Budapest Business Journal 3207

CEE Industrial Market Continues to Thrive

When it comes to development and demand, the CEE logistics and industrial markets have been thriving. That said, total stock in the region is still low by European standards, according to analysts, with resulting development potential in many markets.  20

Faedra22 Logistics Center Sold to German Investors Logistics

The Faedra22 logistics center has been sold to a German investor. It is the second such development by the Hungarian Faedra Group and located in the southern hub of the Budapest logistics market at the intersection of the M0 and M6 motorways.  22

SOCIALITE

Connecting Budapest’s Expat Literary Community

A JV Built to Open Doors

When we read so much that all too often lacks any sense of local identity, it’s a pleasure to discover Budapest’s Panel literary magazine: “the written record of a generation of artists from everywhere that can live anywhere.”  29

The Future is Being Built in Debrecen: PwC

PwC Hungary will host the Debrecen Business Forum 2024 on April 9, the first in a series of annual summits organized in partnership with the city. Mayor László Papp, and PwC CEO Tamás Lőcsei, talk to the BBJ about Eastern Hungary’s economic successes and plans for the region.  8

When DVM group and Greenfield Development decided to go public with the announcement of their JV recently, Tibor Massányi and Dávid Huszlicska wanted the timing to grab the industry’s attention. It would seem to have worked. 11

An agreement has been signed between Magyar Telekom and the Association of IT and Libraries to take the Netrevalók (“Net Worthy”) program, which seeks to educate elders about the internet and bridge the generation gap, nationwide.  10

EDITOR-IN-CHIEF: Robin Marshall

CONTRIBUTORS: Luca Albert, Balázs Barabás, Zsófia Czifra, Kester Eddy, Bence Gaál, Gergely Herpai, David Holzer, Gary J. Morrell, Nicholas Pongratz, Gergő Rácz.

THE EDITOR SAYS

IN PRAISE OF THE BACKSTORY

The feedback we have received thus far from our decadecelebrating Expat CEO of the Year gala has been highly positive. We had a strong shortlist of potential winners, representing a mix of genders, nationalities, and business sectors. You’ll find a full report on pages 13 and 14 and three pages of pictures from the night. If you were there on March 23, see if you can spot your face among them.

Any one of our shortlisted candidates (Raffaella Claudia Bondi of Roche Hungary, Chresten Bruun of Lego, and Arne Klehn of Budapest Marriott Hotel & Marriott Executive Apartments) would have been a worthy winner, but what I particularly liked about our eventual winner, Chresten Bruun, is his backstory. As a business journalist, I’m all about finding the story behind the data. It elevates what can otherwise be quite dry by humanizing the facts and figures. That, in turn, makes it more accessible to a broader audience.

Why Support the BBJ?

• Independence. The BBJ’s journalism is dedicated to reporting fact, not politics, and isn’t reliant on advertising from the government of the day, whoever that might be.

• Community Building. Whether it is the Budapest Business Journal itself, the Expat CEO award, the Expat CEO gala, the Top Expat CEOs in Hungary publication, or the new Expat CEO Boardroom meeting, we are serious about doing our part to bind this community together.

• 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

Forgive me a personal illustration. I’m just back from a week in the United Kingdom catching up with my sadly increasingly frail mother (aged 94) and my eldest daughter (a vibrant 21). As we drove through my old hometown, I pointed out what had been the newsagent’s store where the 13-year-old version of me assembled the newspapers to deliver on my paper round.

“I hadn’t realized this is such a full circle moment for you,” said Daughter Number One. “You started off delivering newspapers, and now you are editorin-chief of a newspaper.” Honestly, it hadn’t struck me either, but you get the point.

In Bruun’s case, there is a lovely narrative arch to his backstory. He took over at Lego’s Nyíregyháza factory in June 2021, but his involvement with this

country goes back much further. In 2008, he was part of the “Discovery” group that toured the CEE region looking for a new factory site for the Danish toymaker and eventually recommended Hungary. And as he made clear in his acceptance speech, the connection is even older than that. Back home in Denmark, he had a Hungarian friend whose presence there could be traced back to the 1956 Uprising.

So, Bruun, too, has a full circle moment. But I stress that this is far from the end of the story. To quote again from his speech, “So, we have a long past here in Hungary, and I believe we have an even longer future. [.…] Tonight, I also want to bring big thanks to all of my colleagues back in the factory in Nyíregyháza.”

I think kudos are also due to Veronika Spanarova of Citi. With the obvious exception of our debut event in 2015, our tradition has always been that the winner from the previous year joins the awards jury and announces the new title holder. In her short speech, she spoke of “a community of people who not only work in Hungary but also live here. [….] For many, this is a second home, a country where we live because of our work, because of our professional journey, for part of our lives. What is so important is that, regardless of whether we were born here, or moved here, or lived here for a couple of years, at this moment, this is our home. Wherever and whenever we go, Hungary will always have a special place in our hearts.” Well said.

Robin Marshall Editor-in-chief (and former paperboy)

THEN & NOW

In the black and white photograph taken from the Fortepan public archive and dated 1944, locals in the Transylvanian village of Körösfő (today a part of Romania, where it is known as Izvoru Crișului) are seen taking part in the Hungarian Easter tradition of men “sprinkling,” or throwing water over, the women. The presentday picture from Hungarian state news agency MTI, taken on Easter Monday this year, captures a glimpse of a performance by members of the Nyírség Dance Ensemble in the Sóstó Museum Village in Nyíregyháza, showcasing the same tradition, albeit some 80 years later.

Photo by József Horváth / Fortepan

Photo by Attila Balázs / MTI

1News

Central Bank Says Monetary Policy Enters New Phase

Changes in Central Bank Base Rate in Hungary

(Jan. 25, 2005-March 26, 2024)

Source:

Percent

The key interest rate was lowered by 75 basis points to 8.25% at the latest ratesetting meeting of the National Bank of Hungary (MNB). The decision underscores that the acceleration of the interest rate reduction cycle to a 100 basis points cut in February was only temporary.

was for a 75 basis point interest rate cut, analysts also expressed expectations as low as

50

and as high as 100 basis points.

That uncertainty is principally triggered by the duality seen in the economy. The MNB must consider both inflation and financial stability aspects in its interest rate policy, which can lead to an apparent contradiction in some scenarios.

At the previous policy meeting in February, the council cut the base rate by 100 basis points. In a statement released after the latest rate-setting meeting, the council wrote, “Over the past few months, disinflation in the Hungarian economy has been stronger than expected, while external and domestic demand pressures have remained persistently low.”

Volatile Sentiment

Hungary’s central bank rate-setters reduced the base rate by 75 basis points to 8.25% at a regular policy meeting on March 26. The Monetary Council also decided to lower the symmetric interest rate corridor in tandem, bringing the overnight deposit rate to 7.25% and the O/N collateralized loan rate to 9.25%.

As a result of messages of acceleration in the short term and relative tightening in the medium term, the market was more divided than usual before the latest interest rate decision. While the consensus

The MNB continued, “However, in the volatile international sentiment, the risk premium on Hungarian assets has also risen recently. According to the assessment of the Monetary Council, the continued strong and general disinflation allows a further reduction in the base rate, while the increasing financial market risk aversion justifies a slower pace than in February.”

Interest rate decisions started to become more exciting around the beginning of the year. After it became clear that inflation was decreasing more strongly than expected, the central bank considered accelerating the pace of interest rate cuts of 75 basis points that had taken place until then.

However, this did not happen in January because, although the MNB

had already prepared the ground for it in terms of its external communications, monetary policy became more cautious at the last moment in response to the turbulence in the markets.

In February, however, the 100-basispoint cut was made, but the central bank paired interesting messages with it. On the one hand, it indicated that, by the middle of the year, it would like to lower the base interest rate to 6-7%

while, on the other hand, it implied that the base interest rate priced in for the end of the year was unrealistically low.

According to the latest communication from the central bank, by the middle of the year, the key interest rate may drop to a level of around 6.5-7%. The phase of monetary policy operating with rapid steps has come to an end, and the decision on March 26 marks the start of a new phase, said MNB Deputy Governor Barnabás Virág at the briefing following the Monetary Council’s interest rate decision.

Slowing Pace

According to Virág, the pace of interest rate cuts will slow in the second quarter; interest rate cuts of 25-50 basis points may come in the subsequent sessions, so the MNB has changed the previous 6-7% interest rate expected by the middle of the year to 6.5-7%.

“The February inflation data would have allowed the central bank to cut interest rates even more, but due to changes in the risk environment, the central bank returned to the previous 75 basis point rate cut pace,” says MBH Bank senior analyst Márta Balog-Béki.

“Following the decision and the subsequent announcement of the MNB, it may be an open question

at the next interest rate meeting whether the development of inflation data and risk perception leaves room for a 75 basis point interest rate cut in April,” she notes.

In the coming months, the annual inflation rate may gradually increase again, and political frictions related to the EU, the weakening of the forint, geopolitical tensions and the volatility of international investor sentiment also justify a cautious monetary policy.

“According to our expectation, the return to the inflation target will be realized more slowly; we expect this in 2025 only. We maintain that, by the beginning of the third quarter of 2024, the base rate may fall to close to 6%, which may remain until the end of the year, keeping in mind the motive of caution,” Balog-Béki adds.

Forecast Updated

The central bank also published its quarterly Inflation Report at the end of March. The document reveals that the National Bank of Hungary has lowered its forecast for 2024 average annual inflation to 3.5-5% from 4-5.5% in the previous report published in December. According to the MNB, inflation will fall to 2.53.5% in 2025. Virág said it would temporarily rise in the middle of 2024 because of the retrospective pricing of market services and base effects. He added that the 3% inflation target would only be reached in a sustainable manner in 2025. The fresh report forecasts 2-3% GDP growth in 2024, accelerating to 3.5-4.5% in 2025.

ZSÓFIA CZIFRA

Automotive Faces a Bumpy Road Ahead Again in 2024

Automotive in Hungary had a tough but successful year in 2023. The near future looks equally challenging; will it be similarly successful?

Last year was anything but a victory march for the Hungarian economy. GDP contracted by 0.9%, and, more alarmingly, if you disregard the impact of agriculture, the decline amounted to 3.2%. By contrast, automotive, albeit facing raging inflation and a postCOVID energy crisis, did rather well. The number of cars manufactured was up by 10% compared to 2022. Certain brands excelled even more: Suzuki increased output by 24%.

The horizon doesn’t look that shiny, though, as plenty of critical issues lurk down the road. As was pointed out at the Portfolio-MAGE Automotive 2024 Conference, executives are now expected to be energy experts so they can steer their companies through the current troubled waters.

In the process, digitization is of paramount importance. Those who have followed through with this imperative can intervene in their production systems more effectively. SMEs are not being left out of this integration, and they are often assisted by larger companies. Take the initiative of Bosch Rexroth to set up a digital experience center to display the latest manufacturing tech to suppliers. Digitization has further added value in the field of energy procurement, too.

What matters most, however, is the carbon footprint of products. Because of this, manufacturers pay extra attention

Automotive Matters

A monthly look at automotive issues in Hungary and the region

AutoWallis is Rolling

AutoWallis recently celebrated the fifth anniversary of the company’s listing on the Budapest Stock Exchange by ceremoniously ringing the opening bell. The good mood was understandable. Since the firm listed its shares, its revenue has quadrupled, and its profits have grown by a factor of 10, supported by acquisitions and organic growth. It has raised HUF 48 bln from the capital market, made more than 10 acquisitions and significantly boosted the number of brands it represents.

Minister of National Economy Márton Nagy, seen here speaking at a press conference on the government’s new Competitiveness Strategy 2024-2030 on March 25, has called for a joint EU program to target EV subsidies for consumers and producers. .Photo by Zoltán Balogh / MTI.

Chinese stakeholders are […] reportedly taking matters into their own hands by installing their own capacities. They plan to invest USD 2.5 billion in building solar farms in Hungary, according to investigative news portal Vsquare.

to the activities of their suppliers in this regard. Energy was priced at about EUR 50 MW/h before the crisis, and after jumping north of EUR 100, it is predicted to settle around EUR 88 in 2025.

Smashing Targets

Accordingly, green energy capacities have been ramped up at dramatic speed. Total solar energy production

in Hungary has exceeded a capacity of 6,000 MW. That threshold was initially planned to be reached by 2030. Current estimates target up to 12,000 MW by that date, wind power included.

The energy issue will gain significance in the short term as Hungary currently imports around 30% of its energy, and the recently announced battery mega projects from Asian companies are set to spike energy demand by 15-25%.

Chinese stakeholders are, therefore, reportedly taking matters into their own hands by installing their own capacities. They plan to invest USD 2.5 billion in building solar farms in Hungary, according to investigative news portal Vsquare.

Speaking of Chinese automotive investments, the European sector has the gigantic task of standing its ground against Eastern rivals. China gained an early head-start

Debrecen-based Investors Forge Closer Ties With Academia

Debrecen (225 km east of Budapest) has become an FDI magnet in the past decade. The city is frequently ranked among the top 10 in the FDI Strategy category of Fdi Magazine’s Small Cities of the Future list. Between 2014 and 2023, Debrecen drew EUR 10.4 bln in investments, which doesn’t include battery-producing behemoth Eve Power’s recently announced mega project, for instance. The local academic ecosystem leaves no stone unturned to ensure it can forge closer relations with investors. Accordingly, the University of Debrecen has announced that battery manufacturers setting up facilities in the city have agreed to establish a research institute. The university’s researchers are tracking the impact of increased industrial activity in the city on air, soil, water quality, and biodiversity. A new level of cooperation with battery producers could help build trust between the public and the

industry. It is badly needed since there have been several protests against the planned large-scale battery investments.

BMW is also reaching out to academia. The German OEM, which has a cutting-edge iFactory under construction in Debrecen, signed a strategic partnership agreement with several faculties of the local university last June. Now, cooperation will extend to the Faculty of Law and the Faculty of Economics.

Recognizing the increasing popularity of Asian manufacturers, AutoWallis was among the first to enter into partnerships with Chinese brands such as BYD and MG, the iconic British marque once famous for its open two-seater sports cars that now belongs to Chinese state-owned automaker SAIC Motor Corporation Ltd.

Those Chinese relations have been further strengthened thanks to AutoWallis securing the exclusive distribution rights for the Farizon brand of commercial vehicles manufactured by Geely. And the latest stage of the company’s expansion is marked by yet another Asian milestone. The auto retailer has secured the importer rights for South Korea’s SsangYong marque, becoming its exclusive importer in nine countries in the region.

in electrification thanks to lavish government subsidies and its quasimonopoly of mining critical rare earth raw materials.

As a result, popular Chinese brands are available for as little as EUR 7,000, whereas European carmakers struggle to push the price below EUR 20,000. The old continent had better prepare for its markets to be flooded: EV and plug-in hybrid champion BYD is building its own fleet of eight cargo ships that can transport up to 56,000 vehicles to Europe in one go.

All that causes unease with good reason and calls for counter-measures. Recently, Minister of National Economy Márton Nagy said that instead of taking a broad general approach to the green and digital transition, a more specific sector-based one should be adopted. He also proposed that a new joint EU program should be launched to target EV subsidies for consumers and producers.

NATO to Assume Some Control of Ukraine Group Coordination

“The terrifying risk of a Third World War is approaching,” Minister of

Foreign Affairs and Trade Péter Szijjártó told Russian state news agency Tass in an interview on the sidelines of the Atomexpo 2024 forum, published March 27.

