Budapest Business Journal 3009 by Business Publishing Services Kft.

VOL. 30. NUMBER 9

MAY 6 – MAY 19, 2022

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SPECIAL REPORT INSIDE THIS ISSUE

Real Estate: Offices

NEWS

Base Rate Hikes Continue as Inflation Soars The Hungarian central bank has raised its key rate by 100 basis points, bringing it closer to the one-week deposit rate. According to analysts, the two are likely to catch up at 7% this summer.  3 BUSINESS

Biden, Trump, U.S. Elections and Hungary’s Reputation White House Correspondent Jon Decker talks to AmCham about likely U.S. Presidential runners and how Hungary’s response to the war in Ukraine might affect its reputation.  7 SOCIALITE

1st Budapest Comic Con

Education is the Key

The world of comic fandom comes to Budapest this summer.  42

REJUVENATED WITH A REFRESHED ENVIRONMENT

SPECIAL REPORT

Tibor Massányi, managing partner of DVM group believes commitment to sustainability and education of employees, contractors, clients, even the general public are essential keystones for developing future-proof buildings and businesses.14

w w w. a t r i n o v a . h u

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IMPRESSUM

THE EDITOR SAYS

GETTING COMMITTED TO ESG AND SUSTAINABILITY

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL CONTRIBUTORS: Balázs Barabás, Zsófia

Czifra, Kester Eddy, Bence Gaál, David Holzer, Christian Keszthelyi, Gary J. Morrell, Nicholas Pongratz, Gergely Sebestyén, Robert Smyth. LISTS: BBJ Research (research@bbj.hu)

About eight years ago, I had a startling meeting with a former senior executive at a real estate consultancy firm who was dismissive of the rationale behind green accreditation. He argued that developers weren’t seeking certification because they wanted it but because they felt they had to. Budapest was still very price sensitive, and he did not believe a tenant would choose a building that had recycled wastewater or solar panels, for example, over one that did not, once they saw the price difference. I was reminded of this conversation when I sat down for a lengthy interview with Tibor Massányi, the managing partner of the DVM group, which you can read on page 14. Massányi, whose company has long been a green pioneer, wasn’t cynical about certification but passionate, and yet he made what struck me as a familiar point about ESG (environmental, social and governance), the current buzzword in the construction industry. What interested me was that he drew a distinction between the various construction sectors, and between sustainable accreditation from the likes of BREEAM, LEED and WELL, on the one hand, and ESG, on the other. The problem with ESG was two-fold, he told me. While it is a good catch-all, it is tough to pin down what it actually means and how you measure it. Secondly, and this may be linked to that first argument, he sees a lack of “commitment” to ESG. He also thinks the office sector is more mature than, for example, the residential. Green office certificates are no longer a differentiator on the market but a “musthave.” I can’t remember the last time an A-class office was built in Budapest that did not have at least one form of accreditation. Indeed, the recent trend has been to go for at least two. But it has become the norm because

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it has been market-led. Employees have become more aware of the environmental challenges facing the world and want to work in sustainable buildings. Employers, who operate in an extremely tight labor market in Budapest, want to hold on to their staff and thus need to find offices that tick the right boxes. Combined, these forces mean a green-accredited office building is easier to lease fully than one that is not. Such an asset makes more money quicker for its owners, and if, as an investor, you want an exit at a good price, your building really has to be certified. Perhaps the biggest differentiator between those two conversations is the years separating them. Only diehard climate change deniers now argue our actions are not having a serious detrimental impact on our planet. Massányi says he is aware of his industry’s responsibility in contributing to the problem in the first case and mitigating it in the second. Some things don’t change, though. As I replayed that first conversation in my head, the phrase “price sensitive” rang a bell. Sure enough, one of our expert witnesses inside this issue makes that same point. Some changes take longer than others, I guess. Be that as it may, “sustainability” as a concept is here to stay. ESG looks precisely like the sort of field the European Union would want to get heavily involved in legislating. Perhaps, in the greater scheme of things, it doesn’t matter whether the drive for sustainable buildings across all construction sectors is developerled or market-led. What matters is that we get there. And the quicker, the better. Robin Marshall Editor-in-chief

Why Support the BBJ?

• Value Creation. We have a nearly 30-year history of supporting the development of diversity and sustainability in Hungary’s economy. The fact that we have been a trusted business voice for so long, indeed we were the first English-language publication when we launched back on November 9, 1992, itself has value. • Crisis Management. We have all lived through a once-in-a-century pandemic. But we also face an existential threat through climate change and operate in a period where disruptive technologies offer threats and opportunities. Now, more than ever, factual business reporting is vital to good decision-making. For more information visit budapestbusinessjournal.com

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THEN & NOW Attila Valter, a cyclist with the Groupama-FDJ team, raises his bike in the air after a fan event before the Grande Partenza (Grand Departure), marking the start of the 105th Giro d’Italia at Budapest’s Heroes’ Square today (Friday, May 6). The black and white image from the Fortepan public archive shows sports bikers in 1928 lining up near Üröm, a village just 13 km northwest of central Budapest in the capital’s agglomeration.

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News macroscope •

Base Rate Hikes Continue as Inflation Soars

The Hungarian central bank has raised its key rate by 100 basis points, bringing it closer to the one-week deposit rate. According to analysts, the two are likely to catch up at 7% this summer.

Industrial Producer Price Index in Hungary 2002-2022 (January-March)

ZSÓFIA CZIFRA

The Monetary Council of the National Bank of Hungary (MNB) raised its base rate by 100 basis points to 5.4% at its latest rate-setting meeting. The move was in accordance with analysts’ expectations, but its extent was more significant than the usual 50 bp hikes that have typified the past months. The MNB also announced its one-week deposit tender at 6.45% a few days later, 30 percentage points higher than the previous week. The central bank has indicated that the base rate will gradually catch up with the level of one-week deposit rates in the coming months. Analysts say this is likely to be at around 7% in the summer months. Gergely Suppan of Takarékbank said that due to the increase in inflation risks, the central bank base rate could rise to as high as 7% by the middle of the year, but it could only be expected to reduce again from the second half of 2023 at the earliest. He expects oneweek deposit rates to reach 7% in June.

Numbers to Watch in the Coming Weeks The first estimates of how Hungarian industry performed in March will be published by the Central Statistical Office (KSH) today (Friday, May 6), with the second estimate of the data on May 13. April consumer prices will be released on May 10.

Source:

Don’t Over-tighten

As a result of the war in Ukraine, the prices of energy, raw materials and food continued to rise, he added. Current

global inflation will be boosted mainly by a sharp rise in the cost of living, but this in itself will dampen economies as a result of declining purchasing power, he said. Therefore, in his opinion, it is also worth avoiding over-tightening the monetary conditions, which puts central banks in a more difficult situation. Gábor Regős, head of the macroeconomic unit of research institute Századvég, drew attention to the fact that the Monetary Council continues to emphasize the reduction of the difference between the one-week deposit rate and the base rate and further tightening. There is nothing new in the announcement, he noted. Monetary policy alone will not be able to return inflation to the central bank’s 2-4% target band, he highlighted from the Monetary Council’s statement. The analyst expects similar steps next month, with a further decision expected in June based on new data and the quarterly Inflation Report. He noted that, in addition to tackling inflation, the task of economic policy is to improve the other two problematic balance indicators: the budget deficit and the current account. To that end, the central bank would surely make proposals to the government soon, he added. According to Zoltán Varga, senior analyst at Equilor Befektetési Zrt,

inflationary pressure may persist in the coming months, and the rate of price increases may soon exceed 10%.

Growth Capacity

According to the MNB, the growth capacity of the Hungarian economy remains strong. Depending on the course of the war and the policy on sanctions, GDP growth will be slower than previously expected, in the range of 2.5-4.5% in 2022, 4-5% in 2023, and 3% in 2024. Ensuring the stability of the government securities market remains key to the MNB. Accordingly, the Monetary Council is ready to intervene with government securities purchases if necessary, it said in its statement following the rate-setting decision. It warned that the Russo-Ukraine war would increase fiscal risks through multiple channels while maintaining budget deficit targets amid strong nominal growth could ensure a further decline in the debt ratio from 76.8% at the end of last year. In the meantime, analysts polled by Magyar Bankholding gave a very optimistic scenario for the near future. According to Suppan, GDP growth of 5.9% is expected this year. Investments at the national economy level may continue at a dynamic pace, and wages may also rise significantly in 2022, although the Hungarian economy will have to cope with a challenging external environment due to the effects of the war, he noted.

IMF Lowers Projection Hungary and Poland will achieve the highest gross domestic product growth this year in the Central and Eastern European region, according to the World Economic Outlook (WEO) report of the International Economic Fund (IMF), published in April. However, economic growth in both countries will be lower than projected in the October forecast. The organization estimates Hungary’s GDP will grow by 3.7% this year and 3.6% next. Previously, the IMF had expected 5.1% growth in 2022 after last year’s 7.1% expansion. Inflation could accelerate to 10.3% this year, up from 5.1% last year and well above the 3.6% predicted in October. Next year, the pace will slow to 6.4%, according to the latest forecast.

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Dependence on Russian gas and oil Remains a Problem Hungary is not able to “wean itself from Russian crude from one day to the next,” MOL chairmanCEO Zsolt Hernádi told shareholders at an annual meeting on April 28. He stressed that MOL’s refinery in Százhalombatta (30 km southwest of Budapest) had been “optimized” for Russian oil. MOL’s refineries take delivery of 120 million liters of Russian crude a day, turning out diesel, petrol and other products “indispensable for the economy,” he added. NICHOLAS PONGRATZ

The government’s international spokesman, Zoltán Kovács, reiterated that sentiment on May 2, telling the United Kingdom’s BBC Radio 4 there could be “no alternatives” to Russian gas and crude for the country for the next three-to-five years. He added that all proposals on sanctions extending to Russian energy that the Hungarian government had seen so far would cause

Ukraine

Crisis

Roundup

Free Transport

So far, he said Hungary had spent more than HUF 40 billion on assistance for the refugees. Additionally, the Budapest Transport Center (BKK) announced on May 2 that free travel on public transportation for refugees from Ukraine, which had been introduced on March 4, would be extended until May 31. The website, Safe in Hungary, offers Hungarian companies access to a list of job seekers who had fled Ukraine for Hungary, in compliance with all legislation on personal data. So far, 220 companies have registered on the website, and about Tristan Azbej, Minister of State of the Prime Minister’s Office responsible for helping persecuted Christians (left) and Bence Rétvári, Parliamentary State Secretary of the Ministry of Human Resources, at Pilisvörösvár, Pest County, on May 3, viewing more than HUF 210 million worth of medical equipment being donated to Transcarpathia through the Hungary Helps program. The aid consignment includes medicines, medical equipment, including infusion pumps, first aid boxes and bandages. Photo by Attila Kovács / MTI the Hungarian economy to grind to a halt, as 65% of the country’s crude and 85% of its gas comes from Russia. Meanwhile, as Russia’s Gazprom ceased gas deliveries to Bulgaria and Poland, the Minister of Foreign Affairs and Trade Péter Szijjártó said transit deliveries of Russian gas to Hungary via Bulgaria were continuing on schedule in a Facebook post on April 27. He noted that Hungary gets 3.5 billion cubic meters of gas a year, or roughly 10 million cubic meters a day, through a pipeline that runs through Bulgaria and Serbia. However, the European Union intends to reduce Russia’s gas imports by up to two-thirds by the end of this year, with the ultimate goal of divesting itself entirely

2030,

EU Energy Commissioner Kadri Simson said at a European Parliament plenary

session in Strasbourg on May 3. She added that the committee had contacted all major gas suppliers to help replace Russian gas and also plans to boost renewable energy and energy savings where possible. Following a meeting with European Union energy ministers in Brussels the same day, State Secretary for Energy Policy Attila Steiner said a proposal in which Hungary and Slovakia could get some relief if the EU moves forward with an embargo on Russian oil has not yet been delivered in writing. As of April 27, 642,000 people fleeing the war in Ukraine had arrived in Hungary, the prime minister’s chief advisor for internal security György Bakondi said on TV news channel M1, 20,000 of whom had each applied for asylum in Hungary or a temporary residency permit.

400 refugees

have already been able to find employment as a result. Increasing parts of the Hungarian economy are finding themselves under growing strain from the conflict in Ukraine. Augmenting input prices and logistics difficulties have been dampening the agricultural sector, according to a summary by Takarékbank and MKB Bank analysts. Business daily Világgazdaság also noted how Hungary’s automobile producers had been affected. Compromised supply chains with suppliers in Ukraine have been affecting local units of Audi and Mercedes-Benz, while Magyar Suzuki has been unable to deliver vehicles to the two warring countries as delivery companies have suspended their operations in the region. According to Tamás Flesch, the honorary president of the hotel association, in addition to the lack of Russian and Ukrainian guests, tourists have proven reluctant to come to countries in the region because of the war, making the tourism situation in Budapest worse than during the pandemic.

Diversity Month - English friendly events May 2022 / More events: www.sokszinusegikarta.hu

BUDAPEST

BUSINESS JOURNAL PARTNERS

EVENT ORGANISERS CONCORDE

11 May, 11:00-12:30 My Best Self

#IamRemarkable: #IamRemarkable is a Google initiative empowering women and underrepresented groups to speak openly about their accomplishments in the workplace and beyond, thereby breaking modesty norms and glass ceilings. In this session, you will develop the confidence to promote yourselves in the workplace and personal life. MODERATOR: Timea Csontos / Coach, trainer, organizational development consultan

Embassy of the Kingdom of the Netherlands

16 May, 17:00-19:00 Embassy of the Netherlands in Hungary

The glass ceiling in business and diplomacy: Women CEO’s and ambassadors share their experience and thought on the mental and physical existence of the “glass ceiling”.

18-21 May / Autistic Art

„Perfectly different, differently perfect” exhibition: an outstanding program where young contemporary fine artists directly react to autistic youngsters’ artworks. The opening ceremony and the exhibition take place in Kubik Coworking Exhibition Hall.

23rd May, 17:00-19:00 HBLF International X Mentor Program

Rapid Date online: English kick off of the X Mentor Program and rapid date for mentors and the mentorees to have the opportunity to get to know each other online.

23 May 10:30-12:00 / Queritius

Roundtable discussion on the importance of diversity in boards and other decision making bodies. SPEAKERS: Andrea Solti Istenes / Country Chair, Shell Hungary zRt.; / János Strohmayer / Office leader, Egon Zehnder Hungary / Gábor Lévai / Founder, Scale Impact / Petra Pataki / Counsel, Queritius

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Burnout Among the Post-COVID Challenges

BALÁZS BARABÁS

As part of the global economy, the human resources sector is particularly exposed to changes in the world market. Therefore, we will start this “HR Matters” column with an overview of the global economic prospects, as outlined by a recent analysis released by Moody’s Investors Service. Moody’s expects the crisis in Ukraine to last for at least a few months longer and the sanctions imposed on Russia by the United States and the European Union to be in force for at least two years from now. According to the analysis, the longer the crisis, the higher the risk of a recession extending to a large part of the world. And that is the best-case scenario. A worst-case scenario considers the complete shutdown of energy commerce between Russia and Europe. Such an outcome would lead to significant stress in the global economy and recession in all European countries. This would impact currency exchange rates and result in an economic environment with very low liquidity, Moody’s says. The World Bank has already lowered its forecast for world economic growth this year

from

4.1%

to 3.2%. The prospects for the Hungarian economy are not much better either. The latest World Economic Outlook

HR Matters

A monthly look at health issues in Hungary and the region

Photo by Photon photo / Shutterstock.co

With the world economy barely recovered from COVID setbacks, it is now hit by the effects of the war in Ukraine. Meanwhile, more employees are quitting their jobs in search of something more meaningful, although what that might be is hard to define.

News | 5

Interestingly, tropes such as “IT is not for women” are manifested not within the company but in broader society (in education and among clients, family and friends), the IVSZ survey shows. Remote work seems to be an important factor both for employees and employers. According to the “Future of Work and Skills” survey conducted by PwC in September last year, productivity grew with remote or hybrid work. Almost

60% of

released by the International Monetary Fund lowered the forecast for GDP growth in Hungary this year to 3.7% from 5.1% in October. Growth in the eurozone is expected to fare even worse, reaching 2.8%. The IMF puts the annual average inflation in Hungary at 10.3% this year, and it sees the current-account deficit widening to 1.3% of GDP. The IMF said the displacement of more than four million Ukrainians to neighboring countries, including Hungary, would “add to economic pressures in the region.”

Not Optimistic

It is difficult to estimate how the economic pressures will shape the Hungarian labor force; however, a recent poll indicates that the younger generation is not optimistic. A study conducted by K&H Bank in Q1 shows that one-third of working young adults would consider moving abroad. While they say they would “test themselves” in another country, the 34% measured by the K&H Youth Index is very high: in the nearly 10-year history of the survey, similarly high rates have been seen only twice before, in 2013 and again in early 2017. In the meantime, in Q4 2021 compared to Q3, the unemployment rate fell in both

the

20-24

and 25-29 age groups, from 12.7% to 11.1% and 5.6% to 4.1%, respectively. Many sectors are struggling with unfilled positions, while some young people are not qualified for the jobs

they apply for, according to the findings of the K&H Youth Index. Job search portal profession.hu also reveals a deepening shortage in the labor force, which takes in all counties in Hungary. Between Q1 2021 and Q1 2022, the number of job advertisements posted rose by 66%, mostly in Somogy and Tolna (southern Hungary) and Pest, where the growth exceeded 70%. As for economic sectors, employees are needed most in hospitality and tourism, followed by education, science-related posts, and company management. Interestingly, IT programming, once in very high demand, is now among the lowest advertised roles on profession.hu. IT programmers may not be the most sought-after professionals currently, but other IT skills are still needed in Hungary. European and Hungarian data indicates that women may be a valuable pool for this sector. Hungary’s ICT Association (IVSZ) conducted a survey revealing that women employed by Hungarian IT companies account for less than 20% of the total, and then mostly in back office, finance, HR, and marketing and sales roles.

IT Motivation

Women’s motivations for working in the IT sector vary by age. The main drive below 30 is high salaries, while between 30 and 40, development and remote work, and above 40, learning new technologies. Career advancement is also important for women working in this sector, but stereotypes hinder them, 35% indicated.

respondents said that their organization had performed better against targets compared to previous periods. This improved productivity was attributed to several factors, such as less time spent on travel, the implementation of new technologies, and more efficient meetings. But hybrid work also has its adverse effects. The higher volume of work can lead to burnout, adding to social distancing. According to PwC, the record number of resignations globally is not necessarily caused by better job offers but by the desire for change or improved quality of life.

Hungary’s ICT Association (IVSZ) conducted a survey revealing that women employed by Hungarian IT companies account for less than 20% of the total, and then mostly in back office, finance, HR, and marketing and sales roles. One place to look for new jobs may be via the LinkedIn website, specializing in professional skills and networks. A recent survey shows that 74% of LinkedIn users with higher education degrees consider it indispensable for business. The majority of the 600 respondents use this platform for job search, networking, and following companies. On the other hand, content creation is not very popular among LinkedIn users; only half of those questioned post regularly. On the other side of the fence, however, recruiters responded that finding a relevant applicant on LinkedIn is expensive. Very few HR managers spend money on this platform; only 6% spend between HUF 100,000 and HUF 500,000 and 15% less than HUF 100,000, while 75% of the respondents do not spend at all on LinkedIn.

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in Brief

New Parliament Holds Inaugural Session Hungary’s new parliament held its inaugural session on May 2, and MPs took their oaths of office. Addressing the session, President János Áder urged lawmakers to “say yes to representing national interests, the country’s prosperity, the security of Hungarians, debate based on fact and shared success,” while saying “no to self-serving, shortsighted politics, the service of foreign interests, discord and lies.” The 199seat parliament is comprised of MPs of the governing alliance of Fidesz (117) and the Christian Democratic People’s Party or KDNP (18). Opposition seats are split between Demokratikus Koalíció, DK, (15), Jobbik (10), Momentum (10), the Hungarian Socialist Party, MSZP (10), Mi Hazánk, or Our Homeland, (6), Párbeszéd, or Dialogue, (6) and the Green Politics can be Different, or LMP (5). The representative of the German minority has a single mandate, and the MP Ákos Hadházy is taking his seat as an independent. László Kövér was again elected House Speaker in a secret ballot at the session.

Ukraine Crisis: Polish, Czech PMs Call on Hungary to Condemn Russia Polish Prime Minister Mateusz Morawiecki and his Czech counterpart Petr Fiala have appealed to Hungary to “unequivocally condemn” the Russian crimes in Ukraine, the Polish Press Agency (PAP) reports. The two were asked at a press conference following their meeting in Warsaw on April 29 about the future of the Visegrád Group (V4) that brings together Poland, the Czech and Slovak Republics, and Hungary. PAP quoted Morawiecki as saying that the V4 format still exists, but “we need to clarify very thoroughly the issues related to Russia’s aggression towards Ukraine. We fundamentally disagree with Hungary’s attitude towards

Ukraine today [...], and we expect an unequivocal and very strong position, from Budapest, condemning the Russian crimes in Ukraine,” he said. “This is indeed a very important condition because we cannot close our eyes to what is happening there,” he said. “We want this position to be very clear and in line with what we believe appropriate,” Fiala added. Both sides also agreed to lobby for Ukraine to receive EU candidate status. Poland and Hungary had enjoyed a strong relationship and were seen as ideological allies in their mutual battles with the EU. But the Ukraine war appears to have driven a wedge between them with the Polish government, a leading advocate of tough sanctions, frustrated with Budapest’s softer attitude, PAP said.

