility or a store. The developer plans with a diverse retail mix that will serve the needs of its office tenants and residents, as well as the general public.”

Associate partner and development director Gabriella Sasvári explained the development concept: “The Horizon Development team aimed at creating a very well-rounded product when originally defining the multiple functionalities of Szervita Square Building. The mixed-use commercial (office, retail) and luxury residential idea was a forward-looking model, but the market response from all three segments seems to confirm our initial expectations.”

www.szervita.com

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

demand by developing three projects at the same time: the 50,000 sqm Váci Greens E and F; the 25,000 sqm Building ‘A’ at Aréna Business Campus; and a new development in Buda,” comments Nikolett Püschl, development and leasing manager at Atenor Hungary.

Hungarian developer Futureal has undertaken the first

Special Report | 15

16 | 3

Special Report

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Budapest Business Journal | May 10 – May 23, 2019

Market Talk: How is the Office Market Developing?

The fundamentals of the Budapest office market are seen as strong with low vacancy and high occupational demand. Office developers are delivering better located, more sustainable and imaginatively designed centers using world-class interior and exterior architects and PM/FM managers. Exit strategies are available for all class “A� developments, often with multiple bids. However, labor and development costs are rising and development plots have become more difficult and expensive to source. The Budapest Business Journal spoke to a number of leading developers to ascertain their view on the market from development, locational, design, sustainability and investment perspectives.

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GARY J. MORRELL

As per the results from 2017 and 2018, the market is seeing robust demand, which can hardly be served by the supply.

All of the new developments are mainly or fully let by delivery. Atenor’s Váci Greens is a good example of this: each of the existing buildings has an occupancy of 100% and the newest pipeline building, Building “F” is already 50% let, one year prior to its handover.

This trend is definitely continuing in 2019. The vacancy rate has decreased to 7.1%, which is the lowest yet recorded in the Budapest office market. I think that the office market is in a position to meet large tenant requirements, but the timing is crucial.

Big occupiers have to start the search process at least 1.5-2 years prior to their moving date. Therefore preleases and/or built-to-suit projects can be ideal solutions.

Tenants need efficiency, functionality and spaciousness at the same time.

This can only be created in modern, well designed buildings. Atenor realized very early on that the future will be as flexible and sustainable as possible.

Good project managers are now more important than ever. Atenor does not use general contractors, but has an in-house project management department who control all subcontractors. Of course, we strictly follow external regulations, but in the same

we have our own internal regulations, which are continuously being improved.

The typical Hungarian landmark property has a downtown location, could have impressive historical heritage and/or a Danube view, etc. I think more landmark projects should be created and for this

Nikolett Püschl developers has to identify and create new prestigious areas, use world-class building design and creative positioning.

Nikolett Püschl Development and leasing director Atenor Hungary

The supply side of the office market is definitely in a position to meet large tenant requirements but only in the long-term.

Budapest has never been a prelease market but during the last couple of “dry” years of supply with increased demand, preleases have become a more significant part of the market. When companies are looking for large offices for an immediate move, they have very few opportunities.

Due to the landlords’ market that has evolved in recent years, the biggest change is probably that tenants have learned to plan ahead. Although it is very difficult to properly plan a company’s life for even the upcoming three years, tenants have to prepare a real estate strategy that supports their operation. Another demand change is that the focus of tenants is very much more on the employee and their day-to-day satisfaction with their office environment.

Landlords are, therefore, designing their offices with more of a focus on well-being.

With regard to the choice of architects and designers, the most important criteria are – as always – quality and past experience, but these days the biggest question is availability. As the construction market is overheated, it is not easy to find good architects who can accept an assignment with a strict timescale. I believe that all new buildings should be somewhat landmark in a way that is not only modern, functional and flexible but also respects and adds to the general look of the city. Fortunately,

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Special Report | 17

Csaba Zeley we can see more and more examples of well designed “landmark” buildings in Budapest.

Csaba Zeley Head of asset management ConvergenCE

Requests for Proposals (RFPs) of large tenant requirements are usually circulated Continued on page 18 ► ► ►

18 | 3

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Budapest Business Journal | May 10 – May 23, 2019

regulation platform should be introduced with online availability.

Budapest has very few modern landmark buildings and thus I would support a move to have more. A landmark building carries long-term design and functional values which distinguish it from its environment in a positive way.

Beyond Budapest, Debrecen and Szeged are the two location where I see possibilities to establish a sustainable, functionable office market outside of the capital.

Mátyás Gereben Country manager Hungary CPI Property Group

Continued from page 17 ► ► ► 12 months before commencement. There will be significant new stock on the market this time next year to serve these requirements; however, if a 5,000 sqm tenant would like to move into contiguous office space this December, it will meet with very limited possibilities.

Besides the fact that price and location are still the two dominant decisionmaking factors, there is an increasing need for “human elements” to serve the comfort and wellbeing of employees.

This can mean a warm welcoming common area which gives a living room feel to the tenants rather than a lobby, but it can also mean services on the spot that make the everyday life of tenants easier. CPI has recognized this need and is one of the pioneers in this respect with its “Human Innovation Program” across its office portfolio.

Suitable office development sites are becoming more difficult to source and potential office location hubs are, therefore, shifting into new areas of Budapest. Office

planning and construction regulations are very inefficient processes and vary from district to district. A comprehensive

Mátyás Gereben

Both existing and new projects in the pipeline can host large requirements, but the leases have to be flexible in terms of location. The downtown and Váci út office corridor are almost fully rented, where office buildings have reached their maximum capacity. We can see that other parts of the city, for example the dynamically developing District IX is also saturated; our Office Campus building is almost full.

New trends like wellbeing are for sure market drivers, as well as the amenities in the surroundings of the properties. As the existing buildings in our portfolio are located in established locations, they can be competitive. There is a lot to keep in mind when looking for a new office and the office itself has gained importance regarding attracting and keeping employees. Therefore, not only the numbers are interesting, but also the creation of human relationships, social experiences and work-life balance within the office buildings. It is more and more important for tenants to have a good time in the office building, and we make their everyday life easier with our “myhive” services, so the employees like to work there.

Since “myhive” has been introduced to the market, we can clearly see that in practice that different tenants compositions within the office buildings

require different services. The regular events – business breakfasts, client parties, concerts, yoga classes or even the farmers’ markets – are very popular.

When we worked on the concept and

Viktor Nagy design of “myhive”, we decided to work closely with architects experienced in the hotel segment, as the warm and welcoming atmosphere in hotels was very important for us.

A functioning office development market could emerge outside of the capital but Budapest will remain the main focus for developers for the next few years. There is some initiative from the developer side and also SSCs have started to move to academic cities, like Szeged and Debrecen.

Viktor Nagy Hungary country manager for operations Immofinanz

We see office demand and take-up being matched by supply. If you look at the way

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Noah Steinberg we coordinate very closely in terms of their needs within the building, initially when we make an offer and subsequently when we design the exact specification.

Noah Steinberg Chairman and CEO Wing

INSIDE VIEW

The supply side of the office market is in a position to meet large tenant requirements provided these tenant requirements reach the market sufficiently ahead of time. Budapest has sufficient developments in the pipeline to accommodate sustained, robust demand in the years to come. However, construction works tend to be behind schedule, due to the lack of capacity in the construction industry: sufficiently early appears to be increasingly early.

Our recommendation to large tenants is to start their quest for space in good time by identifying from the outset those developments that meet their

Christophe Boving quality criteria and that are capable of timely completion.

Corporates are attaching growing importance to employee loyalty in order to boost productivity, customer loyalty and ultimately their revenue.

They realize the relative importance of the leasing fees of real estate on their corporate balance sheets in comparison to the potential upsides of wellmotivated, well-housed employees.

As developers, we have already focused for many decades on the quality, energy performance and sustainability of our developments and we have been systematically submitting these to independent assessment and certifications like BREEAM for more than ten years. But it takes more than this to deliver developments that exude an appealing, Zen-like ambience and which can meet the human expectations of the users of an office building. This requires refined, well thought out architecture, a well-balanced mix of functions and an offer of amenities in the immediate vicinity, if not in the building itself.

Importance is given to aspects such as optimal daylight gain and clear height on the work floors, easy access to the open air and greenery and a flexible workspace that is easily adaptable to a wide variety of work organizations and high comfort levels, even at dense occupancy levels.

Christophe Boving General manager Codic Hungary

How Disastrous Can the Consequences of an Early Termination of a Fixed-Term Lease Be? Lilla Szepsi Szűcs

Adrián Menczelesz

Attorney

Associate

SCHOENHERR HETÉNYI ATTORNEYS AT LAW

SCHOENHERR HETÉNYI ATTORNEYS AT LAW

Did you receive an offer for a new lease with more favorable terms than those of your actual lease? Do you need to move to a bigger office space but still have several years to go under your current office lease? In such cases, the termination of an existing fixed-term lease may be unavoidable.

However, the termination could lead to disputes.

As a general principle, a lease agreement with a definite term may not be terminated under an “ordinary termination” unless the parties agree otherwise in the lease agreement. As lease agreements often do not contain any contractual break-options, the situation must be resolved based on general legal principles and the applicable laws. If a party terminates a fixed-term lease agreement by an unlawful measure which causes damage to the other party, the nonbreaching party will be entitled to seek compensation and the breaching party must pay compensation for damage incurred by the non-breaching party.

How is Damage Assessed?

The damage or loss may be of many kinds.

In the event of an early termination of a fixed term lease, the lessor usually suffers not only a loss of income of rent fees. The loss of a high prestige lessee may, for example, also affect the lessor’s own prestige and marketing potential adversely. Moreover, the lessor must find a new lessee which may also cause additional costs. The amount of the compensation will depend also on the length of the period between the unlawful termination and the signing of the new, replacement lease agreement, and the market conditions.

In a reverse case, where the lessor reverts to early termination, the lessee may also suffer damage: it must procure a new lease in changed market conditions. This case is usually relatively clear: If the new rent is more expensive, the difference in the rent fee will clearly give rise to a claim against the lessor in addition to the costs of the search for, and the moving to, a new place. In these cases, the lessor will have to pay compensation to the lessee covering the aforementioned costs.

But let’s go back to the less clear cases: when the early termination occurs on the lessee’s side.

Duty to Mitigate the Damage/Loss

In legal theory, one rule is clear: The lessor will not be entitled to claim all outstanding rents. Attention should be paid to the duty to mitigate the damage.

The lessor must do everything reasonable to mitigate its damage. For example, the parties can agree that the lessor fulfils its obligation to mitigate the damage by engaging a reputable real estate agent to assist in finding a new lessee for the leased area. However, it is not clear what the lessor’s reasonable duty would consist of: What if the lessor could only obtain a new lessee for a shorter term than the original?

How will the amount of the compensation reflect such a change? Unfortunately, there are no evident answers to these questions due to the lack of proper case law. However, the courts examine the fulfilment of this duty in every case. If the lessor did not act appropriately, the court will decrease the amount of the compensation, and the result will be very different from case to case.

According to one case of the Court of Arbitration attached to the Hungarian Chamber of Commerce and Industry, the tribunal found that the amount of the damage must be determined based on the actual status of the office market. In this case, the damage was determined to be six months’ rent. However, in another case, the tribunal awarded that the lessee must pay the outstanding rents until the end of the agreed term of the lease, the contractual penalty, and any additional direct damage suffered by the lessor.

Recommendations In practice, a carefully drafted clause should be included in the lease agreement and contain express wording relevant to the possibility of an unlawful early termination without cause, and especially to the payable damages. A proper lease agreement may cover such risks appropriately and, for example, clearly contain a formula for the amount of the payable damages, the payment method, the date from which the lessee is obliged to pay damages and requirements for the new lessee (e.g. good financial standing).

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the market has progressed in recent years, there has been a lot of development and growth but also a lot of take-up and we see a good balance between requirements for new, more modern and different types of space and the ability of developers to deliver this.

The quality and specification of the buildings we produce are built to the highest international standards in every sense. These include the Telekom building, which is the largest single office building in Hungary on a long-term lease to Magyar Telekom, the Ericssson building, where it has both its office and research and development functions, and the evosoft (a Siemens subsidiary) headquarters that is currently under development.

There is also a lot of cross over between the international markets and Hungary in terms of the people working in the aforementioned buildings. They are modern, environmentally sound, very efficient buildings, in terms of the use of space and environmental footprint. They are built to a very high quality with regard to internal finishings, but equally important is the building infrastructure.

The nature of space and the way people use it has changed significantly; there is a lot more flexibility in the offices, a lot more collaborative space and spaces where there is a focus on encouraging creativity. In this way there is a focus on flexibility, so it is no longer the case that everybody sits at the same desk, in the same office and behind the same closed door, but rather there is a lot of movement within the office.

A building is a holistic or single unit and the architects who design our exteriors and interiors are the same. When we have a major tenant,

Special Report | 19

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Budapest Business Journal | May 10 – May 23, 2019

Competition for Development Plots Increasing In a very compact such as Budapest, city one of the challenges for developers is sourcing suitably-sized, well-located development plots that provide visibility at a time when competition for such space is becoming more intense and consequently more expensive.

GARY J. MORRELL

Developers need to weigh up the balance between the suitability of plots and the price of land as office hubs are beginning to develop outside the more traditional established business areas.

From a developmental perspective, office building is being undertaken in urban locations that are more integrated into the wider city. The logic driving this is that staff who often work flexible hours prefer to be in locations that are unified with the city so they can utilize amenities and commute by public transport or bike.

The evidence regarding vacancy rates is that office staff have a preference for offices within the city. With the scarcity of labor and rising wage costs, office workplace accommodation is seen as a major element in the retention of staff.

New evosoft headquarters by Wing.

The Váci Corridor has for some time been the most favored area for office development, with

around

30%

of total current construction, followed by South Buda with circa 22%.

From the current Budapest office pipeline up to 2021, nine schemes are located in the Váci Corridor and six in the South Buda sub-market. As many as six office projects are scheduled to deliver along Váci út 2020. There is one office in the central business district due to deliver in the same time period.

Poorly-connected

Reflecting these locational development trends, the poorly-connected periphery of the Hungarian capital suffers from an overwhelming vacancy rate of 38% according to the Budapest Research Forum (which comprises CBRE, Colliers International, Cushman & Wakefield, ESTON International, JLL and Robertson Hungary).