Acknowledging Hungary’s refusal to provide military aid to Ukraine, TASS had asked Szijjártó whether other North Atlantic Treaty Organization members understood its position “that sending troops would be a serious violation of Article 5 of the NATO treaty.”

Hungary’s foreign minister replied, “The possibility of sending troops into Ukraine on behalf of some NATO member countries […] is really dangerous. Therefore, we will always call on all our allies and colleagues to refrain from any actions or statements that could bring the risk of a world war closer,” he added.

However, several diplomats told Reuters that NATO General Secretary Jens Stoltenberg had proposed a EUR

100 billion

five-year package of military aid to Ukraine, which was expected to be discussed

Hungary Won’t Reintroduce ban on Honey Imported From Ukraine

Hungary will not reintroduce a ban on honey from Ukraine despite demands by honey farmers who have protested, saying the cheap imports have pushed down prices and threaten to drive them out of business, according to international news wire Reuters. Prime Minister Viktor Orbán’s government banned imports of 24 agricultural products from Ukraine last year, including grains, pork, and honey. On Feb. 19, it abolished the import ban on honey, triggering protests from the country’s around 22,000 beekeepers. Minister of Agriculture István Nagy told Reuters the unilateral import

Roundup Crisis Ukraine

reelected President Vladimir Putin, said on April 2 that he believes NATO’s support of Ukraine already makes it a tacit participant in the conflict, emphasizing strikes deep into Russian territory made over the past year, such as the bombing of oil refineries and weapons factories with drones and the shelling Russian border regions.

A EUR 100 billion five-year package of military aid to Ukraine was expected to be discussed at a twoday meeting of NATO foreign ministers on April 3-4 to conclude a deal in time for a July NATO summit in Washington. Photo by Darryl Fonseka / Shutterstock.com

at a two-day meeting of alliance foreign ministers on April 3-4 to conclude a deal in time for a July NATO summit in Washington.

According to the proposal, NATO would assume control over some of the coordination work of the Ukraine Defense Contact Group, a U.S.-led ad-hoc coalition providing military equipment for Ukraine, also known as the Ramstein group. By assuming these responsibilities, NATO intends to ensure that Ukraine maintains some of its necessary military support should it be compromised by a return of Donald Trump to the U.S. Presidency, the diplomats said.

The deal would mark an escalation of sorts, for while most NATO members, with the notable exception of Hungary, provide Ukraine with weapons on a bilateral basis, thus far, NATO as an

ban failed to positively impact the local market as wholesale purchase prices have not increased to the extent that local farmers hoped for, while it hurt companies who packaged and exported honey to the EU. He said honey exporters needed the Ukrainian honey as they could not meet contracted deliveries otherwise.

Bóka: EU Needs’ Clean Policy Line’ With Ukraine

Minister of EU Affairs János Bóka said Brussels needed to indicate a “clear policy line” about the war in Ukraine after a meeting of the General Affairs Council on March 20, according to the conservative daily Magyar Nemzet [Hungarian Nation].

Bóka told Hungarian journalists after the meeting in Brussels

organization has restricted itself to giving non-lethal aid to Ukraine over concerns that more direct support could aggravate tensions with Russia.

Powerful, Predictable and Enduring

NATO declined to comment in detail on the proposal, with an official saying foreign ministers would “discuss the best way to organize NATO’s support for Ukraine, to make it more powerful, predictable and enduring. No final decisions are to be taken at the April ministerial meetings, and discussions will continue as we approach the Washington summit in July,” the official concluded.

Russian Security Council Secretary Nikolai Patrushev, one of the most powerful allies of Russia’s newly

that the EU needed to ensure its responses to certain developments were predictable, both for the union and for Ukraine. He warned that the EU’s current Ukraine policy was on a path that could result in “strategic uncertainty.”

Szijjártó Speaks With Ukrainian President’s Chief of Staff

Minister of Foreign Affairs and Trade Péter Szijjártó spoke with Andriy Yermak, the head of the Office of the President of Ukraine, by phone on April 2, according to a post on his Facebook page. The sides discussed the rights of the ethnic Hungarian population in Transcarpathia, in the west of Ukraine, Szijjártó said in the

“The North Atlantic alliance is, de facto, a party to the Ukrainian conflict and is actively involved in organizing the shelling of Russian territories,” he told the Argumenty I Fakty newspaper. “Within its framework, collective decisions are being made on new arms supplies with an increase in their technical and long-range capabilities, and NATO instructors in several countries are training mercenaries and saboteurs for their participation in anti-Russian operations,” he added.

Meanwhile (and ignoring the opportunity to insert an April Fool’s joke), Hungary received its first supply of gas from Turkey on April

1,

under the terms of a contract signed between Turkish state firm Botaş and Hungary’s MVM CEEnergy in August last year.

Hungary has been looking for new energy supplies after Ukraine insisted it would not renew a deal with Gazprom to let gas flow through its territory when the agreement expires in January. Yet some concerns remain that the gas coming through Turkey might be from Russia.

“Turkey wouldn’t be able to have such cheap gas prices if it came from somewhere else apart from Russia,” said Aura Sabadus, an associate fellow of the Royal United Services Institute and an analyst with commodities experts ICIS.

post. A bilateral working group established to address the matter was due to hold an online meeting on April 4, he added. Szijjártó said he would talk with his Ukrainian counterpart, Dmytro Kuleba, at a meeting of NATO foreign ministers on April 3.

Aid From Hungary Reaches Sudan

A USD 3.5 million delivery of aid from Hungary under the UN’s World Food Program has arrived in Sudan, Minister of Foreign Affairs and Trade Péter Szijjártó said on his Facebook page. Szijjártó said the delivery of 10,000 tonnes of grain from Ukraine had been delayed by “parties interested in their own profit” but had finally arrived “where it belonged.”

NICHOLAS PONGRATZ

Board Chairman at Audi Hungaria

Michael Breme took over from Alfons Dintner as board chairman at Audi Hungaria on Feb. 1.

Breme was previously head of platform and module management in Ingolstadt, where he was responsible for the futureoriented planning and implementation of platform and module management.

“Michael Breme has more than 20 years of experience in the Audi production world. In his previous positions, he has already contributed to the development of the production site in Győr,” said Gerd Walker, Audi AG’s management board member responsible for production and logistics.

“As chairman of the board of management of Audi Hungaria, he will further strengthen the strategic management of the company and thus Győr’s role in the Audi Group’s global production network,” Walker added.

Speaking of Breme’s predecessor, Walker said: “Alfons Dintner has defined the success of the Audi and Volkswagen Group through his 40 years of work at several international production sites. Under his leadership, Audi Hungaria has expanded its portfolio by providing competence-oriented services to the entire Volkswagen Group, the production of electric motors in Győr was further expanded, and the company’s competitiveness was strengthened by integrating the Cupra brand into vehicle production.”

After studying materials science at the RWTH Aachen University of Technology in Aachen, Germany, Breme, an engineer by training, began his career as a production planner in body chassis/structure planning and foreign production sites at Audi AG. From 2009, Breme was head of Audi Tooling and was responsible for the tooling factories in Ingolstadt, Neckarsulm and Győr, as well as for the Audi Tooling Barcelona and Audi Tooling Beijing sites. Breme became head of production and factory planning at Audi AG in 2016.

In this position, he was responsible for the production-side design of all vehicle projects for the Audi brand and the design and implementation of the factory structure for Audi production sites worldwide.

Colliers Relaunches

Retail Service Line

Colliers Hungary is set to return to the retail market under the leadership of Anita Csörgő

Throughout her three decades in the industry, Csörgő collaborated with prestigious clients such as Gucci, Moncler, Salamander, Michael Kors, iStyle, Starbucks, and one of the leading electric car brands. She has been instrumental in leasing significant portions of Andrássy út and Váci utca and has facilitated the sale of numerous high street freehold rights. In addition, she led repositioning projects for various shopping centers, including Köki, Campona, Pólus, and Eleven Center. She was also involved in the original leasing consultancy for Kecskemét Malom and Mammut 2.

The newly formed team is further strengthened by Diána Haáz-Bencsik, who brings nearly eight years of professional experience. She previously played a significant role in exclusive mandates for CPI Hungary, Revetas Capital, Erste Real Estate, and Diófa Fund Management. She also collaborated as a tenant representative in building Vodafone’s portfolio in Hungary.

The retail team will assist brands in optimizing their retail spaces. Csörgő explained, “In the coming years, we will leverage more than 37 years of collective retail expertise to identify profitable strategies, departing from traditional solutions. We will do this by tapping into the versatile expertise available at Colliers, particularly with our in-house ESG team and our design and build division during the execution of retail spaces.”

Haáz-Bencsik added, “I am thrilled to be part of the Colliers team, and I believe that with the company’s international support, we can gain a regional advantage. Furthermore, we are committed to strengthening our relationships with landlords and tenants of stores on high streets and shopping malls.”

According to Colliers, the lower inflation rate and positive economic growth in 2024 should benefit net real wages and individual entrepreneurs’ incomes. This improvement could positively affect disposable income and retail turnover. Additionally, increasing foreign tourism is expected to affect the high street segment positively.

“This optimistic economic outlook also validates our decision to relaunch our retail department. I am confident that under the leadership of Anita Csörgő and with the addition of Diána HaázBencsik, our integrated service model will gain further momentum,” stated Kata Mazsaroff, Colliers’ CEO.

Wolf Theiss Welcomes Banking and Finance Partner

Wolf Theiss has announced Nicholas Coddington’s appointment as the firm’s new partner in banking and finance, starting in the firm’s Vienna office in mid-February. As a former Magic Circle member, Coddington will enhance Wolf Theiss’ services across Austria and the CEE/SEE region.

Coddington joins Wolf Theiss following a decade at Magic Circle and other international law firms where he was, most recently, partner and head of the Central European banking and finance group. He brings extensive expertise in complex corporate and project finance transactions, focusing on energy, green and sustainable, infrastructure, and real estate finance.

The new Wolf Theiss partner holds a Bachelor of Laws from Sheffield Hallam University and is a solicitor in England and Wales and the Republic of Ireland. His multilingual proficiency in English and Polish

further strengthens his capacity to manage diverse legal challenges across the CEE/SEE region.

“The addition of Nicholas Coddington reinforces Wolf Theiss’ regional service offer in complex finance transactions and adds another great talent to our team. His English law experience throughout the entire CEE/SEE region will greatly benefit our clients, reinforcing our position as a legal leader in Central, Eastern and Southeastern Europe,” said Andrea Gritsch, managing partner and head of the firm-wide banking and finance practice.

PwC Hungary

Appoints Energy and Utilities Director

Beáta Szoboszlai has been appointed as the new leader of the energy and utilities advisory team at PwC Hungary, the Big Four firm tells the Budapest Business Journal

She started her career at the Budapest Stock Exchange, where she was responsible for business development, including developing derivative products. She then worked at an international strategic consulting firm specializing in the energy sector. At MOL, she was first responsible for enterprise risk management and later group strategy.

During her time with MOL, she obtained professional certification as a Chartered Financial Analyst (CFA). As head of strategic planning at MVM Group, she became familiar with all areas of the energy value chain and, thanks to her role as senior economist, gained an even broader overview of the energy sector and macroeconomic processes. In addition to numerous strategic projects, she also led an ambitious innovation project to integrate renewables.

After consulting again in the spring of 2023, she joined PwC Hungary’s advisory practice in early November. As director, she will focus on the dynamically transforming Hungarian energy sector and improving businesses’ use of sustainable energy.

Michael Breme

Anita Csörgő

Diána Haáz-Bencsik

Beáta Szoboszlai

Kinstellar to Take Over Noerr in Hungary, Czech Republic, Romania, Slovakia

Noerr’s practices in Budapest, Bratislava, Bucharest and Prague are to be transferred to Kinstellar, the two law firms have announced.

Noerr and Kinstellar say they have agreed to transfer these practices once the integration details are fully worked out. Several operational and technical aspects, including investments in IT systems and leasehold premises, are being worked out, and the deal will be completed after all the necessary regulatory consents and internal approvals have been obtained.

According to a press release put out by Kinstellar on April 3, Noerr “delivers the highest level of service to its clients.” Noerr has operated offices in CEE since 1990 and is “very proud of the accomplishments of its team in these places over the years.”

It goes on to say, “As part of the regular review of its organization, Noerr has, however, come to the conclusion that strategic cooperation in the CEE markets represent the most sensible solution for its further development. As a result, the best way forward for its German and international business, its CEE people and, most importantly, its clients, is for Noerr to transfer the teams to Kinstellar.”

Gov’t to Make Establishing Companies Easier for Foreigners

The government is drafting measures that will make it easier for foreign investors, including those from outside the European Union, to set up companies in Hungary, the Ministry of National Economy said in a release on its website yesterday. The measures include the introduction of English-language template contracts for establishing companies, the publication of consolidated English-language information on foreign documents required for the process, and the chance to pick euros or dollars, in addition to forints, as the currency for declaring initial capital. The changes aim to reduce red tape for foreign investors and spur economic growth. The ministry noted

The Kinstellar brand was launched in November 2008 when U.K.-based Magic Circle law firm Linklaters decided to move out of the region to concentrate on larger markets and spun off its offices in Bratislava, Bucharest, Budapest and Prague. Kinstellar (the name is an anagram of Linklaters) has 400 staff in 12 offices across 11 countries in Central and South Eastern Europe and Central Asia, not counting the Noerr staff who will move across.

“The transfer of the Noerr business in Budapest, Bratislava, Bucharest

that a government-mandated survey had shown that foreign investors couldn’t fully use streamlined procedures for setting up companies mainly because of the language barrier.

Italian Woman

Held in Hungary Will Remain in Jail

An Italian woman charged in Hungary with taking part in an antifascist group’s assaults on people they viewed as far-right activists will remain in jail after a judge denied her attorney’s request that she be released into house arrest, according to international news wire Reuters. Ilaria Salis, a 39-year-old teacher, is accused of taking part in a serious assault on two far-right militants by a group of anti-fascist activists in Budapest last February.

complement and enhance Kinstellar’s existing strength in these markets and beyond,” it adds.

Noerr and Kinstellar say they will cooperate on a non-exclusive basis to serve their clients across these jurisdictions following the closing of the transaction. Kinstellar’s senior partner Jason Mogg welcomed the move, saying it would enhance his firm’s strength and capabilities and diversify its expertise and clientele.

“The transfer of the Noerr business in Budapest, Bratislava, Bucharest and Prague to Kinstellar, and the full integration of the Noerr business in these markets into Kinstellar, will bring even higher quality and broader service to clients and significantly increased strength to Kinstellar.”

and Prague to Kinstellar, and the full integration of the Noerr business in these markets into Kinstellar, will bring even higher quality and broader service to clients and significantly increased strength to Kinstellar,” the law firm says.

“In particular, the significantly increased German language advisory capabilities and the deep connections with German and other continental European clients, coupled with the experience of the Noerr team in these markets, will perfectly

She pleaded not guilty at a hearing in January. Prosecutors are seeking an 11-year sentence. Salis appeared in a Budapest court on March 28 for a hearing at which her attorney requested that she be released into house arrest either in Italy or Hungary. Judge József Sós denied the request, saying there was a risk of her fleeing or going into hiding. Salis’ next hearing is set for May 24.