Orbán Formally Asked to Form Government Head of State President János Áder formally asked Viktor Orbán, the candidate for prime minister of the Fidesz-KDNP party alliance, to form a new government on April 29, according to the state news agency MTI. After the meeting with Áder at the Sándor Palace, Orbán said he had pledged to form a government

that, in terms of its members and as a whole, would be able to defend Hungary in the “decade of danger ahead.” Orbán noted that prices are rising across Europe due to the war in Ukraine and said Europe’s economies face “hardship” amid signs of an energy crisis, even before recovering fully from the coronavirus crisis.

CHAMBER CORNER

Dutcham 20th Anniversary Gala Dutcham, the Netherlands-Hungarian Chamber of Commerce, will celebrate its 20th anniversary with a gala event at the Budapest Music Center on May 26. The chamber promises “a great night with exceptional gastronomy and entertainment,” with company tables and mixed tables of 8-10 available. The food during the night will “represent tastes that are historically connected to the Netherlands: from bitterballen through Indonesian Rijsttafel to the tastes of the Dutch Caribbean.” Single tickets cost HUF 28,500 plus VAT or HUF 35,500 plus VAT for non-members. More details are available direct from the chamber.

French Chamber Gala, Garden Party Return The Hungarian-French Chamber of Commerce and Industry is bringing back its annual gala event, last held on Nov. 16, 2019, at the Pesti Vigadó. Although the chamber has not yet

President János Áder (right) receives Viktor Orbán, the candidate for Prime Minister of the Fidesz-KDNP coalition that won the recent parliamentary elections, at the Sándor Palace on April 29. Photo by Vivien Cher Benko / MTI / Press Office of the Prime Minister.

announced a date, it has already begun communicating the event after “the decision of the Board of Directors of the Chamber and encouraged by the success of the previous events.” The Garden Party will also return on June 24 at the Svábhegy Observatory following last year’s successful event. “For one evening, we propose transporting you into the wonderful World of the Little Prince,” the chamber says. More details are available from the chamber.

Italian Chamber General Meeting Called The Italian Chamber of Commerce in Hungary will hold its General Assembly on May 30 from 11 a.m. in person at the Italian Institute of

Culture (1088 Budapest, Bródy Sándor u. 8). If there is a lack of quorum, the meeting will reconvene at the same location on June 3 at 10 a.m.

Swisscham General Assembly to be Held Swisscham Hungary, the SwissHungarian Chamber of Commerce, will hold its annual general assembly on May 19 at 11 a.m. at the Raiffeisen Bank HQ (1133 Budapest, Váci út 116118). If no simple majority is present for a quorum at 11, the assembly will reconvene at 11:30 a.m. and go ahead no matter how many members are in attendance. The guest speaker will be György Matolcsy, governor of the National Bank of Hungary.

Top Expat CEOs in Hungary 2022 As well as an economic background to Hungary’s economy, Top Expat CEOs presents some of the leading market players in the country. As such, it is an essential aide to getting to know the personalities behind the business. Please forward your subscription request to: circulation@bbj.hu, or order your copy in the webshop at www.budapestbusinessjournal.com

• Provides an essential overview of Hungary’s economy. • Get an insight into the CEO mindset regarding business in the country and globally. • Get to know the personalities behind the business. • Read personal accounts from the country’s leading non-Hungarian CEOs, including their experiences of doing business in Hungary and what they enjoy about life here.

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Business

Biden, Trump, Presidential Elections and Hungary’s Reputation

“The two questions I get most often are: Will Joe Biden run again? Will Donald Trump run again?” Jon Decker, White House Correspondent for Gray Television, told a small but enthralled AmCham Hungary audience on April 21.

John Decker was largely dismissive regarding any serious concerns in Western capitals or U.S. investors’ minds caused by Hungary’s unwillingness to aid Ukraine in its conflict with Russia. According to the White House correspondent: “From my perspectives in the U.S., in Washington, I think it’s dealt with with a shoulder shrug. That’s Hungary, that’s Orbán,” he said. Moreover, he reasoned that Hungary’s isolation among its Western allies in response to the war would not cause investors any lost sleep. “I don’t think that it impacts U.S. investment at all in terms of what has happened in Hungary before and what will happen now that the election has taken place. I don’t think that will impact things at all.” For Decker, since the European Union is a grouping of 27 sovereign states, disagreements are simply par for the course.

Family Disagreements Event moderator Dávid Kőhegyi (left) and White House Correspondent Jon Decker. Photo by Hajnalka Hurta / AmCham Hungary

a lot younger, he’s really sharp, he’s bright, he’s a good politician, and he comes from the largest state in the “No one knows the answers to those country. He can raise money,” he argued. questions with any certainty, except those “He’s one of those candidates who can two individuals,” Decker freely admitted. unite all those various elements that However, noting that incumbent Biden make up the Democratic Party.” has already said that, health permitting, The legally trained Decker proffered he will run again, Decker said: “I take him a more nuanced, controversial at his word. I think of all the Democrats assessment regarding Trump. that are out there, he’s probably the “That’s the elephant in the room. Most strongest that could run.” people in Washington, when asked that Should the incumbent retire, however, question, say, ‘Yeah, he’s running right Decker, a reporter on White House now! He’s been running since the day he politics since 1995, was dismissive of lost,’” the correspondent said. Vice President Kamala Harris’ chances. “I And with good reason. Trump has think the feeling is that she’s not as strong organized numerous campaign rallies a candidate as Democrats would like. I and raised USD 100 million to support don’t think she’s a terrific campaigner: a potential bid. Pretty compelling remember, she dropped out when she ran evidence of his determination, many say. for president even before the Iowa caucus.” Yet Decker is far from convinced. Rather, Decker pointed to a relative Devastating Defeat outsider as his tip for the Democratic “I don’t think he’s going to run,” he said. nominee, Gavin Newsom, Governor “The first time I interviewed Donald of California. “Compared with a lot of candidates that Trump was in 1999. I’ve known him for many years; he was a private citizen back we’ve seen recently run for president, then, not a politician. [….] The loss that like Donald Trump and Joe Biden, he’s KESTER EDDY

Decker on U.S.-Hungary Relations and Ukraine “When Jen Psaki, the White House Press Secretary, is asked about Hungary, she only has nice things to say. She has not said an unkind word about Mr. Orbán. I don’t know what

Hungary Breaking Ranks? It’s a Shrug of the Shoulders in Washington

she says in private, but that’s public, and the reason is that it’s important to show a unified front, to show that between the EU and U.S., there’s no daylight separating us.”

he suffered in 2020, although he would never admit this, but it was devastating for him, it really was,” Decker said After watching Trump for more than two decades, Decker believes the former President “sees everything in black and white; there are no grays. You are either a winner or a loser, and losing that election was not good for his ego; it wasn’t good in terms of the way he wants to be seen by not only the American public but the public at large in the world.” In short, Decker reckons, the risk of such emotional pain from a second defeat at the polls would make Trump pull back. “I don’t think he wants to risk being a two-time loser. That would be devastating for him, his obituary as a two-time loser for president,” he reasoned. Instead, the former real estate tycoon will become kingmaker, deciding on the Republican nominee for the presidential elections in 2024 most suited to take up the “America First” agenda. Who, moderator Dávid Kőhegyi asked, might that person be? Decker was careful to spread his bets. Names included the Governor of Florida, Ron DeSantis, Mike Pompeo, the former Secretary of State, and senators Ted Cruz (Texas), Josh Hawley (Missouri) and Marco Rubio (Florida). But, he said, former Vice President Mike Pence had covered a lot of ground “making the connections necessary” for a future presidential bid across a broad spectrum of Republican supporters. Pence, Decker said, “has a better shot than most.”

“Like any family, you will have disagreements, and those disagreements are sometimes out in the open. […] You will always be able to find critics in the EU who can say unkind things about Hungary. That will not go away,” he said. Hungary and Germany oppose tough energy sanctions “for good reason,” he argued, since both economies depend on Russian energy. As for Hungary refusing to allow the transfer of arms through Hungarian territory to help Kyiv, that too is a minor irritant. “We can still get that equipment to where it needs to go easily through our other NATO and EU allies,” he reasoned. Nonetheless, Budapest’s reluctance to assist Ukraine inevitably raises questions. “Should Hungary even be a member of the EU and NATO? You’re going to find those critics, but for the most part, there is value that they see in having Hungary as a member of both entities,” he said, reminding his audience that Turkey, which has annoyed the United States in recent years over controversial arms purchases, remains an important NATO member. “The big picture is the value that they [Turkey and Hungary] bring in being a member, and I think that far outweighs these other disagreements [among the allies] that you are seeing right now,” he concluded.

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Kevin Turpin

Colliers Names Turpin Regional Director Capital Markets

Leading diversified professional services and investment management company Colliers has promoted Kevin Turpin to regional director of capital markets in Central and Eastern Europe (CEE). Turpin, previously the regional director of research, has 17 years of experience in capital markets. In his new role, he will focus on further developing Colliers’ CEE Capital Markets service line. “Kevin’s appointment marks an important and exciting new step for Colliers in CEE and on a European basis,” said Luke Dawson, managing director, cross-border capital markets, Colliers in EMEA. “Through his extensive client relationships and his understanding of the market, I am sure he will help our existing investment clients grow and make the right strategic decisions whilst attracting new opportunities. Combined, we will provide a more complete and unique regional platform for investors across a broader range of real estate sectors,” Dawson added. Monika Rajska-Wolinska, CEO of Colliers in CEE, said Turpin’s experience across strategic analysis, asset classes, and geographies “is unmatched in the region and allows us to provide clients with a unique and broad offering.” Turpin commented, “Colliers already has first-class investment teams across CEE, and together we will further grow our capabilities and deliver the best possible results for our clients in this region. With almost 17 years spent advising both internal and external clients on the CEE property markets, through both bull and bear markets, I am particularly looking forward to applying this experience in my new position.” The CEE region at Colliers includes Bulgaria, the Czech Republic, Hungary, Poland, Romania, and Slovakia.

Andersen Appoints Tax Incentives, State Aid Director

Andersen Hungary announced the appointment of Edina Dobos as director responsible for tax incentives and state aid from February.

Dobos has been working on state aid and tax benefits since 2004 and has been part of the Andersen team since last year. Prior to that, as an associate at PwC and later Deloitte, she assisted several companies in obtaining funding based on individual government decisions or other grant schemes. This included the preparation of feasibility studies, funding gap calculations, tender-related business plans, and R&D qualification applications, as well as grant drawdown. She has significant experience in state aid competition law and European Commission procedures (notification and preliminary examination). As lead adviser, she successfully assisted a number of projects where the size or specificity of the aid required approval by the European Commission. In addition to the corporate sector, Dobos also has significant experience advising municipal and public authorities on projects and aid schemes.

Edina Dobos “Our goal is to create Hungary’s best state aid advisory practice. While there are many people in Hungary who do classical tender writing, there are far fewer who provide advice on state aid (e.g., compatibility with EU rules, specific support for priority projects, combination with tax incentives, etc.). We are striving to be, if not necessarily the biggest, then clearly the best in this field, while also aiming to break the dominance of the Big 4,” Dobos said.

ConvergenCE’s Project Management Team Expands

Experienced real estate expert Gábor Zeley has joined investor and developer ConvergenCE, according to a press release sent to the Budapest Business Journal. In his new position as senior project manager, he is primarily responsible for the renovation of Academia, the prime office building on the Danube bank acquired by Europa Capital in partnership with ConvergenCE. Zeley has 25 years of experience in many areas of the property industry. After graduating from the Faculty of Architecture of the Budapest University of Technology and Economics, he worked as a construction and project manager on the AstraZeneca

Gábor Zeley

for portable payment instruments on the continent. His current promotion will focus on defining go-to-market strategies and developing sales capability in the context of open banking, bridging the gap between central product development and local offices. “Open banking solutions give consumers and businesses greater freedom to share their banking data and allow them to access financial services easily, securely, and quickly. At Mastercard, it is of paramount importance to provide the ideal payment solution for every possible purchase situation. I am delighted to be able to help in this work, now specializing in open banking,” Szendrei said of his appointment.

office building and warehouse in Törökbálint at NCC Fastigheter AB. He later participated in developing the Westend shopping center as a Marketing Director procurement engineer at Arcadom. at Hard Rock Returning to NCC, he coordinated the Hotel Budapest greenfield developments of Electro World The recently opened five-star Hard Rock and Praktiker in Budaörs. Afterward, he Hotel Budapest has appointed Barbara was with New Store Europe designing Angelus its marketing director. She stores and manufacturing shop fittings assumed her new position in January. in Hungary, subsequently continued the shopfitting and fit-out business on his own, making furniture for brands such as Prada, Michael Kors and Sony across Europe. He joined ConvergenCE from HB Reavis, where, as a fit-out manager, he took part in the development of the Agora Budapest office park. “Focusing on the refurbishment of our downtown Academia office building, his responsibilities include design, procurement, construction, technical supervision, project management, WELL certification coordination, as well as leasing and property management support. We are confident that his diverse knowledge and integrated vision Barbara Angelus will greatly contribute to the success of our outstanding development,” said Gábor Kovács, head of project Angelus has been responsible for management at ConvergenCE. the marketing communications of several five-star hotels for the past 20 Hungarian Joins European years, including the branding of the Leadership of Mastercard Kastélyhotel Sasvár in Parádsasvár, the Open Banking Hertelendy Castle in Somogy County, Szabolcs Szendrei is joining and the Klotild Palace of the Buddha-Bar Mastercard’s European Open Banking Hotel Budapest. leadership team as vice president of Before COVID, she led the commercialization. communications for the 125th anniversary year of the legendary Gundel restaurant for two years. After the restaurant’s temporary closure due to the pandemic, she worked on the renewal and awareness-raising of the János Kodolányi University brand as head of its marketing team. Angelus believes it is important to mentor the next generation and has been teaching corporate and personal branding at the university for several years. The university’s senate recognized her innovative approach in 2020 by awarding her the title of associate professor. She is a member of the mentoring team of the Protégé Szabolcs Szendrei Tourism Program, which aims to support young people in starting their careers. Szendrei spent the last few years For the last few months, she has been in Mastercard’s European product involved in preparing the market launch management, where he was responsible and communications of the 136-room for installment payments and then Hard Rock Hotel in Nagymező utca.

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Hell Energy Profit Doubles in 2021 According to an annual report posted on the Budapest Stock Exchange website, the after-tax profit of Hungarian soft drink maker Hell Energy rose 100% to HUF 15.6 billion last year. Net revenue climbed 38% to HUF 100.5 bln. Material costs increased 44% to HUF 71.6 bln. Payroll costs rose 34% to HUF 7.5 bln. The green corporate bonds Hell Energy issued last summer are traded on the bourse.

Shareholders Approve HUF 242 bln MOL Dividend Shareholders of oil and gas company MOL approved the board’s proposal to pay HUF 241.9 bln of dividends at an annual general meeting on April 28, according to a release posted on the website of the Budapest Stock Exchange. The AGM voted on paying around HUF 100 per share on last year’s earnings and a special dividend close to HUF 200 per share. In its proposal for the special dividend, the board noted that it had not proposed a dividend on 2019 earnings because of the coronavirus crisis, while

MOL generated “record high” EBITDA and free cash flow in 2021, supported by “very strong” macro conditions. Last year, MOL paid a HUF 95-per-share dividend. Meanwhile, MOL announced on April 27 plans to build a EUR 22 million green hydrogen plant at its refinery in Százhalombatta (30 km southwest of Budapest), according to portfolio.hu. Fueled with electricity produced from renewable resources, the plant will turn out 1,600 tonnes of hydrogen a year, making it one of Europe’s most significant green hydrogen production facilities. It will reduce MOL’s CO2 emissions by 25,000 tonnes. MOL will use U.S. company Plug Power’s technology at the plant, which will start operating in 2023.

Swiss Krono Doubling Capacity for HUF 2.3 bln Building materials maker Swiss Krono announced on April 29 a HUF 2.3 billion investment at its base in Vásárosnamény (290 km northeast of Budapest) that will more than double daily capacity according to origo.hu. The Swiss-owned company will add a new production line at the base by the end of Q3 2023. The state is supporting the investment

Lego Named ‘Most Attractive Employer’ in Randstad Survey Staffing company Randstad Hungary has named the local unit of Danish toymaker Lego the “most attractive employer,” based on survey results, according to profitline.hu. Randstad Hungary released the ranking of the country’s best employers for the ninth year, based on a survey conducted by Randstad Employer Brand Research. The runner-up this year was the local subsidiary of South Korea’s Samsung. The Hungarian manufacturing unit of German automaker Mercedes-Benz came third. The survey showed IT is the most popular sector in which to work, followed by business services and telecommunications.

with a HUF 350 million grant on the condition Swiss Krono keeps 150 people on the payroll, the Ministry of Foreign Affairs and Trade said.

Tungsram to Cease Production of Conventional Lighting Hungary’s Tungsram will cease production of conventional lighting and lay off 1,600 people by yearend as a result, the company said on

Remuneration remains the most important consideration when taking a job, ahead of a pleasant work environment, the employer’s financial stability, long-term workplace security and worklife balance. About 7,800 people participated in the survey in Hungary. Photo by cjmacer / Shutterstock.com

Company

News

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April 27, according to novekedes.hu [Growth]. In the present circumstances, the technological changeover is “unavoidable,” the company said. The layoffs will affect mainly production line workers at all five of the company’s plants. Tungsram will shift its focus to energy-saving lighting upgrades, parts and components production, and LED lighting for outdoor and industrial use and in tunnels. There were partial shutdowns at Tunsgram’s plants between April 11 and 22.

PRESENTED CONTENT

A Very Difficult Math Problem for the Government Three-quarters of the budget deficit planned for the whole year has already been reached in the first quarter. If the government wants to maintain a balance and the utility price cuts without austerity measures, it will have to find extra revenue. KÁROLY RADNAI

Perhaps never before has the Hungarian budget started the year so badly. The deficit of nearly HUF 1.5 tln in the first two months is the worst since 2002; on top of that, the HUF 875 billion deficit in March is a negative record for the third month. The root of the problem is not on the revenue side. Overall, the main tax revenues have been reasonably good: VAT, personal income tax, excise duty, and corporate tax equal or exceed preliminary projections. The problem is firmly on the expenditure side. In its earlier statement on this issue, the Ministry of Finance cited the refund of the PIT for parents, the 13th-month pension, the six-month gun allowance for armed forces and law enforcement personnel, the exemption from PIT for under-25s and the reduction of the employer’s tax to 13% as the main reasons for the huge deficit. Adverse market processes, such as the rise in energy prices and market rates, must be added to the above list. Experts estimate

the cost of utility price cuts to be between HUF 1 tln-2 tln this year; the figure most often heard now is HUF 1.3 tln. Offsetting just this one item would require introducing a VAT rate of around 35%, a corporate tax rate of 33% or a personal income tax rate of 23%; even then, we would not have addressed the budget deficit. The fuel price freeze also represents a problem in terms of hedging. The difference between the official and actual market prices is now partly compensated by the state for retailers and MOL. If the government wants the budget deficit to be around the originally planned 5%, including utility price cuts and other cost elements but excluding austerity measures, it must find extra revenue of around HUF 3 tln. That is more than half of the revenue from VAT, which this year will bring in HUF 5.487 tln.

Sectoral Taxes?

In recent weeks, we have heard more about special sectoral taxes as a possible means of reducing the deficit. In response to a journalist’s question at the

and resources, which significantly help in financing the budget. As far as we know now, inflation in Hungary is expected to be around 10% this year. The general rise in prices also means that VAT revenues will increase significantly, which will undoubtedly positively impact the budget balance. From this perspective, the government is not really interested in excessively curbing inflation. The opposition has made several comments that this is precisely one of the Károly Radnai, managing main elements of the Orbán government’s partner of Andersen in Hungary economic policy of stabilization (“inflation tax”). The question, however, is how conscious this decision or planning is: government briefing held on April 21, inflation is a dangerous and difficultGergely Gulyás said that the government to-control process. had not yet discussed their introduction This year’s budget deficit is expected but did not rule out the possibility. to be well above 5%, even with these In 2021, the budget collected a measures. As a result, the government HUF 770 bln from special sectoral taxes. debt to GDP ratio will also increase, The gap derived from the utility price cut which unfortunately means we cannot is almost twice as large. The extra revenue expect much easing in the medium- or of HUF 3 tln, excluding austerity measures, long-term. It looks like we are in for two is nearly four times as large. It is easy or three difficult years, regardless of to see that such a large budget hole economic developments. cannot be filled by introducing sectoral taxes alone, and other elements of the tax system will have to be addressed. A sharp cut in spending also seems unavoidable: numerous public investments will have to be halted or Contact information: postponed. In addition, the government info@hu.Andersen.com will need to reach an agreement with +36 703 174 146 Brussels to regain access to EU funds

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How Might war in Ukraine Affect Emerging Markets? We have all heard the adage that a butterfly flapping its wings in the Amazon could affect the weather patterns on the other side of the planet. Might the war in Ukraine also have such unintended consequences, Les Nemethy asks?

90% 80%

Soft commodity supply disruption – Ukraine conflict

70% 60% Ukraine

50%

Russia

Belarus

40% 30% 20% 10% 0%

While I despair at the scale of the humanitarian disaster in Ukraine, this article explores unexpected and unforeseeable effects beyond its borders, including the possibility of more people dying of starvation in other parts of the world than as a consequence of military action in Ukraine. The three main possible transmission mechanisms for this butterfly effect include (a) disruption of supply chains, particularly in agriculture; (b) energy supply disruptions; and (c) monetary effects. These trends often reinforce each other. All were already underway before the war, which seems to aggravate and catalyze these effects.

Supply Chain Disruption

The Corporate Finance Column

Global supply chains were already under strain, independent of the Ukrainian war, partly due to COVID-19. For example, 30% of the world’s containers are now at a standstill, waiting around ports, many of them stuck near Shanghai, locked down by COVID. The war adds a significant additional dimension to the supply-side challenges, particularly related to agriculture.