This compares to around 4% in the Váci corridor with its excellent public and road transportation links, for example. On the demand side, the strongest occupational activity has been recorded in the Váci corridor, which attracted

more than

35%

of total demand. This was followed by Central Pest with 17% and South Buda with 14%.

The first speculative phase of Agora Budapest by HB Reavis, designed by Make Architects (with studios in London, Hong Kong and Sydney) and Hungary’s Finta Studio, will deliver retail, service space and open squares, which will be utilized by the local population as well as redeveloping the area adjacent to the Árpád híd metro station. It is planned to be submitted for BREEAM “Outstanding” and WELL “Gold” accreditation.

For their part, local authorities such as the District XIII Municipality are pro-actively promoting suburban districts to developers as part of urban redevelopment schemes. The concept is of a reciprocal benefit for the developer, the companies that locate to the project and the surrounding population.

Perhaps the hardest area to source development sites is the CBD. The

Szervita Square Building by Horizon Development is a rare office development in the historical center of Budapest. Attila

Wider development of the South Buda area is hindered by appropriate plots with direct metro access, the presence of which has proved to be one of the major reasons for the success of the Váci Corridor.

Kovács, managing partner of Horizon, says the number of available plots is becoming scarce in the CBD and the competition for them is growing.

Transport Hub

At the western edge of the city, Futureal is developing the 68,000 sqm Budapest ONE Business Park, located at a transport hub at Etele tér adjacent to the Kelenföld Railway Station and the Metro 4 station.

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ADDRESS: 1088 Budapest, Rákóczi út 1-3.

BUILDING YEAR: 1991 FREE SPACE: 4780 sqm PUBLIC TRANSPORT: metro line M2, tram 47, 49, bus 5, 7, 8E, 9, 100, 108E, 110, 112,133E, 178 CONTACT: Tel: +36 1 268 4300, info@ersteingatlan.hu The iconic building is located at the Astoria with retail units on the ground floor and 9 floors of high quality „A” category offices for a total of 23,210 sqm. Amenities of the building: café, restaurants, supermarket, car wash, modern bicycle storage, changing rooms with shower and mini gym and many other services can be found the surrounding.

“Based on the success of our flagships project, the Corvin Promenade, we see an enormous market demand for locations with direct access to key transportation hubs. Due to the country’s largest multimodal intersection, located next to Budapest ONE Business Park, the city center can be reached via direct links in under ten minutes.”

The business park will form part of the Kelenföld urban redevelopment project.

“Based on the success of our flagships project, the Corvin Promenade, we see an enormous market demand for locations with direct access to key transportation hubs. Due to the country’s largest multimodal intersection, located next to Budapest ONE Business Park, the city center can be reached via direct links in under ten minutes,” Tibor Tatár, CEO of Futureal, says of the project.

Atenor has undertaken the development of the 72,000 sqm Aréna Business Campus in District VIII. The outer ring road is seen ADVERTISEMENT

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Budapest Business Journal | May 10 – May 23, 2019

as a developing business district with, for example, Raiffeisen Evolution planning an office project in the area.

Wing delivered the 58,000 sqm Magyar Telekom Group headquarters located in District IX last year. The complex is located at a metro, tram and road intersection with direct access to the city center and airport. The company also has an option for a further office development on an adjacent site.

On the opposite side of the ring road, Skanska has acquired another plot and plans undertake development of the

first

20,000 sqm

section of what will be three-phase Skandanavia Gardens.

Buda Breakthrough

Atenor has also acquired an approximately 5,000 sqm plot for its latest office project, the first to be undertaken by the Belgium-based developer on the Buda side of the river.

The scarcity of plots in the current hotspots are encouraging developers to look for well-connected areas that could become new business hubs.

On the Buda riverfront, Wing is developing the 21,400 sqm headquarters for evosoft Hungary Kft., part of the Siemens Group. This represents the latest

Szervita Square Building by Horizon Development. built-to-suit, high-tech project to be built by Wing in Budapest. South Buda has been established as the high-tech hub of Budapest.

The LEED “Gold” accredited headquarters forms the second phase of the Hungarian Nobel Prize-winners Research and Development Park on a two-hectare site, in the vicinity of the Infopark technology park and the Budapest University of Technology and Economics.

The first phase of the project, the 24,000 sqm built-to-suit, LEED Gold Ericsson House, was handed over by Wing in 2017.

Wider development of the South Buda area is hindered by appropriate plots with direct metro access, the presence of which has proved to be one of the major reasons for the success of the Váci Corridor.

That said, another multi-phase South

Buda development is being realized

by Property Market on a

54

hectare

site on the Buda bank of the Danube at Kopaszi-gát (the Kopasz Dam) where the 18,000 sqm BudaPart Gate, the first office phase, is scheduled to be delivered this year.

Once completed, the project will include office, retail and residential elements in addition to large green and park areas based on the concept of the development of a new self-contained city quarter. It will also feature the tallest building in Budapest, the new 120 meter high, 28-story MOL headquarters, the cornerstone of which was laid in October.

The so-called “MOL Campus”, designed

by London’s renowned architects Foster & Partners, is due for completion in 2021.

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Budapest Business Journal | May 10 – May 23, 2019

Interior, Exterior Design Carving-out a Higher Profile With developers striving to deliver ever more highly-specified office complexes that integrate and contribute to the infrastructure and feel of the city, interior and exterior design have essentially become part of the same design process.

GARY J. MORRELL

The interior of an office development reflects the need of tenants for a creative and healthy environment for staff, while the exterior design is expected to produce architecturally attractive buildings. More developers are employing architect studios with an international reputation, often working in conjunction with Hungarian architects.

“Design is a key factor of a successful project; therefore we are mindful of the tendering and selections process of the architects. It is very important that the architects need to understand that exterior design is one thing, but even more important is the building interior: its functionality and layout has to be super smart,” commented Nikolett Püschl, development and leasing director at Atenor Hungary Horizon Development is behind the

on-going

15,500 sqm

Szervita Square office, retail and residential complex. The project is a rare new-built development in the historic center of District V, where the very strict planning regulations

Nordic Light Trio stipulate that developments have to contribute to, and preserve the historic Central European feel of the center of Budapest.

The project involves the demolition of a run-down office building in the location.

The LEED “Platinum” certified replacement will consist of office and retail space across seven levels, in addition to high end residential units on the fifth and sixth floors.

The modern structure has been carefully designed to fit into the historic setting of Hungarian Art Nouveau buildings in this heritage protected area of the city, Horizon Development says. A park in front of the building will add a new public space for the area.

High Rise Warsaw

In contrast to Budapest, the center of Warsaw is developing into a high rise

business center. Developers are not faced with the same height restrictions as is the case in Budapest or Prague, as most of the city was destroyed in World War II. “We are witnessing the transformation of Warsaw’s skyline, which is mainly due to the construction of numerous towers,” said JLL. One such, Varso Place by HB Reavis, will feature the tallest office building in the EU. Not that there are no high-rise developments in Budapest. The BudaPart mixed-use project on the Buda bank of the Danube will include the

120 meter high,

83,000 sqm MOL Campus, designed by the London-based Foster & Partners and the Hungarian Finta Studio.

The work of the Hungarian developer Property Market, BudaPart is described as a “new city quarter” on a 54 hectare site at Kopaszi-gát. While the MOL HQ has been given the go ahead, the debate continues over the pros and cons of height restrictions on buildings in Budapest.

Exterior design is not just about making the grand statement, however; increasingly it is also seen as a major contributor to interior outfitting and property management.

Zsombor Barta, president of the Hungarian Green Building Council (HuGBC), comments that workforce retention is taking on an ever more central role across the region, and that “the provision of a healthy and esthetically appealing working atmosphere has become an important factor”.

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He adds: “The efficiency of the leased spaces (regarding productivity but also consumption) is also something that is now on the ‘wish-list’ of tenants. It is highly important to evaluate the project on the community level and not just as a standalone project. Sustainable buildings are smart buildings as well and they respond to the needs of the building users, but they also interconnect.”

Human Elements

While pricing and location remain the two dominant decision-making factors, there is an increasing need for “human elements” to serve the comfort and wellbeing of employees according to Mátyás Gereben, country manager for Hungary at CPI Property Group. Almost by definition, design is becoming more tenant-focused.

Ida Kiss, head of design at DVM group agrees, with that assessment. “Budget is always important, especially as fit-out costs have boomed in the last two years.

Nevertheless, there are other factors that are gaining more importance since companies are aware that the workplace they are creating is an important employer branding tool. It enhances employee engagement and supports collaboration within the company. It is also acknowledged that the workplace environment has a great impact on ADVERTISEMENT

Special Report | 23

the mental and physical condition of employees. Conscious design can reduce absenteeism and help people perform better and focus,” she argues.

Office developers are increasingly seeking WELL accreditation in addition to BREEAM and LEED sustainability certification. Skanska, for example, is developing Nordic Light Trio, the third

14,000 sqm phase

of the Nordic Light office center, to meet the WELL Building Standard.

The Futureal Group, meanwhile, has been awarded WELL Building precertification for its three current Budapest office projects: the first phase of the Budapest One Business Park, phase one of the Corvin Technology & Science Park, and the initial phase of Advance Tower.

Europa Design headquarters in Budapest.

Company Commitment

By achieving WELL certification for his own headquarters in the Buda Hills, Ottó Feuertag, founder of Europa Design, is seeking to strengthen what he sees as the commitment of the company to the work life balance idea in office spaces.

More use of is made of recyclable materials, and high-quality and long lasting materials and finishes, he says.

“The impact of WELL on interiors is much higher ergonomics in furniture design, more alternative working and collaboration zones,” he explains.

“A wider choice of materials, intelligent lighting solutions and, most importantly, lots of acoustic solutions.”

He lists the presence of artwork and “other inspiring surfaces, materials” including real green walls. “An office can be only efficient if the content [….] is high quality and good looking. So the optical or visual environment has a huge impact on the physical condition of the worker and therefore on his mood of work,” Feuertag said.

The Europa Design headquarters is a refurbished Bauhaus villa dating back

to

1936,

the renovation and reconstruction of which took two years.

“WELL accreditation aims to support the wellbeing of employees in the building, inspiring creativity and strengthening the employer branding of the company at the same time,” says Emese Kovács, Emese Kovács, partner and WELL appraiser at MN6 Energy Agency, whose company worked on the Europa Design project.

“The quality and architectural value of the new HQ building is a significant upgrade from Europa Design’s previous office, that better reflects the brand and its core corporate values,” she added.

24 | 3

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Budapest Business Journal | May 10 – May 23, 2019

Office Becomes the Sector of Choice for Investors “Erste Open-Ended RE Funds aim for a stable and attractive return from longterm lease of properties in its real estate portfolio. The fund mainly invests in premium assets, including offices and commercial properties, which mostly have long-term rental contracts with stable, multinational partners from the start of the investment,” comments Róbert Varga, real estate asset manager at Erste Asset Management.

“Besides real estate, the fund invests in low-risk money market assets. We see the local market attracting international investors, but our local knowledge, market experience and multinational background ensures that the funds will continue to play a leading role in the Hungarian market,” Varga explains.

The office market is regarded as the investment destination of choice with strong fundamentals such as high demand, low vacancy, a strong quality pipeline and possibilities for valueadd acquisitions.

GARY J. MORRELL

Mill Park by Skanska.

Developers in Budapest are able to go forward with projects with the expectation that assets can be sold onto investors on completion or, indeed, held onto for longer, but with the confidence there is still an exit strategy if and when required.

Despite that, however, office investment volume is restricted by relatively low liquidity due to a limited supply of investment grade product.

Local investors have been developing long-term relationships with developers and are able to react quickly when an asset does potentially become available, although more international investors are expected to enter the Hungarian market.

“I would expect that around EUR 1.5 billion will transact this year and this is what we should expect going forward.

Typically , the office sector constitutes

around

50%

of this volume; prime shopping center schemes have transacted in recent years and we do not expect imminent retrades,” comments Mike Edwards, head of capital markets at Cushman & Wakefield.

Benjamin Perez-Ellischewitz, head of capital markets at JLL Hungary, puts the

sector breakdown at 40% for office; 30% for retail; 10% for logistics and 20% for the remainder (hotel, residential and buildings for redevelopment).

Office-driven

A total of EUR 1.7 bln in commercial real estate transactions was concluded in 2018, according to CBRE. Of this, EUR 818 million was recorded in the office market.

“The first quarter 2019 investment volume remained predominantly driven by the office sector

Perez-Ellischewitz says of investment prospects for the year: “There is limited visibility on volumes as there a very few large open tenders in the pipeline. A few off-market deals of magnitude might move the volumes significantly. I would say around EUR 1.5 bln.”

CBRE says 65% of investment by local funds in 2018 came from the big institutional funds: OTP Real Estate Fund; Erste Real Estate Fund; and Diófa Real Estate Fund. Beyond these, other local funds, have become active on the market.

with

64%

of the total turnover, followed by retail with 17% and industrial with 12%, while hotel assets attracted 7% of the volume,” comments Gábor Borbély, head of research and business development at CBRE. “Retail investment volume remains subject to the very few potential upcoming sales so we believe office will dominate the investment market in the coming quarters,” Borbély adds.

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BUILDING YEAR: 1998 FREE SPACE: 4500 sqm PUBLIC TRANSPORT: metro line M3, trolley bus No. 75, 79 CONTACT: Tel: +36 1 429 5050 E-mail: office@simmoag.hu 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.

Domestic Role

The purchase of the 88,000 sqm Corvin Offices portfolio by OTP Real Estate Fund from Futureal was arguably the largest office transaction in Hungary to date. The deal, concluded between a Hungary-based developer and a local investment fund, reflects the increasing role of domestic capital at the top end of the Budapest office investment market.

With their established positions in the markets and confidence in the fundamentals of the office market, Hungarian funds are in a position to make purchases at earlier stages in the development process. Erste Asset Management, for example, completed the purchase of the 25,000 sqm Promenade Gardens from Horizon Development in a rare forward purchase deal in Hungary.

