Budapest Business Journal 23/09 by Business Publishing Services Kft.

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RSHUWLHV 2IÀFHV RWKHU SU

SPECIAL REPORT: VOL. 23. NUMBER 09

way to find the The easiest your needs. best office for 5/6/15 4:58 PM

k quality office stoc Limited supply of class ‘A’ The shortage of limited offices and the new development of getting space means it’s a good harder to lease office in this town. GARY MORRELL

from office market suffersquality The Budapest of well−located a limited supply growing demand as product to meet Hungary is showing sentiment towards This lack of available to signs of improvement. is a major obstacle class “A” product office market. However, the are development of that pipeline projects are it is positive for projects that million Metro 4 line. attracting preleasesof a quality comparable to around three at the end of the This compares well specified and in the view Budapest One Business Park, a city and country Western Europe of space in Prague, and 4.4 million are to that found in size, of new sqm New office projects of a comparative the dominant business of many analysts. sustainability demand and the lack Warsaw, now accredited to international BREEAM. is falling due to continuing centers is driving the market for as LEED and center for CEE. now the “Vacancy standards such accreditation is for shared service labor.” Further, green developments office delivery. Demand low costs of skilled norm for high qualityof developers, tenants and the relatively Vacancy drops has fallen from the perspective due to the location office vacancy above and investors. where vacancy that Budapest vacancy rate is 15% in a market Greens, commented “Although the large modern high. This is the of agents for Váci advanced negotiations towards Wing have traditionally been “The South Buda in 15%, the availability prelease has HB Reavis and development it is involved space is decreasing; rate since 2009. A 6,500 sqm contiguous office projects can offer more Atenor, lead the way speculative C with lowest for both phases. of continues to space,” undertaken often based on a significant has been signed for Building only a handful break submarketof having the lowest vacancy of modern office been Atenor will soon terms at circa in than 3,000 sqm head of office agency at strategies, of preleases in what has D, Healthcare. standing now recent GE 15,500 sqm Building wide due proportion rate in the city, said Balázs Simay, environment in ground on the to the Budapest at the end of Limited development high a difficult economic developers have to be delivered 10%, compared 15.7%. This figure is DTZ Hungary. Significantly, these or meet strict which is due political concerns, rate of of 2017. The 16,000 to economic and difficulty of sourcing years. to build that the Budapest 2016 or beginningwas completed at the vacancy required equity impressive given been below 10%,” A from banks. vacancy and the restricted the supply of the months more sqm Building LTD equity requirements rate has never was fully let six debt finance has in recent years. end of 2013 and This gave Atenor the vacancy is Johnston. new office developmentsvacancy rates and after completion. ahead with further added argue that this down go Many analysts Not much in the pipeline This has brought of real vacancy complex, confidence to rentals. Only established the year is limited to speculative phases of the what was not a true reflectionshould be further put pressure on and those with in pipeline for this C) stock own resources, and recorded number of European developers have been able to Delivery sqm second phase (Building financed by its funds as there are a the 18,200 phase (Building a challenging market. ability to source buildings from Research rationalized, where debt finance and the 23,000 sqm third the Budapest and outdated first generation out of the the Belgium Atenor develop in a market According to difficult to source low. B) of Váci Greens by CBRE, Colliers the 1990s that should be taken variation Architect TIBA are by (comprising is expensive and Eston Forum there is a wide DTZ, ment (LTD) ratios Group and designed C&W, sub− be delivered in International, equation. Further, loan−to−develop owners are upgrading Building C will The between the different JLL and Robertson In addition building portfolios to meet Studio. B in November. stock in vacancy example the lowest rate is 10% their July, and Building will be the 6,000 sqm International,total modern office districts. For út corridor older assets in to Hungary), of modern class in South Buda while the Váci regard to other delivery sqm only pre−let demand. 100% growing With consists of 2,588,000 space, in addition office development Erzsébet office center, higher rate at 18.7%. speculative The Budapest space. has a low with a resulting at “A” and “B” owner−occupied pipeline remains of well located, large Groupama. head of office agency 642,000 sqm of David Johnston, the letting to limited availability Developers such as & Wakefield (C&W), Cushman floorplates. “A” class Horizon Development, Skanska, Futureal,