Sunflower Potash oil

Barley

Wheat

Canola N-fertiliser Corn

Source: World Bank, Credit Suisse research

As the chart below shows, Russia, Ukraine and Belarus account for a substantial percentage of production of the leading agricultural commodities. To make matters worse, a substantial percentage of the above-mentioned exports go to emerging markets. Countries such as Lebanon and Egypt (the world’s largest importer of grain), as well as the entire sub-Saharan region, are highly dependent on Russian and Ukrainian exports. But it also impacts the microchips sphere. Did you know that two Ukrainian factories supplying neon for the lasers that make microchips were closed due to the war?

Energy Supply Disruption

The war has further reinforced tightness in oil and gas markets, which has had a considerable effect on hydrocarbon prices globally, particularly in Europe. Given that ammonium fertilizer is made using gas and almost 40% of global potash exports come from Russia and Belarus, the world will see a sharp reduction in use in 2022. Many producers of ammonium, including the largest in Hungary, have stopped production altogether due to the volatility of energy prices. If farmers don’t use fertilizer, they will see their yields fall; if they do use

Crude/ Natural gas

fertilizer, they will have to pass through input costs. Either way, the pressure on agriculture prices will accelerate. Although there have already been massive increases in agricultural prices, in my opinion, this process still has a long way to go. Energy price increases also have a negative impact on GDP growth and a general inflationary effect. Most postwar recessions coincided with energy price increases.

Monetary Effects

The aforementioned supply chain issues and commodity price increases have contributed to accelerating inflation. This, in turn, has mobilized several central banks towards monetary tightening. Much has been written about the difficulty central banks will have in reducing inflation without causing a recession while they target the fabled “soft landing.” Never have current inflation levels been cured without inducing a recession. The ongoing problems of COVID (and associated lockdowns) and the RussoUkrainian war (and associated sanctions) further complicate central banks’ efforts to take the camel through the eye of a needle. Jerome Powell, chairman of the U.S. Federal Reserve, has announced his

intention to carry out what would amount to the most severe monetary tightening since the early 1980s. This would likely see 10-year Treasuries rise from under 3% to well over 5%. Whenever the United States raises interest rates, emerging markets suffer greatly, as they are forced to raise interest rates by at least as much to avoid capital outflows. Many emerging countries have already been forced to raise interest rates substantially, and, once again, in my view, the trend will go further. Servicing debt is becoming increasingly difficult. Sri Lanka has already defaulted. Pakistan and Peru, also highly indebted, have experienced outbreaks of violence or mass protests. Emerging market banks are highly exposed to sovereign debt (usually through bonds issued by their own national governments): As bond yields rise, government bond prices plummet, impairing banks’ Tier 1 capital. A vicious circle may ensue. Weaker banks will lend less, contributing to the contraction of the economy. Unfortunately, the average person in emerging countries already spends a huge percentage of their income on foodstuffs and owns very few assets that might help withstand inflation. It is the average person who will feel the brunt of the phenomena discussed in this article. Remember that it was food shortages that triggered the Arab Spring roughly a decade ago. The butterfly effect is hard to prove, but over time, the war may actually cause more deaths from starvation in the world’s poorest countries than conflict deaths in Ukraine itself.

Les Nemethy is CEO of Euro-Phoenix Financial Advisers Ltd. (www.europhoenix.com), a Central European corporate finance firm. He is a former World Banker, author of Business Exit Planning (www.businessexitplanningbook. com), and a previous president of the American Chamber of Commerce in Hungary.

Your essential Guide to Investing in Hungary including articles looking at the benefits available, case studies, EU funding, and commercial property investment.

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PRESENTED CONTENT

In Search of Groundbreaking Results Statistics indicate that the aging of the overall Hungarian population is irreversible, at least for the next 10-15 years. The question is: can the health of that population be improved? A research organization based in Szeged will soon start working on the answer and is actively recruiting the best medical experts available.

Business | 11

Hungarian government as matching funding for the initial teaming grant. The jobs offered are quite attractive, as they allow the establishment of new research groups at a new site, where the groups design their work environment entirely from scratch. This is quite a rare opportunity, which may come only once in the life of a scientist! We are also establishing a so-called advanced core facility for scientific computing at the headquarters, which will benefit all of the HCEMM groups. This is currently an underdeveloped research area in Hungary, so we plan to make, with European and national funds, a contribution not just to 20-25 groups of HCEMM but to the rest of Hungary as well.

BBJ: What is the roadmap that you are seeking to follow? CS: To give you an example, we are trying to establish new technologies in the next threeto-four years in the diagnostics field. The new HQ of the Hungarian Center of In Hungary, sepsis has a mortality Excellence for Molecular Medicine in Szeged. rate of 38%. Over 4,000 people die in hospitals from sepsis every year here. If we detect it two days earlier BBJ: What is the primary purpose the last 30-40 years. Through our and we can interfere two days earlier of this funding? research, we also aim to lower the costs with antibiotics, when the bacterial CS: The main topic is the healthy of the Hungarian healthcare system. or fungal load in the blood is still aging of Hungarians. If you look at the We work on finding new approaches low, the patient’s chance of survival statistics, the life span of Hungarians either to detect diseases earlier or is much better. If we can develop is about six to seven years below the to treat them. To do this, we started this into a routine diagnostic test, it European average. It has a lot to do to build new research groups with will be a significant benefit to patients with lifestyle; for example, the level the grants that we earned. All of the as well as healthcare providers. of alcohol consumption, smoking, groups already established are listed and obesity. We have major disease on our website. complexes: cancers, metabolic diseases, cardiovascular diseases, and lately BBJ: What is the concept behind the also infectious diseases. Most nonnew approaches? BALÁZS BARABÁS infectious chronic disorders are CS: If we could find markers that tell compounded by infectious diseases at early on whether or not a treatment The organization in question is the the end of life. So, many people who is successful, you could change the Hungarian Center of Excellence for initially have cancer eventually die treatment to another strategy that is Molecular Medicine (HCEMM); its better for the patient. And it will also main R&D focus is the development be cheaper because a shorter treatment of molecular approaches for will cost less. This is the diagnostic “We are looking for longdiagnostics as well as treatment part. We are also looking for markers leading to healthy aging. Christoph that allow us to tell early on if a term solutions that the Sensen, the director general of disease is starting to develop. Brain HCEMM, shared how the project began healthcare system can tumors are typically discovered when and where it is heading now with the they are already the size of a walnut, use on a large scale for Budapest Business Journal. which is too late; therefore, the death rate is extremely high. Why do we find the benefit of many.” BBJ: How did this all start? them so late? Because in the brain, Christoph Sensen: HCEMM started as there are no nerves for pain. If we had Christoph Sensen, the one of the European Teaming grants markers for these cancers circulating in director general of HCEMM, in 2017. The current partners are the of sepsis, for example. These are the the bloodstream, for example, we could on the roof of its new HQ. Semmelweis University, the University major disease complexes that we work check them once a year, as we do now of Szeged, and the Biological Research on, which contribute to shortening the for other diseases, like prostate cancer. Center in Szeged. The advanced partner life span of Hungarians or lowering So, if we could detect these earlier, the of the HCEMM project is the European their quality of life. To counter this, we treatment success rate would be higher, COVID and sepsis are interlinked Molecular Biology Laboratory (EMBL), use molecular techniques to make new the quality of life for the patients would because the COVID virus lowers with its headquarters in Heidelberg, approaches for diagnostics or disease increase, and the costs of the treatment the immune system, and people Germany. The National Research, treatment. Such technologies used here would also be much lower. These are eventually often die from a secondary Innovation and Development Office are DNA sequencing, proteomics [the the strategies that we are now trying bacterial infection, which ultimately (NKFIH), which initially coordinated study of a large number of proteins to develop. causes sepsis. In our study, we will HCEMM, now functions as an observer. in biological systems], and several also look for markers for the severity HCEMM has also received National other omics technologies [genomics, BBJ: What kind of professionals of the COVID infection, and hopefully, Laboratory status in Hungary and metabolomics, metagenomics, are you looking for? this information can be used over a thematic excellence award. transcriptomics, etc.] developed over CS: This is now the second call, and time to guide the treatment of we are looking to establish six or patients with information gained seven new research groups at our when they first present at a doctor. new headquarters in Szeged. These In summary, we are looking for are independent of the HCEMM long-term solutions that the healthcare owners, so they are directly paid system can use on a large scale through grants that come from the for the benefit of many.

12 | 2

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Building Better Businesses by Design An ambitious project to enable Hungary and the Central and Eastern European region to become true design innovators has been launched by the Moholy-Nagy University of Art and Design (MOME) Innovation Center, in part with the help of the Budapest Business Journal.

HUNGARIAN COMPANY DESIGN MATURITY DISTRIBUTION Analysis of company self-reported information 37% 35% •

15% 12%

LEVEL 1

LEVEL 2

ROBIN MARSHALL •

The project was kicked off in earnest on April 27 with the publication of “Use of Design in Business,” a survey that sought to discover how design-driven Hungarian companies are today. Welcoming participants to the MOME Innovation Center, Gergely Böszörményi-Nagy, chairman of the university’s foundation board, described guests as a group of pioneers, “a small tribe [...] actively open to innovation and design,” and “ambassadors of sentiment and approach.” The aim is to “build a significant design hub in Budapest,” he said, but

LEVEL 1: POTENTIAL

Design is seen purely as an aesthetic tool. Companies are conducting business in a traditional way and see designers’ potential only in their art skills. While design use is limited, it’s at a level with the potential to grow.

•

LEVEL 3

•

LEVEL 4

LEVEL 4: PINNACLE

Design is now essential. Companies at this level integrate design into their strategic decisionmaking processes from the core. They look at the big picture and see the benefit of using not just quantitative data to define their future but following a more holistic approach.

LEVEL 2: PROGRESS

Design is used not only to make a product look attractive anymore, but the company also sees its role in shaping its client experience.

was honest enough to admit that, as yet, awareness of MOME as a brand “is non-existent abroad.” What he envisages is long-term partnerships

MOST STRATEGIES ARE DEVELOPED WITHOUT DESIGN FACILITATION About 41%

of the respondents’ strategic plan is primarily developed and adjusted in design-driven workshops. They plan according to quantitative forecasts and do not take full advantage of multidisciplinary teamwork to create user-centric solutions.

LEVEL 3: PERSPECTIVE

Design begins to play a role in the greater picture. The company starts to involve designers in more than just styling or UX design – instead, they use design thinking and cross-disciplinary teamwork to develop customer-centric, sustainable solutions.

Our company’s strategic plan is primarily developed and adjusted in designdriven workshops.

41%

with business to put local (meaning not just Hungary but also the CEE region) design well and truly on the map. The survey was pulled together with support from the BBJ, the Hungarian Association of Executives, and the British Chamber of Commerce in Hungary, and the aim is eventually to make it CEE-wide. Presenting the results, Lasma Ivaska, director of the MOME Innovation Center, said executives from more than 100 companies had been quizzed. About a third were from large corporates, onethird from SMEs, while the remaining third did not identify as either. From the resultant answers, the MOME team pulled four takeaways. The first of these was that only 15% of companies use design across all operations. On average, more than 50% of respondents said that the person who has overall responsibility for design and customer experience in their organization is part of the senior executive team.

Wanted: CDOs

The Innovation Center had assembled a panel of experts to discuss the results. Interestingly, they were skeptical that any more than 5% of companies currently use design across all operations. Tamás Fogarasy, founder and CEO of Exalt Interactive and soon to be head of the interaction design masters course at MOME said the answers implied companies had a chief design officer, and there simply weren’t that many of those around.

The second take away was that while companies in Hungary understand the importance of design within customer-facing operations, it features much less often in business strategy formation and organizational development processes. Thirdly, where companies have good experiences employing design, they are much more likely to reinvest in this area, with user experience (UX) often mentioned as an example. “According to our respondents, the highest priority design investment fields are UX design, service design and, artificial intelligence (AI) design. It is worthwhile to note that among the fields, AI design is the only one where the willingness to invest slightly exceeds the current experience with it.,” the report finds. An interesting corollary to this is that although investments in design are quite conservative, the survey showed that companies are not as risk-averse as they might seem. “More than 75% of companies invested in research and development, explored news business models, or ventured into new products or services. This shows that the issue is not being afraid of the unknown, but not recognizing the true potential of design,” the report finds. The final take away is that sustainable design is becoming more important for a higher number of companies, and it can be expected that this will only increase.

Design Addict

Asked to pick one area to improve the uptake of design thinking, Mátyás Dobó, the enterprise business unit director of Vodafone Hungary (who described himself as “a recovering design addict”) said using design strategy is resource intensive, and choosing where to deploy it is never easy for a manager. “I would be happy if I was better at choosing the right places to improve through design,” he said. Réka Szűcs, the sustainability and climate change service line leader at Deloitte, said she wanted people to realize sustainability is not about designing the future so much as today and tomorrow. Fogarasy thought it was important to get as many designers involved in developing strategy as possible, while Judit Kertész, managing partner at Frontira, echoed Dobó’s suggestion that choosing the right problem to solve is crucial, and urged businesses to “think outside-in, not inside out.”

“Use of Design in Business,” which include tips on how to incorporate design better into developing business strategies as well as the findings of the survey, can be downloaded via the QR code.

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Budapest Business Journal | May 6 – May 19, 2022

Special Report Real Estate: Offices

Refreshed lobby enhances the abundant natural light

REJUVENATED WITH A REFRESHED ENVIRONMENT

w w w. a t r i n o v a . h u

Uncertainty Hallmarks Today’s Budapest Office Market Although restrained delivery in recent years means there is little risk of oversupply in the Budapest office market, a rethinking of working habits and broader economic considerations caused by the international economic and political environment now raise questions about whether demand will meet supply, writes real estate editor Gary J. Morrell.

the creation of business hubs, standalone and regeneration projects. Developer Wing, for example, is due to deliver the 29,000 sqm mixed-use office and hotel Liberty project in District XI on Könyves Kálmán körút, close to Üllöi út, the road into the city from the airport. In the Váci Corridor, GTC has completed the fully preleased 27,500 sqm Pillar, and in South Buda, Futureal will deliver close

40,000 sqm

of space at Budapest One. Budapest will see its first office skyscraper with the completion of the 50,000 sqm MOL campus headquarters at BudaPart in District XI. Developments are ongoing across Budapest, but construction is being disturbed by supply chain issues and the continuous re-pricing of construction materials. Office pipeline for this year is around 326,000 sqm, although preleases mean only a third of that will be available to new tenants. Further, there is about 190,000 sqm of space under construction with a later completion date, according to CBRE. One problem is that the Budapest office market has significant exposure to multinational companies with shared service centers, for example. Many of these have still not returned to the office and, therefore, large deals are missing from take-up.

Substantial preleases are required in this market environment before the construction of a project is undertaken. Many companies have only partially returned to the office, and questions remain over requirements and future demand. Scope for Development Developers are undertaking more sustainable and imaginative office designs Analysts see room for development as only 45,000 sqm of space in three projects was to meet the demands of office occupants and ever-stricter sustainability regulations. delivered last year. Crucially, the vacancy has remained below the 10% threshold. As reported on page 29, total modern “This was one of the lowest levels on office stock in Budapest has surpassed four record as ongoing office developments million sqm of class assets, according to the Budapest Research Forum. The overall planned for delivery in the second halfyear were all delayed. The lack of supply vacancy rate has increased to 9% and is since expected to increase further. However, oversupply is not anticipated. Colliers has traced 19 Budapest means that Budapest has a disproportionate office projects due to be completed this stock of first-generation offices,” says year and a further 11 in 2023. These Cushman & Wakefield. The consultancy consist of phased developments with

2020

argues that Budapest remains atractive to international companies offshoring and benefiting from cost-cutting initiatives in uncertain economic times. Belgium-based developer Atenor is due to deliver two buildings: RoseVille in Buda and Aréna Business Campus B, a phased 85,000 sqm development project on Hungária körút, the outer boulevard of the city, in District VIII. “For large prelease tenants, the development has to be as tailor-made as possible. This depends largely on the stage of development when the tenant ‘joins in’ and the prelease is signed,” says Melinda Kovács, development and leasing manager at Atenor Hungary, on the leasing process.

Prague and Warsaw for high-quality office products; very premium assets can trade at sub-5%. Despite the strong pipeline, the Budapest office market suffers from a low supply of available investment-grade assets. Environmental, social, and governance issues are now seen as central to a developer’s letting and exit strategy. “ESG and sustainability are already one of the main topics on the development and other markets. International tenants’ and investors’ internal guidelines, in particular, will make it increasingly difficult even to consider properties that do not have sustainability features to assist them in reaching their ESG goals. So, sustainability accreditation is now a ‘must,’ and ESG compliance will be taken very seriously in the future,” comments Kovács. “ESG-compliance should not remain solely a marketing slogan. An interconnected, intelligent building management system enables PM and FM experts to reduce

CO2

Liberty office and hotel project by Wing. “Location, services, and a good financial package are still essential, but flexibilities in terms of lease length and space (i.e., extension, expansion, and contraction possibilities) are also gaining more and more importance in today’s turbulent circumstances,” she explains. Despite some concerns over demand, the office sector continues to be the leading investment sector, representing 74% of the EUR 1.14 billion of investment market activity for 2021, according to Cushman & Wakefield.

Yield Premium

Colliers, meanwhile, puts prime office yields for Budapest at 5.25% and stable, which is a significant premium on

emissions

and achieve sustainability targets faster,” says Valter Kalaus, managing director of Newmark VLK Hungary. “Social aspects have become more important than ever before. A proven ESG record will support an exit strategery and may add to the price. ESG aspects should be included in staff education, and issuers of green bonds, mainly developers, will be responsible for ESG compliance as well,” he adds. It will be interesting to see how demand and development strategies develop in the near future in the Budapest office market in response to the economic and political environment. Developers will need to improve their offers to meet the changing climate around tenant specification, sustainability, and ESG and meet the challenge of upward pricing pressure.

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Special Report

PRESENTED CONTENT

Educating Through Better Sustainability, Quality and Technology You might not expect education to be a theme that crops up often in conversation with a leading real estate developer, but it was a topic we returned to time and again in an exclusive 90-minute interview with Tibor Massányi, managing partner of DVM group: Education of employees, contractors, clients, even the general public. ROBIN MARSHALL

Our conversation covered a lot of ground: the ongoing influences of COVID, the war in Ukraine and ESG requirements, the 2021 and 2022 business years, future plans, and the “insane” impact PropTech will have. Still, this recurring theme of education was the big takeaway. To set some context for what follows, Massányi says 2021 was “a good year generally.” Turnover was down 10-15% on what had been planned, but profitability was on a par with 2020. “If you look around at other sectors, if you said you would have 10% less turnover than planned, many companies would have signed up for that at the start of the year,” the managing partner says. DVM group works across multiple sectors, from multi-year projects like the Szervita Square Building, to office fit-out. For the past six-to-eight years, it has also been heavily involved with the hospitality market, and as Massányi points out, for much of 2021, “that was completely closed.” Because of the pandemic, several deals for hotel investments were put on hold. “It was a two-year pause rather than a cancellation. Last year we managed to renegotiate all these contracts and have already started those.” This year has brought its own challenges. Already, Massányi says the management is telling colleagues, “This

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Cherry Picking

“From a contract point of view, we are absolutely fine for the next two or three years, and in a very healthy position in terms of the number and types of works. So, we have been trying to cherry-pick those projects we want to squeeze in now, whether from the reference point of view, maybe because of the complexity, or some long-term relationship with the client,” he explains. “This year, we are full. Next year we are already at 50-60%. But because of the situation we have discussed, we have to sit down and renegotiate almost all the contracts, especially the big ones which are two or three years long. If the steel price is 30% higher, for example, we cannot build that in,” Massányi says. “It is a mind game. We don’t have a problem with the mind games and the negotiations; we like to do these, but we would like to focus more on the engineering work, the architecture, rather than reread over the paragraphs of the contracts.” Costs will be a significant part of those discussions, but in a world where everyone is suffering, it may well be that a client cannot afford a 15-20% increase. “If this is the case, then we have to find a solution, by reengineering the project, if necessary. [….] But that’s construction, that’s real estate. It always has its issues.” And it is not as if the DVM group is entirely on its own and in the dark when it comes to finding new purchasing lines. It is part of the Studio Alliance, a 13-member international organization for premier league independent firms. “I can call up the German partner, the English partner, the Polish partner, the Turkish partner and say, ‘We have a problem with this. Do you have a solution? What’s the price?’’’