A major office deal last year was the purchase of

the

36,000 sqm

Mill Park by Erste Asset Management from Skanska. This is the second acquisition deal between Skanska and the Hungarian fund following the Nordic Light transaction in 2016.

Yield Premium

CBRE puts prime yield for offices stands at 5.75%, while high-quality secondary assets in the sector can achieve around 6.75%.

Hungary provides a

100-125 basis point

premium on Czech Republic and Poland in both the office and retail markets.

“Czech Republic is experiencing the most aggressive pricing in the CEE region. Prime buildings in Prague are now trading close to 4% so even if [Budapest development] Roosevelt 7/8 gets close to 5%, we will still carry a spread of 100 basis points or more,” says Perez-Ellischewitz.

Against the background of limited supply of investment grade office assets and increasing demand from both international and local investors, more

“I would expect that around EUR 1.5 billion will transact this year and this is what we should expect going forward. Typically , the office sector constitutes around 50% of this volume.” deals are being concluded for earlier generation office complexes with value-add potential, such as Central Udvar in central Pest and Infopark Buildings “A” and “D”.

Goldman Sachs, for example, has purchased the 30,500 sqm Science Park in South Buda, a complex that was originally delivered in 2003 and renovated and redeveloped by DVM group in 2018.

The overall number of transactions in the office market is expected to rise this year; however, this will mainly be for smaller lot sizes with a value of around EUR 50 mln. The market is currently lacking in the provision of big ticket items that would attract the very largest major institutional investors.

Special Report | 25

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Category 'A' office buildings in greater Budapest

biCyCle paRking

independent poWeR supply

✓

✓

✓

Atenor Group Hungary Kft. (100) –

1087 Budapest, Hungária körút 30.

(1) 785-5208 info@atenor.hu

✓

✓

✓

–

✓

✓

✓

✓

Futureal (100) –

1112 Budapest, Boldizsár utca 1–3.

(1) 266-2181 office@futurealgroup.com

✓

✓

✓

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Cushman&Wakefield, JLL

✓

✓

✓

✓

Wing Zrt. (100) –

1097 Budapest, Könyves Kálmán körút 32.

(1) 451 4760 sales@wing.hu

✓

✓

✓

✓

✓

Mónika Takács, mtakacs@ trigranit.com

✓

✓

✓

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– Revetas Capital (100)

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

✓

✓

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✓

✓

Ÿ

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–

Ÿ Ÿ

1139 Budapest, Váci út 81.

(1) 412-3680 leasing@gtc.hu

✓

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–

–

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–

– CPI Property Group (100)

1138 Budapest, Dunavirág utca 2–6.

(1) 225-6600 hungary@cpipg.com

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– CA IMMO AG (100)

1133 Budapest, Váci út 76.

(1) 501-2800 office@caimmo.hu

✓

✓

– ✓ Immofinanz AG (100)

✓

✓

✓

–

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Ÿ

✓

✓

✓

✓

(100) –

Aventus Real Estate, www. aventusrealestate. com

✓

✓

✓

✓

– (100)

bank bRanCh/atm

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

gReen enviRonment

Waste ReCyCling

in-house faCility management

suitable foR disabled people

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

CuRRent majoR tenants

natuRal light and aiR ventilation

gReen teChnologies

seRviCes

RestauRant, Café

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

no. of elevatoRs no. of paRking spaCes

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

no. of levels

Company Website

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

Rank

Ranked by net office space (sqm)

leasing agent, name, Website

oWneRship (%) hungaRian non-hungaRian

addRess phone email

1

aRéna business Campus

65,514 72,000

Underground+8

500 5

32 1,500

14.50 3.12

Ÿ

✓

✓

✓

✓

✓

2

budapest one business paRk

55,428 65,369

8

250 5

29 956

Ÿ Ÿ

Ÿ

✓

–

✓

✓

3

libeRty iRodaház

40,723 42,000

9

1,200 5

18 682

15 3.90

Ÿ

✓

✓

✓

37,000 74,844

4 underground +11 levels

500 5

12 630

Ÿ Ÿ

Ÿ

✓

✓

36,916 40,873

9

– 5

16 580

14 3.88

ExxonMobil, Honeywell, ABB, Ecolab

✓

35,900 50,800

9

250 5

4+3+3 425

12.50–13.50 1,150 HUF

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

32,000 38,000

9

200 5

18 640

13–14.50 1,250 HUF

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

ű

31,200 38,400

Underground+6

70–157 5

25 733

13.50–17 1,200 HUF

Ÿ

✓

✓

✓

✓

✓

✓

✓

JLL, Robertson

✓

9

spiRal

30,542

7

– 5

14 443

Ÿ Ÿ

NAV

✓

✓

✓

✓

✓

✓

–

–

10

mill paRk

30,315 56,026

8

360 5

16 541

350 5

ITSH, Cognizant

✓

✓

✓

✓

✓

✓

–

11

bank CenteR

30,041 52,184

10

200 3

17 480

Ÿ Ÿ

BÉT, BorsodChem, Citibank, Regus, Weil

✓

✓

✓

✓

✓

✓

✓

12

euRope toWeR

30,000 38,000

15

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Erste Bank Hungary Zrt.

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

29,800 31,500

16

152 5

10 420

16–17 4

IBM, Huawei, Metlife, Ford, TMF Group

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

Ÿ Ÿ

1138 Budapest, Népfürdő utca 22.

(1) 412-3680 leasing@gtc.hu

9

250 5

8 232

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

Ÿ Ÿ

1051 Budapest, Széchenyi István tér 7–8.

(1) 473-1209 tamara.szanto@ eur.cushwake.com

www.atenor.be

www.futurealgroup.com

www.wing.hu

millennium gaRdens 4

www.millenniumgardens.hu

CenteR point 5

www.gtc.hu

gateWay offiCe paRk www.gatewaybc.hu, www.cpipgroup.hu 6

Capital squaRe 7

www.caimmo.com, www.capitalsquare.hu

myhive átRium paRk 8

www.myhive-offices.com/hu

www.gtc.hu

www.millpark.hu

www.bankcenter.hu

www.erstealapkezelo.hu

Ÿ

duna toWeR 13

14

www.dunatower.hu

Roosevelt

www.roosevelt-budapest.com

29,000

Ÿ

–

Ÿ Ÿ Ÿ Ÿ

Erste Ingatlan Alap (100) –

1134 Budapest, Váci út 45.

(1) 236-0435 offices_hu@ immofinanz.com 1134 Budapest, Dózsa György út 128-130.

(1) 412-3680 leasing@gtc.hu 1095 Budapest, Soroksári út 44.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu 1054 Budapest, Szabadság tér 7.

(1) 302-9010 anett.eles@bankcenter.hu 1138 Budapest, Népfürdő utca 24–26.

(1) 920-2161 antal.garamvari@ erstealapkezelo.hu

Special Report

16

West end business CenteR

17

paRkWay

www.westendbusinesscenter.hu

–

15 818

13–17 1,200 HUF

Ÿ

✓

✓

✓

✓

✓

✓

✓

JLL, C&W

✓

✓

✓

✓

– IMMOFINANZ AG (100)

28,065 43,000

7

Ÿ

12 399

Ÿ Ÿ

Ÿ

–

–

✓

✓

✓

✓

✓

Ÿ

✓

✓

✓

–

Ÿ Ÿ

27,600 31,200

9

Ÿ 3

8 554

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

Ÿ

✓

✓

✓

–

Ÿ Ÿ

26,500 30,100

8

350 3

15 841

12.50–13.50 1,350 HUF

Siemens, British Telecom, Transcom

✓

–

✓

✓

✓

✓

–

CA IMMO

✓

✓

✓

–

– CA IMMO (100)

1117 Budapest, Budafoki út 91–93.

(1) 501-2800 office@caimmo.hu

26,500 29,040

7

4,100 5

Ÿ

373

16–16.50

Ÿ

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Ÿ Ÿ

1134 Budapest, Dózsa György út 61–63.

(1) 412-3680 leasing@gtc.hu

Ÿ

✓

–

✓

✓

✓

✓

✓

CBRE, www.cbre.hu

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

Ÿ

✓

✓

✓

✓

✓

5

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

RestauRant, Café

independent poWeR supply

60 5

leasing agent, name, Website

biCyCle paRking

Underground+7

CuRRent majoR tenants

Waste ReCyCling

28,520 34,300

seRviCes

natuRal light and aiR ventilation

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

ű

no. of elevatoRs no. of paRking spaCes

15

www.myhive-offices.com/hu

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

myhive halleR gaRdens

gReen teChnologies

no. of levels

Company Website

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

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

Rank

26 | 3

oWneRship (%) hungaRian non-hungaRian

addRess phone email

1095 Budapest, Soroksári út 30–34.

(1) 236-0435 offices_hu@ immofinanz.com

ip West

www.caimmo.com 18

1132 Budapest, Váci út 20–26.

(1) 451-4760 office@mompark.hu 1087 Budapest, Könyves Kálmán körút 54–58.

(1) 327-2050 –

pillaR

www.gtc.hu 18

Ÿ

20

sCienCe paRk

26,102 29,498

7

494 5

10 388

13.75-14.75 1,300 HUF

21

népliget CenteR

26,100 29,000

7

300 5

10 450

13 4

22

doRottya udvaR

25,867 28,658

3

250 3

6 538

Ÿ Ÿ

7

Ÿ

10 575

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

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

www.sciencepark.hu

www.nepligetcenter.com

www.dorottya.net

DHL, Ericsson, Volánbusz, MÁV, Papyrus, Philips, Keszthelyi Holding Shell, LeasePlan, Redkitt Benckiser, Mars, Meditronics, KUKA Robotics, MSK, Viacom

Ÿ Ÿ Ÿ Ÿ

1117 Budapest, Irinyi József utca 4–20.

(1) 374-3040 office.hungary@cbre.com 1097 Budapest, – Könyves Kálmán körút 11. ✓ Marathon Investment (1) 374-3040 (100) – ✓

– Woodpecker Acquisitions (100)

–

Dorottya Udvar Holding Kft. (100) –

✓

–

Ÿ Ÿ

1113 Budapest, Bocskai út 134–146.

(1) 888-0395 –

24

bsR CenteR

25,000

Ÿ

8

Ÿ 3

12 360

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

Ÿ

✓

✓

✓

–

OTP Ingatlanbefektetési Alap (100) –

24

exChange palaCe

25,000 50,000

Underground+8

1,000 5

13 1,000

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

–

✓

Ÿ

✓

✓

✓

–

– Tippin Corporation (Ÿ), Optimum (Ÿ)

1068 Budapest, Dózsa György út 84/B (1) 382-5100 info@ whitestar-realestate.hu 1138 Budapest, Váci út 135–139.

(1) 412-8300 – 1054 Budapest, Szabadság tér 17.

(1) 374-3040 richard.vigh@cbre.com

✓

✓

✓

OTP Prime Ingatlanbefektetési Alap (100) –

1138 Budapest, Bence utca 1.

(1) 785-5208 info@atenor.hu

paRk atRium 23

www.park-atrium.com

26

www.bsr.hu

–

váCi gReens building b www.vacigreens.hu

25,250

Ÿ

5

24,770 25,303

7

300 5

12 399

14 3.22

GE, Givaudan, Accenture

✓

✓

✓

✓

✓

✓

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

24,200 47,000

8

– –

12 370

15–16 1,200 HUF

Bank of China, Citi, Vodafone

✓

–

✓

–

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1087 Budapest, Hungária körút 40–44.

(1) 225-6600 hungary@cpipg.com

24,000 26,000

8

300 5

9 407

13–13.95 1,350 HUF

TresorIT

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www.cushmanwakefield.hu

✓

✓

✓

–

– CA IMMO (100)

1092 Budapest, Köztelek utca 6.

(1) 501-2800 office@caimmo.hu

23,749 27,390

8

250 5

Ÿ

12

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

(100) –

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

Ÿ Ÿ

Celanese, Citibank, Electrolux, Poziteam, Capsys, Transferwise, HBM, OTP, DVM group, Lavazza, 2Rule

✓

–

✓

✓

✓

✓

✓

Horizon Development

✓

✓

✓

✓

Erste Alapkezelő Zrt. (100) –

1133 Budapest, Váci út 80.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

aRena CoRneR

www.arena-corner.hu 27

City gate

www.citygate.hu 28

29

CoRvin teChnology paRk 1-2 www.futurealgroup.com

pRomenade gaRdens www.promenadegardens.hu 30

23,311

Ÿ

6+2 underground

Ÿ 5

18 340

no. of levels

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

no. of elevatoRs no. of paRking spaCes

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

CuRRent majoR tenants

RestauRant, Café

Wellness and spoRt seRviCes

24-houR ReCeption and seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

natuRal light and aiR ventilation

Waste ReCyCling

biCyCle paRking

independent poWeR supply

gReen teChnologies

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

Rank

Company Website

Special Report | 27

3

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

23,000 37,300

7

500 5

11 478

14.80–15.80 990 HUF

Ÿ

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Infogroup Csoport (100) –

1115 Budapest, Bartók Béla út 105-113.

(1) 481-4530 info@infogroup.hu

22,305 24,137

6

250 5

17

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

–

(100) –

1082 Budapest, Futó utca 35-45.

(1) 266-2181 office@futureal.hu

✓

✓

✓

Erste Ingatlan Kft. (100) –

1088 Budapest, Rákóczi út 1–3.

(1) 235-7770 info@ersteingatlan.hu

2040 Budaörs, Liget utca 3/2.

(23) 423-323 info@terrapark.hu

seRviCes

leasing agent, name, Website

baRtók udvaR ii.

31

32

www.bartokudvar.hu

CoRvin toWeRs

www.futurealgroup.com

Ÿ

east-West business CenteR 21,500 29,000

34

teRRapaRk C+d

21,282

35

váCi CoRneR offiCes

36

alkotás point

www.terrapark.hu

www.vacicorneroffices.hu

www.alkotaspoint.hu

12

300 5

7 222

addRess phone email

14.50–15.50 1,355 HUF

Sberbank, Cognex, Air France/KLM, Magnetbank, IKEA, ✓ Turkish Airlines, Zara Magyarország, Banzai Cloud

–

✓

✓

✓

✓

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

S&T, Partner in Petfood, Flaga, GDF Suez, Ricoh, Kaiserfood, Diversey, Groupe SEB, Gemma, ✓ Goodmills, Bioderma, Hell Energy, Hypred, Rockwell, Controltech, Dexon Systems

✓

✓

✓

✓

✓

✓

Terrapark Kft.