OFFICES & OTHER PROPERTIES MAY 08, 2015 – MAY 21, 2015

BUDAPEST

BUSINESS JOURNAL HUF 1,250 | €5 | $6 | £3.5

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

Chamber for change AmCham CEO Írisz Lippai−Nagy, left, and president Ferenc Pongrácz heed their membership’s call for greater advocacy to improve Hungary’s business climate. 8

NEWS

SPECIAL REPORT

Templeton dumps debt; analyst doesn’t fret, yet

Office market tight as demand heats up

Flat-out rush for flats in bustling Budapest

The U.S. asset manager that holds more Hungarian debt than anyone has slowly been pulling out of this country, but a market expert said it is too early to say if there is a serious problem. 3

There is a strong desire for limited topquality space in Budapest, as well as a lack of delivery. The result is a low vacancy rate, and the supply of development in the pipeline is unlikely to change that anytime soon. 10

A confluence of factors conspired to make renting popular and residential leases difficult to come by in the capital. Analysts say it will be a while before the market reaches rational equilibrium. 16

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Budapest Business Journal | May 08 – May 21, 2015

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2IÀFHV RWKHU SURSHUWLHV

SPECIAL REPORT:

way to find the The easiest your needs. best office for 5/6/15 4:58 PM

Limited supply of

quality office stock

OFFICES & OTHER PROPERTIES

class ‘A’ The shortage of limited offices and the new development of getting space means it’s a good harder to lease office in this town. GARY MORRELL

from office market suffersquality The Budapest of well−located a limited supply growing demand as product to meet Hungary is showing sentiment towards This lack of available to signs of improvement. is a major obstacle class “A” product office market. However, the are development of that pipeline projects are it is positive for projects that million Metro 4 line. attracting preleasesof a quality comparable to around three at the end of the This compares well specified and in the view Budapest One Business Park, a city and country Western Europe of space in Prague, and 4.4 million are to that found in size, of new sqm New office projects of a comparative the dominant business of many analysts. sustainability demand and the lack Warsaw, now accredited to international BREEAM. is falling due to continuing centers is driving the market for as LEED and center for CEE. now the “Vacancy standards such accreditation is for shared service labor.” Further, green office developments delivery. Demand low costs of skilled norm for high qualityof developers, tenants and the relatively Vacancy drops has fallen from the perspective due to the location office vacancy above and investors. where vacancy that Budapest vacancy rate is 15% in a market Greens, commented “Although the high. This is the agents for Váci advanced negotiations towards of large modern Wing have traditionally been “The South Buda in 15%, the availability prelease has HB Reavis and development it is involved space is decreasing; rate since 2009. A 6,500 sqm contiguous office projects can offer more Atenor, lead the way speculative C with lowest for both phases. of continues to space,” undertaken often based on a significant has been signed for Building only a handful break submarketof having the lowest vacancy of modern office been Atenor will soon at circa than 3,000 sqm head of office agency at strategies, of preleases in what has D, in terms now standing recent GE Healthcare. 15,500 sqm Building wide due proportion rate in the city, said Balázs Simay, environment in ground on the to the Budapest at the end of Limited development high a difficult economic developers have to be delivered 10%, compared 15.7%. This figure is DTZ Hungary. Significantly, these or meet strict which is due political concerns, rate of of 2017. The 16,000 to economic and difficulty of sourcing years. to build that the Budapest 2016 or beginningwas completed at the vacancy required equity impressive given been below 10%,” A from banks. vacancy and the restricted the supply of the months more sqm Building LTD equity requirements rate has never was fully let six debt finance has in recent years. end of 2013 and This gave Atenor the vacancy is Johnston. new office developmentsvacancy rates and after completion. ahead with further added argue that this down go Many analysts Not much in the pipeline This has brought of real vacancy complex, confidence to rentals. Only established the year is limited to speculative phases of the what was not a true reflectionshould be further put pressure on and those with in pipeline for this C) stock own resources, and recorded number of European developers have been able to Delivery sqm second phase (Building financed by its funds as there are a the 18,200 phase (Building a challenging market. ability to source buildings from Research rationalized, where debt finance and the 23,000 sqm third first generation the the Budapest and the Belgium Atenor develop in a market According to Colliers outdated that should be taken out of difficult to source low. B) of Váci Greens by by TIBA Architect Forum (comprising CBRE, is expensive and Eston the 1990sFurther, there is a wide variation (LTD) ratios are and designed in DTZ, C&W, sub− equation. loan−to−developmentowners are upgrading Group Building C will be delivered The International, between the different JLL and Robertson In addition building portfolios to meet Studio. B in November. stock in vacancy example the lowest rate is 10% their July, and Building will be the 6,000 sqm International,total modern office For older assets in Váci út corridor class districts. to Hungary), other delivery sqm of modern Buda while the regard to growing demand. office development only center, 100% pre−let consists of 2,588,000 space, in addition in South rate at 18.7%. With Erzsébet office speculative The Budapest space. has a higher low with a resulting at “A” and “B” of owner−occupied pipeline remains of well located, large Groupama. head of office agency to 642,000 sqm David Johnston, (C&W), the letting limited availability Developers such as Cushman & Wakefield class “A” floorplates. Horizon Development, Skanska, Futureal,