Naturally Optimistic

Massányi describes himself “as a glass half full guy” who is naturally optimistic, but does he have a worst-case scenario Tibor Massányi, managing partner of DVM group. regarding the war and its impact? He does, but he doesn’t like to think about it too much. “Never say never, but I don’t want to A second problem is that the year will be harder than the last two be faced with that. The only way to be industrial ovens used for drying the years. [.…] But we are problem solvers, worse, to be honest, is if the war doesn’t and we will solve these problems.” While tiles are usually gas-fired. Premium end this year or somehow goes across quality manufacturers are already DVM group has no direct exposure to the borders. But the EU and the United asking for EUR 2 or 3 on top of the Ukraine or Russia, both are well known States are very sensitively handling original price to cover rising gas costs. as sources of raw materials in the this; that’s what they would like to avoid Secondary manufacturers, who produce construction business. completely,” he believes. less good quality tiles for the much Taking Their Toll The war seems to have knocked more price-sensitive residential market, “In the construction sector [of the cannot pass on those sorts of cost hikes, COVID almost entirely from the news business], there are roughly 100 headlines. Massányi says it is still a and some have simply closed their Ukrainians, mainly working during the threat, but he thinks both individuals factories for now. structural works, and some of these Thirdly, there are the logistical costs of and businesses have got to the stage workers went back home.” Inflation and where they believe they simply have to transporting the finished tiles from Italy rising energy prices are also taking their or Spain to Hungary, not least of which is learn to live with it. toll. Massányi uses tile manufacturing to the price of diesel fuel. The same applies The other great impactor on real illustrate the challenge. estate is ESG and sustainability issues. to basic raw materials like steel, wood “The biggest tiling manufacturers are and gypsum. All are becoming harder to Massányi says the majority of what DVM in Italy and Spain. We usually work with does, some 70%, is in the office market. source and more expensive to buy. those who deliver premium products “That is, I believe, the most developed These problems began during COVID because we need really good quality tiles but have accelerated with the war, and forward thing sector of them all, to in the office sector. The basic material be very honest. In Hungary definitely, Massányi notes. Bombed Ukrainian of the tiles manufactured in Italy came that’s the case, but I think in Europe factories, for example, will take time to from Ukraine. So, these manufacturers too, because it’s dictated by the big bring back into operation. have a reduced assortment. So, they are corporates,” he says. “Even if the war stopped today, this not selling 2 cm thick tiles, but 1 cm, “What I learned, not from ESG but issue would be with us for several months because it is double the raw material sustainability on the office market, is after, I think.” All of which begs the needed; that is out from the portfolio.” that it was the tenants who forced having question: how do you plan for the future?

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Budapest Business Journal | May 6 – May 19, 2022

a BREEAM, LEED or Well certificate. It did not come organically from the developers,” he says. Today, an A-class office building cannot be developed in Budapest without green certification because it could not be fully let or sold on, Massányi argues. “That is a fact. It was not a fact 10 years ago.”

Green Pioneer

The managing partner says DVM was one of the first in the Hungarian market to move into green certification some 14 years ago. “It was an idea to build and plan in a sustainable way. And when we got our first certifications, everyone said, ‘Oh, it’s a very good marketing tool.’ It was not, but 10 years ago, it was seen as a marketing tool. Now, it is a ‘must-have,’” he says. ESG is somewhat similar, he believes. It is more than a marketing tool, but he says he does not yet feel the commitment from some real estate players that they really want to do it. A change of mentality is needed, and a lot of learning. “Commitment, and education, are what is important here. Educating everyone who is in this business. Not just the managers and designers, but the last foreman and labor worker on the site needs to understand why it is important to build sustainable projects,” he insists. “I think it is very human not to look too far forward but to focus on the here and now, but this is not for us; it is for our children and our children’s children.” Does that mean firms like DVM have a role in educating the industry? “Definitely, yes. I think it is part of our job, and this is where that commitment

steps in,” he insists. Different sectors are also at different stages. He described the office market as “well educated,” for example. “I have general problems with the residential market because of the quality. For me, the way of thinking is absolutely unacceptable because everything is just profit maximization. I do not see education from this [sustainability] point of view.”

Residential Quality

DVM’s design team already has some residential projects, and Massányi says the group is “very close” to a deal for its own project under the DVM Home brand. It won’t be a luxury development but, the director says, “will introduce what we believe residential quality should be in Hungary. Obviously, it is going to be sustainable.” This brings us back to education. “Our design team has to push the clients to understand that they must build something in a sustainable way. It is our obligation. If they are not aware or do not care, we have to lobby. This is the commitment. You have to push them further and further to achieve bigger and bigger goals in terms of sustainability.” On the actual construction, there is a need for better insulation, more sustainable sources of material, to find alternatives that are closer to the site and thus have a lower carbon footprint, and to explore means of cutting dust and noise pollution during the build. “The government also has a role in educating, but also in helping to build more sustainably, with legislation, financial support. Everything starts

from this point. If people understand the importance, you can change their mindset. Who has a wider bandwidth to reach people than the government? No one.” Massányi is equally evangelical about the power of PropTech to transform the industry. He is involved with a competition to select PropTech startups and says the potential he has seen is “insane.” He was invited to be a jury member but admits he is not just there out of selfless interest.

“It was an idea to build and plan in a sustainable way. And when we got our first certifications, everyone said, ‘Oh, it’s a very good marketing tool.’ It was not, but 10 years ago, it was seen as a marketing tool. Now, it is a ‘must-have.’” “I am very much in it to understand the solutions, software, and technologies that could help the DVM team be more efficient and more precise. I feel we have to follow it and keep at the forefront because if you are not spending time with it, you cannot develop your technology, and then you will be in a very poor position on the market. It is education, again. Day by day, we have to develop our way of working, our knowledge.”

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Technological Advances

There are many areas where PropTech can help. Modeling, for example, can simplify the mundane workload of DVM’s green credential assessors, not just making their output even more accurate, but enabling them to handle more projects in parallel. Two other departments can also benefit enormously from technological advances: architectural visualization and Discovery, which is workplace strategy and design. The former is an artistic team using “crazy” technology similar to the movie industry, albeit on a smaller scale, Massányi says. The International Property Awards has already voted DVM’s team the best architectural CGI company internationally. “We like to deliver premium and only premium, which lets us step beyond the borders and work for huge companies and developers in the United States, in the Gulf area, in some parts of Asia.” The aim is to help decision-makers who aren’t architects or designers “see” what an office will look like. “This is the magic that the visualization team artists are doing.” The latter service, which now has a dedicated team, is used in the early stages of interior design and is one of the few positives to come out of the pandemic, as that is when its toolkits were created. “We developed our way of working to serve our clients better,” Massányi explains, “to understand them more deeply and to be able to propose a much more tailored fit for them.”

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Budapest Business Journal | May 6 – May 19, 2022

PROMOTION

Icon: People-centered Approach, Expertise Keys to Success in Property Management Icon Real Estate Management is a dynamically developing player in the Hungarian market, and its rapid growth has drawn the attention of competitors. The company currently manages more than half a million square meters of office, retail, industrial, and logistics properties and expects further expansions in its portfolio. We spoke with CEO Gábor Nagy about the reasons behind the success and plans for further growth. BBJ: With the property sector facing a labor shortage, we hear from many in the market that this can be at the expense of quality service; how does Icon ensure there will be enough people to do the work? How do you assess the current state of the market? Gábor Nagy: The volatility of the real estate market is following the rapid changes in the business world as well as in the office, industrial and retail sectors. So, from my point of view, the market is in anything but status-quo. That is why we saw the time as ideal to enter the with a new approach that offers a new way of thinking to our customers. There are several factors driving change in the property management business. Uncertainties in the energy market and the rise in energy prices are significant variables that are also affecting the real estate market. This change is amplified by the impact of energy commodity price changes on inflation. Even in a relatively stable market, the conflict in our neighboring country also creates uncertainty. After the two-year coronavirus pandemic, tenants have only returned to offices in the recent weeks, but their space requirements have changed significantly. There is less demand for large, singleoccupancy offices. At the same time, recreational and regeneration spaces with proper services have become more valuable in the office market. Property managers need to respond flexibly to these needs. There is also a growing demand for sustainability, green thinking, and environmentally conscious solutions in both our property management and facility management business units. At Icon, we strive to consider ESG in our external and internal operations. We strongly feel this at the management of the Well-certified Corvin 5 office building, which justifies the existence of a work environment that ensures the employees’ well-being. This is why we invest in innovative solutions such as the Hungarian-developed waste processing robot, Compocity.

In such a situation, a close, balanced partnership based on professional knowledge and experience is essential both on the owner- and the tenantside, as well as with subcontractors and construction partners. This is one of Icon’s strengths; we believe it is vital that our partners feel they can always rely on us. The success of this philosophy is not only proven by our business results but by the fact that the appreciation of our existing employees, the recognition of their professional excellence, and Icon’s growth prospects make us attractive to the best professionals in the labor market.

Gábor Nagy BBJ: How is Icon different from other players in the market? GN: As I mentioned, the property management market is a relatively stable area; characteristically, there are few and slow changes. However, the appearance of a new player always generates waves in the market. The uniqueness of Icon is, first and foremost, that we serve both our real estate investment partners with our property management business and our tenants with our

facility management business. We provide financial services to all our partners on demand, with the flexibility to meet their needs. This is unique in the domestic market. This complexity enables us to manage properties with a genuinely ownercentric approach to international standards to make them more valuable and develop them from year to year. With all these values, we can assess the real needs of our partners and respond to them in a flexible, efficient and rapid manner. But it’s also the people-centered approach we take to our work that makes our team’s commitment unique in the industry. This ensures our professionalism, our efficiency, and the quality of our customer service in a changing market environment. In the property management market, there are few senior professionals, and those with experience are mostly absorbed by the landlord side. Icon’s unique asset is the professional knowledge of our colleagues, and our priority is to maintain, develop and expand this knowledge, as their experience and professional contacts are irreplaceable values. At Icon, we believe that in addition to professional excellence, nurturing human relations with both our partners and our employees is essential to achieving our goals. In a market dominated by international players, the fact that Icon is domestically owned and has grown rapidly in recent years is an important factor. BBJ: What do you consider the most important regarding your business results? GN: Icon Real Estate Management Ltd. was founded in 2018 with a domestic ownership background,

which means that our focus is on the Hungarian market. Initially, we specialized mainly in property management of premium office buildings and shopping centers, but we quickly saw the potential for growth in providing an integrated service to our clients and not only serving our investor partners as good landlords, but also being able to serve the needs of our tenants within the company. Therefore, in 2021 we acquired the operations business of CD Hungary Zrt. to provide property, facility, project management, and financial services to our clients. Icon currently manages nearly 500,000 sqm of real estate, including the BSR Center, MoM Park, Roosevelt Office Building, and the Budapest Dock Freeport. BBJ: How do you see Icon’s development in the coming years? Where is there room for further development? GN: I am convinced that our progress will continue unabated in the coming years. We are aiming to significantly increase our current portfolio in the property management market, while I would be satisfied with an even more significant expansion in our facility management business. We are already prioritizing digital solutions in our operations, providing efficient solutions to individual needs, and considering sustainability both for our own operations and for the properties we manage.

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Budapest Business Journal | May 6 – May 19, 2022

PRESENTED CONTENT

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Generational Project That Revitalized a District The BBJ talks to Tomasz Lisiecki, CEO of TriGranit, about its hugely influential Millennium City Center development, which began a quarter-century ago. Home to now-iconic artistic buildings like the National Theater and Müpa, alongside offices and residential buildings, it has brought District IX back to life. BBJ STAFF

BBJ: Congratulations on the Millennium City Center project reaching its quartercentury. When and how did TriGranit acquire the land, and was there a master plan from the outset, or did the project evolve over time? Tomasz Lisiecki: A generation has grown up since we began! This area used to be the city’s “dog running area,” a plague spot, albeit one from where you could still see one of the most beautiful panoramas of Budapest. Originally, the 1996 World Expo, to be jointly organized by Vienna and Budapest, was planned to be held on the site. The expo never materialized, and, after two site tenders in 1998 and 1999, TriGranit purchased the 5.5-hectare site in 2000 from its owners: the Hungarian Treasury and oil and gas company MOL.

In the end, we can state it was a success story and that the Millennium Gardens has become an exceptional final project in the Millennium City Center scheme. BBJ: Given the benefit of hindsight, what would you have done differently? TL: In the interim, bank financing and pre-leasing conditions have changed; therefore, we have also amended the development schedule accordingly.

The government has been actively involved in the site to date, with Hungary’s new National Theater (developed by the Ministry of Culture) located on one of the parcels and the Cultural Complex, developed by TriGranit, forward purchased by the State. The old freight station had been demolished for the expo and the site was transformed into the Millennium City Center with institutions of national importance such as the National Theater, the Palace of Arts (now called Müpa), and state-of-theart developments like the Duna-Pest Residences, the Millennium Office Buildings and the headquarters of K&H Bank. The formerly industrial District IX has been brought back into the vibrant life of the capital through TriGranit’s vision and development. The first master plan was drawn up in 2000. Based on that, the Millennium City Center’s development profile would have consisted of a 5,000seat conference center, four-to-six international hotels, a multifunctional exhibition hall, offices and luxury

condominiums. The total gross floor area would have added up to 470,000 sqm. The master plan has been amended and adapted to renewed needs over the years; therefore, besides Müpa, we have delivered high-quality residential and office buildings and created a flourishing residential and business center in the southern part of the city. BBJ: What have been the highlights and most significant challenges in this 25-year history? Were there periods when you worried you could complete the project? Is there one element of which you are most proud? TL: The area of the Millennium City Center (MCC) has a size of approximately 10 hectares, including 11 individual plots on which several office buildings (Millennium Towers), luxury residential buildings (DunaPest Residences), and the Palace of Arts have been built in the last two-and-ahalf decades. On the one hand, we are most proud of Müpa, which serves as the home of three major cultural institutions: the Festival Theater, National Concert Hall and Ludwig Museum. The creators of this unique facility, the developer TriGranit, the general contractor Arcadom Construction Ltd., and the designers Zoboki, Demeter and Partners Architects, were driven by the idea of creating one of Europe’s new cultural centers in the Hungarian capital on the Danube riverfront, which is part of the UNESCO World Heritage. It is a facility whose appearance, functions, high quality of construction, and state-ofthe-art technical background allow it to host any large-scale performance and which can bring together a wide range of artistic disciplines in one place. However, we are also exceptionally proud of our newest development, the Millennium Gardens office building, the construction of which was very challenging throughout the pandemic.

BBJ: It is not every day you get to develop on such a scale, impacting practically a whole district. What was the initial reaction from the local public, and how has that changed over the years? TL: The construction industry plays a vital role in satisfying human needs; therefore, construction activities cannot be avoided. In addition, many of these activities are carried out in urban areas, so it is impossible not to have these activities in city centers. However, construction projects are also acknowledged as one of the primary sources of nuisance in urban areas, affecting the local public. These nuisances were unavoidable in the case of the MCC, but eventually, the people acknowledged the benefits of the new city center and saw the handover of the first ultra-modern buildings revitalizing the district. Initially, the first developments were received by locals with difficulty and doubt, but they began to accept them after a short period. Finally, the public even became supportive in some cases, especially when they saw that it went hand-in-hand with the rehabilitation process of District IX. The situation was very different compared to other districts and business centers of the city, as the Millennium City Center entailed the renewal of the whole community. BBJ: Is this mixed-use Danube-side district now complete? What plans are there for the Millennium City Center? TL: The Millennium City Center is complete at this point; however, we are open to commencing the second phase of the Millennium Gardens in the near future. BBJ: Finally, what’s next on the drawing board for TriGranit? TL: TriGranit has numerous plans for the future in Budapest and also in CEE. Besides the second phase of Millennium Gardens, we have several residential and office projects and mixed-use developments in mind. The market sentiment, market conditions and actual demand will determine the projects realized next.

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Budapest Business Journal | May 6 – May 19, 2022

Developments Undertaken in Multiple Locations Office development is being undertaken in multiple areas across the city, reflecting the limited supply of suitable plots in any one place. Business districts have become increasingly widespread across Budapest as developers look to source highly visible, well-located sights with direct transportation links and access to local amenities. GARY J. MORRELL

With a lack of suitable plots in the Central Business District, although there are redevelopment possibilities in earlier ADVERTISEMENT

(CBRE, Colliers International, Cushman & Wakefield, Eston International, JLL and Robertson Hungary), which puts vacancy in North Buda at a

low

5-6%

compared to a very high 31% for the periphery. “The main office hubs of Budapest have not changed; these are still the Váci Business Corridor and the Central Business District: no wonder Academia, being on the riverbank, is considered a trophy asset,” comments Csaba Zeley, managing director of ConvergenCE.

Considerable Interest

“These may only be joined by new areas supported by great public The MOL Campus skyscraper at the BudaPart development. transportation, such as South Buda. Offices with a great location and [high] quality remain attractive investment generation buildings, competition for options; there is still considerable In response to tenant demands, office sites is becoming more intense and development is targeting urban locations interest in our market,” he insists. consequently more expensive. The pan-European real estate that are better integrated into the wider The South Buda sub-market has the investment manager, Europa Capital, city. The conventional wisdom is that highest new supply with 157,000 sqm staff who often work flexible hours prefer acquired the 12,500 sqm Akadémia due to be delivered by 2024, with Central to be in places that allow them to utilize Business Center, located on the Pest Pest second at 151,000 sqm) and Váci út bank of the Danube in the historical local amenities and commute by public and its once pre-eminent office corridor center of Budapest, in partnership with transport or bicycle. having slipped to third with 113,000 ConvergenCE. The acquisition was The preference is reflected in figures sqm, according to Cushman & Wakefield. from the Budapest Research Forum completed on behalf of Europa Capital’s

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latest value-add fund, Europa Fund VI, and the building has been rebranded Academia as part of its renovation and market repositioning. Budapest has several thriving business districts across the city partly because it has no true, well-defined CBD due to a lack of suitable development plots. A notable exception to these has been Horizon Development projects involving the renovation and redevelopment of classic historical buildings into offices, retail and restaurant spaces, working with its partner DVM group. Here more than anywhere else, it is seen as highly important to evaluate a project on a community level and not just as a stand-alone commercial project. Sustainable buildings are smart buildings that respond to the needs of the building users, but they must also interconnect with their environment. At the western edge of the city in District XI, Futureal is developing

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its 65,000 sqm H2Offices, consisting of three interconnected buildings on Váci út. CPI, meanwhile, is planning New Age, an office complex at a site close to Árpád híd, and has delivered the 16,000 sqm Balance Hall, part of the 35,000 sqm Balance Office Park on Váci út.

Open Dialogue

“Every location is different, and a new building has to be adapted to its environment; to achieve this, open dialogue is required with the municipality, urban planners, other developers, and representatives of local inhabitants,” says Mátyás Gereben, the country manager of CPI Hungary. Having completed the phased 85,00 sqm Váci Greens project and successfully sold off the various phases to investors, Belgian-based Atenor is due to deliver two more buildings: RoseVille in Buda and Arena Business Campus B, a phased 85,000 sqm development project at the Hungária körút in District VIII, part of the outer boulevard of the city. As development plots have become Budapest One Business Park on a increasingly scarce, this boulevard of brownfield site at a transport hub at Etele Budapest has developed into an office tér adjacent to the Kelenföld railway hub. Further to the south, where Hungária station and the Metro 4 station. The area, körút becomes Könyves Kálmán körút, including the newly opened Etele Plaza Wing is due to complete the speculative shopping mall, is seen as a new city quarter by the developers. Another experienced developer in Liberty office complex in District IX as the Váci Corridor, Skanska, has started part of a business and sporting complex. developing the 26,000 sqm first phase of

68,000 sqm

42,000 sqm

Budapest ONE business park by Futureal. For their part, city authorities are looking to attract development that improves the economic environment, provides employment opportunities, and upgrades an area. Developers are reacting to these demands by striving to enhance the architectural design of projects located within urban areas with proximity to residential areas. Another mixed-use massive scale development is BudaPart by Property Market on a 54-hectare site on the southern Buda bank of the Danube with direct access to the river at Kopaszi Gát,

a rare development possibility in an established European capital. The project includes office, retail, hotel, and residential in addition to large green and park areas and is based on the concept of the development of a new city quarter. This development of infrastructure is seen as transforming the surroundings. As part of the overall development, Hungarian oil and gas company MOL is close to completing its 144-meter high, 28-story, 86,000 sqm MOL Campus HQ building, which will be the first office skyscraper in Budapest.

G R E E N E R Y

•

C O M M U N I T Y

•

F L E X I B I L I T Y

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Budapest Business Journal | May 6 – May 19, 2022

PRESENTED CONTENT

Despite Challenges, CPI Embraces ‘Exciting’ Period of Change These may be uncertain times, into our third year of the COVID pandemic, with the unwelcome return of war in an immediate neighbor to the east and with supply chains disrupted and global inflation soaring as a result. But that hasn’t stopped CPI from significant expansion at both group and local levels. ROBIN MARSHALL

“This is a much more exciting time than during the financial crisis of 20092010, when we were faced with the realization that we were not able to do much because nobody had the money for it,” recalls Mátyás Gereben, country manager of CPI Hungary. “For now, the CEE market is safe, financially. The war will impact the world economy, but, at the moment, there are opportunities to act, not just to acquire physical assets, but to bring the whole group up to another level,” he argues. “If we do not explore the direction we want to travel now, we will fail to understand how we can succeed in making ourselves future proof,” he adds. “I am greatly optimistic we will not only acquire new tenants and properties to expand the business but also transform it in a way that we can be here at least for another

30-50 years

and remain a significant player,” Gereben insists. To that end, there have been developments both internationally and locally. In February, CPI Property Group SA acquired a majority stake in Immofinanz AG. That same transaction also gives CPI PG control of the 26.5% stake Immofinanz holds in Vienna-based rival S Immo AG. “As CPI Hungary and a group, we are in a transformation phase, becoming a real pan-European investor and asset holder,” he explains.

Special Report | 21 It is possible, over time, that investors might assign Hungary a higher risk factor when making their assessments on properties of portfolios because of the geographical closeness to the war, but there is no sign today of that happening. It might become more prominent if the war is prolonged, but that is the great unknown for now. Where the war does have a direct impact is in accelerating inflation, and in particular, on the rising costs for office fit-out. “For day-to-day office expenses such as cleaning and maintenance, there might be some increase in services prices, but that is nowhere near as significant as the fit-out and renovation cost increases,” Gereben explains.