✓

✓

✓

✓

– Terrafinanz GmbH (100)

www.ersteingatlan.hu 33

oWneRship (%) hungaRian non-hungaRian

5

15 3

13 398

8 3

21,047 33,000

9

200 5

9 363

Ÿ Ÿ

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

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

Váci Corner Offices Kft. (100) –

20,539 25,100

7

482 5

9 395

15–15.50 4.45

Bayer, Euronet, Medicover, NuSkin, Signal, Veeva

✓

–

✓

✓

✓

✓

✓

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

✓

✓

✓

✓

Torony Ingatlan Befektetési Alap (100) –

20,404 21,574

7

– 5

14 299

Ÿ Ÿ

BlackRock, Spaces

✓

–

✓

✓

✓

✓

–

Ÿ

✓

✓

✓

–

Ÿ Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

✓

–

Ÿ Ÿ Ÿ Ÿ

Ÿ

1138 Budapest, Váci út 144–150.

(1) 580-2280 info@vacicorneroffices.hu 1123 Budapest, Alkotás utca 50.

(1) 382-5100 info@ whitestar-realestate.hu

gtC White house

www.gtcwhitehouse.hu

37

38

váCi gReens building f

20,394 27,112

7

500 5

12 359

15.50 3.12

NN

39

vision toWeRs

20,312 25,178

6

– –

Ÿ Ÿ

Ÿ Ÿ

KPMG, Teva, Medicover

20,245 30,141

10

700 5

11 357

13–14 3.75

DIGI, GildaMax, Danone, Erzsébet Táborok, P.Dussmann, KIFÜ

www.vacigreens.hu

www.erstealapkezelo.hu

RiveR estates www.simmoag.hu 40

1134 Budapest, Váci út 35.

(1) 429-5050 office@simmoag.hu

✓

✓

✓

City Tower Kft. (100) –

1138 Budapest, Váci út 129–133.

(1) 785-5208 info@atenor.hu

Ÿ

✓

–

✓

–

Ÿ

✓

✓

✓

✓

(100) –

12 404

Ÿ Ÿ

Schneider, Mercedes, Monsanto, Haman

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

(100) –

6

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

(100) –

✓

✓

✓

– ZFP Realitní Fond (100)

1138 Budapest, Bence utca 3.

(1) 785-5208 info@atenor.hu

Robertson Hungary, www.robertson.hu

✓

–

–

– LFPI Group (100)

1027 Budapest, Kacsa utca 15–23.

(1) 327-2050 office@robertson.hu

Ÿ Ÿ

15

43

noRdiC light

19,629 19,668

7

400

Ÿ

44

advanCe toWeR i-ii

18,920 19,981

7

250 5

Ÿ

Ÿ

– S IMMO AG (100)

✓

700 5

www.robertson.hu

✓

–

8

18,770

✓

✓

19,663 21,200

ResidenCe 1-2

✓

Ÿ

offiCe gaRden iv

46

✓

S IMMO APM Hungary Kft.

✓

42

www.vacigreens.hu

–

✓

15.50 3.12

18,920 20,035

✓

✓

12 365

váCi gReens C épület

✓

✓

500 5

44

✓

–

7

www.futurealgroup.com

✓

✓

20,205 25,311

www.erstealapkezelo.hu

✓

Ÿ

váCi gReens building e

www.officegarden.hu

✓

1138 Budapest, City Tower Kft. (100) Madarász Viktor utca 8–10.

– (1) 785-5208 info@atenor.hu 1134 Budapest, Váci út 29–31.

(100) (1) 920-2161 – erstealapkezelo@ erstealapkezelo.hu

Cushman&Wakefield Kft., www.

– cushmanwakefield.hu, ✓ Robertson Hungary Kft., www.robertson.hu

41

www.vacigreens.hu

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

1134 Budapest, Váci út 47.

(1) 412-3680 leasing@gtc.hu

6

– –

6–9 301

13.85 2.60

GE

✓

–

✓

✓

✓

✓

Cushman&Wakefield Kft., www.

– cushmanwakefield.hu, ✓ Robertson Hungary Kft., www.robertson.hu

6

614 5

5 247

14 3.80

Ÿ

✓

–

✓

✓

–

✓

–

✓

1117 Budapest, Alíz utca 3.

(1) 327-2050 office@robertson.hu 1133 Budapest, Váci út 96–98.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1134 Budapest, Váci út 41–43.

(1) 266-2181 office@futureal.hu

Special Report

Wellness and spoRt seRviCes

24-houR ReCeption and seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

47

10

250 3

9 450

11–13 1,300 HUF

Keler, Develor

✓

✓

✓

✓

✓

✓

–

Cushman&Wakefield Kft., ✓ www. cushmanwakefield.hu,

independent poWeR supply

RestauRant, Café

www.caimmo.com

biCyCle paRking

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

18,700 19,000

R70 offiCe Complex

leasing agent, name, Website

Waste ReCyCling

no. of elevatoRs no. of paRking spaCes

CuRRent majoR tenants

seRviCes

natuRal light and aiR ventilation

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

gReen teChnologies

no. of levels

Company Website

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

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

Rank

28 | 3

✓

✓

–

– CA IMMO (100)

oWneRship (%) hungaRian non-hungaRian

addRess phone email

1074 Budapest, Rákóczi út 70–72.

(1) 501-2800 office@caimmo.hu 1123 Budapest, Alkotás utca 53.

(1) 487-5501 office@mompark.hu 1117 Budapest, Alíz utca 2.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

48

mom paRk iRodák

18,628 48,000

6

230 5

13 486

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

Ÿ

✓

✓

✓

✓

Ÿ Ÿ

49

offiCe gaRden ii

18,600 27,000

8

Ÿ Ÿ

6 310

Ÿ Ÿ

TATA, Pirelli

✓

–

✓

✓

–

✓

–

–

✓

✓

✓

✓

(100) –

Magyar Cetelem, Medicover, Grundfos, Dealogic, ✓ Iberdrola, Agoda, ESAB, CPL Jobs, Costa

✓

✓

✓

✓

✓

✓

CE Land Holding, www.celand.hu

✓

✓

✓

✓

Ÿ Ÿ

1062 Budapest, Teréz körút 55–57.

(1) 785-4985 info@celand.hu

www.momparkoffice.hu

www.erstealapkezelo.hu

50

eiffel téR iRodaház www.eiffelter.hu

18,500 23,500

50

infopaRk d épület

18,500

www.wing.hu

7

250 5

10 365

20 4.20

Underground+6

500 5

Ÿ Ÿ

Ÿ Ÿ

Strabag, IBM, Semcon, DBH

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– (100)

1117 Budapest, Gábor Dénes utca 2.

(30) 822-5466 tarroe@wing.hu

18,000 21,000

9

– 5

8 250

Ÿ Ÿ

Morgan Stanley, MSD Pharma, Lexmark

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– CA IMMO AG (100)

1095 Budapest, Lechner Ödön fasor 8.

(1) 501-2800 office@caimmo.hu

17,856 30,001

6

280 –

7 399

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

Cushman & Wakefield Kft., www.cushman- ✓ wakefield.hu

✓

✓

–

(100) –

1123 Budapest, Nagyenyed utca 8–14.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

17,638 20,092

12

300 5

9 405

15.50–17.50 1,100 HUF

Ÿ

✓

✓

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., ESTON International Kft.

✓

✓

✓

–

BudaPart Auratus Kft. (100) –

1117 Budapest, Dombóvári út 27.

(1) 241-0080 sales@budapart.hu

17,138 20,323

6

300 3

6 240

Ÿ Ÿ

EMEA, Getronics, Fővárosi Ítélőtábla, EPAM, Oberbank

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Ÿ Ÿ

17,042 20,323

Ÿ

300 5

6 240

9 3

Invitech, Tchibo, Total Lubricants

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– Bluehouse Capital (100)

17,000 30,000

9

360 3

5 406

12.95–13.95 1,150 HUF

Novartis, Lidl

✓

–

✓

–

✓

✓

✓

–

✓

✓

✓

–

– CA IMMO (100)

1114 Budapest, Bartók Béla út 43–47.

(1) 501-2800 office@caimmo.hu

17,000 18,600

9

– 5

6 300

Ÿ Ÿ

Morgan Stanley, Oracle Hungary, Nestlé, KLM, Lexmark

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– (100)

1093 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 office@caimmo.hu

16,922 18,500

7

Ÿ 5

5 427

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

GRT Group (100) –

1117 Budapest, Alíz utca 4.

(1) 382-7020 grtgroup@grtgroup.hu

16,644 17,310

Underground+9

– –

6 254

11.50–12 1,200 HUF

Ÿ

✓

–

✓

✓

✓

✓

✓

JLL

✓

✓

✓

–

– IMMOFINANZ AG (100)

1139 Budapest, Teve utca 1 A-C (1) 236-0435 offices_hu@ immofinanz.com

16,595 19,800

7

300 5

10 411

15.50-18.50 3.55

Ÿ

✓

✓

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., Eston International Zrt.

✓

✓

✓

✓

Bpart Aspius Kft. (100) –

1117 Budapest, Dombóvári út 26.

(1) 241-0080 sales@budapart.hu

Ÿ

millennium toWeR iii www.caimmo.com 52

53

kRisztina palaCe

www.erstealapkezelo.hu

budapaRt gate www.budapart.hu 54

55

maRgit palaCe iRodaház

56

teRRapaRk next b

www.margitpalace.com

www.terraparknext.com

baRtók ház

www.caimmo.com 57

millennium toWeR ii www.caimmo.com 57

59

offiCe gaRden iii www.officegarden.hu

myhive thiRteen (globe) 60

www.myhive-offices.com/hu ű

1027 Budapest, Henger utca 2.

(70) 884-4099 – 2040 Budaörs , Edison utca 4.

(1) 700-8013 office@ bluehousecapital.com

budapaRt City

www.budapartcity.hu 61

dm, Egyenlő Bánásmód Hatóság, ✓ Imperial Dental, MNB

–

✓

✓

✓

✓

–

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

independent poWeR supply

biCyCle paRking

Waste ReCyCling

leasing agent, name, Website

natuRal light and aiR ventilation

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

15–16 4

24-houR ReCeption and seCuRity seRviCes

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

4+1 104

CuRRent majoR tenants

Wellness and spoRt seRviCes

no. of elevatoRs no. of paRking spaCes

7

140 5

gReen teChnologies

seRviCes

RestauRant, Café

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

www.krisztinaplaza.hu

16,528 17,749

no. of levels

kRisztina plaza 62

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

Rank

Company Website

Special Report | 29

3

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

oWneRship (%) hungaRian non-hungaRian

✓

✓

✓

✓

– (100)

addRess phone email

1122 Budapest, Krisztina körút 39.

(1) 382-5100 info@ whitestar-realestate.hu 1082 Budapest, Futó utca 47–53.

(1) 266-2181 office@futureal.hu 1117 Budapest, Neumann János utca 1/E (1) 888-4120 alapkezelo@ diofaalapkezelo.hu

63

CoRvin one

16,352 17,867

7

250 5

Ÿ

6

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

(100) –

64

infopaRk e épület

16,300 16,700

6

130 5

6 291

13–14 3.20

Lufthansa Systems, EIT, National Instruments, 3M

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

16,300 18,800

11

370 5

6 254

Ÿ Ÿ

Boehringer Ingelheim Pharma, Cognizant, Vodafone

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– CA IMMO (100)

– 5

6 222

Ÿ Ÿ

Budapest Bank

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

Ÿ Ÿ

–

Cushman&Wakefield Kft., ✓ www. cushmanwakefield.hu,

–

✓

–

Ÿ Ÿ

✓

✓

–

– (100)

✓

✓

✓

VG 117 Ingatlankezelő Kft. (100) –

1138 Budapest, Váci út 117–119.

(1) 785-5208 info@atenor.hu

✓

✓

✓

M.E.F.G Zrt. (100) –

1138 Budapest, Váci út 121–127.

(1) 785-5208 info@atenor.hu

www.futurealgroup.com

www.diofaalapkezelo.hu

millennium toWeR i www.caimmo.com 64

1095 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 office@caimmo.com 1138 Budapest, Váci út 193.

(1) 412-3697 leasing@gtc.hu 1138 Budapest, Váci út 140.

(1) 268-1288 info.budapest@eur. cushwake.com 1134 Budapest, Dózsa György út 144–148.

(1) 266-6000 info.Hungary@codic.eu

66

gtC metRo

16,182

Ÿ

9

67

business CenteR 140

16,000 23,800

Underground+8

250 3

4 177

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

68

gReen CouRt offiCe

15,844 21,000

7

1,200 5

9 299

16.50–17 3.80

–

✓

–

✓

✓

✓

✓

váCi gReens a épület 69

15,693 24,803

Underground+6

533 5

8 269

13 3.20

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

✓

–

✓

✓

✓

✓

70

váCi gReens d épület

15,635 17,721

6

102 5

8 258

14 3.12

Unilever, Atos, Aon, Costa Café

✓

–

✓

✓

✓

✓

71

gReen house

15,500 18,300

10

– 5

6 252

Ÿ Ÿ

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

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

Torony Ingatlan Befektetési Alap (100) –

72

offiCe gaRden i

15,022 26,000

7

346 5

6 320

13 3.95

Ÿ

✓

–

✓

✓

–

✓

–

Robertson Hungary, www.robertson.hu

✓

✓

✓

–

– LFPI group (100)

14,600 17,588

7

300 5

11 427

14.50–16.50 1,100 HUF

Ÿ

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., ESTON International Kft.

✓

✓

✓

–

Kopaszi Gát Kft. (100) –

1117 Budapest, Hengermalom út 70.

(1) 241-0080 sales@budapart.hu

14,600 15,200

7

300 5

Ÿ Ÿ

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

Ÿ

✓

✓

✓

✓

City Tower Kft. (100) –

1138 Budapest, Váci út 117-119.

(1) 785-5208 info@atenor.hu 1055 Budapest, Bajcsy-Zsilinszky út 78.