CPI to Climb Temporarily on Costlier Service Prices, Base Effects

The Consumer Price Index, which has fallen into the central bank’s 2-4% tolerance band for the past two months, will rise temporarily in the middle of the year because of base effects and higher market service prices, the National Bank of Hungary (MNB) said in a report

“Kinstellar and Noerr share similar values and culture, which will make the integration very smooth. Both firms are highly regarded for their commitment, teamwork approach, strong work ethic and their excellent service to clients. We are confident that this project will benefit the Noerr team in these cities, all our people, and most importantly, our clients,” Mogg said.

Alexander Ritvay, a co-managing partner at Noerr, added, “We see the deal and future cooperation with Kinstellar as very positive and a winwin for our clients, people and firms. It will give Noerr both the possibility to concentrate on achieving its goals in Germany and other Western markets and a reliable and committed first class partner firm in the region.”

published on its website March 28. Price rises in sectors such as telecommunications and banking that businesses have put off until now will drive the CPI higher in the middle of the year, András Balatoni, an MNB director, said in presenting the fresh quarterly Inflation Report. Fielding questions, he said CPI would rise “closer to 5% than 4%” on the impact of the base effects and earlier delayed price increases. He noted that although headline CPI had been in the tolerance band, underlying inflation indicators still stood over the band’s upper threshold. Balatoni pointed to two opposing effects on underlying developments: a rise in imported inflation resulting from the weakening of the forint and the disinflationary impact of the weaker cyclical position of the domestic economy.

Photo by Sergey Nivens / Shutterstock.com

The Future is Being Built in Debrecen, Says PwC

PwC Hungary will host the Debrecen Business Forum

2024 on April 9, the first in what is intended to be a series of annual summits organized in partnership with the City of Debrecen. The following is an interview with Mayor of Debrecen László Papp, and Tamás Lőcsei, CEO of PwC Hungary, about Eastern Hungary’s economic successes, plans for the future, and the importance of promoting dialogue between smaller and larger businesses in the region.

can only succeed if, in addition to multinational corporations, an increasing number of local and regional small- and medium-sized enterprises are also part of the production chain. That’s why we have decided to establish Hungary’s first SME park in a large-scale industrial environment in the Southern Economic Zone. While we follow Hungarian and international best practices, we also apply unique local solutions in urban and economic development.

BBJ: How does the region’s dynamic growth manifest itself?

“It

should

be emphasized that the city’s economic development policy can only succeed if, in addition to multinational corporations, an increasing number of local and regional small- and medium-sized enterprises are also part of the production chain.”

BBJ: What makes Debrecen’s economic policy unique?

László Papp: Debrecen’s urban development is carried out along well-conceived strategies that respond to people’s needs. For the past 10 years, we have focused on economic development to put the city’s finances on a solid footing and to have more opportunities to raise the living standards of the people of Debrecen and make their everyday lives easier.

In addition, we are committed to sustainable, green and ecofriendly industrial development. We are constantly looking for solutions to protect the environment. It should be emphasized that the city’s economic development policy

LP: Since 2014, Debrecen has attracted more than EUR 12 billion in capital inflows in greenfield investments, creating more than 19,000 new jobs. By the end of 2023, 6,750 of the announced new jobs had been filled, almost exclusively with Hungarian residents of Debrecen and its environs. Recruitment is in full swing, with graduates from the Vocational Training Center of Debrecen (DSzC) and the University of Debrecen playing a pivotal role. The city’s strength has multiplied in recent years. If economic, cultural, educational and transport characteristics are all considered, by the end of the decade, Debrecen has a good chance of becoming the economically strongest city in rural Hungary and one of the most developed in Central Europe.

A 2020 survey by the Ministry of Innovation and Technology examined the role of county seats and counties in Hungary’s industrial and economic performance. The region’s share was only 2.8%, but thanks to the companies setting up business here, this figure will change significantly in the coming years; by the early 2030s, we expect it to reach beyond 15%, a fivefold increase.

BBJ: What is the importance of Debrecen and the region in greening the economy?

LP: Today, Debrecen is a significant player both globally and locally in the transition to a green economy, thanks to the investments taking place here. We are working to be at the forefront of solving one of the most critical challenges of the 21st century: the storage of green energy. The sustainable and efficient use of green energy is inconceivable without energy storage.

BBJ: As mayor, what role do you envisage for Debrecen in the coming decades? Where do you see Debrecen in 10 to 20 years?

LP: What we have accomplished in Debrecen in the past 10 years and will continue to achieve in the coming years is aimed at improving the quality of life for the people of Debrecen, making the city more prosperous and stronger while providing a safe and ecofriendly environment.

We have the highest employment figures in Debrecen since Hungary’s transition to a market economy. As the number of large companies operating

here increased, so did the city’s income: tax revenues tripled in 10 years before major investors had even started production. Job-creating investments also benefit the people of Debrecen, as more resources can be reinvested in measures that make life easier for them. However, Debrecen does not only want to be an industrial city but also a business and economic hub in Central Europe; in addition to industrial development, the services sector has also grown in importance. Many foreign and Hungarian-owned companies have moved their service centers here, investments that create a significant number of jobs.

BBJ: What is your response to Debrecen’s current labor market situation?

LP: A fundamental problem in previous years was the brain drain, as talented young people left

Debrecen’s economy has undergone dynamic development in the last 10 years, which is expected to continue in the coming decades. The DebrecenMiskolc-Nyíregyháza region has become Hungary’s new development hub, and thanks to intensive economic development since 2014, Eastern Hungary is entering a new era of economic potential. PwC Hungary has sought to exploit this potential by opening a new office in Debrecen to serve companies in the region more efficiently and contribute to the development of Eastern Hungary’s economy and education.

Debrecen to live and work mostly in Budapest. Our main goal is to persuade those who grew up or studied here to settle and embark on a career here or return to Debrecen after gaining a few years of professional experience.

Companies coming to Debrecen offer young people the opportunity to stay here and have a successful career, and those who have left the chance to return. There is a lot of competition in Debrecen for skilled labor, but the city and its educational system also help supply the right workforce. Ten years ago, unemployment in Debrecen was above 8%; today it is 3.7%. Along with strengthening Debrecen’s economy, education has also seen a period of dynamic growth. Since 2015, the number of students at DSzC has increased from 7,500 to more than 12,000. Debrecen can provide a safe place to its residents; the jobs created here, the welldeveloped infrastructure and highquality urban services all contribute to the city’s continuing success.

We are launching the Főnix Housing Program, a new rental housing scheme specifically for Hungarian citizens under 35 living or working

BBJ: Developing a city or region is a very complex process that does not happen overnight. What makes a location future-proof and attractive for investors?

Tamás Lőcsei: We live in a world of rapid environmental, technological and social changes. These have a profound impact on the growth and development of cities. To be successful, cities must harness modern technologies with efficient and innovative tools in a sustainable way, provide top-notch infrastructure, a suitable location for emerging industries, as well as opportunities for research and development. This, in turn, will contribute to improving the population’s quality of life. It is a very complex and difficult task for a city to attract international attention. At the negotiation stage, investors examine different locations and consider various factors before making a long-term decision. These factors include a stable business environment, the state of infrastructure development (in other words, motorway access, whether there is an international airport), the availability of skilled labor, state aid, and amenities (housing, cultural opportunities, healthcare, international schools, and so on).

in Debrecen. This is unique to Hungary because it involves local real estate developers, businesses, and employers. The program aims to ensure that young workers from Debrecen stay in the city instead of moving to the agglomeration. To this end, we provide affordable, low-maintenance, highly energyefficient housing so they can plan their lives and careers in Debrecen.

The municipality aims to provide young workers and their families 200 apartments with predefined technical specifications. Onethird of the rent is paid by Debrecen Municipality, one-third by the employer, and one-third by the tenant. The rental period is five years, after which tenants can purchase their own property.

BBJ: Why is Debrecen now in focus for PwC?

TL: PwC joined this dynamic business ecosystem at the end of last year by opening our new office and hosting business events in Debrecen, bringing together representatives of Hungarian

According to PwC’s 13th Hungarian CEO Survey, business leaders’ expectations have changed significantly over the past year. They are less concerned and cautiously optimistic for 2024. What are the prospects for CEOs in the Eastern Hungarian region? Are their views any different from those of the rest of the respondents?

Two awards, the Business Excellence Award 2024 and the Company of the Future Excellence Award 2024, will be presented at the Debrecen Business Forum 2024 to CEOs who have contributed significantly to the region’s economic development.

and multinational enterprises. We see how Debrecen has grown into a global player with outstanding growth prospects.

Since Nov. 14, when PwC arrived in Debrecen, we have hosted several important local events. Now, as our crowning achievement, we want to showcase the very best of the region’s business community each spring to allow Hungarian and multinational companies to engage in dialogue and learn from one another. It is critical to help both established companies and newcomers prepare for an ever-changing business landscape, focusing on trust and quality.

We also want to promote partnerships between businesses and education, support women in business, and empower disadvantaged groups.

The future is being built in Debrecen. It is Hungary’s second-largest city, the region’s outstanding knowledge center, and the site of an investment success story, so PwC must participate in building its future. The purpose of opening our new office in Debrecen is to contribute to the region’s development. We want to leverage our wide-ranging expertise to support companies and business processes and become the leading audit and business consultancy firm in the area.

BBJ: PwC is organizing Debrecen’s largest business summit on April 9 for medium-sized and large enterprises operating in Eastern Hungary. What is the purpose of this event?

TL: PwC’s Debrecen Business Forum 2024 will be the first of a series

While CEOs are less confident about their own prospects for revenue growth, the level of concern about the negative impact of external factors has remained unchanged. Inflation remains the top concern for CEOs (51%), followed by skills shortages, macroeconomic volatility, geopolitical conflict, and cyber risks; at least one-

“The future is being built in Debrecen. It is Hungary’s second-largest city, the region’s outstanding knowledge center, and the site of an investment success story, so PwC must participate in building its future. The purpose of opening our new office in Debrecen is to contribute to the region’s development.”

of events to be held each spring, focusing on topical business matters. Participants will include CEOs and owners of Hungarian and multinational companies operating in the region, as well as invited speakers. The event offers a unique opportunity for businesses to learn from each other and build synergies. The afternoon workshops will be organized in cooperation with the German-Hungarian Chamber of Industry and Commerce, the American Chamber of Commerce in Hungary, and the Hajdú-Bihar County Branch of the National Association of Entrepreneurs and Employers.

third of CEOs are concerned about these threats significantly affecting their profitability. PwC interviewed 297 CEOs at the end of 2023, 10% of whom are leaders of companies based in Eastern Hungary. The detailed survey results will also be presented at the Debrecen Business Forum 2024.

2 Business

‘Net Worthy’ Program Expands Nationwide

An agreement has been signed between Magyar Telekom and the Association of IT and Libraries (IKSz) to take the Netrevalók (“Net Worthy”) program, which seeks to educate elders about the internet and bridge the generation gap, nationwide.

Following its successful launch in Budapest in the fall of 2023, this spring agreement with the IKSz takes the initiative to the next level, with 48 regional institutions joining 27 libraries in the capital city in the program.

Magyar Telekom will donate 100 monitors each to the Metropolitan Szabó Ervin Library and the IKSz for libraries participating in the program to support the development of the necessary digital infrastructure.

The nationwide expansion of Netrevalók was announced at the 25th Internet Fiesta»Pro Closing Conference on March

27.

Initially launched in November in cooperation with the Metropolitan Ervin Szabó Library, the program now sees libraries in an additional 44 towns and cities across the country joining.

In partnership with the IKSz, more than 500 high school students can now participate in the program nationwide as part of their community service, introducing older people to digital solutions that can provide genuine assistance in their daily lives.

Personal Connections

The Netrevalók program is designed to build personal connections between generations. The high school

which can come naturally from the younger generation, who are adept at navigating these digital realms.

Digital Development

“We consider it our mission to advance the digital development of Hungarian society and to demonstrate how technology can be used to propel people forward and facilitate everyday life,” says Zoltán Pereszlényi, deputy CEO of commercial operations at Magyar Telekom.

Zoltán Pereszlényi (center left) of MTel and Andrea Géczi Tőzsér Istvánné (center right) of IKSz exchange thoughts during the press launch of the nationwide expansion of “Net Worthy.”

students give the elderly customized training, using the pensioner’s own devices during the sessions to access information relevant to their needs and at their own pace, with opportunities for repetition and practice.

Meanwhile, the students perform valuable community work, achieve immediate success experiences, develop essential soft skills, such as communication and problemsolving abilities, and learn empathy, acceptance, and patience.

Through the collaboration, libraries will provide the venue, liaise with schools, and certify the community service for students. Meanwhile, MTel will take on the coordination and communication aspects and create online platforms and preparatory materials for the students.

Additionally, the telco announced at the event that it will donate the 200 monitors to enhance the digital infrastructure of the libraries participating in the program.

The common goal of MTel, the Metropolitan Ervin Szabó Library, and the Association of IT and Libraries is to assist the populace in acquiring and developing digital literacy and understanding of digital culture.

It is essential that socially disadvantaged groups, such as the elderly, also become acquainted with and have access to the opportunities offered by technology. However, many of them need support and guidance,

From Roots to Reach: The Evolution of ‘Netrevalók’

The predecessor of the Netrevalók program, named Legyélteis! Most Generációs (“Be Tech-Savvy! Generations Now”) started in March 2019 with the collaboration of five Budapest high schools.

This initiative was renewed and expanded by MTel in November 2023 when it launched Netrevalók in partnership with the Metropolitan Library. Since last fall, the program has been available in 27 libraries in Budapest. From the end of March, high school students in 44 cities

will teach the elderly digital skills in library sessions as part of their community service.

The free sessions are held simultaneously on the second Wednesday of each month in every participating library. During these sessions, retirees explore topics of interest on the internet with the youths, using smart devices that retirees often carry but may not be able to use confidently.

The workshops cover various topics such as social media usage,

“With the current agreement, we have created a national program that offers guidance and genuine assistance to the elderly while also aiming to bridge the existing digital and generational divide. We are pleased that the initiative was wellreceived beyond Budapest and count on more towns and libraries joining the Netrevalók program in the future,” he adds.

For the Association of IT and Libraries, president Andrea Géczi Tőzsér Istvánné highlighted that “forming partnerships that expand the services of member libraries, promote social responsibility, and broaden access to information, as well as strengthen the connections between generations, is crucial.”

Following the official signing, researcher Enikő Bereczki gave a lecture titled “Cooperation Across Generations,” in which she said, “It’s important to recognize the differences between generations living together in society, how this affects us, to realize the importance of connecting generations, and to master the key strategies that help overcome these barriers and collaborate more effectively in diverse family, workplace, and social environments.”

e-books, internet safety, online communication and transactions, entertainment, hobbies, transportation, travel planning, photo editing, digital photography, health, and sports.

The initiative not only equips seniors with vital digital skills but also fosters a sense of community and understanding across generations. It creates a platform for the elderly to confidently navigate the digital world, thereby enhancing their lives and connecting them more closely with the wider, increasingly digital society.

GERGELY HERPAI

2 Companies, 1 Venture: Combining Expertise and Reputation

When DVM group and Greenfield Development decided to go public with the announcement of their joint venture recently, it was timed to grab the industry’s attention. It would seem to have worked.

“The general idea was to announce it before the real estate awards, where the most influential players are in one room. We wanted to give them a heads up before that,” recalls Tibor Massányi, managing partner at DVM group and managing director at DVM-Greenfield.

“We were smart enough to create a lot of chat about this with the real estate players. I think we achieved the goal we wanted,” he adds.