No Formality

Last year, the fit-out element of a lease contract was “a formality,” he says. “Today, it is much tougher; the fit-out cost is becoming so expensive that it can be the main focus, not the basic rental fee.” Every cycle ends unexpectedly, Gereben points out, whether in a war, a pandemic, or an economic crisis. “The past 20 years have been full of ups and downs across all asset classes. Five years ago, everyone said you should steer clear of logistics, and look at that now.” Fundamentally, there will remain a need for office space, he says. The other significant influencing factor right now is the environmental, social and governmental trend. The challenge here is that while everyone thinks it is a good idea, there is no universal agreement on what it is precisely or how to measure it. “The news that the king is coming has reached the villages much faster than the king himself,” Gereben jokes. The situation is not dissimilar to that of 10 years ago when so-called “green Mátyás Gereben, country manager of CPI Hungary. certification” from BREEAM and LEED were still market-differentiating novelties. But certification for WELL have a business impact, although it is The group has long taken the strategic and Access4you also touch on societal not yet clear what it might be. view that, as a long-term asset holder, aspects and are much more complex. For example, home office proved such it prefers to undertake its property and Sustainability itself is much better a success, most corporate organizations facility management duties in-house understood, the country manager feel they have to offer the opportunity rather than contracting that work out. says, and is key to CPI, which is in a hybrid working model. That would When CPI PG bought the retail creating a framework within which seem to suggest businesses would need portfolio of CBRE GI, covering the it can operate and influence others, less office space, but Gereben says he Czech Republic, Hungary, Poland and such as its own staff, as well as sees no evidence of that thus far. Romania, for EUR 650 million in 2017, tenants and service providers. While that may seem counterintuitive, CPI Hungary got the Campona Shopping Two major programs have seen CPI companies do not yet fully understand Center, among other properties. Hungary install solar parks on top who will be working where, when, and “At that time, we did not feel we had of the Polus and Campona shopping doing what. the in-house knowledge for operating centers, with a combined capacity of “When it comes to leasing new office and property managing a retail portfolio,” space, we also see hesitancy,” the country Gereben says. In the intervening years, megawatts manager says. That means companies those skill sets have been developed. per year. who were not already committed to Thus, retail management (asset, It is also in the middle of working moving to new purpose-built premises, leasing, marketing, and legal) has been through its energy sources. All energy say, would rather extend existing leases handled internally since April. The in common spaces in CPI buildings is than move somewhere new. number of CPI Hungary employees certified as coming from green energy. For now, that seems likely to remain has also increased from 52 to 83, The next stage is to go through a the case, at least until businesses can representing an increase of almost 40%. similar process with the tenants. get a better handle on what will be done The move means the company can now Elsewhere, the company is in offices and how the space can best be offer full scope PM and FM activities in refurbishing its Arena Corner and used to achieve that. all the sectors in which it operates. Andrássy Palace buildings “to meet When it comes to the war, CPI PG has Living with COVID tenants’ higher expectations” and “marginal” exposure through a single While much of the world seems to have hotel property in Russia, but, to date, completing its large-scale project to decided it has to learn to live with refresh Campona. there has been little direct impact on COVID, that doesn’t mean it won’t still It is, as Gereben says, “a very busy time.” Hungarian operations, Gereben says.

1.5

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Budapest Business Journal | May 6 – May 19, 2022

Special Report | 23

Market Talk: Offices an Evolving Rather Than Endangered Species The Budapest Business Journal’s real estate editor talks to some of the leading players in the Budapest market to assess how they view the future and function of the A-class office. GARY J. MORRELL

Offices will continue to remain quintessential, but their functions will undoubtedly change. While we used to consider them strictly as

workplaces, the general perception is moving towards offices being defined as venues for strengthening team spirit and interpersonal relations. This trend started way before the pandemic in other sectors (IT, the creative industries, etc.), but it became more prominent within the last two years. Development strategies will need to adapt to this in two main areas. On the one hand, our office layouts will need to be even more flexible to respond to new ways of working, and our building services will need to be even more complex and inclusive. To attract and retain our tenants, we will need to offer cozy common gardens with smart furniture, large terraces, outdoor gyms, inviting common spaces, and lobby libraries. These are beside the former service range of cafés, canteens, or bicycle changing rooms with showers. When it comes to the style and look of offices, what used to be the privilege of the likes of Apple or Google is now starting to become standard for smaller corporations. Máté Bihari Leasing and sales director Horizon Development

The role of property managment/facility management is continuously changing as technology and services evolve. There is more focus on sustainability; however, digitization has also made a quantum leap in the past few years. PM/ FM companies are perceived more as experts and consultants than just service providers. To excel, it is not enough if innovation is on our radar; we must drive the change and proactively support clients in their aspiration to develop, optimize, and get a more advanced insight on the data from their real estate, thereby underpinning data-driven decision making and realizing potential. With the evolution of smart offices and buildings, we have a direct influence on energy efficiency while ensuring well-being and an incredible user experience, including the improvement of indoor air quality, wayfinding, deskbooking or smart parking as some examples. The ability to automatically adjust or identify operating parameters between connected systems or devices is our way of optimizing functionality. These topics are an integral part of modern, activity-based working models that spread along with the

swiftly changing world due to the pandemic. Last but not least, through all this innovation and technology, our mission is to enable community building and reinforcing culture. Robert Fischer Managing Director CBRE Global Workplace Solutions We are experiencing more focus on environmental issues, security, and cleanliness. Demand for flexible arrangements in the office area has increased. Value-added services (such as bike rental, dry cleaning, and shopping services, for example) and the high quality of the range of services offered are among the most typical demands. In addition, modern technical solutions in the buildings, such as air quality and touchless technology, are significant aspects of tenants’ requirements. Environmental, social and governance matters have become a major requirement for the FM companies, but fully implementing these is very expensive. The Budapest real estate market is still very much price sensitive. Although presence at the workplace (thanks to hybrid solutions) and office space usage have changed in the last two years, placing more focus on enlarged social areas and having fewer occupied desks in the work areas, Continued on page 24 ›››

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24 | 3

Special Report

Máté Bihari Continued from page 23 ››› this change does not affect the role of the FM teams. We keep our focus on running the buildings in the most efficient and healthy way, trying to find cost-effective and environmentallyfriendly solutions. Tünde Kirschner Service manager office portfolio Kraft FM The structure of the workplace and the way the office layout is organized are still under re-definition. To some extent, spaces have shifted from large workstation areas in favor of collaboration spaces, activity-based and breakout areas. These spaces facilitate teamwork, brainstorming sessions, etc., while individual work may still be performed partly from home. The layout of the office space will have to be adapted to this when premises are designed. Flexibility will have to be ensured more than ever to enable tenants to rearrange as necessary. Campus environments with green surroundings and a wide range

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Budapest Business Journal | May 6 – May 19, 2022

Robert Fischer of services will be an excellent opportunity for future developments. Prelease requirements will be focused ever more on flexibility, with expansion and contraction options being very high up on the corporate requirement list. Collaboration spaces are gaining weight, especially in the case of large international tenants; however, the extent of this may vary from company to company. A big portion of the requirements we are dealing with are for “regular” layout arrangements, as seen before the pandemic. Melinda Kovács Development and leasing manager Atenor Hungary Personally, I do not believe that the significance of personal interaction will diminish over time, as long as people are involved in the organization and the product is the fruit of their collaboration. It is true that flexibility has become the new buzzword over the last two years, that hybrid workplace solutions have emerged and developed, and some companies will require a 20% smaller office space, but they will still need that office space.

TERRAPARK C + D ADDRESS: 2040 Budaörs, Liget utca 3/2. BUILDING YEAR: C Block 2008; D Block 1995-2000 PUBLIC TRANSPORT: Bus 40, 140, 240, 88, 188, 287, Terrapark shuttle bus CONTACT: Tel: +36 20 9848 999, info@terrapark.hu Terrapark C + D, Hungary’s first office park of Western European quality, currently is home to nearly 100 companies in Budaörs. Thanks to its excellent accessibility and favorable location, it offers high-quality office space in a natural environment. Terrapark offers office solutions at flexible conditions from 15 sqm to as much as 2,000 sqm on one floor.

Tünde Kirschner I have mixed emotions about the shared-office scene, but since the aforementioned flexibility and short-term planning are increasingly important, their role could be strengthened over the upcoming years. Development strategies need to evaluate workplace habits internally after the return to the offices. What is the level of flexibility (working from home versus the office) that a company can withstand without compromising the quality of its products and services? Rationalizing the office’s size, revisiting the functions of the space and expanding communal areas are definitely critical. I fully see the office environment as a place of work. Károly Dömötör Makk Leasing director TriGranit The office is here to stay. The main goal of providing a user-friendly environment where employees can stay motivated, committed, and workefficient is unchanged. Of course, there is an ongoing change in how to achieve this. Occupiers are continuously forced to embrace the ever-changing requirements dictated by the actual circumstances. In general, development strategies are unchanged, as they need to be based on the demands and requirements of the targeted occupiers. The fact that developers must be 100% up to date with what their customers expect from the product is still the best compass. Thus, increasing the frequency and speed of change is what really boosts the risk in development projects, as they cover 24- to 36-month timeframes, for example, in the case of an office building. So far, there has been no significant change in demand. Office search projects might take a couple of months

Melinda Kovács longer due to extended decision-making periods. On the other hand, we see that developers are, in general, more cautious. Some schemes are delayed or phased more conservatively; others will only start subject to a secured prelease or in a built-to-suit structure. Balázs Simonyi Leasing director CPI Hungary A-class office buildings offer much more than a physical space to work; they also create a community of which one wants to be part. The post-COVID return of employees to the workplace also offers a unique chance for employers to recreate offices as a fertile ground of collaboration that empowers workers. Modern offices are expected to promote an active social life to strengthen employer loyalty. Class “A” offices with green and sustainable features, a wide range of convenience services and in-house amenities also help employers attract and retain a talented workforce. That is a significant challenge these days, especially in knowledge-intensive sectors. In a bid to support our tenants in their employer branding efforts, as a developer, GTC Hungary always carefully evaluates and chooses the locations of our new developments and puts a particular emphasis on creating full-scale in-house services to live up to the expectations of their employees. Csilla Vattay Head of leasing GTC Hungary Today’s sustainable office environment needs to meet the demands of employees to the maximum, both in terms of services and infrastructure, as well as design. We are convinced that a great office can motivate employees. Flexible solutions have been in high demand over the last

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Budapest Business Journal | May 6 – May 19, 2022

Károly Dömötör Makk year, and we had already anticipated this trend before and, therefore, were best positioned with our flexible myhive solutions. But in addition to flexible office space rental arrangements, there is also an increasing focus on

Balázs Simonyi how the spaces are designed functionally. For example, in our newly renovated myhive Haller Gardens building, we created the community spaces for several uses. The multifunctional myconference is inherently designed to be easily

Csilla Vattay adaptable for meetings or any events the client wishes. The restaurant and café should not only be a place for lunch but also for business meetings over coffee; the gardens around the office building are not only eyecatching green islands but also a

25 ÉVE KÉPVISELJÜK A HERMAN MILLERT MAGYARORSZÁGON! PRÓBÁLJA KI AZ ÜLÉS ERGONÓMIA CSÚCSÁT!

Special Report | 25

Ottó Vörös comfortable place to relax and for meetings. We also can say that in three months, most of the mycowork offices have already been leased. Ottó Vörös Country manager, finance and support Immofinanz Hungary

26 | 3

Special Report

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Budapest Business Journal | May 6 – May 19, 2022

Post-pandemic, Office Interiors are Having to Evolve Office interior themes have become integrated into the concept, design, leasing strategy, and property management and facility management of office projects in reaction to tenant and staff demands and, increasingly, to environmental regulations and issues related to the COVID-19 pandemic. GARY J. MORRELL

Indeed, as developers strive to deliver more highly specified and sustainable office complexes, interior and exterior design have become part of the

same process. Accreditation from independent, third-party sustainability organizations such as BREEAM, LEED and WELL have a range of requirements regarding interiors, with WELL dedicated explicitly to interiors and related elements. “In this post-pandemic world, we foresee people working one to two days per week from home, but spending

demand, especially if, following the economic recovery, companies start to expand and hire new employees,” the agency adds. “Over the last few years pre-COVID, companies and office providers had slowly but surely pushed down the sqm/workstation ratio to gain higher efficiency and better profitability, which during the pandemic started to be shown to be a bad practice,” says András Lesták, head of development and design at New Work Offices. “Interiors will surely have to adapt to the functional and mechanical changes caused by such a pandemic. Everyone in the planning and fitout process has to understand that the workspace does not only have to suffice the technical needs for work but Nordic Light Trio interior. also the health and well-being factors of the end-users,” he explains. “The main technical challenge from the rest of their working hours in their the PM and FM side will be the fresh offices, where the environment is more air supply and ventilation system. The supportive, healthy (e.g., touchless normally used filters and units are not features and taking into account the able to strain off bacteria and viruses, social distancing requirements) and which, post-COVID, will not be collaborative (for example increased acceptable, so they will have to find a collaboration and project areas, no proper solution to manage the air in the dedicated workstations),” comments JLL. buildings,” Lesták believes. “So, at the end of the day, we do not “FM will also have to rethink whether expect a significant decrease in office bi-yearly HVAC system maintenance

ATENOR – A STRONG COMMITMENT TO ESG PRINCIPLES • Green & accessibility certifications – BREEAM Excellent & Access4You certified buildings • Green Finance Framework – created consistently with the guidelines of “Green Bond Principles” • Green Bonds – issuing 4 and 6-year bonds for the purpose of financing sustainable real estate projects • CO2-neutral developer – corporate level Carbon Neutral certification® in collaboration with CO2logic

• Soft mobility – Promoting environment-friendly ways of transport by easily accessible buildings • Nearly Zero Energy Buildings – reducing emissions and improving energy efficiency • Acting for the future – Planting trees locally every year since 2020 • Acting for People – societal commitment for the wellbeing of citizens See more of ATENOR’s Sustainability ambitions and actions on www.atenor.eu

ROSEVILLE 15,000 sqm • Handover in 2022

B R U S S E L S - T H E H A G U E - L U X E M B O U R G - PA R I S - L I S B O N - D Ü S S E L D O R F - W A R S A W - B U D A P E S T - B U C H A R E S T - LO N D O N

www.arenabusinesscampus.com • www.atenor.eu • www.roseville.hu Contact: Atenor Hungary Kft. 1138 Budapest, Váci út 121-127. Zoltán Borbély Country Director +36 1 785 52 08, borbely@atenor.eu

Máté Galambos Leasing Manager +36 1 785 52 08, galambos@atenor.eu

Melinda Kovács Development & Leasing Manager +36 1 785 52 08, kovacs@atenor.eu

ARÉNA BUSINESS CAMPUS

BAKERSTREET

72,000 sqm • Building A handed over in Q2 2020 • Building B handover in 2022 • Building C & D planned

42,000 sqm • Phase I handover in Q1 2023 • Phase II finishing design stage

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Budapest Business Journal | May 6 – May 19, 2022

and filter change is adequate or if they should go for a seasonal schedule,” the development and design head adds.

Forced Evolution

The changes demanded by the pandemic have resulted in the forced evolution of internal organizational structures in the view of Tibor Massányi, managing partner at DVM group. “The results are controversial: some leaders felt the loss of control over the performance of their employees, while others elevated the level of trust within their teams. Continuous online communication can indeed be tiring, and there are more and more obvious negative impacts on people’s mental health,” he reasons. “People lose their sense of connectedness if those personal, ad-hoc coffee breaks and small talks are not part of their life. Returning to the office requires the re-definition of corporate culture and the strategy of the office space. There is no universal solution for all, but the office is first the place where people can meet,” Massányi says. “Communities are the cradle of the development of our societies and innovation. Collaboration spaces – not only for work but also recreation – will be central areas in post-pandemic offices. Design for uncertainty is what we do now when we design for the future, opting for easily transformable, flexible solutions,” the managing partner says. Market pressures, the need for virus spread prevention, the necessity of adapting to changing working practices, and the use of space have become priorities in the post-pandemic era. Leading office developers such as Futureal, Horizon Development and Skanska are committed to developing their projects in line with WELL accreditation in addition to the more established LEED and BREEAM systems. The leading green building certification programs are integrating health and wellness into their certification criteria to address the current public health crisis, according to JLL. “They promote sustainable building solutions that involve monitoring air quality to prevent the spread of infections, supporting social distancing, and promoting non-toxic surface cleaning.

Hence, the health and wellness of buildings’ occupants will be considered throughout the design, building, and operation processes,” the agency says. “Open concept floor plans that can be used for multiple purposes with plenty of space to allow for social distancing will be crucial to slow the spread of coronavirus,” JLL adds.

Special Report | 27

Property, professionalism, trust since 2004.

Human-centered Features

Concerning the growing use of interior accreditation systems, Skanska has received WELL Core & Shell precertification for the first phase of its H2Offices complex, designed by the Danish Arrow Architects studio. The standard created by the International WELL Building Institute (IWBI) certifies whether a building provides healthy and human-centered features for the people using it. According to Skanska, the project is on course to reach “Platinum,” the highest achievable level of the standard. The air quality within the building will be ensured with increased fresh air supply, monitoring and demandcontrolled ventilation. A healthy humidity level will be maintained in the rooms to impede the spread of viruses and bacteria. H2Offices is designed to maximize daylight access and minimize glare, while LED fixtures provide efficient and high-quality light for building users, the developer says. The multifunctional garden and the green terraces will support people in relaxing and recharging during the day. Bicycle storage, changing rooms and showers, as well as a rooftop running track will encourage both recreation and a more healthy lifestyle. The office complex will also promote good hygiene practices, and touchless technologies will play a significant role in increasing user safety when moving around in the building. “Future users can be sure that their needs and physical and mental health were considered during the design of the project,” says András Schmidt, the environmental manager of Skanska’s commercial development business unit in Hungary. Offices are improving from a design and sustainability perspective; however, questions remain regarding the pricing from owners and tenants.

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Budapest Office Stock 4 mln sqm and Growing Total modern office stock in Budapest surpassed four million sqm in the first quarter of 2022 according to the Budapest Research Forum (the BRF, consisting of CBRE, Cushman & Wakefield, JLL, Colliers International, Eston International and Robertson Hungary). The overall vacancy rate has increased to around 9%. GARY J. MORRELL

Three new office buildings and one owner-occupied project were delivered, totaling 78,000 sqm. The largest delivery was GTC’s

29,000 sqm Pillar

building in the Váci Corridor. This has been fully preleased to ExxonMobil, arguably the largest such deal in the Budapest office market when it was agreed.

lingering uncertainties affecting the office market, yet it is reassuring that since the beginning of the pandemic, the first quarter has recorded the strongest first quarter leasing activity,” commented the BRF on the figures. As much as 48% of the 2022 pipeline is already prelet, according to Cushman & Wakefield. This consists of around 300,000 sqm of Space.

The largest Q1 delivery was GTC’s 29,000 sqm Pillar building in the Váci Corridor, fully preleased to ExxonMobil. Also in Váci út, Codic completed the 20,000 sqm BREEAM “Excellent”rated Green Court Office, part of a wider mixed-use complex. In South Buda, the latest phase of the Office Garden project was completed by GRT Group. In the other completion, the refurbishment of Buda Palota (the former Postal Palace and Magyar Posta HQ near Széll Kálmán tér) was completed, delivering 8,000 sqm of space in District XII. These are projects were scheduled for completion in 2021 and have all slipped into this year.

Increasing Demand

Office vacancy for Budapest rose to almost 10% according to the BRF. The lowest vacancy was registered in North Buda at 5.6% and the highest remained

in the periphery with around 32%. Net absorption increased to 44,000 sqm. Further, total demand for the quarter reached 80,000 sqm, a small year-onyear increase. Lease renewals represented the largest share of total leasing activity at 47%, while preleases in new developments reached 10%, reflecting the current caution on the demand side. With regard to locations, the strongest occupational activity was recorded in South Buda, of total demand, followed by the Váci Corridor at 17%, reflecting the fact that tenants have a preference for locations within an urban city environment close to transport links and amenities. “The first quarter office market transactions continued to reflect the

In comparison to Budapest, Prague, a similar sized city in a similar-sized country to Hungary, has a total stock of 3.75 million sqm of quality office space as of the end of Q1 2022. Only one building, the 25,000 sqm Harfa Business Center B, was completed here in the first quarter according to the Prague Research Forum (CBRE, Colliers, Cushman & Wakefield, JLL, and Knight Frank, supported with by associated member Savills). The Prague office market has 180,000 sqm under construction with further projects due to be launched soon. A further 54,000 sqm in nine projects is due to complete by the end of the year as deliveries are well below the annual average for city. Vacancy in the city has increased to 8.4%.

30 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

Category “A” office buildings in greater Budapest

BudApest one www.futurealgroup.com/hu

AgoRA BudApest www.agorabudapest.com

66,299 107,424

65,000 126,500

tópARk Be my City www.topark.hu

55,000 220,000

hungáRiA offiCe pARk www.hungariaofficepark.hu

38,375

liBeRty iRodAház www.libertyirodahaz.hu

38,316 67,827

32 908

15–16 1,200 HUF

350 5

28 894

A A

AppinGym, Barber Shop Agora, B+N, bp, DKF, DM, Huawei, Manna, Nowy Styl, Qubes, Raiffeisen, Relay, Stada

818 10

1,100

CenteRpoint www.centerpoint.hu

Cargill, Heineken, Berlin Chemie

✓

–

✓

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

500 5

✓

150 5

81 3,000

A A

3–6

50 3

10 475

12 1,250 HUF

Siemens, TÜV Rheinland, TK Elevator, Sysdata

1,200 5

18 662

15.75–16.75 4.50

✓

–

✓

–

Colliers, CBRE

–

✓

CBRE, Cushman & Wakefield

✓

millennium gARdens https://millenniumgardens.hu 7

CuRRent mAjoR tenAnts

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

no. of elevAtoRs no. of pARking spACes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

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

BiCyCle pARking

66,984 71,859

leAsing Agent, WeBsite

WAste ReCyCling

gReen teChnologies

seRviCes

nAtuRAl light And AiR ventilAtion

ARénA Business CAmpus www.arenabusinesscampus.hu

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

Ranked by net office space

37,000 38,500

500 5

12 576

17.50 5

Henkel, MSD Pharma (MERCK), Provident, Fressnapf, EGOFIS, KANTIN

36,916 40,900

500 5

16 580

15.50 5.67

Honeywell, Ecolab

Centerpoint connects sustainability, flexibility and efficiency.