(1) 473-1209 leasing@ horizondevelopment.hu

www.gtc.hu

www.cushmanwakefield.hu

–

www.vacigreens.hu

www.vacigreens.hu

www.diofaalapkezelo.hu

www.robertson.hu

Colliers International, JLL, www.colliers.hu, ✓ www.jll.hu/hungary/ hu-hu Cushman&Wakefield Kft., www. ✓ cushmanwakefield.hu, ✓ Robertson Hungary Kft., www.robertson.hu Cushman&Wakefield Kft., www.

– cushmanwakefield.hu, ✓ Robertson Hungary Kft., www.robertson.hu –

1134 Budapest, Kassák Lajos utca 19.

(1) 888-4120 alapkezelo@ diofaalapkezelo.hu 1117 Budapest, Alíz utca 1.

(1) 327-2050 office@robertson.hu

budapaRt haRboR www.budapart.hu 73

73

City toWeR

www.vacigreens.hu

eiffel palaCe

www.eiffelpalace.hu 75

76

7+5 under ground

330 5

7 244

Ÿ Ÿ

7

1,200 5

6 228

10–11.50 1,250 HUF

Ÿ

13,900 24,000

5

287 5

9 215

13.50 4.17

13,858 27,000

6–7

90 3

8 248

11 3.50

14,500

Ÿ

skylight City

www.skylightcity.hu

CentRál udvaR 77

www.centraludvar.com

Hungarian National Bank, PwC Magyarország, Apple, BCCH, BBC, ✓ Eiffel Esthetics, Eiffel Bistro, St. Andrea Wine & Gourmet Bar

14,459 20,305

–

✓

–

✓

✓

–

Horizon Development

✓

✓

✓

✓

– (100)

✓

✓

✓

✓

✓

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

✓

UNICEF, Gfk, ASUS, McCan Erickson, Hortonworks, Solinfo, AddVal Kft.

Gladiátor I. Ingatlan Befektetési Alap (100) –

1134 Budapest, Róbert Károly körút 54–58.

(1) 451-4280 –

✓

–

✓

✓

✓

✓

–

AddVal Kft., www.addvalgroup. com

✓

✓

✓

–

rav Central Udvar Kft. (100) –

1077 Budapest, Wesselényi utca 16.

(1) 479-6020 office@addvalgroup.com

Ÿ

✓

–

✓

✓

✓

✓

✓

CE Land Holding Kft., www.celand.hu

✓

✓

✓

–

Erste Ingatlan Kft. (100) –

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

lauRus iRodaházak www.laurusoffices.hu 78

Special Report

Magyar Telekom

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

bank bRanCh/atm

in-house faCility management

suitable foR disabled people

gReen enviRonment

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

RestauRant, Café

independent poWeR supply

200

Ÿ Ÿ

leasing agent, name, Website

biCyCle paRking

Ÿ

CuRRent majoR tenants

Waste ReCyCling

2,000 5

seRviCes

natuRal light and aiR ventilation

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

6

gReen teChnologies

no. of elevatoRs no. of paRking spaCes

www.diofaalapkezelo.hu

13,800 14,666

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

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

infopaRk g épület 79

no. of levels

Company Website

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

Rank

30 | 3

oWneRship (%) hungaRian non-hungaRian

addRess phone email

1117 Budapest, Magyar tudósok körútja 9.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu 1138 Budapest, Váci út 188.

– – 1033 Budapest, Polgár utca 8–10.

(1) 332-2200 info@bif.hu

80

v188

www.v188.hu

13,637 14,175

6

Ÿ 3

7 252

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

✓

Ÿ Ÿ

81

vigadó palota iRodaház

13,605 16,486

7

Ÿ Ÿ

4 12

Ÿ Ÿ

Ÿ

✓

–

✓

–

✓

✓

✓

–

✓

✓

–

✓

BIF (100) –

13,600 15,550

Underground+7

214 5

6 266

11–12.50 1,200 HUF

Ÿ

✓

–

✓

✓

✓

✓

–

CBRE, www.cbre.hu

✓

✓

✓

✓

– IMMOFINANZ AG (100)

www.bif.hu

myhive gReenpoint 7 www.myhive-offices.com/hu 82

ű

1075 Budapest, Kéthly Anna tér 1.

(1) 236-0435 offices_hu@ immofinanz.com 2040 Budaörs, Szabadság út 117.

(20) 381-3917 info@psg-irodahazak.hu 2220 Vecsés, Lőrinci út 59–61.

– – 1117 Budapest, Gábor Dénes utca 4.

(1) 451-4280 info@wing.hu

83

budaöRs offiCe paRk www.budaorsofficepark.hu

13,315 18,115

3-6-6

Ÿ 1

3 350

Ÿ Ÿ

Ÿ

✓

–

✓

✓

–

✓

–

Ÿ

✓

✓

✓

–

(100) –

84

euRopolis paRk budapest aeRozone

13,000 65,000

Ÿ

120 3

6 200

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

Ÿ Ÿ

84

infopaRk C épület

13,000

Underground+6

500 5

Ÿ

6

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– (100)

13,000 19,800

9

– –

6 221

12.50–13.50 1,225 HUF

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

✓

✓

✓

–

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1132 Budapest, Váci út 30.

(1) 225-6600 hungary@cpipg.com

13,000 14,600

7

350 5

5 230

13–14 1,250 HUF

Leitner&Leitner, Swedish embassy

✓

–

✓

–

✓

✓

–

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– CA IMMO (100)

1027 Budapest, Kapás utca 6–12.

(1) 501-2800 office@caimmo.hu

12,987 27,537

8

400 5

6 316

14.50–15.75 3.75

Ÿ

✓

✓

✓

✓

✓

✓

–

CBRE, www.cbre.hu

✓

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

–

www.wing.hu

Ÿ

quadRa

www.quadra.hu 84

víziváRos offiCe CenteR 84

www.caimmo.com

balanCe hall

www.balancehall.hu 88

1023 Budapest, Árpád fejedelem útja 26–28.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu 1118 Budapest, Rétköz utca 5.

(1) 309-0909 info@budawest.net

89

óbuda gate

12,900 13,942

6

250 5

5 247

Ÿ Ÿ

LOreal, Regus, NKM

✓

–

✓

✓

✓

✓

–

Ÿ

✓

✓

✓

–

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

90

budaWest iRodaház www.budawest.net

12,680 27,000

Underground+8

Ÿ 3

6 280

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

(100) –

91

Westend City CenteR offiCes

12,500 16,600

6

250 5

6 160

14–15 4.50

Ÿ

✓

✓

✓

✓

✓

✓

✓

ESTON International Zrt., www.eston.hu

✓

–

✓

–

Ÿ Ÿ

92

infopaRk a épület

12,200 13,600

5

250 3

6 375

13–14 1,350 HUF

IBM, ATOS Magyarország Kfrt., Invitech

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

93

madáCh tRade CenteR www.madachtrade.hu

12,000 14,500

7–9–12

– 1

4 250

Ÿ Ÿ

✓

–

✓

–

✓

✓

✓

–

–

✓

✓

–

– (100)

1075 Budapest, Madách Imre út 13–14.

(1) 268-1900 info@madachtrade.hu

94

flóRián udvaR iRodaház

11,952 28,500

4

16 1

6 240

12–13 3.50

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

(100) –

1033 Budapest, Polgár utca 8–10.

(1) 332-2200 info@bif.hu

95

v17

11,840 18,000

11

170 5

6 209

Ÿ Ÿ

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

Torony Ingatlanbefektetési Alap (100) –

1134 Budapest, Váci út 17.

(1) 888-4120 alapkezelo@ diofaalapkezelo.hu

www.obudagate.hu

www.westendiroda.hu

www.diofaalapkezelo.hu

www.bif.hu

www.v17.hu

Lakatos, Köves és Társai Zrt., Lilly Hungária Kft., APPELLO Kft., MiniCRM Zrt. Index, Portfolio, G4S, Elit Security, Budapesti Fesztiválzenekar, CIG Pannónia Életbiztosító

Ÿ

1062 Budapest, Váci út 1–3.

(20) 369-1111 lease@westendiroda.hu 1117 Budapest, Neumann János utca 1.

(1) 888-4120 alapkezelo@ diofaalapkezelo.hu

110 5

5 142

18.50 5.40

Ÿ

✓

independent poWeR supply

Underground+8

biCyCle paRking

11,700 13,500

4

Waste ReCyCling

Ÿ

natuRal light and aiR ventilation

6 151

bank bRanCh/atm

250 5

in-house faCility management

9

suitable foR disabled people

11,736 12,581

gReen enviRonment

96

Cargill Magyarország Zrt., Doktor 24, FrieslandCampina Service Center, ✓ Invitel, Otis Felvonó Kft., Tech Mahindra, Techwave Zrt.

24-houR ReCeption and seCuRity seRviCes

www.cityzenirodahaz.hu

CuRRent majoR tenants

Wellness and spoRt seRviCes

Cityzen offiCes

gReen teChnologies

seRviCes

RestauRant, Café

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

no. of elevatoRs no. of paRking spaCes

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

no. of levels

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

Rank

Company Website

Special Report | 31

3

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

✓

✓

✓

✓

✓

✓

ConvergenCE, www.convergen-ce. com

✓

✓

✓

✓

– KGAL (100)

–

✓

–

✓

✓

✓

–

✓

–

✓

–

Ÿ Ÿ

leasing agent, name, Website

oWneRship (%) hungaRian non-hungaRian

addRess phone email

1134 Budapest, Váci út 37.

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

97

akadémia business CenteR

97

mom paRk toWeRs

11,700 13,500

6

Ÿ 5

Ÿ Ÿ

Ÿ Ÿ

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

Ÿ Ÿ Ÿ Ÿ

99

v48

11,500 15,000

Ÿ

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

Ÿ Ÿ Ÿ Ÿ Codic International

100

studium iRodaház

10,676 36,000

7

249 5

Ÿ Ÿ

14.45 4.65

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

Ÿ Ÿ Ÿ Ÿ

101

szeRémi iRodaház

10,545 14,000

8

400 3

11 206

13 3.60

Magyar Mérnöki Kamara, Budapesti és Pest Megyei Mérnöki Kamara, Invenshure, AKKA

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

102

noRdiC light tRio

10,300 24,870

7

Ÿ 5

Ÿ

221

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

103

váCi utCa CenteR

10,245 21,100

10

Ÿ

6 133

Ÿ Ÿ

Ÿ

✓

–

✓

–

✓

✓

✓

Váci Utca Center Kft., www.vaciutcacenter. hu

✓

10,000 12,300

8

Ÿ 5

6 247

Ÿ Ÿ

K&H

✓

✓

✓

✓

✓

✓

✓

–

8

120 3

4 133

14–14.50 3.50

Bisnode, Huawei, Sigma

✓

–

✓

✓

✓

✓

–

www.cushmanwakefield.hu

www.cushmanwakefield.hu

www.v48.hu

www.eston.hu

www.wing.hu

www.skanska.hu

www.vaciutcacenter.hu

3

Ÿ Ÿ –

S.A. (100) (100) –

1093 Budapest, Czuczor utca 2–10.

(1) 877 1000 info@eston.hu

–

Ÿ Ÿ

1114 Budapest, Szerémi út 4.

(30) 822-5466 info@wing.hu

✓

✓

Ÿ Ÿ

✓

✓

–

Váci utca Center Kft. (100) –

✓

✓

✓

–

– CA IMMO (100)

GAMMA Properties Kft.

✓

✓

✓

✓

– PATRIZIA (100)

millennium toWeR "h" épület 104

www.caimmo.com

RiveRpaRk iRodák

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

9,965

Ÿ

1054 Budapest, Akadémia utca 6.

(1) 268-1288 info.budapest@eur. cushwake.com 1123 Budapest, Csörsz utca 45.

(1) 268-1288 info.budapest@ eur.cushwake.com 1132 Budapest, Váci út 48 e-f (1) 266-6000 info.hungary@codic.eu

1133 Budapest, Véső utca 7.

(1) 382-9100 property@skanska.hu 1056 Budapest, Váci utca 81.

(1) 411-0442 vaciutca@ vaciutcacenter.hu

1095 Budapest, Lechner Ödön fasor 9.

(1) 501-2800 office@caimmo.hu

1093 Budapest, Közraktár utca 30–32.

(1) 382-7560 office@gamma-am.hu 2040 Budaörs, Puskás Tivadar út 4.

(1) 700-8013 office@ bluehousecapital.com 1122 Budapest, Krisztina körút 6.

(1) 792-2611 –

106

teRRapaRk next a

9,907 9,174

8

100 3

4 100

8,5 3

Roche, Continental

–

✓

✓

✓

–

✓

–

–

✓

✓

✓

–

– Bluehouse Capital (100)

107

buda palota

9,852 15,000

Underground+8

Ÿ

5+2 179

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

✓

(100) –

108

dévai iRodaház

9,665 11,700

9

Ÿ 3

3 145

Ÿ Ÿ

Ÿ

–

–

✓

✓

–

✓

–

Robertson Hungary, www.robertson.hu

✓

✓

✓

–

Ÿ Ÿ

1134 Budapest, Dévai utca 26–28.

(1) 327-2050 office@robertson.hu

5

400 5

5 185

11.50–12.50 4.20

UFB, Novodata, Herbioticum Distributor, StreamNet, ✓ Fővárosi Vízművek, OTP Pénzügyi Pont, Lactalis

–

✓

✓

✓

✓

–

S IMMO APM Hungary Kft.