“I agree; it created a lot of buzz,” adds Dávid Huszlicska, managing partner at Greenfield Development and director of DVM-Greenfield. “We signed the general contractor’s agreement for our second project a couple of weeks before the event. So, when the news of the JV came out, it wasn’t just a one-off cooperation; we had signed our second deal and are negotiating our third.”

Established in 1995, DVM group prides itself on providing “the most comprehensive range of integrated building services in Hungary.” Its activities include design, project management, environmental consultancy, general construction and construction management.

Greenfield Development, on the other hand, is a relative newbie with a tighter focus, established in early

2022

“to provide top quality general contracting and development services in the industrial real estate sector.”

The collective experience of its management (Gábor Móró, who before co-founding Greenfield was the owner of Limelog Kft., a well-known producer of pre-fabricated concrete elements for industrial construction, Dániel Szélesi, a structural engineer with more than a decade of experience in large-scale industrial building construction, and Huszlicska), is more than 40 years.

“I have known Dávid previously for years from the market. In terms of Greenfield and DVM, that’s much younger. When the joint venture idea came up, it was already based on this personal relationship, on a good knowledge of each other’s experiences and values,” says Massányi.

Because of that personal relationship, once discussions started in earnest about forming a JV in late spring, they were concluded relatively quickly.

“I just checked: June 21 was the company’s incorporation date,” says Huszlicska. “When we started this partnership, we both felt like we’d already been colleagues for 10 years at the same company.”

Industry-focused

The JV is dedicated to the industrial sector, an area where Greenfield has already built experience but which is not one of DVM’s core strengths. In other words, the firms complement one another.

“We respect and absolutely accept the professionalism of Greenfield and their team in that market segment where they have been working in the past 15-20 years,” says Massányi. “Greenfield is representing the professional knowledge of the market. And we provide the strength and reputation that DVM has hopefully achieved in the past 28 years.”

Huszlicska is clear-eyed that, in the opinion of many, Greenfield is the junior partner. Whatever the experience of its management, the company name is not enough “to get you through board approvals from the client side.” The JV circumvents that, he says.

“There’s a long corridor of options and doors. One or two are open for companies like us, but most are closed. Once DVM was open to put their name next to ours, all the doors opened,” Huszlicska explains.

“We’ve even gotten feedback from one of our clients who said, ‘We love to work with you guys, but if there was no DVM, we could not have done so.’ The clients need the reputation and strength of DVM, and even though we have a relationship with them personally, that’s not enough.”

For the JV’s first project in Debrecen, DVM-Greenfield is the general contractor for the international developer Panattoni, which specializes in industrial real estate and warehouses.

“It’s approximately 15,000 square meters. They [Panattoni] have a longterm tenant, and it’s an assembly plant for one of the BMW suppliers. The location of the building is approximately 500 meters

away from the BMW factory’s fence,” says Huszlicska.

Details for the second project are less easy to provide, as it is not yet public, but the JV is building a facility for a logistics company. All that can be said about the third deal, which is still under negotiation, is that it is in Hungary, but that begs another question: Could the JV operate across the borders?

The focus is on Hungary, Massányi says, but suggests you should never say never. “Everybody in the team is hungry, everyone’s looking for possibilities, and clients might start challenging us with over-the-border projects. […] I’m pretty sure it’s coming, sooner or later.”

‘If the Stars Align’

Huszlicska says if it does happen, it will be “because the stars align. For us to enter a country, it cannot just be speculative. But if a client insists on having us on board for a project in another country, that sort of marks the entry point for us,” he believes. “I fully agree,” Massányi adds. “We are not planning to open satellite offices in other countries. We can deliver good projects, and therefore we have great relations with our clients. That’s the lesson we have learned: do a good job, and the clients will ask you to follow them. We have to be very thankful, and we have to be open to that.”

Greenfield has been strengthening its relationship with Chinese companies and already does project management for a couple of firms.

“We guide them, and we try to bring them to Hungary, but also give our input on other countries. It’s just a matter of time before one says, ‘Okay, I want to go to country ‘X,’ which isn’t Hungary, but we want you on board.’ For them, the trust that has been established is invaluable. That’s one of the possible scenarios.”

That’s for the future. For now, stable development in Hungary is the name of the game. Neither partner sees significant challenges in the cost and availability of labor or raw materials nor access to finance. Land, however, is a more interesting question.

“I’ve spoken with many investors who say, ‘There’s loads of land in Hungary. It’s all over the place. It’s available.’ And that’s true. Land for sale is abundantly available. But truly prepared sellers are few and far between,” notes Huszlicska.

Put another way, a shovel-ready plot with the correct zoning, permitting, and utilities in place is much harder to find. All of the above and at a realistic market price? Not as rare as hens’ teeth, but far from “abundant.” Helping in site searches is something Greenfield increasingly finds itself asked to do.

Related to that, Hungary is becoming less Budapest-centric, which is to the country’s advantage. But Massányi points out that Debrecen, for example, has built a track record of attracting and serving FDI over the past 15 years.

“The way of working, thinking, contracting, delivering what multinationals need; that is now something the countryside can learn and understand,” he says. The implication is that not all of Hungary’s cities are there yet. But they are getting closer.

ROBIN MARSHALL

Left to right: Dániel Szélesi, Dávid Huszlicska, Gábor Móró, and Tibor Massányi

CIB Group Closes 2023 with Record Performance

Last year was the most successful in CIB Bank’s history to date, boasting a record profit of HUF 63.9 billion alongside significant growth in its loan and deposit portfolios, far exceeding the market average. The bank announced a series of growth figures that defied negative market trends, including increasing mortgage disbursements despite a halved market.

“The quality of our credit portfolio ranks among the best in the market, with non-performing loans dropping to 1.9% and loans overdue by more than

90 days

stagnating at 0.6%,” Simák emphasized.

In response to a question, Simák stated, “Our focus remains on organic growth without compromising the quality of our credit portfolio, given the limited opportunities for acquisitions.”

Despite a moderate decrease in corporate customers, the retail customer base expanded by 4%, and the bank achieved growth in disbursements for retail loans, personal loans, and baby waiting loans, with corporate loans growing by 4.8%.

ESG trends, continued and robust digitalization across the market, cyber fraud prevention, and the increasing use of artificial intelligence.

The bank’s analysts expect 2.5% GDP growth for 2024 after a 0.9% decline last year, with the average Budapest Interbank Offered Rate (Bubor) rate dropping from 14% to 6.7%

this year and to 5.3% next year, which should support lending. The average exchange rate is projected to be around HUF 386 compared to last year’s HUF 381.

“Our 12% market share in mortgage lending is attributed to an increase in new disbursements against the market trend,” Simák explained.

The digital channel accounts for 75% of personal loans and

36%

of account openings, with a 12% ratio for mortgage applications. Numerous customer satisfaction initiatives are in place, with particular attention to the age group under 24, constituting 12% of the portfolio.

Executives told journalists at a press briefing on March 26 that the credit portfolio of CIB Bank, part of the Italian international banking group Intesa Sanpaolo, is of a “higher quality” than the market average.

“2023 was indeed a milestone year for both the 45-year-old CIB Bank and the 25-year-old CIB Leasing,” CEO Pál Simák said. He added that ranking typically between fifth and seventh in market share as a major universal bank, 2023 witnessed the highest return on equity among its peers due to substantial portfolio growth.

“Revenues increased by 25% last year, while costs rose by only 12%, resulting in a 77% surge in taxed profits to HUF 63.9 bln, translating to a 21.5% return on equity. This performance minimally felt the impact of one-off items, such as the fair value of babywaiting loans contributing an additional HUF 2 bln-3 bln,” Simák added.

The business volumes significantly outperformed the sector average: the loan portfolio grew 9% to HUF 1.598 trillion and deposits by 12.3% to HUF 2.396 tln.

Excluding personal loans, these figures surpassed those of the previous year. Deposit growth was driven by corporate customers, with a notable increase, while retail deposits saw a decrease in market share.

Digital Penetration

“The bank’s digital customer ratio stands at 84.1%, one of the highest penetration rates in Hungary,” Simák further detailed.

“The current strategic cycle (20222025) focuses on five pillars: extensive digitalization; dynamic growth in lending and fee-generating services with a strong ESG focus; enhancing employee motivation and engagement; strengthening the credit process while maintaining loan quality; and modernizing and stabilizing the IT architecture,” Simák elaborated.

He also emphasized the growing importance of ESG considerations in governance and lending, attributing many of the bank’s accolades to employee satisfaction.

Regarding market trends, the CEO anticipates an increase in consumer lending and intensive SME lending, declining but still high inflation, especially in the first half, accelerating

“We reported a 20% year-on-year increase in the number of corporate and SME customers, with significant growth in the corporate and leasing division and a stable position in leasing and fleet financing,” deputy CEO Balázs Szabó reported. New ESG financing amounted to HUF 18.7 bln, with a slight increase in new disbursements and portfolio growth in leasing.

“The division contributed over 20% to the revenues of the Intesa Sanpaolo subsidiary division,” Szabó added.

Despite limited investment appetite and a projected slight increase in overall market lending volume, financing supply chains will become increasingly important regionally and globally.

Moderate Expectations

“Expectations for the leasing side are moderate, with a transformation in the passenger car market and a particularly pessimistic outlook for agricultural machinery, indicating stagnant disbursements for the year,” Szabó noted.

The deputy CEO also mentioned that some companies are taking advantage of market loans available at Bubor-equivalent interest rates as part of a short-term government and banking agreement. Still, the period is too brief to fundamentally alter corporate lending market trends.

Approximately HUF 200 bln was shifted from deposits to higher-yield securities in retail savings, representing a quarter of the retail deposit portfolio, resulting in a 9% increase in total retail wealth.

The small business loan portfolio grew by nearly 10% last year, with savings increasing by 9%. The bank was the fourth-largest player in the Széchenyi Card Program, achieving significant market shares in overdraft and liquidity loans. Acquisition of customers with annual revenues of between HUF 300 million and HUF 1 bln resulted in a 13.5% market share, ranking third in the market.

CIB Bank anticipates growth in retail lending with a strong focus on ESG and digitalization, potentially aiding the small business sector’s recovery from the recession. A dynamic increase in customer numbers is planned.

Asked about the latest round of the Csok housing subsidy that offers a maximum interest rate of 3% on mortgages of up to HUF 50 mln for families with three children, Simák said, “The volume of the newly available Csok Plusz was slightly higher than expected, although the number of deals was slightly lower.”

A new development launched in February allows for personal loans up to HUF 15 million, the highest available amount in the market, based on a complex scoring and risk-based pricing system.

“Experience suggests a higher likelihood of repayment for larger loans. Energy renovations have a positive impact on this market,” the CEO concluded.

GERGELY HERPAI

From left, Balázs Szabó (deputy CEO), Pál Simák (CEO), and Ádám Szinai (head of marketing and communications) of CIB Bank.

Chresten Bruun Wins Expat CEO of the Year Award

The general manager and senior vice president of EMEA Manufacturing in the Lego Group, Chresten Bruun, won the Expat CEO of the Year title at the Budapest Business Journal ’s annual awards gala, held for the 10th time on March 23 in the Grand Ballroom of the Corinthia Hotel Budapest.

The award is given to the foreign CEO working and living in Hungary who has contributed most significantly to the development of the Hungarian economy and its international recognition in the previous year. The first gala took place in 2015. The distinguished event gathers a prestigious audience of business leaders, diplomats, and decision-makers at the hotel every year.

“The BBJ is Hungary’s only Englishlanguage economic bi-weekly and has always played an important role in providing information for expat CEOs working and living in Hungary. It was natural that we should found an award to recognize their efforts annually,” explains Balázs Román, the CEO of the Budapest Business Journal

The Expat CEO of the Year is selected by a five-member professional jury on the day of the gala, just 30 minutes before the start of the event. The members of the jury include Írisz LippaiNagy, CEO of the American Chamber of Commerce in Hungary; István Joó, CEO of the Hungarian Investment Promotion Agency; András Sávos, President of the German-Hungarian Chamber of Industry and Commerce; and Balázs Román, CEO of the BBJ. The fifth seat on the jury goes to the previous year’s winner, meaning Veronika Spanarova of Citi, therefore, had a voice in selecting her successor.

This year also marked a spectacular new record in terms of attendance, with the number of guests clocking in north of 200. The country’s most important domestic and foreign business figures, diplomats, and investors were

welcomed by a glass of champagne before taking their time greeting old acquaintances, looking at a luxurious Lexus model exhibited in front of the ballroom, or taking a look at the exquisite modern painting exhibition awaiting them in the foyer.

The Importance of Foreign Investors

After opening the gala and inviting guests into the ballroom to sample Corinthia’s excellent cold starters, BBJ editor-in-chief Robin Marshall invited Rita Szép-Tüske, the deputy CEO of the Hungarian Investment Promotion Agency, to the stage, where she highlighted the importance of foreign investment in Hungary.

“Economically vulnerable parts of the country are among the biggest winners of Hipa’s past 10 years of operation. The Northern Hungary and the Northern Plain regions have welcomed nearly 160 projects in total in the past five years alone.

And now BYD’s flagship investment marks the quest for concentrating our resources in the southern part of the country,” she told the audience

“These marvelous results would have been impossible without the fresh perspective and global experience that foreign business leaders bring to the table, whether they come from the West or the East, and regardless of the industry they work in,” she added.

Marshall next introduced the traditional folk dance group Forrás, which put on a lively show in the center of the ballroom while the guests enjoyed their warm appetizers.

The Community Award

In addition to the Expat CEO of the Year award, the gala also featured the presentation of another award with a different focus.

“This goes to a business leader or the head of a business organization with a focus on inclusivity, disability, and sustainability. They are among the most influential members of our remarkable CEO community, contributing to bringing and binding it together,” Marshall told the audience. “In our estimation, they demonstrate both leadership and impactfulness but, most importantly, the values of social commitment, diversity, and ethical leadership.”

This year, two exceptional business leaders won the Community Award: Spar Hungary’s president-CEO Gabriella Heiszler and general manager of Budapest Marriott Hotel Arne Klehn, who was also nominated for the Expat CEO of the Year Award.

“I truly believe that for every business that we make in this country, we have really an increasing role in addressing challenges in society, in doing good in every direction, and we generally have a global responsibility,” Klehn said, also noting that he will be departing Hungary after a long stint directing Marriott’s operations in the country.

Heiszler noted that Spar “Serves more than 500,000 customers every single week, from all parts of Hungarian society. It means that we get very good feedback about what we have to do, and our simple job is to listen to these voices as best we can.”

The award was presented for the second time this year; the first winner was Andrea Istenesné Solti, country chair and president of the board of Shell Hungary Zrt. and president of the Hungarian Leaders’ Business Forum, who presented the awards to this year’s winners herself.

10 Years Honoring the Expat Best

After the presentation of the Community Award came the highest point of the evening: the Expat CEO of the Year award. Over the last 10 years, it has become one of the most prestigious accolades on the Hungarian business scene and among expat executives. The nine winners (six men and three women) of the past editions of the award also demonstrated great diversity over time. There have been three Germans (one of whom is halfBrazilian) and one each from the Czech Republic, the Netherlands, Finland, Italy, Spain and the United Kingdom. “2015 and our first gala is a long time ago now, and Hungary was a different country. At the time, to judge from public discourse, even the idea of foreign-owned companies was a questionable virtue. We thought that was wrong. We wanted to show that different doesn’t necessarily mean better, but it can certainly mean finding another way of doing things. We wanted to show that diversity of thought, and background, and, yes, of nationality and gender help create value.

