BUSINESS

Searching the Internet for the Budapest address of TÜV Rheinland Intercert Ltd., the company engaged in technical testing, inspection, supervision and certification, will find two different addresses: ‘still’ on Váci út and ‘already’ – a few kilometers away – on Gizella Street. “Our company is constantly evolving and its development can no longer continue in this old building. Thanks to our continuous development, we are already the fifth largest company of the TÜV Rheinland group in Europe, we employ more than a hundred highly qualified engineers, so we decided on a large investment, which is also supported by the German headquarters. We looked at 18 possible locations and finally decided to lease 6,000 square meters of space in the Gizella Loft long term,” Managing Director Miklós Novák tells Diplomacy&Trade, Following the measures already taken in the banking sector, the MNB says it will start introducing green finances into the capital market. This involves the publication of an analysis of the Bank’s regulatory measures to promote green bond issuance. Under the Green Program, the MNB is constantly searching for possibilities to improve the conditions of green investment funding. Consequently, in addition to the measures concerning lending already taken and in progress in the banking Central lab According to the adopted strategy, the Budapest company will also establish and operate a central testing laboratory, in which it will be possible to test materials and equipment sent from all over the world. Business field manager Gábor Kovács emphasizes that the full scope of activities of the TÜV Rheinland group of companies (product certification, product conformity, CE marking, inspection, inspection of industrial facilities, certification of quality management systems, training, etc.) is available at the Hungarian subsidiary. Planning for the move, which is taking about three months and ends in September, began EYES, BODYGUARD, REFERENCE sector, the MNB will also start to support the introduction of green finances in the capital market in co-operation with other authorities and market participants. In this attempt, green bonds could be flagship instruments, as their segment has shown impressive growth over the past few years in foreign advanced markets. However, with some exceptions, green bonds are still at an early stage in Hungary – and in Central and Eastern Europe in general. An exception is the recent issuance of Hungarian Green Government Securities. The start of green bond issuances in Hungary may contribute to the financing of the country’s climate, sustainability over two years ago. "Concluding the contracts was also a big challenge because there are not many companies in Europe that have previously designed and built such a laboratory structure," he notes.

Tailor-made design Gergely Hidas, Business Stream Coordinator for Product Testing and Certification, is pleased that they were able to start from scratch when designing the new laboratories. “It’s a leap in quality; this way, we were able to include the latest technologies. A good example of this is the electromagnetic (EMC) measuring point, which

is the largest and the newest one commercially and energy strategy objectives, and it can support the turnaround in competitiveness strongly promoted by the MNB. Many say about TÜV Rheinland: “They are the ‘eyes’ of companies because they ensure that suppliers deliver what was agreed on, in the quality expected; they are the ‘bodyguard’ of people: they provide security because the device they have tested will not electrocute them, the chair they buy will not fall apart, etc.; the company that tests its product with them and can use the TÜV Rheinland logo will receive a reference that will improve sales.”

available in Hungary and the best in the region. The new investment is due to the fact that Hungarian professionals continuously achieve above-average results. Of the 6,000 square meters, 5,000 will be testing laboratories, primarily supporting the access of domestic industrial production to the world market.” Gábor Kovács adds that "TÜV Rheinland sticks to the philosophy of carrying out measurements and tests with its own laboratory capacity, and has a reliable infrastructure that can be flexibly adapted to its needs." According to Miklós Novák, “this company is doomed to development. In my opinion, this is a very valuable and interesting job: new things have to be explored here every day, often foreign colleagues come here, or we work in other countries. We are talking about an intensive and attractive work environment and all this will be even truer

Environment and competitiveness

under the new, 21st century conditions." Incentives Nevertheless, the issuance of green bonds by companies, banks and possibly local governments is unlikely to proceed to the desired extent at the start without incentives and supporting actions by the Bank and other regulators. Similarly to other countries, Hungary may also be required to introduce developing and facilitating measures. Green market development will become a key topic in designing Hungary’s Sustainable Capital Market Strategy at the International Conference on Green Finance held by the MNB on October 21, where the CEO of Climate Bonds Initiative is also scheduled to give a lecture. This issue will also be discussed at a training on investor relations managers related to sustainability offered jointly by the Budapest Institute of Banking, enjoying the professional support by the MNB and the London Stock Exchange Group Academy in October 2020.