✓

✓

✓

✓

– S IMMO AG (100)

1138 Budapest, Váci út 182.

(1) 429-5050 office@simmoag.hu

9,400 14,450

10

– 5

3 170

12 1,150 HUF

Advisesoft, BPIon, Brendon, Carrier, Euler Hermes, Interticket, Starschema

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

9,393 12,158

Underground+8

– –

4 208

11.50–12.50 1,200 HUF

Ÿ

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– IMMOFINANZ AG (100)

1027 Budapest, Horvát utca 12–26.

(1) 236-0435 offices_hu@ immofinanz.com

www.terraparknext.com

http://optimabudapest.hu

www.robertson.hu

5

blue Cube

www.simmoag.hu 9,469 15,290

109

balanCe building www.balancebuilding.hu 110

CentRal business CenteR 111

www.immofinanz.com ű

Special Report

no. of elevatoRs no. of paRking spaCes

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

CuRRent majoR tenants

7

– 5

3+1 107

14–15 5.39

KDB Bank, Agrárvállalkozási Hitelgarancia Alapítvány, KLIK, MFB

✓

–

✓

–

✓

✓

8,956 11,686

8

100 5

4 100

16–17 4.20

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

✓

✓

✓

✓

✓

8,900 10,300

Underground+4

– 5

8 260

11.50–12.50 1,200 HUF

Ÿ

✓

–

✓

✓

7

400 5

4 142

15.50–17 3.20

Ÿ

–

–

✓

Underground+6

500 5

Ÿ Ÿ

Ÿ Ÿ

Ÿ

✓

–

✓

7+5 underground

Ÿ

9 240

Ÿ Ÿ

Spaces

✓

–

✓

✓

✓

✓

✓

Horizon Development

✓

✓

Ÿ

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

✓

–

✓

✓

✓

✓

✓

ConvergenCE, www.convergen-ce. com

✓

✓

✓

✓

szépvölgyi business paRk 114

www.immofinanz.com ű

115

momentum offiCes –

8,707 11,000

116

infopaRk b épület

8,500

www.wing.hu

Ÿ

in-house faCility management

✓

✓

✓

– (100)

1054 Budapest, Bajcsy-Zsilinszky út 42–46.

(1) 382-5100 info@ whitestar-realestate.hu

✓

✓

S IMMO APM Hungary Kft.

✓

✓

✓

✓

– S IMMO AG (100)

1051 Budapest, Bajcsy-Zsilinszky út 12.

(1) 429-5050 office@simmoag.hu

✓

✓

–

–

✓

✓

✓

–

– IMMOFINANZ AG (100)

1037 Budapest, Szépvölgyi út 35–37.

(1) 236-0435 offices_hu@ immofinanz.com

✓

✓

✓

–

–

✓

–

✓

–

Csörsz utca Ingatlanfejlesztő Kft. (100) –

✓

✓

✓

–

–

✓

✓

✓

–

– (100)

✓

–

(100) –

1052 Budapest, Szervita tér 8.

(1) 473-1209 leasing@ horizondevelopment.hu

✓

✓

– KGAL (100)

1085 Budapest, Kálvin tér 12.

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

✓

–

– IMMOFINANZ AG (100)

1095 Budapest, Gubacsi út 6/B (1) 236-0435 offices_hu@ immofinanz.com 1053 Budapest, Károlyi utca 12.

(1) 411-0434 ybl.palota@t-online.hu

bank bRanCh/atm

✓

suitable foR disabled people

✓

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

gReen enviRonment

24-houR ReCeption and seCuRity seRviCes

Wellness and spoRt seRviCes

RestauRant, Café

independent poWeR supply

113

biCyCle paRking

www.simmoag.hu

Waste ReCyCling

City CenteR

seRviCes

natuRal light and aiR ventilation

www.atrinova.hu

gReen teChnologies

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

9,240 14,824

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

no. of levels

atRinova 112

Rank

Company Website

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

32 | 3

leasing agent, name, Website

oWneRship (%) hungaRian non-hungaRian

addRess phone email

szeRvita squaRe building www.szervita.com

8,500 22,500

117

5

kálvin squaRe 118

www.kalvinsquare.hu

8,448 9,139

9

300 5

4 116

4.50

8,330 12,158

3

246 5

6 349

11–11.50 HUF 898 HUF

offiCe Campus 119

www.immofinanz.com ű

Ÿ

CMS, Oppenheim Law Firm, Grafton Recruitment Kft., Magyar Pénzváltó Kft., Lohn Law Firm Kinnarps Hungary Kft., Rail Cargo Hungaria Zrt., Joe-Falat Kft.

–

–

✓

✓

✓

✓

–

Robertson, CBRE, www.cbre.hu

✓

–

✓

–

✓

✓

–

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

–

✓

✓

–

Y.B.L. Lindner Kft. (100) –

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– Kinnarps I Falköping AB (100)

120

ybl palota iRodaház

8,009 12,000

5

130 3

5 56

15 4.80

121

kinnaRps house

7,947 9,018

8

Ÿ Ÿ

4 108

Ÿ Ÿ

122

ü48 iRodaház

7,648 8,145

6

Ÿ 5

5 126

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

Appeninn Holding (100) –

123

gizella loft www.wing.hu

7,616 8,200

7

1,000 5

2 100

12 3.50

Ÿ

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

Gladiátor III Ingatlanbefektetési Alap (100) –

124

infopaRk i épület

7,500

Underground+6

50 3

Ÿ Ÿ

Ÿ Ÿ

Ÿ

✓

–

✓

✓

✓

✓

✓

–

✓

✓

✓

–

– (100)

125

dexagon iRodaház

7,300

6

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Omixon

7,288 8,367

3

Ÿ 3

5 151

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

–

✓

✓

–

✓

–

✓

–

Raiffeisen Ingatlan Alap (100) –

7,255 8,636

6

– 5

5 161

– –

LogMeIn, Armani, Silka

–

–

✓

–

✓

✓

–

–

✓

✓

–

–

– CPI Property Group (100)

www.yblpalota.hu

www.kinnarpshouse.hu

www.appeninnholding.com

www.wing.hu

www.erstealapkezelo.hu

teRRapaRk budaöRs

126 (d5-8, d13 tömbök) www.raiffeisenirodak.hu/ ingatlan/terrapark

Ÿ

Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

Ÿ

Ÿ Ÿ Ÿ Ÿ

(100) –

1124 Budapest, Csörsz utca 49-51.

– – 1117 Budapest, Infopark sétány 3.

(1) 451-4280 info@wing.hu

1133 Budapest, Váci út 92.

(1) 237-1251 recepcio@kinnarps.hu 1082 Budapest, Üllői út 48.

(1) 346-8869 info@appeninnholding.com 1143 Budapest, Gizella út 51-57.

(1) 451 4760 sales@wing.hu 1117 Budapest, Infopark sétány 1.

(1) 451-4280 info@wing.hu 1117 Budapest, Fehérvári út 50–52.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 2040 Budaörs, Puskás Tivadar út 7–11.

(1) 477-8490 irodaberlet@raiffeisen.hu

andRássy palaCe www.andrassypalota.hu 127

1061 Budapest, Andrássy út 9.

(1) 225-6600 hungary@cpipg.com

Special Report | 33

3

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

Rank

Company Website

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

no. of levels

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

no. of elevatoRs no. of paRking spaCes

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

CuRRent majoR tenants

RestauRant, Café

Wellness and spoRt seRviCes

24-houR ReCeption and seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

natuRal light and aiR ventilation

Waste ReCyCling

biCyCle paRking

independent poWeR supply

gReen teChnologies

128

liget CenteR

7,170 11,200

5

Ÿ Ÿ

Ÿ Ÿ

Ÿ Ÿ

Ÿ

–

–

✓

✓

–

✓

–

–

✓

–

✓

–

Ÿ Ÿ

129

zászlós iRodaház

7,019 8,444

8

Ÿ Ÿ

4 60

Ÿ Ÿ

Ÿ

✓

–

✓

–

✓

✓

–

Ÿ

✓

✓

✓

✓

Ÿ Ÿ

7,000 48,200

3

180 5

3 200

9–9.50 350–750 HUF

Agility, Airmax, Bernleier, Bolloré, Fedex, Panalpina, UPS, Szerelvénybolt, Booklog

✓

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

2220 Vecsés, Üllői út 807.

(1) 225-6600 hungary@cpipg.com

6,930 7,200

6

500 5

3+1 130

13.50–14.50 3.50–4

Ÿ

✓

–

✓

–

✓

✓

–

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

–

✓

–

OTP Ingatlanbefektetési Alap (100) –

1143 Budapest, Hungária körút 17–19.

(1) 236-6400 alapkezelo@ otpingatlanalap.hu

6,900 9,200

Underground+7

– 5

3 216

11–13 1,200 HUF

Ÿ

✓

–

✓

✓

✓

✓

–

JLL

✓

✓

✓

–

– IMMOFINANZ AG (100)

1139 Budapest, Pap Károly utca 4–6.

(1) 236-0435 offices_hu@ immofinanz.com

6,811 7,280

7

160 5

4 339

13.50–14.50 3.50

Ÿ

–

✓

✓

✓

✓

✓

–

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

✓

✓

✓

–

– (100)

1062 Budapest, Aradi utca 6–8.

(30) 524-5783 ibolya.lesko@ strabag-pfs.hu

6,741 8,891

8

90 5

4 69

12.50–13.50 3.95

Oktatási Hivatal, Vialto Consulting

–

–

✓

✓

✓

✓

–

S IMMO APM Hungary Kft.

✓

✓

✓

–

– S IMMO AG (100)

1122 Budapest, Maros utca 19–21.

(1) 429-5050 office@simmoag.hu

6,658 6,802

8

527 5

Ÿ Ÿ

14.75 4

Ÿ

Eston, www.eston.hu

Ÿ Ÿ Ÿ Ÿ

(100) –

1065 Budapest, Nagymező utca 46–48.

(1) 877-1000 info@eston.hu

6,600 9,000

5

250 5

2 75

9–10.50 1,150

IQ Soft, Korn Zrt., Matteo, Regus

✓

–

✓

–

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 91.

(1) 225-6600 hungary@cpipg.com

6,500 7,325

4

350 5

2 80

12.50 - 13.50 1,150 HUF

Buchbinder, BV technology, Colonnade, Interticket Kft., Starschema Kft.

✓

✓

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

6,163 7,212

5+1

Ÿ 3

4 72

Ÿ Ÿ

Bevándorlási és Menekültügyi Hivatal

–

–

✓

–

✓

✓

–

S IMMO APM Hungary Kft.

✓

✓

✓

–

– S IMMO AG (100)

1135 Budapest, Szegedi út 35.

(1) 429-5050 office@simmoag.hu

Takarékinfo Zrt., Ad Novum

–

–

✓

–

✓

✓

–

–

✓

✓

✓

–

Magyar Posta Takarék Real Estate Investment Fund (100) –

Bergwerff Transport, Finn Wellness, KEF, ✓ Secops, TRUMPF

–

✓

✓

✓

✓

✓

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

✓

✓

✓

✓

(100) –

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

–

✓

✓

✓

✓

–

S IMMO APM Hungary Kft.

✓

✓

✓

–

– S IMMO AG (100)

www.ligetcenter.hu

https://psg-irodahazak.hu

aiRpoRt City logistiC paRk www.airportcity.hu 130

131

hungáRia CenteR –

myhive thiRteen (xenteR) 132

www.myhive-offices.com/hu ű

oktogon ház 133

www.oktogonhaz.hu

seRviCes

leasing agent, name, Website

oWneRship (%) hungaRian non-hungaRian

maRos bC

www.simmoag.hu 134

CoRneR6 business

135 CenteR www.eston.hu

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

addRess phone email

1068 Budapest, Dózsa György út 84/A (1) 413-2700 agnes.kantor@cbre.com 1052 Budapest, Váci utca 19–21.

(20) 381-3917 info@psg-irodahazak.hu

bC91

wwww.bc91.hu 136

balanCe loft

www.balanceloft.hu 137

tWin offiCe CenteR www.simmoag.hu 138

139

buda business CenteR

6,000 6,500

7

80 3

2 167

11–12.50 1,150 HUF

140

the quadRum

5,914 13,704

5

200 3

2 459

Ÿ Ÿ

7

80 5

2 65

11.50–13 4.20

www.diofaalapkezelo.hu

www.erstealapkezelo.hu

buda CenteR

www.simmoag.hu 141

5,913 7,944

–

1027 Budapest, Kapás utca 11–15.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu 2220 Vecsés, Lincoln út 1.

(1) 920-2151 erstealapkezelo@ erstealapkezelo.hu 1016 Budapest, Hegyalja út 7–13.

(1) 429-5050 office@simmoag.hu

Special Report

9

350 5

2 87

14–16 4.20

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

váCi 1

www.vaci1.hu 5,700 13,800

143

7

11

Ÿ

Ÿ Ÿ

5

265 5

4 23

12.90–13.70 4

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

Ÿ

meRkuR palota

5,609

145

máRiássy modeRn

5,500 5,868

5

195 5

Ÿ Ÿ

11.25 4.08

5,455 6,023

Underground+5

150 5

2 87

11–11.50 1,200 HUF

5,410 5,575

Underground+5

300 5

2 93

www.merkurpalota.com

www.eston.hu

Ÿ

RestauRant, Café

Wellness and spoRt seRviCes

24-houR ReCeption and seCuRity seRviCes

gReen enviRonment

suitable foR disabled people

in-house faCility management

bank bRanCh/atm

–

✓

–

✓

✓

–

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

Ÿ Ÿ

144

–

✓

S IMMO APM Hungary Kft.

independent poWeR supply

aveRage monthly Rent on apRil 1, 2019 (euRo/sqm) aveRage monthly seRviCe ChaRge on apRil 1, 2019 (euRo/sqm)

www.simmoag.hu 142

biCyCle paRking

no. of elevatoRs no. of paRking spaCes

5,739 8,119

pódium

leasing agent, name, Website

Waste ReCyCling

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

CuRRent majoR tenants

gReen teChnologies

seRviCes

natuRal light and aiR ventilation

no. of levels

Company Website

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

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

Rank

34 | 3

✓

✓

✓

–

www.immofinanz.com

www.immofinanz.com

– S IMMO AG (100)

1065 Budapest, Nagymező utca 44.

(1) 429-5050 office@simmoag.hu

1052 Budapest, Deák Ferenc utca 5.

(1) 473-1209 leasing@ horizondevelopment.hu

–

✓

–

✓

✓

–

Horizon Development

✓

✓

✓

–

–

✓

✓

✓

✓

✓

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

✓

✓

✓

–

Ÿ Ÿ

Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ Ÿ

–

Ÿ Ÿ Ÿ Ÿ

(100) –

Ÿ

–

✓

✓

✓

✓

–

Robertson

✓

✓

✓

–

– IMMOFINANZ AG (100)

1138 Budapest, Váci út 189-191.

(1) 236-0435 offices_hu@ immofinanz.com

10.90–11.90 1,200 HUF

Ÿ

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

– IMMOFINANZ AG (100)

1036 Budapest, Kórház utca 6–12.

(1) 236-0435 offices_hu@ immofinanz.com

3

Ÿ Ÿ

Ÿ

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

(100) –

148

CoRvin CoRneR

5,384 6,122

6

250 5

Ÿ

149

andRássy 12 iRodaház

5,007 6,218

5

170 5

Ÿ

2

Ÿ Ÿ

Ÿ

–

–

✓

–

✓

✓

–

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

✓

✓

✓

–

– (100)

5,000 8,500

5

150 5

3 93

Ÿ Ÿ

Ÿ

✓

–

✓

–

✓

✓

–

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓

✓

✓

–

Redwood Holding Kft. (100) –

www.futurealgroup.com

www.krauszpalota.hu

eCodome

150 http://redwoodholding.hu/ ecodome-irodahaz

1065 Budapest, Nagymező utca 54–56.

(1) 382-7560 office@gamma-am.hu 1095 Budapest, Máriássy utca 7.