BENCE GAÁL

Chresten Bruun. Photo by Lázár Todoroff

Continued from page 13 ›››

Today, those ideas are much more widely accepted in Hungary, and it is in no small part to the previous winners of this award. That Hall of Fame has helped set Hungary’s path to economic growth and prosperity, and that is why we honor expat CEOs tonight,” Marshall noted.

The award was won for the first time in 2015 by Javier González Pareja (then CEO of Bosch Magyarország); in 2016, the winner was Joost Lammers of Budapest Airport. In 2017, it was Joerg Bauer, then President of GE Hungary. In 2018 it was Marc de Bastos Eckstein, of Thyssenkrupp Components Hungary Kft. 2019 was a landmark year that saw the first woman winner, Taira-Julia Lammi, then country managing director of ABB Kft. She was followed in 2020 by the award’s second female winner, Melanie Seymour, head of Blackrock Budapest from 2017-2019. Erik Slooten, then CEO of Deutsche Telekom IT Solutions Hungary, won in 2021. He was followed in 2022 by Giacomo Pedranzini, CEO of Kometa 99 Zrt., and last year, the award went to Veronika Spanarova, managing director and country head for Hungary of Citi.

After the guests had finished their main course, the BBJ’s editor-inchief introduced this year’s nominees: Arne Klehn, multi-property general manager of Budapest Marriott Hotel; Raffaella Claudia Bondi, pharmaceutical executive and general manager of Roche; and Lego’s Chresten Bruun.

After three short videos introduced each of the 2024 nominees, last year’s winner, Veronika Spanarova, took to the stage bearing the envelope containing the winner’s name.

“This is a community of people who do not only work in Hungary, but they also live here. This is the country where you live and work. For many, it has become a home country after living here for many years. Also, for many, this is a second home, a country where we live because of our work, because of our professional journey, for part of our lives. What is so important is that, regardless of whether we were born here, or moved here, or lived here for a couple of years, at this moment, this is our home. Wherever and whenever we go, Hungary will always have a special place in our hearts,” Spanarova said.

Excitement peaked as she opened the envelope, revealing Chresten Bruun as the winner of this year’s Expat CEO of the Year Award.

Danish-Hungarian Relations

Accepting the award, the Dane asked the audience to give a round of applause to all the expat CEOs in the room and then took the audience on a verbal journey through Viking-Hungarian history.

“Well, being a Danish Viking, you can say, here in Hungary, reminds me about the long story that is between Denmark and Hungary. It goes maybe more than 1,000 years back; at least, it seems there is proof that the Vikings were here because a Danish silver coin was found here, which was more than 1,000 years old. Later, we also have some relations that go to the mid-50s, when some Hungarians came to Denmark, when the Hungarians rose up against communism, and it also made it possible for me to have a Hungarian friend in Denmark,” he told the crowd.

“We started our operations here in 2008, with great support from Hipa and also from others who are represented here tonight. Later on, we built the new factory in 2014, and ever since, we have continued to expand our operations here. But now it’s also becoming even more important to invest in sustainability, and that means solar parks, geothermal energy and also sustainable materials for our Lego toys,” said Bruun.

“So, we have a long past here in Hungary, and I believe we have an even longer future. We have a solid ground for that with our amazing colleagues; without them we couldn’t produce our world-class products at such a high quality. Tonight, I also want to bring big thanks to all of my colleagues back in the factory in Nyíregyháza,” he added.

Marshall returned to the stage one last time, thanking the guests for their attention and, as tradition dictates, closing his speech by paying homage to one of the greatest Irish-English comedians.

“Enjoy the rest of the night. From me, let me just end by channeling my inner Dave Allen. Good night, thank you, and may your God go with you,” he said.

After the conclusion of the official program, the gala extended late into the night, with guests mingling and networking in the foyer. Attendees enjoyed the hospitality of the Corinthia well past midnight, sampling delicious desserts and drinks, including excellent Hungarian wines and specialty cocktails made with beer, while being entertained by the music of the Gabriel Farkas Band, playing the tunes of the late, great Frank Sinatra in two sets, interspersed by a DJ.

The event was supported by Penny, Shell, Citi, MSCI, Heineken, PwC, Synergy, Legrand, and Chocome. The official partner of the ceremony was the Hungarian Investment Promotion Agency.

Prime Time Communications looked after the gala’s organization, Special Effects International provided technical support, and Rent IT was responsible for the registration and audience quiz software.

From left: Rita Szép-Tüske, Arne Klehn, Veronika Spanarova, Írisz Lippai-Nagy, Raffaella Claudia Bondi, Chresten Bruun, Gabriella Heiszler, Balázs Román, Robin Marshall. Photo by Lázár Todoroff

We would like to thank our generous sponsors and partners

3 Special Report

Logistics

Hungary’s Light Industrial Boom Continues Apace

The industrial market is booming, with leading CEE regional industrial park operators and Hungarian developers participating in an increasingly active market. That has grown on the back of increasing logistics activity in the COVID19 and post-pandemic environment and greater industrial space requirements needed to meet significant FDI demand, notably in the electric vehicle and EV-related industries.

Korda, corporate sales relations and business development officer at Wing. The company has ongoing logistics projects in the Budapest area.

“The stream of Far Eastern capital into Hungary continues to be significant. Demands generated by FDI fundamentally dominate the market all over the country, including the manufacturers’ catchment area,” Korda says.

The industrial market boom was initially centered around the Greater Budapest area but has now also moved to industrial hubs across the country, providing badly needed economic development outside the capital.

The total industrial stock in Hungary is still relatively small compared to the major Central European industrial markets such as Poland, the Czech Republic and, increasingly, Romania. However, a provincial logistics and light industrial network has emerged, as is the model in leading markets.

With the rising development activity and vacancy rate, albeit from record low levels, developers are increasingly adopting the safer built-to-suit option rather than building on the more adventurous speculative model. This also enables developers to meet ever more specific tenant sustainability demands from the initial design and construction phases to property and facility management.

“Perhaps the most important thing to note is that speculative developments have not stopped despite all the external circumstances, and even though vacancy is slightly on the rise, there is still need on the demand side,” comments Zsófia

“In the last four years, every year has seen record levels of new supply in the industrial property market, with nearly 400,000 sqm in the last two years, 50% of which has already been pre-let. In the next 12-18 months, we expect to see the same volume of new supply,” she adds.

Geographical Spread

As of the turn of the year, there was 5 million sqm plus of modern logistics and light industrial space in Hungary, with 3.5 million sqm in the Greater Budapest area and 1.6 million sqm in provincial centers, according to the Budapest Research Forum (consisting of CBRE, Colliers, Cushman & Wakefield, Eston International, iO Partners and Robertson Hungary).

Vacancy stands at 6% percent in Greater Budapest and close to 8% in the rest of the country. Cushman & Wakefield have traced eight industrial projects in the Greater Budapest area that are due to be completed this year and a further 10 in the regions.

“In the current market situation, we are focusing more on BTS developments to provide the best possible service to our customers. At the same time, our latest speculative development was handed over just a few months ago in Szigetszentmiklós, at Prologis Park Budapest–Sziget II,” says Zsuzsanna Hunyadi, leasing and customer experience director at Prologis Hungary.

“At the moment, our vacancy rate is 5% due to the recent delivery of new speculative buildings. The focus is currently on BTS developments at Prologis, and other market participants seem to follow the same strategy. This tendency is expected to continue in the coming years as the general market indicators also show an increase in vacancies and a decrease in market absorption capacity in all countries where we are present in Europe,” she notes.

Cushman & Wakefield has traced

500,000 sqm

of industrial and logistics space under construction in Hungary, the majority (358,000 sqm) in the Greater Budapest area, in a market that has traditionally been capital-centric.

“The surge in demand during and after the pandemic led to tight availability in 2020. Consequently, there was a notable acceleration in development activity with over 1 million sqm added to Greater Budapest in the last three years,” comments the consultancy.

“The supply of new developments continues unabated both in volume and pace. This has resulted in increasing vacancy rates, indicating a changing market dynamic. Consequently, speculative development is expected to slow in Greater Budapest as developers adopt cautious approaches to prevent potential market oversupply,” Cushman & Wakefield adds.

As a sector with potential longterm demand and record low vacancy rates, the industrial market has been attracting CEE regional industrial park operators in addition to Hungarian developers, moving into what has become an attractive market.

The leading players in terms of supply are HelloParks, established as part of the Hungarian Futureal group, and prolific developer CPP. Wing, an established Hungary-based CEE developer, has ongoing industrial projects in the Budapest area.

Countryside Projects

Outside of the capital, CTP has a project in Komárom (93 km west of Budapest by road), the Belgium VGP has developments in Kecskemét (92 km southeast of the capital) and Győr (120 km west) and the leading European developer, Panattoni, has a development project in Debrecen (230 km east).

The Hungarian Infogroup is developing its Inparks network in provincial industrial hubs. This reflects a shift towards secondary cities with a significant number of developments planned.

“Infogroup continues to specialize in the industrial and logistics regional markets as we see that there is demand and we are targeting a number of different locations in Hungary, but primarily those areas which are considered industrial hubs, which are in eastern, northern and, more recently, southern Hungary,” says Balázs Czifra, director of sales and asset management at the company.

“We try to stay ahead of demand by preparing suitable land to accommodate any new projects. For example, we have acquired a site in Szeged (176 km southeast of Budapest by road), as it is obvious that once the Chinese car manufacturer BYD’s plant is established, there will be high demand in the area. In seven other locations, we continue planning and permitting so that when there is a requirement, we can act quickly,” he says.

“As for development types, we currently prefer built-to-suit, but we are also developing on a speculative basis. Demand typically relates to the most recent FDIs in the automotive sector and from logistics suppliers,” Czifra adds.

All of Prologis’ buildings in Hungary are located in the Budapest area, close to the M0 orbital motorway, according to Hunyadi.

“We believe demand is highest for distribution centers close to the city center, with easy access to airports and international transport routes. These attributes also make our warehouses more sustainable, in line with our environmental goals,” she says.

“We still believe that, for efficient and sustainable warehousing, it is essential for developments to be close to major transport hubs. For this reason, we continue to plan developments in Hungary that are close to Budapest,” Hunyadi adds.

GARY J. MORRELL

Aerial view of Prologis Park Budapest-Gyál.

Sustainability, ESG, and EU Taxonomy to the Fore

Industrial and logistics developers are delivering ever more complex products in response to stricter ESG, EU Taxonomy and sustainability regulations. Further, a shift towards builtto-suit development gives greater scope to meet tenant specifications, beginning with consultations in the initial design phase and continuing throughout construction.

As with the office sector, market demands are seen to be acting on players at the same time as environmental regulations. ESGcompliant buildings open the possibility for cheaper debt finance, command higher rents and returns on investment. More favorable and sustainable aims are, therefore, part of the same desired end result. From this perspective, sustainability can be seen as developer and landlord-led.

“The real estate sector is the biggest energy consumer in the EU; hence, it carries a significant responsibility to fulfill climate neutrality criteria,” comments Anna Bencze, head of sustainability at HelloParks.

GARY J. MORRELL

“We are seeing increased demand for energy-efficient buildings. Costeffective operations, amenities boosting sustainability, assistance in the procurement of equipment, services to smooth the move-in and move-out process, and quick response times from property owners have all become important aspects for customers,” comments

Zsuzsanna Hunyadi, leasing and customer experience director at Prologis Hungary.

“Prologis’ global aim is to achieve netzero emissions across the entire value chain by 2040, a decade before the final deadline of 2050. We also have an intermediate target to achieve net-zero emissions from our developments by 2030,” she explains.

“In 2021, Prologis additionally set a goal to have

100% of new developments and renovations officially certified as sustainable buildings. We are also working to develop more efficient and cleaner supply chains by sourcing local materials and by using renewable energy and recyclable materials,” Hunyadi adds.

Sustainability accreditation is becoming the norm in the upper strata of the industrial sector, with developers and park operators such as Prologis, CTP, Panattoni and HelloParks building more highly specified Breeamand Leed-accredited complexes.

According to the Budapest Research Forum (consisting of CBRE, Colliers, Cushman & Wakefield, Eston International, iO Partners and Robertson Hungary) and Cushman & Wakefield, 72% of the Hungarian industrial market is certified regarding sustainability accreditation. “Tenants in Hungary are gradually encouraging landlords to provide renewable and energy-efficient solutions. Presently, only 23% of logistics stock has green certification; industrial is an area ripe for significant improvement in the short term,” comments Cushman & Wakefield.

‘Outstanding’ Warehouse

The 45,000 sqm MG3 warehouse at HelloParks Maglód (on the outskirts of the capital, just 30 km southeast by road from the center of Budapest) is the first industrial property in Hungary to achieve Breeam “Outstanding” sustainability rating for New Construction, the highest standard in the third-party accreditation system.

All of the company’s warehouses abide by these sustainability specifications and are EU Taxonomy-aligned. Embodied carbon emissions for new buildings will be reduced by 25% from 2025 and 50% from 2030 compared to the developer’s previous buildings, which already meet levels similar to Western European developments.

In addition, each facility will have an average solar capacity of 2.5 MW installed. The goal is to achieve netzero emissions for the operational carbon footprint of new buildings by 2028

and ensure a 100% renewable energy supply, says the developer.

“Such an achievement calls for a substantial reform of current practices, which we have perceived as a promising opportunity from the beginning. The industry must anticipate forthcoming scenarios that would satisfy the interests of the environment, local communities and businesses alike. Our explicit goal is to motivate the entire industry through our ambitious targets,” Bencze adds. Appropriate data collection and automation are also utilized to make real reductions in energy consumption. Systems automatically providing detailed energy consumption reports also know when and how much occupants unnecessarily consume.

The HelloParks BMS system, integrated into its buildings, allows the property and facility managers to ensure optimal operation. Higher energy efficiency is also supported by the developer’s mobile application, HelloParks Assistant, which provides helpful information to tenants by connecting to the halls’ building automation and monitoring systems.

Combined Approach

DVM group and Greenfield Development recently launched an industrial sector joint venture under the name DVM-Greenfield, reflecting the attractiveness of industrial real estate and the increasing complexity of development and tenant demands. The JV aims to combine the construction experience of the DVM group with the industrial contracting experience of Greenfield Development.

“Synergies enable us to deliver industrial real estate projects quickly, efficiently, tailor-made and to the highest professional standards,” says Tibor Massányi, managing director of DVM-Greenfield.

“In addition to general construction, we can guide our clients through the entire process, from selecting the ideal site to conceptual design and construction to commissioning. We are available to our clients in all areas of the investment process, whether it is the development of a feasibility study or leasing issues,” Massányi promises.

Balázs Czifra, director of sales and asset management at the Hungarian Infogroup, sees regional development across Hungary with demand related to the most recent FDI arrivals, notably the battery and automotive sectors and suppliers, as the core market. A secondary requirement could be for logistics space. He sees sustainability as more driven by the landlord than the tenant. Either way, it is becoming the norm.

“In the EU, the real estate sector is responsible for around 40%

of GHG [greenhouse gas] emissions, so it has a huge responsibility and a huge task to meet the climate targets,” says Bencze.

“HelloParks has seen this as an opportunity as there is no doubt that the winner will be the one who leads the way and can make the green transition. The EU is constantly introducing new measures, legislation and changes, all of which are pushing and promoting the green transition and the shift to sustainable operations while, at the same time, putting more pressure on the market,” she notes.