DIPLOMACY&TRADE How feasible is it to renovate a hundred-year old building to create a luxury villa park in Budapest? JÁNOS GÁRDAI White Star Real Estate group takes pride in preserving the treasures of the past centuries and developing real estate that will stand the test of time and deliver enduring value. One example is Markó street 9: it used to be an electrical transformer building under protection as a historical monument that we turned into a Category A office building preserving the historical character and adding special interior design elements. The property on Svábhegy that we are turning into luxury homes, used to serve as a sanitarium for children. When you walk down the magnificent main building – even in its present, run-down state – you feel its elegant past, every cornerstone tells a story. We are confident this will attract potential residents.

DIPLOMACY&TRADE The property itself has a unique history. JÁNOS GÁRDAI Indeed. The property was owned by Baron József Eötvös, a Hungarian writer and statesman. The whole Svábhegy neighborhood was popular among the aristocracy of the 19th century. We aim to bring this feeling back by preserving the magnificence of the monumental main building and creating six additional villas

that match the elegance of the central residence. DIPLOMACY&TRADE You may be creating a new favorite home for Budapest’s aristocracy. JÁNOS GÁRDAI That is the plan. Eötvös12 is a unique project developed for the lovers of the luxury lifestyle. We believe that we are building livable and elegant homes on one of the most prestigious locations of Budapest. The villas are developed in a unique green surrounding, with 3.5 hectares of beautifully landscaped gardens of abundant, mature trees. JÁNOS GÁRDAI The area, with its abundant natural forests and green hills, is a very popular place for leisure activities and excursions and the site itself offers excellent air quality, direct garden access and breathtaking panoramic views. Car traffic will be confined below ground, so it will truly feel like living in a forest.

DIPLOMACY&TRADE Besides the location and the surroundings, what makes Eötvös12 a unique residence? JÁNOS GÁRDAI The villa park will be a link between heritage and modernity. Every care has been taken to ensure that residences in both the historic art déco style main building from the 1920s and the 6 modern villas will be the most up-to-date, elegant, serene and attractive in Budapest. The needs of all types of residents, whether couples, singles or families will be met owing to the variety of well thought-through, exclusive amenities and facilities on site.

DIPLOMACY&TRADE What do you mean by exclusive amenities? JÁNOS GÁRDAI From the spacious and elegant communal areas and reception services to a cigar salon, equipped fitness room and leisure islands many small services will support the well-being of residents. The elegant interior design solutions, state-ofthe-art building materials, large terraces and window surfaces, technical and smart home solutions and layouts adapted to the latest international trends will make these homes truly exceptional.

DIPLOMACY&TRADE Should we rush to secure an apartment? JÁNOS GÁRDAI Well, I wouldn’t wait. We are just starting the construction; residents will be able to settle in the second half of 2022. There are only 107 apartments and we have sold 10% of them already.

DIPLOMACY&TRADE Who are the developers behind the project? JÁNOS GÁRDAI White Star Real Estate has been present in the Central and Eastern European region for two decades, and we are an active part of the real estate development and management industry in Poland, the Czech Republic, Slovakia and Romania, as well as in Hungary. In the past 20 years we have developed some 2.3 million square meters in more than 50 successful projects. Cain International focuses on gateway and opportunity cities in growth markets. The firm’s collaborative approach with established local partners has resulted in an international portfolio of investments, joint ventures, and developments. Cain International’s US portfolio includes projects in Miami and Beverly Hills, its European investments span London, Barcelona, Dublin, Krakow, Madrid, Warsaw and now Budapest.