(1) 877-1000 info@eston.hu

–

globe 3 147

addRess phone email

– (100)

optima a 146

oWneRship (%) hungaRian non-hungaRian

1082 Budapest, Futó utca 31–33.

(1) 266-2181 office@futureal.hu 1062 Budapest, Andrássy út 12.

(30) 524-5783 ibolya.lesko@ strabag-pfs.hu 1016 Budapest, Mészáros utca 13.

– office@redwoodholding.hu 1012 Budapest, Vérmező út 4.

(1) 327-2050 office@robertson.hu 1111 Budapest, Nagyszőlős utca 11–15.

(1) 327-2050 office@robertson.hu

151

mbC business CenteR

4,930 7,166

6

Ÿ

2 88

Ÿ Ÿ

Ÿ

✓

–

✓

✓

–

✓

–

Robertson Hungary, www.robertson.hu

✓

✓

✓

–

Ÿ Ÿ

152

büRoCenteR West

4,825 6,900

4

Ÿ 3

2 66

Ÿ Ÿ

Ÿ

–

–

✓

✓

✓

✓

–

Robertson Hungary, www.robertson.hu

✓

✓

✓

–

Ÿ Ÿ

4,800 5,000

6

150 5

2 51

13–13.95 1,420 HUF

Canadian embassy

–

–

✓

✓

✓

✓

–

–

✓

✓

✓

–

– CA IMMO (100)

1027 Budapest, Ganz utca 16.

(1) 501-2800 office@caimmo.hu

4,700 5,373

Underground+6

104 3

4 66

12.50-13.50 4.40

AG Mamas, Alfa Pharmacy, Aquarea, Aurum, Cellaphone, ✓ EX-ID, Eurorisk, SDL, SVEA, VSFaktor

–

✓

✓

✓

✓

✓

ConvergenCE, www.convergen-ce. com

✓

✓

✓

✓

Árpád Office Building Kft. (100) –

1133 Budapest, Árbóc utca 6.

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

8

53 3

2 40

12.50 4.40

Kantar Hoffman, Fox, Takenaka, Thales

✓

–

✓

–

–

✓

✓

AddVal Kft. www.addvalgroup. com

✓

✓

✓

–

– Wigan Acquisition (100)

1052 Budapest, Vármegye utca 3–5.

(1) 479-6020 office@addvalgroup.com

2,258 2,600

3

100 3

– 70

9 1,150 HUF

Brother, ITWare, SmartX Solutions, Walter

–

–

✓

✓

–

✓

–

–

✓

✓

✓

–

– CPI Property Group (100)

1117 Budapest, Budafoki út 209.

(1) 225-6600 hungary@cpipg.com

1,500 7,500

4

600 1

1 35

Ÿ Ÿ

Ÿ

–

–

✓

–

–

✓

–

ESTON International Zrt., www.eston.hu

✓

✓

✓

–

Ÿ Ÿ

1138 Budapest, Váci út 175.

(1) 451-4280 sales@wing.hu

www.robertson.hu

www.robertson.hu

3

Canada squaRe www.caimmo.com 153

áRpád CenteR 154

155

www.arpadcenter.hu

ausztRia ház

www.addvalgroup.com

3,218

Ÿ

budafoki business CenteR www.bc209.hu 156

v175

157 www.eston.hu

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

3

Special Report | 35

PM and FM Play Increasingly Central Role With the increasingly sophisticated demands and expectations of tenants, property management and facility management services are playing an ever more central role in the operation of office centers.

GARY J. MORRELL

A number of building service companies are now providing property services to building owners and the major consultancies have dedicated PM and FM divisions. Service companies and landlords are faced with balancing the needs of staff and sustainability issues on the one hand with energy conservation and controlling budgets, for example, on the other.

As with other sectors of the real estate industry, PM and FM suffers from a shortage of skilled labor, partly as a result of which technology is increasingly utilized and “PropTech” has developed into a dedicated specialist market sector.

The traditional hierarchy in terms of managing commercial properties is asset management, followed by property management and then facility management according to István Rézsó, head of business development for asset services at Cushman & Wakefield Hungary.

“FM in this context is mainly focusing on the technical management, daily operation, planned preventive maintenance, and occasional repairs. In many of the cases, FM operators are also responsible for providing cleaning, security/reception services, and sometimes they are catering providers as well,” he says.

Wider Offer

providers, maintaining a continuous contact with the tenants to respond to their needs and ensuring that all of their obligations are also kept and guiding the asset through its full life cycle for the ownership,” Rézsó says.

“Our property management teams have to have technical experts, a strong management accountancy support for all the financial matters and a property/ building manager who is acting as the main contact either for the client as well as for the tenants. Our work can be as diverse as the FM providers. In some instances, we are taking up asset management responsibilities for the clients, or in the case of certain properties we are responsible for the FM coordination through an integrated PM-FM platform,” he explains.

The company is currently managing over 200,000 sqm of office buildings.

Asset and property management services provider Gamma Properties describes FM as a complex service/activity, which contributes to maximizing the value of the property through professional technical and infrastructural services that are adjusted to the property’s life cycle.

As the sector is evolving, FM providers are widening their service offerings, being Customer Facing involved in workplace strategies, building “PM is customer-focused property information modeling technologies, management, which supports the PropTech solutions and the like. property’s daily operation with an ownerAs the boundaries between the three mentality and professional activities. Also, above mentioned management schemes are in addition to covering the main technical not that strict anymore, in the case of less complex properties and ownership structures, and infrastructural areas, FM must include energy/environmental management, FM companies will also take up some PM activities such as tenant liaison, or invoicing. budget-planning and skills in higher-level reporting,” says the company.

The role of PM and FM is, therefore, seen With regard to the operation of an office as overlapping in some respects. complex, Viktor Nagy, country manager “As for PM, it is rather like being the for operations at Immofinanz Hungary, mediator in the landlord-tenant-provider emphasizes that a client-oriented triangle. The service provisioning covers approach to tenants’ sustainable thinking, securing the conditions of a smooth customer-oriented communication operation through the selected service

and a problem solving attitude are seen as the most important aspects.

“For example, an important factor of our success is that the company is constantly working and asking for the needs and expectations of the tenants and, based on the results, introduces new services for their convenience. To highlight a few examples, these new services include the ParkL service launched with Park and Go which offers available parking space to the guests, or the recently opened myplay,

“The PM and FM teams’ focus should always be tenant satisfaction. I can hardly understand how many landlords still seem to expect these services to run on a low budget and save on costs, even though the service charges are paid by their clients.” which is a daily child care service at myhive Atrium Park,” Nagy explains.

Landlords are faced with balancing staff expectations and budgetary concerns. “Our most important priority has always been the tenant. The PM and FM teams’ focus should always be tenant satisfaction. I can hardly understand how many landlords still seem to expect these services to run on a low budget and save on costs, even though the service charges are paid by their clients,” said Csaba Zeley, head of asset management at ConvergenCE. Third party sustainability accreditation organizations such as BREEAM, LEED and WELL have basic requirements for PM and FM. Certifications are seen as providing only a framework for a sustainable real estate

sector; the behavior of facility management and end-users is even more important if significant effects are to be demonstrated, according to Zsombor Barta, president of the Hungarian Green Building Council (HuGBC).

People First

With an increased emphasize on interiors placed by WELL, employees in a building are increasingly prioritized. “It has always been a basic rule of thumb that the tenants represent the true value of commercial properties. Now the trend bends towards satisfying the specific needs and inhouse wellbeing of the occupiers,” Rézsó comments.

“In terms of office building projects, this is reflected in creating an inviting atmosphere, a fast and clear response to tenants’ requests.

As PM providers, we are continuously monitoring the market for the most up-todate solutions, striving to find efficiency in the operation. Most of these initiatives would create a cost, however, so it is the landlords’ discretion whether they are willing to allocate the funding for them,” he adds.

The growing use of technology is not expected to replace the need for labor and a “human touch”, although the shortage of skilled practitioners remains a problem for the industry and the wider real estate sector.

“Property and facility management ensure a fundamental role in the successful operation of the building and the well-being of their occupiers,” says Christophe Boving, general manager of Codic Hungary.

“New developments may nowadays be equipped with smart IT-supported management systems, yet the human presence and relationship between the building management and the occupier remains essential. We, therefore, continue to dedicate areas for social space and facilities for the performance of onsite property and facility services in our developments,” Boving adds.

36 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

Facility management companies FinanCe management

maintenanCe

Real estate development

opeRation

House oRdeR pRepaRation

ConstRuCtion management

ColleCtion oF publiC utility Fees

taking out insuRanCe poliCies

eneRgy management, eneRgy audit

19,318

38.5

3.4 11.1

47

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

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

11,080

11,080

Ÿ

Ÿ

Ÿ

Budapest Airport Zrt., Szombathelyi Országos Büntetésvégrehajtási Intézet, Vodafone Magyarország Zrt.

✓

✓

–

✓

✓

✓

–

✓

–

–

✓

15

Audi, Coca Cola, MOL, Autoliv, Raiffeisen Ingatlanalap, OTP Ingatlanalap, Erste Ingatlan, CBRE, CA Immo, Eston, Futureal

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

2003 475

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

gábor décsi – Róbert Fischer

1023 Budapest, Lajos utca 28–32.

(1) 423-0000 info@domefsg.hu

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

istván jászberényi István Ádám Dóra Papp

1139 Budapest, Pap Károly utca 4–6.

(1) 465-7050 info@kraft-fm.hu

Ÿ

otHeR (%)

majoR Clients in 2018

www.future-fm.hu

yeaR establisHed no. oF Full-time employees on apRil 1, 2019

inFRastRuCtuRal seRviCes

19,362

logistiCal and tRade FaCilities (%)

teCHniCal supeRvision

FutuRe Fm létesítménygaZdálkodási ZRt.

industRial FaCilities (%)

www.neopropertyservices.hu

oFFiCe buildings (%)

2

neo pRopeRty seRviCes ZRt.

seRviCes

net Revenue FRom FaCility management in 2018 (HuF mln)

1

Company Website

poRtFolio

total net Revenue in 2018 (HuF mln)

Rank

Ranked by total net revenue (HUF mln) in 2018

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone email

2005 657

WING Zrt. (100) –

lászló vágó Gyula Jászai Miklós Fábry

1095 Budapest, Máriássy utca 7.

(1) 299-2150 info@ neopropertyservices.hu

1991

(100) –

Ferenc batári, józsef schmidt Zita Surányi –

1148 Budapest, Fogarasi út 5.

(1) 468-4080 info@future-fm.hu

Ÿ

dome FaCility seRviCes gRoup kFt. www.domefsg.com

4,700

3

4

kRaFt Fm ÜZemeltetési és sZolgáltató kFt.

5

sZigma HungaRy ZRt.

6

smaRtFm Ingatlanüzemeltető Kft.

www.kraft-fm.hu

www.szigma.hu

www.smartfm.hu

4,200

25

45

15

3,405

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

✓

✓

✓

✓

–

✓

–

–

–

–

–

2007 191

2,308 (2017)

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

✓

✓

✓

✓

–

✓

–

–

–

–

–

1990 42

(100) –

istván jászberényi István Ádám Dóra Papp

1139 Budapest, Pap Károly utca 4-6.

(96) 512-770 iroda@szigma.hu

–

✓

✓

✓

–

✓

–

✓

–

–

✓

2012 51

Individuals (100) –

andrás sólyom Péter Farkasházi –

2000 Szentendre, Vasúti villasor 49/B (1) 471-2020 office@smartfm.hu

1,095

1,079

82

3

14

1

EPF Terrapark Kft., GalCap Merkur Palota Kft., Dorottya Udvar Holding Kft., IMMOBILIA Zrt., Akácliget Logisztikai Központ Kft.

875

Ÿ

60

30

10

–

GalCap, Hortonworks, Solinfo, Goldman Sachs, UNICEF

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

2001 16

AddVal Kft. (100) –

Hubert mühringer Ágnes Horváth Rita Szabó

1077 Budapest, Wesselényi utca 16.

(1) 479-6020 office@addvalgroup.com

809 (2017)

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

Ÿ

–

–

–

✓

✓

✓

✓

✓

–

–

✓

2004 48

BÁV Zrt. (50), VIREX Kft. (50) –

istván szabó – –

1027 Budapest, Csalogány utca 23.

(1) 325-2640 arexfm@arexfm.hu

✓

✓

–

✓

–

✓

✓

✓

–

–

–

2008 307

– Atalian S.A. (100)

Zoltán tóth, levente mihály velky – –

1116 Budapest, Temesvár utca 20/B (1) 231-4020 info@atalian.hu

–

–

–

–

✓

✓

–

✓

–

–

–

1997 53

– Revetas Capital (100)

tom lisiecki Agnieszka Turowska Katalin Kovács

1132 Budapest, Váci út 30.

(1) 456-6200 info@trigranit.com

addval kFt.

www.addvalgroup.com

7

8

aRex Fm kFt. www.arexfm.hu

atalian ZRt. NR www.atalian.hu

Ÿ

Ÿ

12

45

40

3

BNP Paribas, Klepierre, JLL, IMMOFINANZ

Ÿ

Ÿ

100

–

–

–

Euroclear, State Street, Lufthansa, Herbalife

tRigRanit FejlesZtési kFt. www.trigranit.com NR

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

This list was compiled from responses to questionnaires received by May 8, 2019 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14. or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu.