“As a market leader, we also feel the social responsibility of all this and are committed to playing a pioneering role on this untrodden path. [….] We have a major impact on the supply chain, and thus on the potential for reducing the carbon footprint of construction materials and introducing new good practices,” Bencze concludes.

The 45,000 sqm MG3 warehouse at HelloParks Maglód is the first industrial property in Hungary to achieve Breeam “Outstanding” sustainability rating for New Construction, the highest standard in the third-party accreditation system.

CEE Industrial Market Continues to Thrive

When it comes to development and demand, the Central European logistics and industrial markets have been thriving. That said, total stock in the region is still low by European standards, according to analysts, with resulting development potential in many markets, some with very low vacancy rates.

Established Markets

According to Cushman & Wakefield figures, modern industrial stock for Central Europe (which it defines as Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia) stands at over 60 million sqm.

“Across CEE, the fundamentals for the industrial property market remains strong, as further demonstrated by positive dynamics both on the supply and demand sides, along with considerable investors’ confidence in this asset class,” says Cushman & Wakefield.

The so-called CEE-5 (the Czech Republic, Hungary, Poland, Romania and Slovakia) has almost 58 million sqm of modern industrial and logistics space, according to CBRE. A further

5 million sqm

is under construction, and the vacancy rate ranges from 1.5% to 8.6%.

Colliers puts total CEE industrial and logistics stock at more than 65 million sqm in its “Exceeding Borders: Manufacturing & Warehousing Sector in CEE-12” report. Poland is by far the dominant Central European market, exceeding 30 million sqm or 38% of total stock in the CEE-12; a further 3.4 million sqm is under construction.

This compares to more than 11.3 million sqm of stock in the Czech Republic, with 1.3 million sqm under construction. According to some analysts, the Czech Republic is seen as a model for Hungary, a country of a similar size with which it could catch up.

Both Poland and the Czech Republic have established industrial markets across several provincial hubs. The two countries benefit from their central geographic positions in significant European logistics and industrial networks, with close proximity to Germany, in addition to their own economic success.

Poland contains as many as five core logistics market networks. The Czech Republic, as the second-largest industrial market in Central Europe, also has multiple industrial hubs. HelloParks has secured a development site in Poland and intends to add a further two in its move to become a Central European industrial developer. Average industrial vacancy for the region stands at 4%, which is supportive of strong rental growth, according to Colliers. The vacancy rates are less than

1%

for the Czech Republic and 4% for Poland.

“All of the CEE-12 countries experienced a significant rise in rental rates over the course of the last year. Colliers analysts forecast that the main sector in CEE-12 countries will continue to grow significantly in the coming year,” the agency says.

“This is due in part to cheaper labor and lower rental rates than in Western European countries. While Western Europe is beginning to slowly run out of land for locating large-scale manufacturing facilities, the CEE-12 countries are characterized by a relatively high level of such plots,” Colliers adds.

One of the recent highlights of the Central European industrial market was the 233,000 sqm pre-lease at the Panattoni Park Cbeb in the Czech Republic.

The Cheb South park has achieved Breeam “Outstanding” New Construction third-party accreditation with a 94.2% score, according to the regional logistics park developer and operator.

“On a per capita basis, the modern industrial and logistics stock in the CEE-6 countries (Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia) remains well below that of a normal Western Country, so there is still a lot of room to grow over the medium term.”

“A modern industrial facility at Panattoni Park Cseb South has become the most environmentally friendly industrial building in the world,” says Panattoni. The 40,000 sqm facility is a distribution center for the German online auto parts distributor Autodoc.

High Standards

“It underscores that modern industrial construction in the Czech Republic truly has the highest global standards and places a strong emphasis on responsibility towards the environment and local communities,” adds Pavel Sovicka, Panattoni’s managing director for the Czech Republic and Slovakia.

The factory offers greenery, low water maintenance, an outdoor gym, dining and relaxation area. The complex was built on a brownfield site, and energy consumption has fallen by 59% compared

to the reference state, resulting in a 68% decline in the level of CO2 emissions generated by the building, according to Panattoni.

Elsewhere in CEE, development in Bucharest and provincial logistics hubs in the increasingly dynamic Romanian market further confirms developers’ confidence in that country, says Cushman & Wakefield Echinox. Total industrial stock has reached 6 million sqm, making it the thirdlargest market in the region. New supply could add a further 500,000 sqm.

With regard to Southern and Eastern Europe, industrial developers and developer-led park operators have previously been reluctant to enter the region; therefore, there is limited provision of modern, developerled logistics and industrial space. However, CTP has ambitious plans in this region and has now extended its network to Serbia.

Bosch has established a 20,000 sqm BTS facility at CTPark Belgrade West. CTP now has close to 11 million sqm of logistics and industrial space across

10 countries

in its portfolio, according to the company. It sees strong potential for continued growth in development across the region.

“Industrial and logistics developments and leasing demand show no signs of a material slowdown and, in some cases, are set to remain on par with previous years, which have been record-setting for some countries,” says Colliers.

“On a per capita basis, the modern industrial and logistics stock in the CEE-6 countries (Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia) remains well below that of a normal Western Country, so there is still a lot of room to grow over the medium term,” the consultancy concludes.

GARY J. MORRELL

CTPark Warsaw South is in the CEE region’s most significant industrial and logistics market: Poland.

Waberer’s Achieves Record Year, Launches Comprehensive ESG Strategy

Waberer’s International announced another recordbreaking year in 2023, with significant improvements in earnings and revenue, while also unveiling its comprehensive Environmental, Social, and Governance strategy. The logistics giant achieved an EBITDA of nearly EUR 95.6 million and an EBIT operating profit of EUR 42.8 mln on revenues of EUR 710.9 mln.

portfolio. Despite the challenging environment, the company’s Board of Directors will propose a dividend of

HUF 120

per share

at its annual meeting in April (up from last year’s dividend of HUF 100).

Alongside financial success, Waberer’s also laid out its first group-wide ESG strategy, focusing on reducing carbon emissions, enhancing employee diversity, and promoting female leadership.

Listed in the Premium category of the Budapest Stock Exchange, the company’s revenue increased by 4.6%, while net profit jumped 53.6% to €29.7 mln. Waberer’s EBIT operating profit increased by 17%, while EBITDA grew by 14.8%, reaching record levels for both indicators. The company’s EBIT and EBITDA margins also improved, with the former rising from 5.4 to 6% and the latter from 12.3 to 13.4%, thanks to profit growing faster than sales.

According to CEO Zsolt Barna, Waberer’s International had an eventful year after industrial production and consumption in Western Europe and Hungary, and its main markets stagnated or slightly declined throughout the last year. This directly impacted the demand for logistics services, while the domestic insurance market, which was also important for the company, had to cope with the challenges posed by the special tax.

In this volatile environment, Waberer’s focused on segments and customers less affected by the overall negative economic environment, well supported by the company’s diversified customer and service

Waberer’s strategy focuses on the Contract Logistics (RCL) business, which saw revenues increase by 5.2% to EUR 209.8 mln and EBIT increase by 37.3% to EUR 15.3 mln. This growth was attributed to the expansion of automotive and petrochemical production support logistics and successful customer acquisitions.

Revenue Increases

The Freight and Transport (ITS) segment saw a revenue increase of 2.8% to EUR 437.3 mln in 2023, but its EBIT decreased by 9.7% to EUR 8.9 mln. Despite facing increased price competition in the spot market and a decline in demand for freight in Europe, the segment maintained a result similar to the previous year due to its stable key account customers.

Waberer’s Insurance achieved revenues of EUR 82.4 mln (up by 17.7%) and an EBIT result of EUR 18.6 mln (+19.3%) in 2023. The growth in the contract book and outstanding investment performance contributed to the positive EBIT performance.

Barna said the company aims to become the leading complex logistics service provider in Central and Eastern Europe. The goal is to significantly increase revenue and operating profit by

2027,

almost doubling the 2022 figures. Sustainability will play a vital role in the implementation of the strategy, with the development of green services

“The majority of our clients are large companies that also have a sustainability strategy, and typically, they have set expectations for their subcontractors. At Waberer’s, we have already taken many measures to reduce carbon emissions and ‘green’ our operations, for example, and we have also announced several initiatives for our employees. However, for the first time, we have organized these efforts into a complex entity that forms our ESG strategy along the environmental, social and governance sustainability pillars,” Patai added.

In addition to its environmental commitments, Waberer’s has set out several ambitions for its employees. In recent years, the group says it has done much to promote employee well-being and satisfaction, including special training, health promotion, and community-building programs.

by increasing rail and intermodal transport and aiming to reduce emissions through green investments and energy efficiency measures.

Progress can already be seen with developments and acquisitions in 2023, such as the warehouse development in Ecser (25 km east of central Budapest by road) and a new logistics center in Debrecen (231 km east of the capital). In addition, Waberer’s announced the acquisition of a majority stake in PSP (Petrolsped) Group and a majority stake in the Serbian distribution company MDI. For the coming year, Waberer’s expects sales of around EUR 800 mln and EBIT of more than EUR 40 mln.

The Waberer’s Group is also tackling its carbon emissions with a fleet of electric trucks, alternative fuels and a combination of rail and road transport. The company’s first comprehensive, group-wide ESG strategy addresses employee diversity and targets increasing the proportion of female employees in addition to further developing greener services.

The company says it has for many years been prioritizing the development of its sustainable services portfolio and actively responding to issues affecting the sector, such as labor shortages and low female employee participation, but for the first time, it has organized its objectives along ESG lines into a complex entity. In an unusual move for the industry, Waberer’s publicly launched its ESG strategy at a Women’s Day brunch exclusively for female partners.

High Expectations

“ESG compliance is not only important for investors looking for ESG considerations, but also for employees, especially younger ones, and customers with high expectations,” said Krisztina Patai, ESG director at Waberer’s.

“At Waberer’s, we have already taken many measures to reduce carbon emissions and ‘green’ our operations, for example, and we have also announced several initiatives for our employees. However, for the first time, we have organized these efforts into a complex entity that forms our ESG strategy along the environmental, social and governance sustainability pillars,”

In the future, it will continue to focus on creating and maintaining an attractive and progressive workplace, offering professional training and monitoring points for improvement. An important objective is to sensitize employees on issues such as nonprejudice and equal opportunities.

Diversity and gender equality are also crucial to the strategy. The labor shortage is significant in the logistics sector, so the company also employs foreign workers to a lesser extent, but the 3,700 driver roles in the company’s workforce offer many opportunities to strengthen the employee community.

Waberer’s says it is already at the forefront of increasing the female gender ratio: a significant proportion of its managers are women, it provides female mentors to train women drivers, and last year established the “Female Logistics Professional of the Year” award to highlight successful women in the profession. These initiatives will continue this year and Waberer’s says it is looking for more ways to help recruit female colleagues.

GERGELY HERPAI

From left, Szabolcs Tóth, Waberer’s Group CFO, CEO Zsolt Barna, and Dániel R. Kovács, Front Page Communications.

Faedra22 Logistics Center Sold to German Investors

The Faedra22 logistics center has been sold to a German investor. It is the second such development by the Hungarian Faedra Group and located in the southern hub of the Budapest logistics market at the intersection of the M0 and M6 motorways.

The 16,600 sqm development was tailored around high building specifications and a strong ESG focus, including heat pumps, solar panels and insulation, contributing to a Breeam “Very Good” certification and an “A+” energy rating.

The project is 100% pre-let, proof of its success, and has been sold to a German capital source, selected as the ideal buyer, adds Faedra Group. The firm, a privately owned Hungarian real estate holding, is engaged in developing logistics parks and residential projects, including planning, financing, construction and sales.

The investment fund management arm of the business is involved in creating a structure for capital partners, while the construction business is responsible for project delivery in locations primarily in and around Budapest.

“We are proud that despite the changing investment landscape, Faedra Group has managed to meet its disposal plan in line with expectations from two years ago, satisfying both our financing and capital partners,” says Bence Boronkay, founder and owner of Faedra Group.

“Selling Faedra22 now demonstrates the need for quality logistics developments in Budapest by financing institutions, tenants, and investors. Faedra22 marks the second such development by our group, and we continue our development plans, not only in this interesting asset class,” he adds.

A New Phase?

Bence Vécsey, head of capital markets with Colliers, who worked on the transaction, says the exit may indicate a new phase for the sector.

“The sale transaction on Faedra22, following an intensive bidding process at benchmark pricing, may indicate a turning point in price adjustments in the Budapest logistics sector. The involvement of Colliers in identifying multiple international buyers reaffirmed that prime quality warehouse facilities are still the most commanded assets in Hungary.”

“The sale transaction on Faedra22, following an intensive bidding process at benchmark pricing, may indicate a turning point in price adjustments in the Budapest logistics sector. The involvement of Colliers in identifying multiple international buyers reaffirmed that prime quality warehouse facilities are still the most commanded assets in Hungary,” Vécsey comments.

Views over when there will be an upturn in the investment markets in Central and Eastern Europe differ as analysts place a recovery anywhere between the beginning of this year and at least two years’ time. The expectation is that an upturn in activity in Western Europe would be followed by Poland, the Czech Republic and then Hungary.

A feature of the recent Mipim real estate expo in Cannes was the promotion of Hungary as an industrial destination at the country stand organized by leading industrial developers such as HelloParks, Infopark, and Wing. In addition, it also promoted secondary Hungarian cities such as Debrecen (231 km east of Budapest by road), Kaposvár (187 km southwest of the capital) and Békéscsaba (210 km southeast), which have been particularly successful in attracting industrial inward investment.

Promoting Parks

The aim of Békéscsaba, for example, is to promote industrial parks and target industrial developers with whom city authorities have had business meetings with the sale of industrial space, said Deputy Mayor Tamás Varga. Potential clients are seen as suppliers for the BMW iFactory in Debrecen.

The sale of the Faedra22 logistics park represents the first sizeable transaction by a foreign buyer in Hungary so far in

2024,

Colliers says.

“This year, we do not expect a significant turnaround in investor activity; it may remain below the

levels seen before 2023,” says Kata Mazsaroff, managing director of Colliers Hungary.

“Yields could see a slight increase this year, but in the longer term, as inflation comes under control, interest rates are expected to decrease. This will be reflected in the evolution of yields and investor activity, with the most significant impact likely to occur from around the year 2025 onwards,” she explains.

“Yields could see a slight increase this year, but in the longer term, as inflation comes under control, interest rates are expected to decrease. This will be reflected in the evolution of yields and investor activity, with the most significant impact likely to occur from around the year 2025 onwards.”

“We still see a gap between the buyers’ and sellers’ price and yield expectations. This is partly due to pressure on regional and domestic yields to be more attractive compared to Western European countries,” Mazsaroff concludes.

GARY J. MORRELL

Aerial shot of the Faedra22 logistics development.

Ltd. (100)

Huang, Shu Youxing, Zhang Daochun

Gulya,

Komárom, Puskás Tivadar út 8. (34) 540-840 info.EUauto@byd.com

in Brief News Logistics

Domestic Freight Transport Down 7% Last Year

The total performance of domestic freight transport decreased by more than 7% last year as a result of international political influences and the European recession, and fewer goods were transported by road, rail and water, according to the summary of the Association of Hungarian Logistics Service Centers (MLSzKSz), writes profitline.hu.