BUSINESS JOURNAL BUDAPEST B

VOL. 23. NUMBER 09

HUF 1,250 | €5 | $6 | £3.5

MAY 08, 2015 – MAY 21, 2015

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

Chamber for change AmCham CEO Írisz Lippai−Nagy, left, and president Ferenc Pongrácz heed their membership’s call for greater advocacy to improve Hungary’s business climate. 8

NEWS

SPECIAL REPORT

Templeton dumps debt; analyst doesn’t fret, yet

Office market tight as demand heats up

Flat-out rush for flats in bustling Budapest

The U.S. asset manager that holds more Hungarian debt than anyone has slowly been pulling out of this country, but a market expert said it is too early to say if there is a serious problem. 3

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THE EDITOR SAYS

A race to the bottom on immigration When Prime Minister Viktor Orbán suggested recently that the death penalty should be considered here in a European Union country, he said he was reacting to the shock of the murder of a shopkeeper. He was also probably trying to stay competitive with Jobbik, the far−right party that appears ready to overtake Orbán’s Fidesz party in popularity. Keeping up with Jobbik is also apparently the impetus for Orbán’s recent xenophobic−sounding statements about immigration to the EU. The prime minister seems eager to move further right to keep ahead of the opposition. In fact he’s racing to the bottom. It is true that polls show Jobbik is doing well, perhaps in part because they have never been in power so they haven’t disappointed anyone yet. It is true that Jobbik espouses xenophobia and calls for the reestablishment of the death penalty. It is also true that a recent poll by Tárki shows 46% of the Hungarian adult population is xenophobic, the highest percentage since the polling company was formed in 1991, and that 60% of respondents said that they opposed the immigration of “Piréz” people – an ethnic group that does not exist. Current events, including the wave of refugees who flee violence in the Middle East and North Africa and temporarily pass through Hungary on their way to Germany, have apparently fueled fear of immigration. But this is a time for our leadership to oversee a tolerant approach to migrants and immigrants. Doing so is a good idea for humane reasons, as a way to encourage regional stability and also as a way to provide a source of young workers for aging Europe. Instead of being open−minded, Orbán seems determined to stand out as the least tolerant leader in Europe, and to whip up the kind of fear that demagogues use to maintain power. After pressure from various EU officials – who pointed out that the death penalty is “barbaric”, does not deter crime and is banned in the EU – Orbán backed away from his stance on capital punishment. The migrant bashing, however, continues, and Fidesz has upped the ante by sending out another one of their “national consultations” on the issue. Like previous such exercises, this one is a mass mailing,