✓

–

✓

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

✓

oWneRship (%) hungARiAn nonhungARiAn

1087 Budapest, Hungária Greens Hungária körút 30. Kft. (100) (1) 785-5208 – info@atenor.hu

✓

Futureal (100) –

1112 Budapest, Balatoni út 2/A (1) 266-2181 info@ futurealgroup.com

✓

HB Reavis Ingatlanfejlesztési Alap (100) –

1133 Budapest, Árbóc utca 1–3. (1) 238-0359 hungary@ hbreavis.com

(100) –

2051 Biatorbágy, Sasbérc út 1. (1) 382-7560, (70) 370-6666 meszarosg@ topark.hu

✓

–

✓

Gladiátor III Ingatlan Befektetési Alap (100) – Gladiátor VII. Ingatlan Befektetési Alap (100) –

CApitAl squARe www.caimmo.com, www.capitalsquare.hu myhive átRium pARk www.myhive-offices.com/hu

35,900 50,800

1097 Budapest, Könyves Kálmán körút 34. (1) 451-4760 sales@wing.hu

✓

1095 Budapest, Lechner Ödön fasor 10/B (20) 950-2585 dmakk@ trigranit.com

–

A A

1139 Budapest, Váci út 81–83. (1) 412-3680 leasing@gtc.hu

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

Contact the GTC Leasing Team at leasing@gtc.hu or call +36 1 412 3680

gAteWAy offiCe pARk

1143 Budapest, Gizella út 51–57. (1) 451-4280 sales@wing.hu

– Revetas Capital (100)

ok_GTC-CenterPoint-Listakozibanner-252x30mm-BBJ-220427.indd 1 www.gatewaybc.hu,

www.cpipgroup.hu

AddRess phone emAil

2022. 04. 29. 14:56

250 5

4+3+3 425

12.50–13.50 1,390 HUF

32,000 38,000

200 5

18 640

14.50–15.50 1,820 HUF

Albemarle, House of Business, Ferrero

31,200 38,669

Under ground +8

378 5

25 733

13–17 1,500 HUF

✓

–

✓

–

✓

–

✓

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

✓

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

✓

–

– CPI Property Group (100)

✓

–

– CA IMMO (100)

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

✓

– Immofinanz AG (100)

1134 Budapest, Váci út 45. (1) 236-0435 mail@ immofinanz.com

✓

www.bbj.hu

dunA toWeR www.dunatower.hu

CoRvin innovAtion CAmpus https://www.futurealgroup.com

29,800 31,500

29,581 31,833

A A

Erste Bank Hungary Zrt.

300 5

10 436

15.50 4.6

IBM, Metlife, TMF Group, GTC, UNHCR

1,000 5

14 488

A A

✓

–

✓

–

✓

Avestus Real Estate Hungary Kft.

✓

independent poWeR supply

A A

✓

–

BiCyCle pARking

A A

✓

WAste ReCyCling

A A

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

17 475

✓

BAnk BRAnCh/Atm

250 5

✓

in-house fACility mAnAgement

30,000 38,000

A A

✓

suitABle foR disABled people

euRope toWeR –

16 541

✓

gReen enviRonment

350 5

24-houR ReCeption And seCuRity seRviCes

30,041 52,180

A A

Wellness And spoRt seRviCes

BAnk CenteR www.bankcenter.hu

14 443

RestAuRAnt/CAfé

30,315 50,026

– –

CuRRent mAjoR tenAnts

mill pARk www.millpark.hu

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

30,548

no. of elevAtoRs no. of pARking spACes

spiRAl www.mfbingatlan.hu

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

CompAny WeBsite

Special Report | 31 gReen teChnologies

seRviCes

no. of levels

RAnk

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

Budapest Business Journal | May 6 – May 19, 2022

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

–

A A

1134 Budapest, Dózsa György út 128–130. (1) 600-6560 info@mfbingatlan.hu

✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1095 Budapest, Soroksári út 44. (1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

✓

– (100)

1054 Budapest, Szabadság tér 7. (1) 302-9010 anett.eles@ bankcenter.hu 1138 Budapest, Népfürdő utca 24–26. (1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

–

Cushman & Wakefield, www. cushmanwakefield. com

✓

–

A A

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

✓

Futureal (100) –

1083 Budapest, Szigony utca 26-30. (1) 266-2181 office@ futurealgroup.com

–

A A

1051 Budapest, Széchenyi István tér 7–8. (70) 654-5393 holub.erika@ iconrem.hu 1095 Budapest, Soroksári út 30–34. (1) 236-0435 mail@ immofinanz.com

–

✓

Roosevelt – 29,561

myhive hAlleR gARdens www.myhive-offices.com/hu

West end Business CenteR www. westendbusinesscenter.hu

pARkWAy www.psg-irodahazak.hu

28,520 34,217

Under ground +7

28,065 43,000

27,600 31,200

BudApARt CentRAl www.budapart.hu/hu/irodak

27,432 28,247

BARtók udvAR ii. www.bartokudvar.hu

27,000 37,300

ip West www.caimmo.com www.ipwest.hu

pillAR www.pillar.gtc.hu

sCienCe pARk www.sciencepark.hu

26,500 30,100

26,309 29,043

26,102 29,498

250 5

8 233

A A

–

313 5

15 249

14.50–17 1,500 HUF

–

✓

12 399

A A

–

8 554

A A

500 5

10 637

18–19 1,700 HUF

350 5

11 507

16.50–17.50 3.60

NAK, Multisoft, Innobyte, MindentMent, MC-Bauchemie

280 3

15 841

14.50–15 2,060 HUF

72 5

16 385

✓

490 5

10 388

A A

ExxonMobil

✓

–

✓

–

✓

JLL, www.jll. hu, Cushman & Wakefield Kft., ✓ www. cushmanwakefield. com

✓

–

✓

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

✓

– IMMOFINANZ AG (100)

✓

–

A A

1132 Budapest, Váci út 20–26. (1) 451-4760 office@mompark.hu

✓

–

A A

1087 Budapest, Könyves Kálmán körút 54–58. (1) 327-2050 info@ psg-irodahazak.hu

✓

Kopaszi Gát Kft. (100) –

1117 Budapest, Budafoki út (1) 241-0100 sales@budapart.hu

1115 Budapest, Bartók Béla út 105–113. (1) 481-4530 info@infogroup.hu

–

✓

–

Infogroup (100) –

–

Avison Young Hungary; info.hungary@ avisonyoung.com www. avisonyoung.hu

✓

–

– CA IMMO (100)

1117 Budapest, Budafoki út 91–93. (1) 501-2800 office@caimmo.hu

✓

A A

1134 Budapest, Dózsa György út 61–63. (1) 412-3680 leasing@gtc.hu

✓

– Woodpecker Acquisitions (100)

1117 Budapest, Irinyi József utca 4–20. (1) 374-3040 office.hungary@ cbre.com

–

CBRE, www.cbre.hu

✓

25,000

exChAnge pAlACe –

25,000 50,000

Under ground +8

1,000 5

13 1,000

A A

váCi gReens B épület www.vacigreens.hu

24,770 25,303

300 5

12 399

A A

ARenA CoRneR www.arena-corner.hu 32

City gAte www.caimmo.com, www.citygate.hu

CoRvin teChnology pARk 1-2 www.futurealgroup.com

pRomenAde gARdens www.promenadegardens.hu

váCi gReens f épület www.vacigreens.hu 36

pARk AtRium www.parkatrium.hu

CoRvin toWeRs www.futurealgroup.com

váCi gReens e épület www.vacigreens.hu 39

eAst-West Business CenteR www.ersteingatlan.hu

24,200 47,000

– –

12 370

15–16 1,575 HUF

24,000 26,215

23,749 27,390

23,311 A

23,305 25,053

22,500 42,000

22,305 24,137

21,525 23,445

21,500 30,000

300 5

9 407

15.50–16.50 2,040 HUF

Tresorit, Continental

250 5

10 A

A A

18 340

A A

17–18 1,067 HUF

Bonduelle, Intrum, Mazars, Mott Macdonald, NN, Sanofi

A A

Deloitte, ING, PSI CRO, Egon Zehnder

347 5

500 5

250 5

300 5

200 5

12 355

10 399

17 A

12 323

7 222

A A

17–18 1,067 HUF

ChemAxon, Cosco, Kwizda Agro, Manna ABC, Rossmann

15 1,300 HUF

LogMeIn, Cognex, KLM/ AirFrance, Accedo, Magnet Bank, Ikea, Zara Magyarország, Turkish Airlines, BanzaiCloud

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

–

✓

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

✓

–

✓

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

✓

Horizon Development

✓

independent poWeR supply

OTP Bank Nyrt., Budai Egészségközpont

✓

Avision Young Hungary, info.hungary@ avisonyoung.com

✓

BiCyCle pARking

A A

✓

Cushman & Wakefield, www. ✓ cushmanwakefield. com

WAste ReCyCling

12 360

–

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

250 2

BsR CenteR –

✓

BAnk BRAnCh/Atm

✓

in-house fACility mAnAgement

A A

–

suitABle foR disABled people

8 566

✓

gReen enviRonment

250 5

24-houR ReCeption And seCuRity seRviCes

12 478

Wellness And spoRt seRviCes

25,977 29,073

250 5

RestAuRAnt/CAfé

doRottyA udvAR www.dorottya.net

A A

CuRRent mAjoR tenAnts

26,000 28,800

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

népliget CenteR www.nepligetcenter.com

no. of elevAtoRs no. of pARking spACes

gReen teChnologies

seRviCes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

CompAny WeBsite

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

no. of levels

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

Special Report

RAnk

32 | 3

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

–

– MCAP Global Finance (100)

1097 Budapest, Könyves Kálmán körút 11. – balazs.szecsy@ cbre.com

–

– (100)

1113 Budapest, Bocskai út 134–146. (1) 888-0395 gabor.kertesz@ cbre.com

✓

OTP Ingatlanbefektetési Alap (100) –

1138 Budapest, Váci út 135–139. (70) 797-4113 bartok.richard@ iconrem.hu

–

– Tippin Corporation (A), Optimum (A)

1054 Budapest, Szabadság tér 17. (1) 374-3040 richard.vigh@ cbre.com

✓

OTP Prime Ingatlanbefektetési Alap (100) –

1138 Budapest, Bence utca 1. (1) 336-0900 alapkezelo@ otpingatlanalap.hu 1087 Budapest, Hungária körút 40–44. (1) 225-6600 hungary@cpipg.com

1092 Budapest, Köztelek utca 6. (1) 501-2800 office@caimmo.hu

✓

–

– CPI Property Group (100)

✓

–

– CA IMMO (100)

✓

(100) –

1082 Budapest, Bókay utca (1) 266-2181 office@futureal.hu, farkas.hajnalka@ otpingatlanalap.hu 1133 Budapest, Váci út 80. (1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

✓

(100) –

1139 Budapest, Fiastyúk utca 4–8. (1) 785-5208 info@atenor.hu

– (100)

1068 Budapest, Dózsa György út 84/B (1) 473-1209 leasing@horizondevelopment.hu

✓

–

(100) –

1082 Budapest, Futó utca 35–45. (1) 266-2181 office@futureal.hu, farkas.hajnalka@ otpingatlanalap.hu

✓

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

✓

(100) –

1138 Budapest, Váci út 129–133. (1) 785-5208 info@atenor.hu

✓

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

✓

–

Erste Ingatlan Kft. (100) –

1088 Budapest, Rákóczi út 1–3. (1) 268-4300 info@ersteingatlan.hu

✓

–

www.bbj.hu

✓

independent poWeR supply

✓

BiCyCle pARking

✓

WAste ReCyCling

BAnk BRAnCh/Atm

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

in-house fACility mAnAgement

RestAuRAnt/CAfé

CuRRent mAjoR tenAnts

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

no. of elevAtoRs no. of pARking spACes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

suitABle foR disABled people

gReen enviRonment

21,282

24-houR ReCeption And seCuRity seRviCes

Special Report | 33 gReen teChnologies

seRviCes

Wellness And spoRt seRviCes

BudAöRs teRRApARk C+d www.terrapark.hu

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

Budapest Business Journal | May 6 – May 19, 2022

✓

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

– Terrafinanz GmbH (100)

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

✓

Torony Ingatlan Befektetési Alap (100) –

1123 Budapest, Alkotás utca 50. (1) 920-2060 sales@ inmanagement.hu

A A

1117 Budapest, Magyar Tudósok körútja 11. (1) 412-3680 leasing@gtc.hu

–

Váci Corner Offices Kft. (100) –

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

15 1–3

13 398

A A

Trane, Dexon Systems, Hungaro Flotta, Honda, Progast, GoodMills, Homlok Építőipar, Edco, Apave ✓ Magyarország, Partner in Petfood, Globalbrands CEE, Flaga, S&T, Groupe, SEB, Ricoh

8+3

260 5

9 395

A A

Euronet, Medicover, NuSkin, Signal, ✓ Eclipse, Hold Alapkezelő

A A

200 5

9 363

A A

evosoft

✓

–

✓

–

A A

✓

–

✓

–

CBRE

✓

–

A A

Terrapark Kft., www.terrapark.hu

✓

In-Management Kft.

Alkotás point www.alkotaspoint.hu

21,260 25,100

eRiCsson house www.gtc.hu

21,100 21,100

váCi CoRneR offiCes www.vacicorneroffices.hu

21,047 33,000

univeRzum www.gtc.hu

20,700 20,700

White house www.whitehousebudapest.hu

20,404 21,574

– 5

14 299

A A

vision toWeRs –

20,312 25,178

– –

A A

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

20,245 30,141

700 5

11 357

A A

✓

–

✓

– S IMMO AG (100)

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

20,150 28,000

500 5

9 260

19–22

✓

(100) –

1113 Budapest, Diószegi út 37. (1) 473-1209 leasing@ horizondevelopment.hu

Ericsson

✓

–

✓

–

✓

RiveR estAtes www.simmoag.hu 48

pARkside offiCes – 49

✓

–

✓

Horizon Development

1117 Budapest, Magyar Tudósok körútja 11. (1) 412-3680 leasing@gtc.hu 1134 Budapest, Váci út 47. (1) 374-3040 – 1134 Budapest, Váci út 29–31. (1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

h2offiCes - i. fázis www.skanska.hu

20,114 26,820

2,700 5

10 299

17 4.40

✓

–

✓

–

✓

A A

1134 Budapest, Váci út 23-27. (1) 382-9100 property@skanska.hu

offiCe gARden iv www.officegarden.hu

19,663 21,200

700 5

A A

✓

–

✓

–

✓

–

✓

(100) –

1117 Budapest, Alíz utca 3. (1) 327-2050 office@robertson.hu

12 388

A A

✓

A A

1123 Budapest, Alkotás utca 55–61. (70) 451-2589 szajlai.ipacs. andrea@wfacility.hu

12 404

A A

✓

–

✓

–

✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1133 Budapest, Váci út 96–98. (1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

300 5

9 401

A A

✓

–

✓

–

✓

–

– S IMMO AG (100)

1117 Budapest, Buda-part tér 2. (1) 429-5050 office@simmoag.hu

4 169

A A

✓

–

✓

–

Eston Zrt.

✓

Erste Nyíltvégű Euró Ingatlan Befektetési Alap (100) –

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

– –

6–9 301

A A

✓

–

✓

–

✓

– ZFP Realitní Fond (100)

1138 Budapest, Bence utca 3. – info@zfpinvest.com

hillside offiCes www.hillsideoffices.hu 52

noRdiC light – BudApARt gAte www.budapartgate.hu

19,656 21,923

19,629 19,668

19,562 33,794

AdvAnCe toWeR i-ii www.erstealapkezelo.hu

18,920 19,981

váCi gReens C épület www.vacigreens.hu

18,920 20,035

400

✓

–

✓

W-Facility Kft.

✓

Special Report

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

gReen teChnologies

no. of elevAtoRs no. of pARking spACes

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (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

614 5

5 247

A A

✓

–

✓

–

✓

–

Robertson Hungary, www.robertson.hu

✓

–

18,700 19,000

250 3

9 450

A A

✓

–

✓

–

Épkar Zrt. (100) –

mom pARk iRodák www.momparkoffice.hu

18,629 48,000

230 5

13 486

A A

✓

A A

offiCe gARden ii –

18,600 27,000

A A

6 310

A A

✓

–

✓

–

✓

–

✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

eiffel téR iRodAház www.eiffelter.hu

18,500 23,500

250 5

10 365

A A

✓

A A

infopARk d épület www.wing.hu

18,500

195 5

A A

✓

–

✓

–

✓

–

– (100)

BudAöRs offiCe pARk www.budaorsofficepark.hu

18,000 22,000

3–8–8

A A

6 410

A A

✓

–

✓

–

✓

(100) –

millennium toWeR iii www.millennium-towers.hu, www.caimmo.com

18,000 21,000

– 5

8 250

15.50–17

✓

–

✓

–

– CA IMMO (100)

BudA squARe –

17,400 18,400

A A

6 394

A A

✓

–

✓

–

– (100)

gReen CouRt offiCe www.greencourtoffice.hu

17,249 18,490

1,270 5

9 299

17 3.80

Diageo, Randstad, Vagheggi

✓

–

✓

–

✓

Codic Hungary (100) –

mARgit pAlACe www.margitpalace.com

17,047 19,227

A A

8 254

A A

✓

–

✓

–

✓

– (100)

teRRApARk next B www.terraparknext.com

17,042 20,323

300 5

6 240

A A

✓

–

✓

–

✓

–

– Bluehouse Capital (100)

BARtók ház www.caimmo.com, www.bartok-haz.hu

17,000 30,000

400 3

5 406

14–14.50 1,630 HUF

DXC, Novartis

✓

–

✓

–

✓

–

✓

–

– CA IMMO (100)

–

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

–

– CA IMMO (100)

1093 Budapest, Lechner Ödön fasor 6. (1) 501-2800 office@caimmo.hu

–

GRT Group (100) –

1117 Budapest, Alíz utca 4. (1) 382-7020 grtgroup@ grtgroup.hu 1139 Budapest, Teve utca 1/A-C (1) 236-0435 mail@ immofinanz.com 1117 Budapest, Dombóvári út 26. (1) 241-0100 sales@budapart.hu

RAnk

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

seRviCes

no. of levels

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

34 | 3

CompAny WeBsite

ResidenCe 1-2 www.robertson.hu

18,770

R70 offiCe Complex www.epkar.hu

millennium toWeR ii www.caimmo.com

17,000 18,600

offiCe gARden iii www.officegarden.hu

16,922 18,500

16,644 17,310

Under ground +9

myhive thiRteen | gloBe www.myhive-offices.com/hu

BudApARt City www.budapartcity.hu

16,586 20,149

gReen house www.diofaalapkezelo.hu

16,528 18,300

CoRvin one www.futurealgroup.com

16,352 17,867

367 5

6 300

15.50–17

5 427

A A

1,093 5

6 254

14– 1,500 HUF

Nestlé, KLM

500 5

10 411

16.50–18.50 1,700 HUF

8+3

176 5

6 251

A A

Avis Budget Group, MSCI, Deichmann, Isys-On, ABRS Holding, Diófa Alapkezelő

250 5

6 A

A A

✓

–

✓

–

✓

leAsing Agent, WeBsite

✓

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

1027 Budapest, – Kacsa utca 15–23. LFPI Group (100) (1) 327-2050 office@robertson.hu 1074 Budapest, Rákóczi út 70–72. (1) 501-2800 info@epkar.hu 1123 Budapest, Alkotás utca 53. (1) 487-5501 office@mompark.hu 1117 Budapest, Alíz utca 2. (1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1062 Budapest, Teréz körút 55–57. (1) 785-4985 info@celand.hu 1117 Budapest, Gábor Dénes utca 2. (30) 822-5466 sales@wing.hu 2040 Budaörs, Szabadság út 117. (1) 266-9441 info@adventum.hu 1095 Budapest, Lechner Ödön fasor 8. (1) 501-2800 office@caimmo.hu 1036 Budapest, Lajos utca 48–66. (1) 266-9441 info@adventum.hu 1134 Budapest, Dózsa György út 144–148. (1) 266-6000 info.hungary@ codic.eu 1027 Budapest, Henger utca 2. (1) 266-9441 info@adventum.hu 2040 Budaörs, Edison utca 4. (1) 700-8013 office@ bluehousecapital.com 1114 Budapest, Bartók Béla út 43–47. (1) 501-2800 office@caimmo.hu

–

✓

JLL, www.jll. hu

✓

–

– IMMOFINANZ AG (100)

–

Cushman & Wakefield Kft., www. cushmanwakefield. com, Eston International Zrt., www.eston.hu

✓

–

Bpart Aspius Kft. (100) –

✓

In-Management Kft.