Intermodal traffic was less affected by the crisis, so transport combining several modes of transport increased its share in total traffic. The domestic result is also outstanding because intermodal traffic in the EU as a whole decreased by more than 10% last year. In a challenging economic situation, the expansion of goods delivery is not expected this year either; repeating 2023’s performance would

be considered a good result. However, MLSzKSz says the rise of intermodal transport may continue to accelerate.

Jysk Expands Service Area of Logistics Base

The Danish home furnishings company Jysk says it has expanded the service area of its logistics base on the outskirts of Budapest to cover six countries. The EUR 200 million distribution center, completed in 2022, now serves Bosnia and Herzegovina, and Serbia, in addition to Hungary, Croatia, Slovakia and Slovenia. Around 300 people work at the base.

Prologis Appoints 4 Regional Managers

Four asset management directors are taking over the role of country managers at Prologis, the leading

company in the logistics real estate market, writes online business daily Világgazdaság [Global Economy]. As part of the organizational changes implemented to increase efficiency and rationalize work processes, Martin Baláz, who was previously the senior vice president of the company’s subsidiaries in the Czech Republic, Slovakia and Hungary, will

be responsible for Prologis’ Central European interests as head of asset management. In addition to the Central European manager, Prologis appointed three more asset management directors.

Jessica Pilkes is responsible for the Northern European region, Cristian Oller for the Southern European region, and Stuart Davies has become the head of the United Kingdom, Prologis said.

Photo by Maxim Blinkov / Shutterstock.com

3 DEPO INTERMODÁLIS TÁRSAS LOGISZTIKAI KÖZPONT KFT. www.depologisztika.hu Depo Intermodális Társas Logisztikai Központ Kft. 2045 Törökbálint, Hosszúrét (23) 338-044 www.depologisztika.hu

4 PROLOGIS PARK BUDAPESTSZIGET https://www.prologisce.eu/hu

Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700 https://www.prologisce.eu/hu

5 CTPARK BUDAPEST EAST www.ctp.eu CTP Management Hungary Kft. 2051 Biatorbágy, Verebély László u. 2. (30) 111-1023 www.ctp.eu

6 BUDAPEST DOCK SZABADKIKÖTŐ LOGISZTIKAI ÉS IPARI PARK www.bszl.hu

7 PROLOGIS PARK BUDAPESTGYÁL https://www.prologisce.eu/hu

8 PROLOGIS PARK BUDAPESTHARBOR https://www.prologisce.eu/hu

9 PROLOGIS PARK BUDAPESTSZIGET II https://www.prologisce.eu/hu

10 ÁTI DEPO KÖZRAKTÁROZÁSI ZRT. www.atidepo.hu

Budapesti Szabadkikötő Logisztikai Zrt. 1211 Budapest, Weiss Manfréd út 5–7. +36 1 278 3502 www.bszl.hu

Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700

https://www.prologisce.eu/hu

Prologis Hungary

1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700

https://www.prologisce.eu/hu

Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700

https://www.prologisce.eu/hu

DEPO Közraktározási Zrt.

Budapest, Pannónia u.

11 GLP ÜLLŐ AIRPORT LOGISZTIKAI KÖZPONT https://www.glp.com/eu/ GLP Üllő Kft.

202,000

175,000

155,000

140,000

(100)

2001 –Real estate funds (100)

CTP Invest, spol. s r.o. (100)

László Ákos Ignát

Martin Balaz –Marta Tesiorowska

Dr. Ferenc Gondi Csaba Zovát Szabolcs Farkas

1928/ 2003 (100) –Ottó Cseh Edina Sponga –

–

estate funds (A)

–Real estate funds (100)

Martin Balaz –Marta Tęsiorowska

Martin Balaz –Marta Tesiorowska

estate funds (100) Martin Balaz –Marta Tesiorowska

Z.I. Logisztikai Zrt. (100)

József Földházi Mária Frühwirth Szabóné Györgyi Szabó Kovácsné

2045 Törökbálint, Hosszúrét hrsz. 062. (23) 338-044 titkarsag@depologisztika. hu

2310 Szigetszentmiklós, Leshegy utca 30. (1) 577-7700 zhunyadi@prologis.com

2225 Üllő, K-Sped körút 17. (30) 111-1023 leads.hu@ctp.eu

1211 Budapest, Weiss Manfréd út 5-7. (1) 278-3502 info@bszl.hu

2360 Gyál, Gorcsev Iván utca 7. (1) 577-7700 zhunyadi@prologis.com

1225 Budapest, Campona utca 1. (1) 577-7700 zhunyadi@prologis.com

2310 Szigetszentmiklós, hrsz.: 12718/2. (1) 577-7700 zhunyadi@prologis.com

1136 Budapest, Pannónia utca 11. (1) 305-2200 mail@atidepo.hu

21 PROLOGIS PARK BUDAPEST M1 https://www.prologisce.eu/hu Prologis Hungary 1095 Budapest, Lechner Ödön fasor 7. (1) 577-7700 https://www.prologisce.eu/hu

22 HELLOPARKS MAGLÓDBUDAPEST AIRPORT www.helloparks.com

HelloParks Partnership C.V. Magyarországi Fióktelepe 1082 Budapest, Futó

Balaz –Marta Tesiorowska

2071 Páty, Szent József utca 4. (1) 577-7700 info-hu@prologis.com

28 AIRPORT CITY BUSINESS PARK www.airportcity.hu WING Zrt. 1095 Budapest, Máriassy u. 7. (1) 451-4760 www.wing.hu

29 DOCK INGATLAN KFT. www.bszl.hu

Ingatlan Kft.

Budapest, Weiss Manfréd út 5–7. (1) 278-3502

Alapkezelő Zrt.

(100) Krisztián Barabás Marietta Biczó

(100)

Masped Zrt. (100)

Cseh Edina Sponga

1223 Budapest, Növény utca 6–10. (1) 382-5100 info@park22.hu

Vecsés, Üllői út 807. (1) 451-4760 ipari@wing.hu

Budapest, Weiss Manfréd út 5–7. (1) 278-3502 logisztika@masped.hu 30 DÉL-PESTI ÜZLETI PARK www.diofaingatlanok.hu

Budapest, Kassák Lajos utca 19–25. (1) 888-4120 www.granitalapkezelo.hu

Budapest, Táblás utca 36. (1) 888-4120 ingatlan@ granitalapkezelo.hu

leads.hu@ctp.eu

Gyál, Bem József utca 32. Hrsz:7702 (1) 236-6400 alapkezelo@ otpingatlanalap.hu

43 GYŐR CSÓKÁS LOGISZTIKAI KÖZPONT www.otpingatlanalap.hu

44 CTPARK SZÉKESFEHÉRVÁR www.ctp.eu

(100)

Ferenc Gondi Csaba Zovát Szabolcs Farkas

Székesfehérvár, Holland fasor 2. (30) 111-1023 leads.hu@ctp.eu 45 TERELŐ UTCA www.otpbank.hu A

46 IGPARK DEBRECEN www.igpark.hu

47 GLP GYÁL LOGISZTIKAI KÖZPONT https://eu.glp.com/

Management Kft.

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

Budapest Horvát u. 14–26.

2002

Ingatlanbefektetési Alap (100) –

Budapest, Terelő

(1) 236-6400 alapkezelo@ otpingatlanalap.hu

Debrecen, BMW beszállítói park utca (1) 481-4530 sales@infogroup.hu

Gyál, Hrsz. 7000/15. (1) 336-2270 contact-hu@glp.com 48 SHARK PARK www.logicor.eu

49 IGPARK KECSKEMÉT SOUTH www.igpark.hu

50 LOGICOR GYŐR www.logicor.eu

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

Management Hungary Kft. 1062 Budapest, Teréz krt. 53–57. (30) 870-3047 www.logicor.eu

51 CTPARK MOSONMAGYARÓVÁR www.ctp.eu CTP Management Hungary Kft. 2051 Biatorbágy, Verebély László u. 2. (30) 111-1023 www.ctp.eu

52 IGPARK MISKOLC www.igpark.hu Infogroup Management Kft. 1115 Budapest, Bartók Béla út 105–113. (1) 481-4530 www.infogroup.hu

53 INNOVE BUSINESS PARK www.diofaingatlanok.hu

54 PANATTONI CITY DOCK TÖRÖKBÁLINT https://panattonieurope.com/hu-hu

55 PHARMA

19,000 ✓

Gránit Alapkezelő Zrt. 1134 Budapest, Kassák Lajos utca 19–25. (1) 888-4120 www.granitalapkezelo.hu 18,200

2016 –CTP Invest, spol. s r.o. (100)

A (100)

Joó

Dr. Ferenc Gondi Csaba Zovát Szabolcs Farkas

2008 (100) ––

Kecskemét, Daimler út (1) 481-4530 sales@infogroup.hu

9027 Győr, Platánfa utca 1. (30) 870-3047 hungarypm@logicor.eu

9200 Mosonmagyaróvár, Juhar utca 5. (30) 111-1023 leads.hu@ctp.eu

3526 Miskolc, Mechatronikai Park (1) 481-4530 sales@infogroup.hu

1097 Budapest, Táblás utca 39. (1) 888-4120 ingatlan@ granitalapkezelo.hu

2040 Budaörs, Raktárváros út 9. (1) 678-9200 huinfo@panattoni.com

58 CTPARK KECSKEMÉT www.ctp.eu

59 AQUINCUM LOGISZTIKAI PARK www.otpingatlanalap.hu

60 IGPARK KARCAG www.igpark.hu

(30) 111-1023 www.ctp.eu

Icon Real Estate Management Kft. 1026 Budapest, Riadó utca 5. (70) 662-5639 www.iconrem.hu

Infogroup Management Kft. 1115 Budapest, Bartók Béla út 105–113. (1) 481-4530 www.infogroup.hu 3,500

2002

CTP Invest spol. s r.o (100)

Dr. Ferenc Gondi Csaba Zovát Szabolcs Farkas

OTP Ingatlan Befektetési Alapkezelő Zrt. (100) ––––

A (100) –––

6000 Kecskemét, Daimler út (30) 111-1023 leads.hu@ctp.eu

1033 Budapest, Szőlőkert utca 4/B (1) 336-0900 alapkezelo@ otpingatlanalap.hu

5300 Karcag, Kossuth Lajos tér 1. (1) 481-4530 sales@infogroup.hu

NYRT. www.waberers.com 130,581 (2022)

3 RAIL CARGO HUNGARIA ZRT. https://rch.railcargo.com/hu/ 88,923 A

4 WSZL SZÁLLÍTMÁNYOZÁSI ÉS LOGISZTIKAI KFT. www.wszl.hu 72,599 (2022) A 250,000

5 KÜHNE + NAGEL KFT. hu.kuehne-nagel.com 54,082

2005 A (0.01) Rail Cargo Austria AG (99.99)

Imre Kovács Csaba Raisz Rita Szalay

1991 510 Waberers International Nyrt. (100) –Glória Garamvölgyi, Szilárd Cser ––

A 130,000 ✓ ✓ – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 1991 678 –Kühne + Nagel AG (100)

6 SCHENKER NEMZETKÖZI SZÁLLÍTMÁNYOZÁSI ÉS LOGISZTIKAI KFT. www.dbschenker.com/hu 42,578 (2022) A 40,491

7 RAIL CARGO LOGISTICS - HUNGARIA KFT. www.railcargologistics.hu 40,810 (2022) A

8 GEBRÜDER WEISS SZÁLLÍTMÁNYOZÁSI

ÉS LOGISZTIKAI KFT. www.gw-world.com 34,116 (2022) A 100,000

Márton Lányi Márk Molnár Szilárd Paál

–Schenker AG (100)

1982 83 –Rail Cargo LogisticsAustria GmbH (100)

1989 464 –GW International Holding GmbH (100)

Sándor Barényi –

Gábor Márta ––

Bálint Varga ––

1133 Budapest, Váci út 92. (1) 512-7777 ugyfelszolgalat@ railcargo.com

3527 Miskolc, Fonoda utca 1. (1) 421-8505 wszl@waberers.com

2071 Páty, Szent Józsefút 4. (23) 889-000 info.budapest@ kuehne-nagel.com

2310 Szigetszentmiklós, Leshegyutca 30. (1) 278-7878 info.hu@dbschenker.com

1133 Budapest, Váci út 92. (1) 430-8551 office.rcl.hu@railcargo.com

2330 Dunaharaszti, Raktár utca 2. (24) 506-700 gw.hungary@ gw-world.com 9 TRANS-SPED CSOPORT

Fülöp Olivér Sziller

CseriSzilágyi

Debrecen, Vámraktár utca 3. (52) 510-120 info@trans-sped.hu

Pilisvörösvár, Ipartelep utca 1. (26) 532-000 offer.budapest@ dachser.com

9400 Sopron, Mátyás király utca 19. (99) 577-206 info@gysevcargo.hu

Ewald Raben (100) Csaba Árvai Martin Molnár Zoltán Üveges 2330 Dunaharaszti, Jedlik Ányos utca 31. (24) 502-002 hungary.info@ raben-group.com

Lagermax Autologistik International GmbH (100) János Molnár Bálint Hetyei

2040 Budaörs, Vasút utca 3. (23) 506-100 lagermax@lagermax.hu

24 EURO MINI STORAGE HUNGÁRIA KFT. www.euroministorage.hu 290 150 7,500

25 BAJAI ORSZÁGOS KÖZFORGALMÚ KIKÖTŐMŰKÖDTETŐ KFT. www.portofbaja.hu 120

2006 5 –Euromini-storage Investments (Cyprus) Ltd. (100)

MNV Zrt. (33.33) Baja Municipality (33.33)ÁTI Depo Zrt. (33.33)

Danu M. Temelie ––

7/B (1) 425-2240 info@intercargo.hu

1097 Budapest, Gyáli út 50. (1) 333-8888 info@euroministorage.com

László Nagy ––6500 Baja, Szentjánosi utca 12. (79) 422-502 info@portofbaja.hu NR DHL

4 Socialite Connecting Budapest’s Expat Literary Community: Panel Magazine

These days, when we read so much online that all too often lacks any sense of local identity, it’s a great pleasure to discover Budapest’s Panel literary magazine. It describes itself as “the written record of a generation of artists from everywhere that can live anywhere, their literature and lives, in the language they speak.”

In 2018, Kamenetskaya met author and editor Duncan Robertson. When she asked if he’d like to be involved in starting an English-language literary magazine, Robertson said, “Sure. You publish, and I can edit.”

Publisher Masha Kamenetskaya explains, “The magazine’s name came about because we wanted to give a platform for writers, poets and artists who live in Central and Eastern Europe and are often ignored. We were playing about with images that come to mind when you talk about the region and the double meaning of ‘panel’ occurred to us.”

Apart from the idea of “panel discussion,” the editors were also thinking of the prefabricated apartment blocks made from concrete panels that surround many cities in former communist countries.

Springing up in the early 1960s, these were initially intended to solve the problem of overcrowding in cities such as Budapest. Today, 31% of the apartment blocks in the Hungarian capital are panel buildings. Kamenetskaya came to Budapest from St. Petersburg in

2014.

She has a background in journalism and has written short fiction for many years. After she met “a vibrant group of both expat and local writers who work in English,” she switched to writing in English herself. Kamenetskaya has been published in various anthologies. Her collection of short stories, “On the Set,” was released in the United States a few years ago.

“At that time, international writers seemed to be isolated from one another. There was less of community than there is now,” Kamenetskaya says. “From the beginning, we aimed to build a community of like-minded people in Budapest.”