delivered at taxpayers’ expense, and filled with loaded questions that are obviously not aimed at encouraging intelligent discourse. Take these doozies: “3. Some say that mistaken immigration policies by Brussels contribute to the spread of terrorism. Do you agree?” “5. Do you agree with the opinion that economic immigrants endanger the jobs and livelihoods of the Hungarian people?” “12. Do you agree with the Hungarian Government that instead of allocating funds to immigration we should support Hungarian families and those children yet to be born?” The consultation could almost be considered laughable, but the subject is not funny. An estimated 700 people died when a boat full of migrants fleeing war and desperation sank off the coast of Libya on April 19. Reports of similar deaths come almost daily. While others in Europe decry the callous policies that make this continuing tragedy possible, Fidesz is trying to make sure their party goes as far right as Jobbik in expressing fear of outsiders. Back in 1993, Orbán and the Fidesz leadership decided that their exciting new, progressive party would give up its liberal stance because there were more seats to be had in Parliament by luring voters away from the center−right Magyar Democratic Forum. Suddenly the “youth” party became the “citizens” party, and Fidesz successfully took over dominance of the center right in Hungary. But doing the same with Jobbik, by matching its radical right−wing stance, would require adopting a host of unsavory, hateful platforms. Perhaps a better political strategy would be to differentiate your party from Jobbik by taking a civilized, caring stance on the issues. Instead of seeing who can reach bottom first, Fidesz and other parties might help the country more by vying for the higher ground.

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Then and now Above is the south side of Széll Kálmán tér in 1945, shortly after Allied bombers destroyed buildings there. At left is an unexploded WWII bomb found on that part of the square during construction on May 5 this year.

BBJ

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NEWS

Advertising tax to be capped at 5.3%

NEWS

Budapest stock exchange bustles in April

macroscope

Cabinet report upbeat on GDP The Hungarian Government expects growth to be higher than the EU average this year in its updated Convergence Program. While the optimism is not unwarranted, there are still risk factors to watch, analysts warn. ZSÓFIA CZIFRA

In its updated Convergence Program, the Hungarian government has increased its growth projection for this year to 3.1% from 2.5%, and set it to 2.5% in 2016. This is one of the rosiest projections for 2015 growth to−date, though analysts say it is not entirely unrealistic. The European Commission’s own projections, however, are for slightly lower growth. Figures in the document, submitted to the EC on April 30, show that the cabinet now foresees a much better economic performance for this year than earlier projected and, resulting from this, expects that budget deficit, in line with state debt, will shrink further. In the document, the cabinet presents its economic policy measures of the past years and the results it has achieved, and introduces planned measures such as a reduction in the personal income tax rate to 15% from the current 16%, an increase in allowances for families with children, the expansion of the Job Protection Action Plan, and the lowering of value−added tax on certain products. According to the Budget Act of 2015, the budget deficit is expected to be 2.4% this year, because of the improved growth outlook. For the 2016−2018 period, the cabinet set the deficit targets to 2.0%, 1.7% and 1.6% of the GDP, respectively, which would comply with budget rules and projects an adequate pace of reduction to the debt ratio. The cabinet says that extra revenues from growth, the low interest rate, results of the structural reforms in the Széll Kálmán Plan and smaller local co−financing expenditures have created elbow room for tax reductions and to lower the budget deficit.

But what about the debt formula? The government reasoned the higher GDP−growth rate for this year on the favorable economic figures of the past year. But it has also identified several risks factors: Hungary’s geopolitical situation is one, and a possible renewal of a eurozone crisis is another. However, according to the cabinet, positive elements (such as low inflation rate, increasing employment

EC on GDP growth in Hungary 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5

3.6% 2.8%

Analyst says Templeton’s debt sales not yet a problem CHRISTIAN KESZTHELYI

2.2% 1.8%

1.5%

2014-2016: EC’s PROJECTIONS

-1.5% 2011

2012

2013

SOURCE: EUROPEAN COMMISSION

Figures in the document, submitted to the EC on April 30, show that the cabinet now foresees a much better economic performance for this year than earlier projected and livening domestic consumption) outnumber the negatives. But the plans may not be complete: neither this document nor the recently introduced budget plans for 2016 appear to reflect the rigorous debt formula that came into effect by Hungarian law this January, and that should be applied from planning of the 2016 budget onwards. While the document presented to Brussels specifically mentions that debt−to−GDP ratio will drop to less than 70% by the end of the forecasting horizon, it doesn’t mention that a larger fiscal adjustment would be needed if it were to comply with the debt formula.