–

1134 Budapest, Torony Ingatlan Befektetési Alap Kassák Lajos utca 19. (1) 920-2060 (100) sales@ – inmanagement.hu

✓

–

✓

(100) –

1082 Budapest, Futó utca 47–53. (1) 266-2181 office@futureal.hu, farkas.hajnalka@ otpingatlanalap.hu

www.bbj.hu

✓

A A

MKB Bank

✓

–

✓

6 320

A A

✓

–

✓

–

✓

297 3

6 241

A A

✓

–

✓

533 5

8 269

A A

✓

–

✓

444 5

8 246

AON, Ford, Unilever, ATOS

✓

–

✓

500 5

8 282

16–18 1,200 HUF

Lufthansa Systems, EIT, National Instruments, 3M

gtC metRo www.gtc.hu

16,182 16,182

offiCe gARden i www.robertson.hu

16,022 26,000

Business CenteR 140 www.cushmanwakefield.hu

15.50–17

6 222

346 5

16,000 23,800

Under ground +8

váCi gReens A épület www.vacigreens.hu

15,693 24,803

váCi gReens d épület www.gtc.hu

15,647 16,027

✓

–

✓

–

✓

–

Robertson Hungary Kft., www.robertson.hu

✓

–

Cushman & Wakefield Kft., www. cushmanwakefield. com

✓

–

✓

–

✓

–

✓

–

CBRE, www.cbre.hu; Colliers, www.colliers.hu

✓

7+3

185 5

6 288

A A

kRisztinA pAlACe www.ersteingatlanalap. hu/hu/erste-ingatlan-alap/ irodahazaink/krisztina-palace

15,500 18,000

Under ground +5

346 5

7 399

A A

✓

–

✓

Westend City CenteR offiCes www.westendiroda.hu

15,400 16,700

Under ground +6

240 5

6 160

A A

✓

–

✓

kRisztinA plAzA www.krisztinaplaza.hu

14,947 17,858

146 5

4+1 104

14 4.03

dm, Imperial Dental, MAB, Electron Holding, ECO-TEC

✓

–

✓

eiffel pAlACe www.eiffelpalace.hu 88

14,500 32,000

500 5

7 315

20 1,200 HUF

Apple, PwC, CBRE, British Chamber of Commerce, St. Andrea Restaurant, Wax in the City, Eiffel Bistro, Eiffel Esthetics, Eiffel Conference Center, MNB

✓

–

✓

independent poWeR supply –

✓

Szerémi Greens Kft. (100) –

✓

Magyar Posta Takarék Ingatlan ✓ Befektetési Alap (100) –

1117 Budapest, Neumann János utca 1/E (1) 920-2060 sales@ inmanagement.hu 1123 Budapest, Nagyenyed utca 8–14. (1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1062 Budapest, Váci út 1-3. (1) 374-6527 alexandra.virag@ eston.hu 1013 Budapest, Krisztina körút 39. (1) 382-5100 info@ krisztinaplaza.hu

✓

–

Cushman & Wakefield Kft., www. cushmanwakefield. com

✓

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

✓

ESTON International Kft. www.eston.hu

✓

–

A A

✓

–

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

✓

–

– (100)

✓

Cushman & Wakefield, www. ✓ cushmanwakefield. com, ESTON, www.eston.hu

✓

Bécsi Greens Kft. (100) –

1034 Budapest, Bécsi út 68–84. (1) 785-5208 info@atenor.hu

– (100)

1055 Budapest, Bajcsy-Zsilinszky út 78. (1) 473-1209 leasing@ horizondevelopment.hu

✓

12–13.50 1,250 HUF

✓

–

✓

–

1117 Budapest, Hengermalom út 18–20. (1) 785-5208 info@atenor.hu

In-Management Kft.

✓

6 228

✓

1095 Budapest, Lechner Ödön fasor 6. (1) 501-2800 office@caimmo.com

1138 Budapest, Váci út 193. (1) 412-3697 leasing@gtc.hu 1117 Budapest, – Alíz utca 1. – LFPI group (100) (1) 327-2050 office@robertson.hu 1138 Budapest, AIAS Kft. (A) Váci út 140. DWS – (1) 268-1288 Grundbesitz info.budapest@ GmbH (A) eur.cushwake.com VG 117 1138 Budapest, Ingatlankezelő Váci út 117–119. ✓ Kft. (100) – – – 1138 Budapest, A Váci út 121–127. ✓ (1) 412-3680 A leasing@gtc.hu

7 236

–

– CA IMMO (100)

A A

✓

AddRess phone emAil

–

A A

oWneRship (%) hungARiAn nonhungARiAn

✓

Roseville www.roseville.hu 14,521 15,538

BiCyCle pARking ✓

15,591 17,300

–

WAste ReCyCling ✓

infopARk e épület www.diofaalapkezelo.hu

✓

nAtuRAl light And AiR ventilAtion ✓

BAnk BRAnCh/Atm

in-house fACility mAnAgement

suitABle foR disABled people

gReen enviRonment

24-houR ReCeption And seCuRity seRviCes

Wellness And spoRt seRviCes –

6 254

RestAuRAnt/CAfé ✓

245 5

15,606 16,572

CuRRent mAjoR tenAnts

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

Cognizant, Vodafone

16,300 18,800

BAkeRstReet www.atenor.eu/en/projects/ bakery-3/

leAsing Agent, WeBsite

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

millennium toWeR i www.millennium-towers.hu, www.caimmo.com

Special Report | 35 gReen teChnologies

seRviCes 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 Building AReA (sqm)

RAnk

Budapest Business Journal | May 6 – May 19, 2022

✓

–

Horizon Development

✓

skylight City www.skylightcity.hu

14,459 20,305

1,200 5

CentRál udvAR www.centraludvar.com

13,900 24,000

287 5

9 215

A A

✓

–

✓

–

✓

–

lAuRus iRodAházAk www.laurusoffices.hu

13,858 27,000

6–7

60 5

8 248

A A

✓

–

✓

–

✓

–

Gladiátor 1134 Budapest, I. Ingatlan Róbert Károly körút Befektetési Alap 54–58. (100) (1) 451-4280 – – 1077 Budapest, Wesselényi utca 16. – (1) 479-6020 (100) office@ addvalgroup.com 1103 Budapest, Erste Ingatlan Kőér utca 2/A Kft. (100) (1) 268-4300 – info@ersteingatlan.hu

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

independent poWeR supply

BiCyCle pARking

WAste ReCyCling

BAnk BRAnCh/Atm

in-house fACility mAnAgement

suitABle foR disABled people

gReen enviRonment

24-houR ReCeption And seCuRity seRviCes

Wellness And spoRt seRviCes

RestAuRAnt/CAfé

CuRRent mAjoR tenAnts

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

gReen teChnologies

seRviCes no. of elevAtoRs no. of pARking spACes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

CompAny WeBsite

no. of levels

Special Report net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

36 | 3

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

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

infopARk g épület www.diofaalapkezelo.hu

13,800 14,666

2,000 5

200

A A

Takarék group

✓

–

✓

–

✓

Magyar Posta Takarék Ingatlan ✓ Befektetési Alap (100) –

vigAdó pAlotA iRodAház www.bif.hu

13,605 16,486

A A

4 12

A A

✓

–

✓

–

✓

–

✓

–

✓

BIF (100) –

1052 Budapest, Türr István utca 6. (1) 332-2200 info@bif.hu

13,600 15,402

Under ground +7

– 5

6 266

16 1,400 HUF

✓

–

✓

–

CBRE, www.cbre.hu

✓

– IMMOFINANZ AG (100)

1075 Budapest, Kéthly Anna tér 1. (1) 236-0435 mail@ immofinanz.com

7 247

A A

✓

–

✓

–

✓

A A

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

1138 Budapest, Váci út 188. (1) 412-3680 leasing@gtc.hu 2220 Vecsés, Lőrinci út 59–61. – –

v188 www.gtc.hu

13,401 15,645

euRopolis pARk BudApest AeRozone –

13,000 65,000

120 3

6 200

A A

✓

–

✓

–

✓

–

A A

13,000 19,800

– –

6 221

14.50–16 1,700 HUF

✓

–

✓

–

✓

–

– CPI Property Group (100)

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

13,000 14,600

5 230

14–14.50 1,980 HUF

Hiventures, Bird&Bird

✓

–

✓

–

✓

–

✓

–

– CA IMMO (100)

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

12,997 27,500

130 5

6 316

14.80–16 1,500 HUF

✓

–

CBRE

✓

–

– CPI Property Group (100)

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

quAdRA www.quadra.hu 96

víziváRos offiCe CenteR www.vizivaros.eu www.caimmo.com BAlAnCe hAll www.balancehall.hu

100

óBudA gAte www.obudagate.hu

12,900 13,942

101

BudAWest iRodAház www.budawest.net

12,680 27,000

102

infopARk C épület www.wing.hu

12,478 12,250

Under ground +6

103

modiAno www.modiano.hu

12,432 13,178

104

infopARk A épület www.diofaalapkezelo.hu

12,379 13,700

250 5

5 247

A A

L´Oreal, Regus, NKM

✓

–

✓

–

✓

6 280

A A

✓

–

✓

–

✓

216 5

6 A

A A

✓

–

✓

–

✓

6 176

A A

✓

–

✓

–

✓

5+1

250 5

6 374

A A

IBM, ATOS Magyarország Kft., Invitech

✓

–

✓

n-Management Kft.

✓

105

12,220 13,500

300 5

8 141

A A

mAdáCh tRAde CenteR 106 www.madachtrade.hu

12,000 14,500

7-912

50 1

4 250

A A

v17 107 www.v17.hu

11,959 18,000

8+3

– –

6 198

A A

E.ON

✓

–

✓

11,952 28,500

16 1

6 240

A A

✓

–

✓

1023 Budapest, Magyar Posta Árpád fejedelem útja Takarék 26–28. Real Estate – (1) 888-4120, Investment Fund (1) 888-4171 (100) ingatlan@ – diofaalapkezelo.hu 1118 Budapest, (100) Rétköz utca 5. – – (1) 309-0909 info@budawest.net 1117 Budapest, – Gábor Dénes utca 4. – (100) (1) 451-4760 info@wing.hu 1132 Budapest, Váci út 48. A (1) 266-6000 ✓ A info.hungary@ codic.eu 1117 Budapest, Magyar Posta Neumann János Takarék Ingatlan utca 1. – Befektetési Alap (1) 920-2060 (100) sales@ – inmanagement.hu

ACAdemiA www.convergen-ce.com

108

flóRián udvAR iRodAház www.bif.hu

✓

Interactive Brokers, Lakatos, Köves és Társai Law Firm, ✓ Allen & Overy, Kádár Law Firm, Lilly Hungária Kft.

–

✓

–

✓

(5) Europa Capital (95)

1054 Budapest, Akadémia utca 6. (1) 225-0912 office@ convergen-ce.com

–

– (100)

1075 Budapest, Madách Imre út 13–14. (1) 268-1900 info@madachtrade.hu

–

✓

In-Management Kft.

✓

–

Torony Ingatlan Befektetési Alap (100) –

✓

–

✓

–

(100) –

✓

1134 Budapest, Váci út 17. (1) 920-2060 sales@ inmanagement.hu 1033 Budapest, Polgár utca 8–10. (1) 332-2200 info@bif.hu

www.bbj.hu

studium iRodAház www.wing.hu

10,676 36,000

– –

A A

szeRémi iRodAház 112 www.wing.hu

10,545 14,000

240 3

11 206

13 3.60

MBtech Hungary Mérnöki és Tanácsadó Kft., Invenshure Hungary Kft.

✓

–

noRdiC light tRio –

10,300 24,870

221

A A

✓

–

111

113

millennium toWeR "h" épület 114 www.millennium-towers.hu, www.caimmo.com

RiveRpARk iRodák 115 www.riverpark.hu, www.gamma-am.hu

116

BudA pAlotA http://optimabudapest.hu Blue CuBe www.simmoag.hu

117

BAlAnCe Building www.balancebuilding.hu 118

AtRinovA www.atrinova.hu 119

10,000 12,300

9,965

6 247

15.50–17 A

K&H

✓

–

independent poWeR supply

✓

BiCyCle pARking

✓

WAste ReCyCling

–

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

✓

110

BAnk BRAnCh/Atm

DKÜ, Doktor24, Friesland Campina, Invitel, ODD, OTIS, Tech Mahindra

in-house fACility mAnAgement

A A

suitABle foR disABled people

6 144

gReen enviRonment

– 5

–

24-houR ReCeption And seCuRity seRviCes

11,474 12,338

Cityzen offiCes www.cityzenirodahaz.hu

✓

Wellness And spoRt seRviCes

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

11,700 13,500

RestAuRAnt/CAfé

no. of elevAtoRs no. of pARking spACes

A A

mom pARk toWeRs 109 www.cushmanwakefield.hu

CuRRent mAjoR tenAnts

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

6 469

RAnk

– –

CompAny WeBsite

Special Report | 37 gReen teChnologies

seRviCes

no. of levels

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

Budapest Business Journal | May 6 – May 19, 2022

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

–

Mom Park Torony Kft. (A) DWS Grundbesitz GmbH (A)

1123 Budapest, Csörsz utca 45. (1) 268-1288 info.budapest@ eur.cushwake.com 1134 Budapest, Váci út 37. (1) 225-0912 office@ convergen-ce.com

✓

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

✓

–

ConvergenCE, www. convergen-ce.com

✓

– KGAL (100)

–

(100) –

1093 Budapest, Czuczor utca 2–10. (1) 451-4760 sales@wing.hu

✓

–

✓

–

WING Zrt. (100) –

1114 Budapest, Szerémi út 4. (1) 451-4760 info@wing.hu

✓

–

✓

–

A A

✓

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

1133 Budapest, Véső utca 7. – –

–

– CA IMMO (100)

1095 Budapest, Lechner Ödön fasor 9. (1) 501-2800 office@caimmo.hu

✓

–

✓

–

✓

–

✓

–

✓

–

GAMMA Properties Kft., gamma-am.hu

A A

✓

–

✓

–

✓

(100) –

80 5

4 133

13–15

5+2 179

✓

– (100)

1093 Budapest, Közraktár utca 30–32. (1) 382-7560 office@ gamma-am.hu 1122 Budapest, Krisztina körút 6. (1) 792-2611 –

9,852 15,000

Under ground +8

9,469 15,290

400 5

5 185

A A

✓

–

✓

–

✓

– S IMMO AG (100)

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

9,400 14,450

– 5

9 170

13.50–14.50 1,620 HUF

✓

–

✓

–

– CPI Property Group (100)

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

– (100)

1054 Budapest, Bajcsy-Zsilinszky út 42–46. (1) 382-5100 hu.office-bud@ whitestar-realestate. com

9,240 14,824

236 5

3+1 107

16.50 6.30

KDB Bank, Agrárvállalkozási Hitelgarancia ✓ Alapítvány, Klebelsberg Központ

–

✓

–

✓

–

✓

Refurbished lobby and facade

REJUVENATED WITH A REFRESHED ENVIRONMENT

w w w. a t r i n o v a . h u

ENJOY THE CHANCE TO BREATH IT ALL IN

✓

Special Report

– 5

4 115

A A

✓

independent poWeR supply

12.50–13.50 1,700 HUF

–

BiCyCle pARking

8 260

–

WAste ReCyCling

3,042 5

✓

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

Under ground +4

–

BAnk BRAnCh/Atm

8,900 10,148

✓

in-house fACility mAnAgement

16–18 4.20

✓

suitABle foR disABled people

4 100

✓

gReen enviRonment

81 5

–

24-houR ReCeption And seCuRity seRviCes

8,956 11,686

Wellness And spoRt seRviCes

A A

RestAuRAnt/CAfé

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

4 100

CuRRent mAjoR tenAnts

no. of elevAtoRs no. of pARking spACes

100 3

9,174 9,907

gReen teChnologies

seRviCes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

teRRApARk next A 120 www.terraparknext.com

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

no. of levels

CompAny WeBsite

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

RAnk

38 | 3

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

–

– Bluehouse Capital (100)

2040 Budaörs, Puskás Tivadar út 4. (1) 700-8013 office@ bluehousecapital. com

✓

– 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 mail@ immofinanz.com

✓

– KGAL (100)

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

1027 Budapest, Horvát utca 12–24. (1) 225-0912 office@ convergen-ce.com

City CenteR www.simmoag.hu 121

szépvölgyi Business pARk 122 www.immofinanz.com

123

kálvin squARe www.kalvinsquare.hu

8,850 9,382

zengARden www.zengardenoffices.hu 124

125

momentum offiCes –

8,793 9,538

8,707 11,000

✓

AEGON Mo., Alpiq Csepel, Alpiq Energy, DBK, GEOX, ✓ Philip Morris, Wolf Theiss Faludi Erős

– 5

4 170

A A

Adria Port, Bázis Office Center, BFK, BuildEXT, HumanField, MádiLáncos Studio, Salzgitter, Mannesmann

400 5

4 142

A A

✓

–

✓

–

✓

–

✓

ConvergenCE, www. convergence.com

✓

–

CBC Ingatlanfejlesztő Kft. (100) –

✓

–

✓

–

Csörsz utca 1124 Budapest, Ingatlanfejlesztő Csörsz utca 49–51. Kft. (100) – – –

✓

BudaPart Silurus Kft. (100) –

1117 Budapest, Dombóvári út 25. (1) 241-0100 sales@budapart.hu

✓

–

– (100)

1095 Budapest, Gubacsi út 6/B – –

✓

–

✓

ConvergenCE, www. convergence.com

–

✓

–

Cushman & Wakefield Kft., www. cushmanwakefield. – com, ESTON International Kft., www.eston.hu Robertson Hungary Kft., ✓ www.robertson.hu, CBRE, www.cbre.hu

✓

126

BudApARt doWntoWn www.budapart.hu/hu/irodak

8,511 8,565

500 5

4 177

17.50–18.50 1,700 HUF

✓

–

✓

127

offiCe CAmpus –

8,330 13,082

246 5

6 349

A A

–

✓

infopARk B épület 128 www.wing.hu

8,100 9,500

Under ground +6

500 5

A A

15.50 4.50

✓

–

✓

–

✓

–

– (100)

7,947 9,018

A A

4 108

A A

✓

–

✓

–

✓

–

– Kinnarps I Falköping AB (100)

7,914 8,452

150 5

5 152

16,5–18 5.15

–

✓

–

✓

–

✓

–

– CPI Property Group (100)

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

9 240

A A

✓

(100) –

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

✓

Appeninn Holding (100) –

1082 Budapest, Üllői út 48. (1) 346-8869 info@ appeninnholding. com

–

Y.B.L. Lindner Kft. (100) –

1053 Budapest, Károlyi utca 12. (1) 411-0434 yblpalota.titkarsag@ lindner-group.com

129

kinnARps house www.kinnarpshouse.hu AndRássy pAlACe www.andrassypalota.hu

130

szeRvitA squARe Building www.szervita.com 131

132

ü48 iRodAház www.appeninnholding.com

yBl pAlotA iRodAház 133 www.yblpalota.hu

7,800 25,000

7,648 8,145

7,311 12,000

5 126

5 56

Diligent, Signature

A A

18 5.30

CMS Cameron McKenna, Oppenheim Law Firm, Lohn Law Firm, Grafton Recruitment, All You Can Move, BEERSTRO14 restaurant

✓

–

✓

–

✓

–

Horizon Development

–

✓

–

✓

1117 Budapest, Neumann János utca 1. (1) 451-4760 info@wing.hu 1133 Budapest, Váci út 92. (1) 237-1251 recepcio@ kinnarps.hu

www.bbj.hu

Special Report | 39 gReen teChnologies

–

✓

–

✓

–

7,116 7,500

Under ground +6

26 3

A A

✓

–

✓

–

✓

–

– (100)

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

AiRpoRt City 137 logistiC pARk www.airportcity.hu

7,000 48,200

A A

2 200

A A

✓

–

✓

–

✓

–

Wing Zrt. (100) –

2220 Vecsés, Üllői út 807. (1) 225-6600 sales@wing.hu

hungáRiA CenteR 138 –

6,930 7,200

500 5

3+1 130

A A

–

Cushman & Wakefield Kft., www. cushmanwakefield. com

6,900 8,243

Under ground +7

442 5

3 216

13.50–14.50 1,500 HUF

✓

–

✓

–

JLL, www.jll. hu

✓

6,741 8,891

90 5

4 69

12.50–13.50 4.20

Oktatási Hivatal

–

✓

–

✓

6,500 7,325

350 5

2 80

13.50 1,510 HUF

✓

–

✓

5,913 7,944

80 5

2 65

11.50–14 4.20

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

–

✓

–

5,739 8,119

249 5

2 87

14.50–16 4

–

✓

–

✓

–

✓

–

Horizon Development

136

infopARk i épület www.wing.hu

myhive thiRteen | xenteR 139 www.myhive-offices.com/hu

✓

–

✓

–

✓

–

✓

–

✓

independent poWeR supply

–

✓

BiCyCle pARking

✓

WAste ReCyCling

–

leAsing Agent, WeBsite

nAtuRAl light And AiR ventilAtion

✓

BAnk BRAnCh/Atm

✓

in-house fACility mAnAgement

–

✓

suitABle foR disABled people

–

✓

gReen enviRonment

Propwin Kft. (100) –

7,170 11,200

24-houR ReCeption And seCuRity seRviCes

A A

liget CenteR 135 www.ligetcenter.hu

Wellness And spoRt seRviCes

A A

7,288 8,367

RestAuRAnt/CAfé

A A

teRRApARk BudAöRs (d5-8, d13 tömBök) 134 www.raiffeisenirodak.hu/ ingatlan/terrapark

CuRRent mAjoR tenAnts

5 151

CompAny WeBsite

no. of levels

A A

RAnk

AveRAge monthly Rent on ApRil 1, 2022 (euRo/sqm) AveRAge monthly seRviCe ChARge on ApRil 1, 2022 (euRo/sqm)

seRviCes no. of elevAtoRs no. of pARking spACes

minimum leAsABle offiCe size (sqm) minimum leAse teRms (yeARs)

net offiCe spACe (sqm) totAl gRoss Building AReA (sqm)

Budapest Business Journal | May 6 – May 19, 2022

oWneRship (%) hungARiAn nonhungARiAn

AddRess phone emAil

–

Raiffeisen Ingatlan Alap (100) –

2040 Budaörs, Puskás Tivadar út 7–11. (1) 477-8490 irodaberlet@ raiffeisen.hu 1068 Budapest, Dózsa György út 84 A (1) 451-4760 sales@wing.hu