Maternity Issue

After Kamenetskaya met journalist and writer Jennifer Walker and they produced a few readings at the wellknown literary café Massolit, it felt natural to invite Walker to join the panel.

but might need some additional editing of their work. The editing process typically involves a few rounds.”

“Narratives of Budapest,” which Kamenetskaya hopes will be published in May or early June, features, she says, “some amazing stories and unique people of Budapest.” It will hopefully be followed by a weekend art festival, most likely in September and a “The Best of Panel” issue.

Writing Budapest

Reading Panel and “If We’re Talking Budapest,” one thing that strikes me is the diversity of the response to the city. For Kamenetskaya, this isn’t surprising. “My Budapest would be different from your Budapest, and so on,” she says. “It’s unique, like any other personal relationship.”

“Some people don’t like Budapest at all,” she adds. “Which I personally can’t comprehend.” Neither can I. Apart from the authors published in “If We’re Talking Budapest,” Kamenetskaya’s personal favorites are novelist Magda Szabó and, for non-fiction, András Török’s books about Budapest.

Born in 1954, Török is a former dissident and teacher who served as the Deputy Minister for Culture and president of the National Cultural Fund between 1994-98 and is the founding director of the Hungarian House of Photography. He’s the author of seven non-fiction books, mostly about the history and present urban landscape of Budapest, including “Budapest: A Critical Guide,” first published in

He, in turn, invited Maria Gyarmati to become art director. Gyarmati was pregnant with her first baby at the time, so the first 35-page issue of Panel was partly designed at the maternity home.

Today, each issue of the magazine usually sells a few hundred copies. “If We’re Talking Budapest,” a book-length collection of short stories released toward the end of 2021, sold a little less than a thousand in its two print runs. The Panel team, now 12-strong, continues to expand its activities.

Since 2022,

it has been producing art shows and festivals. Later this year, book publishing might be included in that list. If this happens, “it will be a significant step with plenty of new things to learn.”

Around 90% of what the magazine publishes comes from its slush pile of unsolicited manuscripts, although the editors did ask for pieces for the upcoming “Narratives of Budapest” collection of interviews and essays. “The selection process is pretty straightforward,” Kamenetskaya tells me. “We read all submissions, choose those worth considering, then revisit them to make final decisions on what to publish. While we don’t always agree, heated debates around specific pieces are rare. We agree on the fundamental things about what we consider to be good prose or poetry, but we do tend to be quite picky. We’re open to working with writers who have a strong voice

1989

and last updated in 2016.

Variously described as a cult classic, a bildungsroman (a work dealing with one person’s formative years or spiritual education) of the author and, by himself, as “a sort of institution,” the book is published in English and looks well worth getting your hands on.

Not having read it, I don’t know if Török covers where the Budapest literati gather, but Kamenetskaya suggests checking out Írók Boltja, Három Holló, Massolit Books & Café and the Magvető café as venues that regularly host literary events in Hungarian and English. There are less central venues, too, that host events and meetings.

For those who write and wish to connect with like-minded individuals in Budapest, Kamenetskaya recommends checking information about workshops, open mics, and poetry readings on Facebook groups or the Meetup website. It seems the Budapest literary scene has quite a lot to offer.

You can order Panel magazine as a hard copy or download it along with the books from panel. com. The magazine is stocked at bookstores including Massolit, Oxford and Írók Boltja, as well as Kastner Kommunity, ISBN gallery and Ludwig Múzeum.

DAVID HOLZER

Masha Kamenetskaya. Photo by Eszter Fruzsina Nagy

Paying Homage to Hollywood’s Hungarian Roots at Origo Studios Culture Matters

Origo Studios has unveiled a map that pays tribute to the Hungarian roots of the American movie industry, highlighting the birthplaces of Hollywood celebrities and their Hungarian ancestors.

A regular look at culture issues in Hungary and the region

Hungary and Hollywood

The event was also attended by Balázs Bokor, the president of the Hungarian Hollywood Council, who noted that “This gathering is perhaps the best example for the connections between Hungary and Hollywood can really unite us since most settlements feel a sense of mission towards caring for this unique heritage. And it’s a wonderful thing because we should rightfully be proud of these great people.”

Deputy Secretary of State for Youth Affairs Zsófia Nagy-Vargha also spoke at the event.

The studio, where recent blockbusters such as “Poor Things” and “Dune: Part Two” were shot, invited the mayors of the towns featured on the map. Alongside studio moguls like Fox Film Corporation’s founder William Fox, born in the village of Tolcsva (238 km northeast of Budapest by road), the map, made by József Tóth, also features the towns where the ancestors of today’s Hollywood

“A”-listers hail from. These include Tata (68 km west of the capital) in the case of the Oscar-winning Robert Downey Jr., or Tiszadob (203 km northeast) for “Breaking Bad” star Dean Norris. The map also features towns formerly part of Greater Hungary, such as Homonna (today Hummené in Slovakia), where Paul Newman’s father was born.

Márta Horváthné Fekszi, the CEO of Origo Studios, noted the Hungarian film industry’s strong performance in recent years, highlighting the Academy Award

won by set decorator Zsuzsa Mihalek for her work on “Poor Things.” She added that the studio has already ordered a new decorative star to display on the map at the studio, honoring her work.

“Back in the day, Hungarians went out to Hollywood, and now we’re saying that Hungarian filmmaking and Hungarian professionals have achieved so much in recent years that Hollywood is coming back to Hungary,” said Horváthné Fekszi, a state secretary at the Ministry of Foreign Affairs between 2006 and 2009.

Benedict Cumberbatch Waxwork Debuts at Madame Tussauds Budapest

The wax figure of actor Benedict Cumberbatch, who portrays Sherlock Holmes and Doctor Strange, arrived at Madame Tussauds Budapest in Dorottya utca from Vienna and will be on display for a few months. Guests from the U.K. Embassy and the British Chamber of Commerce in Hungary attended the unveiling ceremony of the figure, as did the man who provides his permanent Hungarian dubbing voice, Kornél Simon.

The British star is also one of the main characters in Wes Anderson’s “The Wonderful Story of Henry Sugar,” which won the Best Short Oscar at the 96th Academy Awards ceremony on March 10.

The wax figure of Benedict Cumberbatch is portrayed perched on the arm of a chair so visitors can sit next to him and try out the interactive panels.

According to a press release by Madame Tussauds Budapest, Cumberbatch is more than just a highly successful actor: he speaks

six languages fluently; besides his native English, he also knows Japanese, German, Portuguese, Chinese and Greek. He also volunteered for a year

“Since 2010, the government has paid special attention to the film industry. One of the pillars of this supportive environment is that Hungary offers one of the highest tax rebates for film production in the world. But just as essential is the wonderful infrastructure and the excellently trained crew available for both foreign and domestic productions,” she noted.

In the last 10 years, the revenues of the Hungarian film industry have increased tenfold, she said, and by 2022, they had reached over HUF 200 billion.

“Budapest is the new film capital of Central Europe; it offers one of the highest tax breaks for film production in the world, it has a good infrastructure, a highly skilled professional staff, and since 2019, the spending of foreign productions in Hungary has tripled,” Nagy-Vargha added.

as an English teacher in a Tibetan monastery in Darjeeling, India.

“My first encounter with Benedict Cumberbatch took place on a hot summer day at the dubbing studio,” recalls his Hungarian voice, Simon. “I could not stand due to an insect bite, so I worked sitting on a bar stool, and the air conditioner broke down. It was a difficult start, but I’m very happy that since that day I can continuously provide the voice of the actor. He is a perfect, precise artistic machine and perfected his distant keeping techniques.”

Zsuzsanna Óhidi, operational director of Madame Tussauds Budapest, was delighted to welcome the latest addition to the Hungarian collection.

“The arrival of the figure of Benedict and the special world we created around him is another proof that something exciting is always happening at Madame Tussauds Budapest. Thanks to the unique 130-square-meter LED wall of our Cinema Café, we turned the venue into an English library room at the push of a button so that our guests could take photos with a truly British gentleman in an authentic environment,” she said.

BENCE GAÁL

From left: Deputy State Secretary of the Ministry of Culture and Innovation Zsófia Nagy-Vargha; Balázs Bokor, president of the Hungarian Hollywood Council; and Márta Horváthné Fekszi, head of Origo Studios, at the inauguration of the “Wall of Hollywood’s Hungarian Roots.” It bears the names of almost 500 Hollywood personalities with Hungarian ancestry. Photo by Péter Lakatos / MTI.

The Benedict Cumberbatch waxworks and, sitting, his Hungarian voice artist Kornél Simon.

Chamber of Commerce Corner

Hungarian-Norwegian Chamber of Commerce (HNCC)

The HNCC, in collaboration with the Hungarian Embassy in Oslo and Honorary Consul Frode Hofstad, organized a reception in Trondheim on March 18, on the occasion of the Bocuse d’Or Europe 2024 final. This event provided a unique platform for dialogue and networking among the Hungarian community, members of the HNCC, and honorary consuls of various countries. Additionally, local representatives from Trondheim’s business, academic, and cultural sectors were in attendance. The reception served as an exceptional opportunity for Hungarian enterprises visiting Trondheim for the Bocuse d’Or to engage with potential Norwegian partners and to promote their products and services.

Canadian Chamber of Commerce in Hungary (CCCH)

Business Breakfast:

Future Shock in the Age of AI

This

Join CCCH for an insightful Business Breakfast event in collaboration with Dentons as we explore the rapidly evolving landscape of AI. Led by Theodore S. Boone, of counsel at Dentons Budapest, member of the faculty of Corvinus University of Budapest School of Business, and former president of AmCham, this event will delve into critical aspects of the AI ecosystem, including understanding high-risk and prohibited-risk AI applications, exploring the ethical implications of emotion reading AI, and implementing effective AI risk management strategies through practical actual examples. Drawing from his legal expertise and recent contributions to the Journal of Data Protection and Privacy, Boone will provide valuable insights and practical guidance for businesses operating in the AI landscape.

• When: April 17, 8:30-11 a.m.

• Where: Dentons Réczicza Law Firm, Andrássy út 11, 1061 Budapest

• Fee: Members HUF 13,500 (+VAT); non-members HUF 23,500 (+VAT)

Italian Chamber of Commerce for Hungary (CCIU)

The CCIU is pleased to present “The 4 Seasons: Italian Wine & Beverages,” an annual series of events conceived in collaboration with Italian Excellence to transport participants’ senses, like the violin symphony by Antonio Vivaldi, to the scents and flavors of four Italian regions. On April 18, 2024, the first stage of this food and wine journey will be presented, where the protagonist of the evening will be the Puglia region. A comprehensive example of gastronomic productions such as taralli, Primitivo wine, orecchiette, Negramaro wine, cheeses and cured meats from this extraordinary land can be tasted, allowing participants to discover ancient flavors that have been handed down for centuries and find

the culinary traditions of this land. The journey will be accompanied by the popular music of Salento and achieved through the steps of the Pizzica, a popular dance still performed today in the squares of the cities of Puglia, to discover the culture of this region fully. The journey will continue later with the gastronomic products of Emilia Romagna, Sicilia, and Piemonte. At the end of this cycle of events, four facets of Italian flavors will have been touched upon. They are so different from each other in history and culture, yet capable of blending together without losing their specialties, just like the cycle of the four seasons.

• When: April 18, 2024 - 7 p.m.

• Where: Mixat Udvár, Krúdy Gy. utca 7, 1088 Budapest

• Fee: HUF 12,000

Hungarian-German Chamber of Industry and Commerce (DUIHK)

In a very dynamic world, where macroeconomic and geopolitical challenges are putting enormous pressure on finance organizations, it is essential to understand how to better prepare employees in corporate finance departments. Against this backdrop, on March 25, the DUIHK held a workshop on “Upskilling in Finance” with about 70 finance professionals. The finance executives of four significant companies in Hungary passionate about this topic created the workshop: Magyar Telekom, Audi Hungaria, B. Braun and PWC. The companies shared best practices for pursuing upskilling in their own companies. They identified the most relevant skills where upskilling is needed, summarized under the headlines of ESG, Data and Digitalization, Design Thinking, and Interaction Situations. Data from a PWC CFO survey underlined the necessities that

the companies also felt. On this journey, a universityindustry collaboration will help boost skills at the company level and in the education of future finance specialists. This goal will be pursued with leading finance academics in Hungary, Germany and Switzerland. This workshop, moderated by Bálint Esse, was meant as a kick-off, and the work shall be continued with more companies in four working groups. Company or university representatives who want to join one of the four working groups (ESG, Data and Digitalization, Design Thinking, and Interaction Situations) are welcome to indicate their interest. Thanks go to Daria Dodonova, Patrick Heinecke, András Csató and Gábor Balázs for putting the event together and providing inspiration and collaboration for a joint journey towards “Upskilling of Finance” in Hungary.

Netherlands-Hungarian Chamber of Commerce (Dutcham)

As in past years, Dutcham will organize a casual seated Orange Dinner in May with Dutch, Indonesian and Caribbean cuisine. The dress code simply requests you wear something orange.

• When: May 31, 7 p.m.

• Where: Crowne Plaza Budapest, Váci Út 1-3, Budapest 1062

• Fee: Member single ticket HUF 55,000; non-member single ticket 65,000; member table of 10 HUF 500,000 (all include 27% VAT).

Belgian Business Club in Hungary (Belgbiz)

Belgbiz held its regular business networking on March 21 at Create26. The representatives of EuroAtlantic Consulting & Investment, its president Aron Fellegi and business development manager Dorina Molnár, gave a presentation providing Hungarian and Belgian businesses in Hungary with a general understanding of the actual policies that are on the table in 2024, tangible knowledge, and practical advice on the Hungarian EU Presidency and beyond, from EU business lobbying to funding opportunities. The networking afterward offered an opportunity to share thoughts with like-minded business people.

Swiss-Hungarian Chamber of Commerce (Swisscham)

Swisscham will hold it lastest CEE-Swiss Impulse online session on the theme of “The Global Economic and Financial Outlook.” Martin Weder, chief economist and head of economic research at Zürcher Kantonalbank will examine how we can navigate cyclical and structural challenges in a world at a crossroads. • When: April 16, 11-11:45 a.m. The Swedish Chamber of Commerce in Hungary, the Netzwerk Digital Collaboration (German-Hungarian Chamber of Commerce and Swisscham Hungary), in cooperation with the Artificial Intelligence Coalition, will stage a joint workshop called “How to Start to Work With AI.”

• When: April 10, 9 a.m.-moon • Where: Ericsson House, Magyar Tudósok Körútja 11, 1117 Budapest • Fee: Free for members; non-members: HUF 14,900 / person

Hungarian-French Chamber of Commerce and Industry (CCIFH):

Join the inter-company CCI France International Sports Challenge and get moving with the global French Chamber Network. Commit CSR, support your employees’ wellbeing and mental health, and earn cohesion. Measure and limit the company’s environmental impact and reduce your carbon footprint. 25% of your participation fee will support the Solar Impulse Foundation. Gather your best runners, walkers and cyclers, and let them have fun and earn daily points doing sports and engaging in missions, quizzes and photo contests. Register your company for the French chamber’s sport and CSR challenge with a team of five people before March 31.

• When: April 8 to May 5

• Fee: Members EUR 280 (+ VAT) per team; non-members EUR 390 (+ VAT) per team.

regular section of the Budapest Business Journal features news and events from various international business chambers. For further information and to register for specific events, visit the organizing chamber’s website. If you have information for inclusion on this page, send an email in English to Annamária Bálint at annamaria.balint@bbj.hu