4

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

Socialite Snatam Kaur and the Rise of Kundalini Yoga in Hungary Snatam Kaur, who performed in Budapest on May 7 and 8, may well be the most visible face of Kundalini Yoga in the world after Yogi Bhajan, who brought the practice to the West. She sings kirtan, a form of Indian devotional music involving chanting, closely connected to Kundalini Yoga.

“Budapest is just gorgeous.

I spent a lot of time in different neighborhoods.

To me, there’s a sense of a country being transformed, in the process of finding itself.”

Singh has been practicing for 11 years and teaching for five. Together with his wife, he runs a Kundalini Yoga Center in Budapest called Adi Shakti. He estimates that there a few hundred people practicing Kundalini Yoga regularly in Hungary.

And Relax...

DAVID HOLZER

Born in Colorado, Snatam Kaur’s family moved to California when she was two. She first visited India with her family aged six.

Throughout her childhood, she performed kirtan with her mother at Sikh temples and religious ceremonies. At high school, she began writing her own songs. Snatam Kaur has been committed to social justice all her life and is a dedicated peace activist.

Kundalini yoga is a form of yoga that involves movement, different forms of dynamic breathing and meditation, often linked to chanting mantras. Teachers and devotees wear white clothing and often wear white turbans. A form of yoga unlike any other, Kundalini can be challenging but it can also be profoundly uplifting.

I’ve practiced Kundalini yoga off and on for the past ten years. It’s the most powerful form of yoga I know.

I’ve drifted off into meditation to the sound of Snatam Kaur’s voice more times than I can remember. So, it was a pleasure to speak to her on the eve of her Budapest performance.

Growing up in a community guided by the teachings of Yogi Bhajan, Snatam Kaur would often sing at gatherings.

Soul’s Voice

“After one particular gathering when I’d sung something a lady came up to me and said ‘You did a really nice job, but I think

“It changes the whole person, allowing us to be who we really are but in a stronger way. People are empowered to uplift themselves in challenging times, to channel emotions and harness emotional energy to devotion so we become really effective peacemakers, fathers and mothers,” she explained.

“The chants give us strength and energy to break the patterns of stress and feeling unloved in which so many of us are trapped. Whenever you chant, you participate in a wheel of energy created by people who’ve chanted before you and someone coming into that chant 100 years from now will feel your healing energy.”

For Hungarian Zoltan Ambrus, whose Kundalini Yoga name is Navraj Singh, discovering Kundalini Yoga was a revelation.

“I thought yoga was a gimmick,” he told me.

“I didn’t want to do it. But, one day, my wife asked me to try and something happened instantly, in that moment. I went to my first Kundalini Yoga class the next morning.”

you should take some voice lessons. You’re a little out of tune’,” she told me.

“I decided not to believe her, to believe my voice was my soul’s voice. I feel my voice was born at that moment. I was 12.”

“Beloved”, Snatam Kaur’s 2018 album, was nominated for a Grammy and she performed at the ceremony, which, she says, “was supercool. I’m so happy that my album was so wellreceived, especially as it includes two traditional songs from the Sikh tradition.

There’s also a song dedicated to raising awareness of the challenges facing our water supply. I feel that we each have to keep doing what we can to protect the earth and its resources.”

For Singh, Kundalini Yoga is growing “because humanity is going through a crisis.

We have many people coming to our classes, foreigners and Hungarians, who have found that Western ways of handling stress don’t work for them. They come to us to learn to relax. And more are coming all the time.”

Why does Singh think Kundalini Yoga is so good at helping people relax? “It can connect someone to his or her inner power and can strengthen all the body’s nervous and glandular systems in a very, very short time. That’s how people get back to their inner balance.”

Because Kundalini Yoga is so very different from the other forms of yoga that you’ve probably seen and may practice, it can look a Snatam Kaur bit intimidating. The fact that teachers wear white from head to foot and often seem to be on another planet can be rather unnerving, This is Snatam Kaur’s third time in especially in our “busy, busy, busy” world.

Hungary. What did she make of the But, if you’re at all interested in yoga, country and its capital? meditation and mindfulness, I would “Budapest is just gorgeous. I spent a lot urge you to try at least one Kundalini of time in different neighborhoods. To Yoga class. Like Zolán Ambrus before he me, there’s a sense of a country being metamorphized into Navraj Singh, I found transformed, in the process of finding itself.” that Kundalini Yoga affected me instantly.

How about receptiveness to Kundalini I don’t wear white to classes, worship Yogi yoga? “It’s flourishing incredibly well.

Bhajan as a guru or believe any of the more There’s a genuine interest in the practice outlandish claims made by Kundalini Yoga. and love for the teachings. Now, I find All I know is that it works. people are quite familiar with many of the chants I perform.”

Growing Popularity

I was curious as to why she thought that Kundalini Yoga was becoming so popular.

Find out more about Kundalini Yoga classes, workshops and retreats at www.shaktijoga.hu

38 | 4

Socialite

www.bbj.hu

Budapest Business Journal | May 10 – May 23, 2019

Szekszárd: Sophisticated Spice on Show Szekszárd’s vintners took over the Stefánia Palota in Pest’s Zugló neighborhood on May 2 and many of the region’s top wines, which not so long ago were rather on the rustic and raucously robust side, displayed the kind of elegance and finesse appropriate for this palatial setting, but not without local spice, edge and bite.

ROBERT SMYTH

Organized by Borjour, this “Aranyos Szekszárd” (Golden Szekszárd) tasting of mainly gold medal-winning wines from the area’s own wine competition showed a strong sense of place continues to emerge in the region’s predominantly red wines.

While it once played second fiddle to Villány (which lies a little further south, tucked against the Croatian border), Szekszárd has by now consolidated its position every bit as an equal, and has become many people’s go-to Hungarian red wine region, offering both excellent value for money and round, ripe fruit with a helping of southern spice.

The central King Béla Square in the picturesque town of Szekszárd.

Szekszárd’s decision a few years back to focus on a three-pronged approach of single-varietal Kadarka (including exploring different clones) and Kékfrankos, and Bikavér, is paying dividends in establishing an identity for the region, although other wines, such as Bordeaux blends, often spiced up and localized by a dollop of Kékfrankos, also have room to operate.

With several of the gold medal whites at the Aranyos Szekszárd tasting, I felt a distinct lack of spine-giving acidity, but Ákos Sümegi’s Zenit 2018 had a lively citrusy crispiness about it. He buys in his grapes from an old man who grows them on north-facing vineyards.

“Zenit is the most ideal grape in Szekszárd for keeping the acidity,” said Sümegi.

The little-known Sümegi also scooped the contest’s best rosé gong. His Rosé 2018, made from his own Merlot grapes,

property, while the wines are made by his daughter Orsolya Bodri and Péter Urbán, who are married.

Bodri Faluhely Cabernet Franc Válogatás (Selection) 2016 comes from grapes grown on the estate side of the hill. While it is

was bright salmon-colored, fresh and zesty with juicy raspberry notes. His Kékfrankos 2015 (a bargain HUF 1,890 from Pannonborbolt.hu) was a tad on the oaky side but with plentiful sour cherry and lively acidity.

Big, Bold, Brassy

The vibrantly purple Bodri Gurovica Kékfrankos 2016, with its 14.5% alcohol content (right at the upper limit for the usually more restrained variety), was big, bold and brassy with 16 months in new oak barrels from Trust Hungary, but also round and smooth with varietally pure juicy red fruit, especially sour cherry. This is a Kékfrankos to confound those who consider the variety to be lightweight!

It comes from the Gurovica vineyard, which is from the vineyard behind and over the hill at the remarkable ranch-like estate that István Bodri has built up. He continues to concentrate on enhancing the

“Zenit is the most ideal grape in Szekszárd for keeping the acidity.” extremely concentrated, it also has finesse and a bit of that tobacco leaf character so prized in Cabernet Franc. Meanwhile, the Cabernet Sauvignon Gurovica 2016 was the top-rated Cab Sav, capturing the variety’s cassis character alongside a waft of smoky oak. This trio of wines should be out on the market soon.

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4

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Budapest Business Journal | May 10 – May 23, 2019

The Bodri wines used to be made

by Adrián Bősz, who has successfully struck out on his highly innovative own. His Cenege Kékfrankos 2013 (HUF 5,950 from Ezerjo.hu) was aged for a whopping three years in secondfill 500 liter barrels to enable micro oxidation to take effect and help the wine gain complexity.

Kékfrankos can age very well, but the problem is that most of its gets slurped up quickly and little gets laid down to develop.

This wine has the kind of sophisticated fine-grained tannins that you can find in aged wines from the same grape in Austria’s Burgenland, where it is known as Blaufränkisch.

Daring Vintner

Bősz is also daring (or crazy) enough to make wine from the normally cool-climate loving Riesling grape in the southern end of this already warm southern region, down in Báta. The grapes come from the Csókahegy vineyard, which is close to the River Danube which has a cooling

The Tale of the Grape Zenit is a Hungarian crossing of Hungarian grape Ezerjó with Bouvier, created in 1951 by Ferenc Király.

Bouvier hails from Bad Radkersburg in Steiermark, Austria and was bred around the turn of the 20th

The vibrantly purple Bodri Gurovica Kékfrankos 2016, with its 14.5% alcohol (right at the upper limit for the usually more restrained variety), was big, bold and brassy with 16 months in new oak barrels from Trust Hungary, but also round and smooth with varietally pure juicy red fruit, especially sour cherry. and moderating effect on the mesoclimate of the vineyard.

The 2016 is higher in alcohol than usual, tipping the scales at 15%, but it is still very Riesling in character and

century by Clotar Bouvier, according to Austrianwine.com. Incidentally, Bouvier was also crossed with Hárslevelű to bring Kabar into existence, which has, since 2006, been one of the permitted grapes for Tokaj, and is currently impressing with its dry wines.

Socialite | 39

a worthy representative of the grape.

Both of these Bősz wines claimed golds in the local competition.

I definitely remember a time when Takler Bikavér was overpowering, throwing everything including the kitchen sink into the blend in terms of oak, tannins and alcohol. Takler’s 2016 Bikavér (HUF 4,650 from Bortársaság) from Szekszárd is fruity, spicy and really flavorsome, and follows up nicely on its predecessor’s pleasantly restrained bottling.

It has a tasty tang of pomegranate in the mix, which for me recalls the southern Rhône. While at 14% its alcohol is 0.5% higher than the previous vintage, it is really well integrated and doesn’t give any burn; this was one of three Takler wines to get a gold at the contest.

A few percent of Kadarka is a key component in the Kékfrankosled Szekszárd Bikavér. Tüske Pince Harmados Kadarka 2018 (HUF 2, 250 from Bortársaság), from loess and brown forest soils of the Kerékhegy and Ivánvölgy vineyards, is an excellent introduction to this lighter bodied grape.

It was fermented partly in sealed tanks and partly in open vats. It was aged for four months in stainless steel. This goldmedal winner oozed peppery spiciness and rose hip on the nose and palate with a lovely lightness of touch.

PROMOTION

Al Fresco Delights in a Royal Setting Budapest’s Castle District is not only home to bedazzling historical monuments but also an astounding array of restaurants and cafés and their open-air terraces awaiting guests with a wide variety of culinary options, ranging from a quick bite to a first-class dining experience.

If you feel like taking a break while wandering around the historical old town and peering through the doorways of centuries-old Baroque buildings into secluded backyards, there is no better option than Baltazár, a restaurant and wine bar attracting a steady stream of local clientele in addition to tourists.

Tucked away in a tranquil street of the Castle District, Baltazár boasts a vibrant urban atmosphere, top quality wines from the Carpathian Basin and a selection of the best gins from around the world served with organic grainbased Fentiman’s tonic water. The menu includes gourmet street food and grills prepared to perfection on a Josper charcoal grill.

Strolling closer to the monumental Matthias Church, one comes across Pierrot, a veritable culinary gem of the Castle District located in a 13th- century building.

This refined restaurant, which has been featured in the Michelin Guide since 2005 and has been awarded two hats by Gault Millau, has welcomed such celebrities as

Robert de Niro, Jeremy Irons and Harrison Ford, as is attested by their signed photographs adorning one of the walls.

The kitchen takes a modernized, cosmopolitan approach to the cuisine of the Austro-Hungarian Monarchy;

guests can enjoy their dinner to the accompaniment of live piano music in a relaxed elegant indoor setting or surrounded by the lush greenery of the restaurant’s garden, which is arguably one of the most romantic venues to be found in the Hungarian capital.

The 21 Hungarian Kitchen across the street from Pierrot strikes a more contemporary tone in both design and culinary offering. Decked with a large terrace under huge sunshades, the atmosphere in this stylish establishment is visibly modern and buzzing, the menu features typical Hungarian dishes with a twist, as suggested by the name, and the wine list carries Hungarian wines with a distinctive character from boutique

wineries. If you are in the mood for a lighter, more avant-garde taste of local cuisine, the 21 Hungarian Kitchen will undoubtedly treat you to a memorable experience.

Those on the lookout for a taste of traditional local cuisine straight from Grandma’s recipes should not miss the Pest-Buda Bistro, one of the oldest restaurants in Hungary. Renowned dishes such as the Chicken paprikás with buttery noodles or Beef stew as prepared by the locals are mainstays on the menu. If you cannot find an available table outside the restaurant, a not unknown occurrence given its popularity, take a few steps toward Matthias Church and the Hilton Hotel to find the Pest-Buda Terrace, a cozy and inviting outdoor café where you can enjoy a cup of specialty coffee, a glass of Hungarian craft beer or the offerings of the Pest Buda Bistro under the shade of a giant chestnut tree.

60min more time for myself since the concierge has been running my errands.

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