–

– IMMOFINANZ AG (100)

1139 Budapest, Pap Károly utca 4–6. (1) 236-0435 mail@ immofinanz.com

✓

–

– S IMMO AG (100)

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

✓

–

– CPI Property Group (100)

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

✓

–

– S IMMO AG (100)

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

✓

–

– S IMMO AG (100)

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

✓

– (100)

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

1133 Budapest, Árbóc utca 6. (1) 225-0912 office@ convergen-ce.com

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

mARos BC www.simmoag.hu 140

BAlAnCe loft www.balanceloft.hu 141

BudA CenteR www.simmoag.hu 142

pódium www.simmoag.hu 143

váCi 1 www.vaci1.hu 5,700 13,800

144

145

146

áRpád CenteR www.arpadcenter.hu

BudAfoki Business CenteR www.bc209.hu

A = would not disclose,

NR = not ranked, NA = not appliacable

5,271 5,517

2,258 2,600

A A

11 A

A A

Cushman & Wakefield, DVM group, H&M, Horizon Development, ✓ Mastercard, Ostermann, OTP, Play’n GO, St. Andrea Wine & Skybar AG Mamas, Aurum, Billingo, CCE Hungary, DWP, Eurorisk, Fürgefutár. ✓ hu, EverDermLaser Center, JOBGROUP, VS-Faktor

–

✓

ConvergenCE, www. ✓ convergen-ce.com

–

✓

–

✓

–

– 5

3 66

A A

100 3

– 70

10 1,620 HUF

–

✓

–

✓

–

1143 Budapest, OTP IngatlanHungária körút 17–19. befektetési Alap (1) 236-6400 (100) alapkezelo@ – otpingatlanalap.hu

✓

–

– (100)

✓

–

– CPI Property Group (100)

This list was compiled from responses to questionnaires received by May 4, 2022, and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time. The list is based on companies’ voluntary data submissions. 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

40 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

Graphic by Trueffelpix / Shutterstock.com

Property and Facility Management Leading the ESG Charge With the increased importance of office interiors, property management and facility management are seen as needing to adapt to new and enhanced requirements to meet the changing demands of building users, real estate editor Gary J. Morrell writes. Increased health and safety standards and a growing number of operation and maintenance procedures necessitate a systematic FM/PM approach. Further, in order to comply with sustainability and ESG requirements and the possibility of an exit strategy for building owners, additional capacities are needed to meet new and increased expectations from office users, along with improved benchmarking techniques. Valter Kalaus, managing director of Newmark VLK Hungary, argues that it is not only the individual office space that has to adapt to the new requirements; the entire building has to undergo changes to incorporate such critical elements as touchless entry, increased air ventilation and filtration, less crowded public areas and so on. “PM/FM will have to play a significant role to not only create but maintain these elements to ensure a more desirable and safer environment,” he says. Both PM and FM have enhanced roles in the post-pandemic office environment and with further sustainability and ESG regulations and expectations from tenants and office staff. PM can be seen as the operation, maintenance and oversight of real estate. A property manager is responsible for the daily operation of a building and, in this role, acts as a middleman between the owners and tenants. Meanwhile, FM, integrating people, location, procedures, and technologies, is a profession that encompasses multiple disciplines to ensure functionality, comfort, safety and efficiency of the built environment. Both fields embrace employee engagement, sustainability and environmental impact, and health and wellbeing.

Popular Choice

Zsombor Barta, president of the Hungarian Green Building Council (HuGBC), argues that with safe work in focus after the pandemic, WELL certifications for internal spaces are becoming highly popular.

“Again, FM/PM plays an important role, as increased health and safety strategies need to be implemented in order to fulfill the requirements of the certification scheme,” he tells the Budapest Business Journal.

“PM and FM are both fundamentally important players in the property market. Their part is vital, and they work hand-in-hand to push the industry towards ESG. The post-pandemic environment has accelerated the role of ESG, and we see it as an essential framework.” “In general, all these certifications and benchmarking standards ask for increased management strategies and implementation of best practice measures, which increases the overall sustainability. Therefore, FM/PM plays a very important role in this, and the increased demand for ESG and other sustainability standards will only encourage this,” Barta adds. PM and FM are regarded as needing to further adapt to the increasing trend for office development in line with WELL

sustainability requirements. Regina Kurucz, head of the WELL working group at the HuGBC, argues that FM should primarily serve the users, not the buildings. The results of FM actions should be monitored with the end-user in mind, she says. For example, did changing the filters in the ventilation system really improve air quality? This question can only be answered if measurements are made regularly. Benchmarking and accountability are central to a functioning office project. “ESG is becoming a highly important issue on the real estate market because sustainability and low carbon emissions are the baselines for financial risk mitigation and eligibility for beneficial financial conditions as well,” Barta agrees. “We see on the market that ESG assessments are picking up. ESG assessments are important benchmarking data for financial stakeholders; therefore, PM/FM plays an important role in how a building is performing, what increased measures and strategies are in place, etc.,” he says.

Paying the Bill

How and who will finance these requirements remains to be seen. “Based on our cooperation with PMs and real estate developers, we notice that they expect FM companies to implement ESG,” says Tünde Kirschner, service manager for the office portfolio at Kraft FM, on the role of FM companies when it comes to sustainability.

“It is a key buzzword today and all multinational companies are trying to align their businesses to ESG. However, to fulfill all requirements has a huge investment demand from the FM companies, especially those with Hungarian owners. We understand its importance and will fulfill the demands step by step,” she continues. “ESG has become a major requirement for the FM companies, but fully implementing it is very expensive. The Budapest real estate market is still very much price sensitive,” Kirschner notes. “PM and FM are both fundamentally important players in the property market. Their part is vital, and they work handin-hand to push the industry towards ESG. The post-pandemic environment has accelerated the role of ESG, and we see it as an essential framework. So much so that it is in the focus of our Academia project as well,” says Csaba Zeley, managing director of ConvergenCE. Will regard to the developing role of PM/FM, Károly Dömötör Makk, leasing manager at TriGranit, argues that smart solutions are now imperative and that creating a community among the tenants with various services is essential as well. Finding an “A+” office building is not only about the quality of the building and location but about the services its owner offers through PM. FM wise, environmental awareness and sustainability are as important, so ecofriendly materials used for cleaning, selective waste collection, irrigation and other services are sought after by tenants.

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

Special Report | 41

Facility Management Companies

25,364

FutuRe FM CégCsopoRt www.future-fm.hu

CbRe global WoRkplaCe solutions kFt. www.cbre.hu

kRaFt FM ÜZeMeltetési és sZolgáltató kFt. www.kraft-fm.hu

13,705

25,243

13,705

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

eneRgy ManageMent, eneRgy audit

taking out insuRanCe poliCies

ColleCtion oF publiC utility Fees

ConstRuCtion ManageMent

House oRdeR pRepaRation

opeRation

Real estate developMent

MaintenanCe

FinanCe ManageMent

✓

–

✓

–

✓

Budapest Airport Zrt., Schwarzmüller Járműgyártó és Kereskedelmi Kft., ✓ A Samsung Magyarország Kft., Givaudan Hungary Kft.

–

✓

–

yeaR establisHed no. oF Full-tiMe eMployees on apRil 1, 2022

neo pRopeRty seRviCes ZRt. www.neopropertyservices.hu

inFRastRuCtuRal seRviCes

MajoR Clients in 2021

teCHniCal supeRvision

seRviCes

otHeR (%)

logistiCal and tRade FaCilities (%)

industRial FaCilities (%)

poRtFolio

oFFiCe buildings (%)

net Revenue FRoM FaCility ManageMent in 2021 (HuF Mln)

CoMpany Website

total net Revenue in 2021 (HuF Mln)

Rank

Ranked by total net revenue in 2021 (HUF mln)

oWneRsHip (%) HungaRian nonHungaRian

top loCal exeCutive CFo MaRketing diReCtoR

addRess pHone eMail

1998 583

AKKO Invest Nyrt. (100) –

lászló vágó Tamás Giller György Veres

1095 Budapest, Máriássy utca 7. (1) 299-2150 sales@ neopropertyservices.hu

(100) –

Zoltán Mikó Zita Surányi –

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

– Relam Amsterdam Holdings B.V. (100)

Robert Fischer – –

1097 Budapest, Gubacsi út 6 b/1. (1) 919-0554 hungary.gws@ cbre.com

István Jászberényi (100) –

istván jászberényi István Ádám Zoltán Hock

1139 Budapest, Pap Károly utca 4–6. (20) 250-7469 info@kraft-fm.hu

(100) –

gábor décsi István Molnár Attila Demeter

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

András Sólyom (50), Gergely Lacsny (50) –

andrás sólyom Péter Farkasházi –

1143 Budapest, Gizella út 51–57. (1) 471-2020 noemi.makkai@ smartfm.hu

1991 A

13,466

41 43

–

✓

–

✓

–

✓

–

✓

–

✓

2010 215

6,775

6,418

30 45

AUDI, BOSCH, Erste Ingatlan, Budapart

✓

–

✓

–

✓

2007 225

5,844

4,675

25 50

–

AUDI, Futureal, Coca-Cola, Eston

✓

–

✓

–

✓

–

White Star Real Estate Kft., ESTON International Kft., Dorottya Udvar Holding Kft., ERSTE IFHM Kft.

–

✓

–

✓

–

✓

–

✓

2012 67

–

✓

–

✓

–

✓

–

✓

2008 68

– Rustler Gruppe GmbH (100)

tibor karsai Edina Szántó –

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

–

UNICEF, DPD, Borsodi Sörgyár, BKK

✓

–

✓

–

✓

–

2001 35

(100) –

Hubert Mühringer Erika Puskás Rita Szabó

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

doMe FaCility seRviCes kFt. www.dome.hu 5

sMaRtFM ingatlanÜZeMeltető kFt. www.smartfm.hu

2,061

1,058

✓

RustleR kFt. www.rustler.hu 7

80 10

2003 A

addval kFt. www.addvalgroup.com

813

atalian global NR seRviCes HungaRy ZRt. www.atalian.hu

✓

–

✓

–

✓

–

✓

2008 360

– Atalian Europe S.A. (100)

levente Mihály velky – –

1138 Budapest, Váci út 191. (1) 231-4020 info@atalian.hu

MOL, OTP, Yettel, Budapest Airport

✓

–

✓

–

✓

–

✓

–

1993 6,449

Individuals (100) –

Ferenc kisszölgyémi – –

3644 Tardona, Katus domb 1. (30) 670-8752 iroda@bnref.hu

2004 63

Lexholding Befektető Zrt. (100) –

jános juhász – –

1027 Budapest, Csalogány utca 23. (1) 457-6740 inforg@inforg.hu

100 –

b + n ReFeRenCia ipaRi, keReskedelMi és sZolgáltató ZRt. www.bplusn.hu

inFoRg ZRt. www.inforg.hu

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

Socialite

Wham! Blam! Pow! 1st Budapest Comic Con off the Drawing Board

Budapest will host what I believe is its first comic convention, comiccon for short, on June 11 and 12, joining the ranks of around 70 cities worldwide that encourage mass gatherings of rabid comics, fantasy, movie and cosplay fans. The city will also become part of an industry that, according to a 2019 Forbes article, “contributes billions of dollars in economic impact to host cities.” DAVID HOLZER

The first comic-con events were held in the United States in the late 1960s, the Silver Age of the printed comic and a time when titans Marvel and DC Comics were becoming more sophisticated and widely collected. This was when eightyear-old me discovered superheroes from Spiderman to lesser-known dudes like The Ghost Rider and Swamp Thing and entered a universe of intricate, cross-hatched art and audacious storytelling that made life in small-town England considerably more bearable. Over the years, comic-cons have grown into often enormous events such as the acknowledged heavyweight, Comic-Con International in San Diego, California. This attracts hundreds of thousands of people and brings revenue to the city estimated to be more than USD 100 million.

Today, comic-con events are often held in cavernous venues lined with stalls selling eye-pounding comic book art and ornate merchandise. They have also become a powerful platform for personal appearances by stars of small and gigantic screen superhero adventures promoting their movies or simply basking in the adulation of their followers. This is despite a battle with the archvillain COVID-19, whose presence may have contributed to the growth of the comics and fantasy industries. According to Comichron, the online resource that shares data on the comic book industry, in summer 2021, sales of comic books were as high as they’d been in the previous

25 years

at around 24.2 million copies. Thank all those locked down children, and adults, escaping into a fantasy world. Factor in the astonishing success of the Marvel Cinematic Universe (USD 23 bln box office revenue worldwide, more than twice as much as the second-placed Star Wars franchise), and you can see why comic-cons are an attractive proposition.

Driven by Fans

Cold hard cash might make a city see the sense of welcoming an army of cosplayers dressed as their favorite superhero. But comic-cons are really driven by fans like Gergely Csanda, project leader of the plucky band organizing this first Budapest Comic Con, a self-confessed Star Wars obsessive and event Jedi. “Our company, Meex, has a long history in event organization,” explains Csanda, “we started the PlayIT show,

the biggest gaming event in Hungary. So, we know how to market to specialist communities. We noticed that there is a huge range of comics and fantasyrelated events in countries neighboring Hungary but nothing here. Comics are another passion of ours, so we are more than happy to make this event a reality.” Thanks to the demon COVID-19, Budapest Comic Con, originally intended to spawn in 2020, was postponed several times. “We’re very grateful to our community who stood with us in these hard times,” says Csanda. It looks like Budapest Comic Con is in safe hands. Csanda has a long history with PlayIT and the PlayIT Show. Nikoletta Füstös, who handles partners and sponsors, is steeped in marketing communication and sponsorship. Gábor Kovács, who has managed more than

200 events,

is responsible for the smooth running of Budapest Comic Con. Despite the persuasive business case for comic-cons, it seems that Meex has shouldered the burden of launching the Budapest event pretty much by itself. But, as Csanda explains, “Due to our previous projects, we can guarantee the necessary cash flow for the event. Thanks to huge interest in the event, we also have healthy ticket pre-sales.” If you’re tempted by Budapest Comic Con, and I confess I am, Csanda promises an exciting program of events. Roundtable discussions will cover the state of Hungarian movie and comic production, the streaming situation in Hungary, and Marvel voice actors. There will be a session dedicated to Hungary’s Digic Pictures, a 19-year-

old animation studio that has built a reputation with high-end 3D animation for feature films, commercials, and the video game industry. Digic is particularly respected for its realistic characters and fine detailing.

Highlander Interview

The legendary Christopher Lambert, star of “Highlander,” “Mortal Kombat” and “Beowulf,” will be interviewed, as will Georgia Hirst (Maiden Tovi from “Vikings”) and Scottish actor Sean Biggerstaff, best known as Oliver Wood in the Harry Potter film series. Closer to home, there will also be an interview with Hungarian András Réz, who wrote the screenplay for the musical “56 Drops of Blood” (“56 csepp vér,” a re-telling of the Romeo and Juliet story through the prism of the 1956 Uprising) and “Linda,” a cult 1980s Hungarian TV show about the adventures of a young girl who uses martial arts to fight crime. Biggerstaff, Hirst and Lambert will be available to meet and greet fans. So, if you fancy a selfie with the Highlander, a Viking or part of the Harry Potter gang, you know where to go.

“We know how to market to specialist communities. We noticed that there is a huge range of comics and fantasy-related events in countries neighboring Hungary but nothing here. Comics are another passion of ours, so we are more than happy to make this event a reality.” Csanda promises several exhibitions spanning comic and movie memorabilia as well as a Star Wars exhibit. More than

30 artists

will show their work in an “artist alley.” Various companies will be displaying their wares. And, says Csanda, there will be plenty of shops with “real geek stuff to buy.” There will also be a cosplay competition. For me, this might well be worth the price of entry alone. I have friends in the States who are into cosplay (a portmanteau word from costume play) and, as someone whose auntie made me a purple Batman costume when I was 10, it fascinates me. If you’re thinking of entering, bear in mind that cosplay competitions are judged on accuracy, craftsmanship, presentation, and audience impact.

Find out more about the Budapest Com Con at its official Hungarian-language only website, www.budapestcomiccon.hu

www.bbj.hu

Budapest Business Journal | May 6 – May 19, 2022

What Style are you Drinking This Spring? The spring tasting of Mitiszol? (literally, “What are you drinking?”) was a bijou event held at Haris Park on April 11 with organic, biodynamic and natural winemakers, and sometimes a combination of all three, serving their wares. ROBERT SMYTH

From Mád in the Tokaj region, Pelle Pince had the organic bubbly flowing, with two wines made in contrasting styles from very different methods. Frizzi Gyöngyözőbor 2021 utilizes what is sometimes disparagingly known as the pompe bicyclette method (bicycle pump, if you could not guess), whereby the carbon dioxide is added at bottling. It is predominantly made from the Hárslevelű grape (90%), and this “white wine with bubbles in it” style nicely preserves the variety’s honeyed, floral and fruity character without getting in the way. It is also good value at a discounted price of HUF 2,039 from www.chefmarket.hu. Chef Market is the owner of the Mitiszol? brand, having acquired it from Terroir Club. Pelle’s Tokaji Pezsgő 2018 was made by the traditional method, as Champagne and other more complex sparklers are. The second fermentation occurred at József Szentesi’s sparkling wine cellar in Budaörs, where it spent 36 months on the lees that interacted with the developing wine, imparting creamy notes with a touch of yeast and brioche. It is very Furmint-like with complex quince, pear and freshly-squeezed lemon on the nose and palate and a scintillatingly sour kick. It costs HUF 4,999 from chefmarket.hu. Moving deep down south to Villány but remaining with sparkling wine, the Wassman winery has a Pét-Nat, amusingly named Blancs de Franc. This is a play on Blanc de Blancs, or White from Whites, the French viniculture term for Champagne made entirely from white

grapes. In fact, the Wassman wine is a Blancs de Noir, the phrase for a white wine sparkler made from black grapes; in this case, the Cabernet Franc grape, hence the name. The ultra-trendy Pét-Nat is short for pétillant naturel, a method whereby natural bubbles are retained when the still-fermenting wine is bottled. It usually contains the sediment, which renders the wine cloudy in the glass (cloudier as you pour more out of the bottle) – although some producers of the style remove the sediment by disgorging. Wassmann decided not to disgorge in 2020 but did so in 2021; making the choice depends on the amount of sediment and wine crystals present. The 2021 looks and tastes like pear juice with a cidery edge. It is different and delicious.

Ancient and Trendy

While it may sound new and groundbreaking, Pét-Nat uses the méthode ancestrale (ancestral method), the oldest means of making sparkling wine of all, and predates the traditional method used to make, for example, Champagne (though in that region, méthode traditionnelle is known as méthode champenoise). Pét-Nat wines may lack the precision, poise, persistence and complexity of Champagne, but they tastily tap into the past, getting back to basics, and present a very natural, technologyfree approach. Indeed, it should be no surprise that the style has been described as “Hipster bubbles.” Susann Hanauer works with partner Ralf Wassmann at the eponymouslynamed Wassmann winery in Villány.

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who recommended the two harvests as the acidity tends to drop off quickly. That is no surprise in a subMediterranean region like Villány and with a grape variety of modest acidity in the first place. The resultant wine is floral, fruity, and really refreshing with light alcohol of 9.5%, and costs HUF 3,799 from chefmarket.hu.

Nothing Taken Away

Wassmann’s Mundia 2018, a blend of Kékfrankos and Cabernet Franc, has “nothing added and nothing taken away,” Hanauer says. It has had no sulfur added and was bottled without filtering or fining. It oozes sour cherry and green herb notes and costs HUF 4,499 At its core, the natural wine movement is about returning to vinifying grapes the way they used to be handled before the advent of technology and synthetic herbicides/pesticides came onto the scene and revolutionized wine. More and more wineries are going back to basics, adopting a minimum interventionist approach to winemaking, neither adding They have never used the term “natural” nor taking away from the wine. to describe their wines, but when I half Not adding to the wine implies asked, half stated, “Your wines are spontaneous fermentation from the yeasts natural, aren’t they?” she replied: “This inherent on the grapes and in the cellar is what we’ve been doing all along.” and the use of no additives other perhaps Since last visiting the German couple than a bit of sulfur to prevent the wine in the pre-COVID era, the natural wine from spoiling. However, hardcore natural movement has exploded, both locally winemakers often eschew even the use of and internationally, causing clamor and this naturally-occurring chemical, as in confusion. On tasting their range of the previous example. wines, a cleanliness that is not always Larger wineries generally cannot afford present in natural wines is evident. to take such risks with their wines and Being clean does not always equate to have to focus on pumping out a faultless, success in the natural wine world. “One distributor turned our wines down uniform product to satisfy the demands of shareholders, owners, consumers and because he said they were too clean and distributors alike. Smaller producers, on not funky enough,” Hanauer recalls. the other hand, have more freedom to Wassmann’s Otto Muscat Ottonel experiment. Narancsbor 2020 is an orange wine The Kristinus Borbirtok in the perfect for spring and summer imbibing. Balatonboglár wine region bucks this These amber wines are made from trend and is an example of a larger winery white grapes kept on their skins during successfully pursuing a natural approach. fermentation, as red wines are, resulting “It [the transition to biodynamic grape in a heavier style of wine than white, growing and natural winemaking] replete with tannins. doesn’t happen overnight. You have to Otto 2020 is made from two harvests know your individual vineyards,” says (the first on August 27 and the second Ádám Kurucz, Kristinus’ sales manager. on September 25), with the grapes being Its Liquid Sundowner 2020 orange wine fermented on their skins for eight and (HUF 6,999) is a good example; tasty 12 days, respectively. The couple bought and balanced, with pear and quince on the grapes in from Csaba Malatinszky, a pioneer of organic winemaking in Villány, the nose and palate.

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