Deflation is here to stay The forecast by Equilor analysts complies with the government’s revised growth projection of 3.1% for 2015. “This figure is backed by the gradually improving economic dynamics of Western European countries, but there are also domestic factors behind it, such as increasing domestic consumption and a livening investment sentiment,” Equilor senior analyst Ákos Kuti told the Budapest Business Journal. Kuti did, however, identify the growth rate of European economies as a possible risk. “If the European Central Bank (ECB) quits its bond purchasing program before

2014

2015

2016

the originally planned date of September 2016, it would lead to higher interest rates and lower investment dynamics,” the analyst explained. Also, if European Ákos Kuti: Government Union funding figures add up. dried up, or deflation remained permanent, domestic investment dynamics and therefore GDP growth would be much lower, Kuti added. Equilor Zrt. issued a projection note on May 5 in which it expects – if external market conditions remain unchanged – ongoing deflation tendencies, further rate cuts and puts the euro/forint exchange rate at around 300 for this year.

A possible upgrade? The Equilor note adds that although upgrades by international rating agencies are not in the pipeline yet, if the corporate business and tax environment improves, Hungary’s sovereign debt rating may be upgraded to investment category. The EC, however, is not that optimistic about Hungary’s outlook: In its Spring 2015 Economic Forecast, also issued on May 5, it put the country’s economic growth at 2.8% and 2.2% for 2015 and 2016, respectively. The reason for the lower GDP estimates is the EC’s expectation that growth−supporting factors, such as record EU funds absorption, will lose strength. The EC expects domestic demand to remain the main driver of economic growth, but with a shift from investment to private consumption.

The May 6 announcement that emerging market specialist Franklin Templeton Investments, an asset manager that is the largest holder of Hungarian debt, had shed roughly 20% of those holdings in a short time caused some concern, but according to an analyst, it is still too early to panic. When György Barcza, head of the Government Debt Management Agency announced the large sale of Hungarian government securities by Templeton on state television, he implied that much of the sales had taken place in the ﬁrst quarter of this year. CIB analyst Mariann Trippon told the Budapest Business Journal that Templeton might simply be seeking to reduce its exposure because of concerns about Ukraine. If that is the case, it would mean that the asset manager is not planning to abandon Hungary.

No concern for now Either way, she said, there is no reason to be concerned – right now. “On the one hand it is unfavorable, as it is not optimal if government securities are owned by one entity, because if they sell this can cause market tension,” Trippon said. “On the other hand, because it is such a large player on the market, it cannot sell its own government securities all at once, as this would cause it serious losses as well.” She added that, thus far, Templeton seems to be alone in its heavy selling. “Government securities owned by foreigners declined slightly, but we do not see a signiﬁcant decrease at the moment; as such, those securities that were sold were partly absorbed by other players,” Trippon said. She believes that the following months will reveal how the expected worsening of the external environment will affect the Hungarian government securities market. “We do not expect the collapse of the market in the coming months, but record−low yields would be impossible to maintain,” Trippon added. For the long−term, she said, it would be good if a more diverse group held government securities. “It is the state’s aim to strengthen internal ﬁnancing, in other words to distribute state debt among domestic players such as households, companies and banks,” Trippon said.

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04 News

Budapest Business Journal | May 08 – May 21, 2015

EXPERT OPINION

Merre

is Hungarian intellectual capital heading?

tart a magyar szellemi tőke?

Időpont: 2015. május 20. szerda, 9:00 - 14:30 óra Date: May 20, 2015, Wednesday 9:00 -14.30 SPEAKERS Dr. Tamás Freund Neurologist and University Professior Dr. Bertalan Meskó Medical future researcher Péter Radó Education researcher, political analyst Rita Veres, CEO Aon Hewitt

Péter Malchiner Maximilian CEO Innermetrix Hungary

Szabolcs Kun Finder, CEO MinervaSoft és Arenim Technologies

Dr. Farkas Bársony CEO GE Hungary

Attila Molnár, CEO Bátor Tábor Alapítvány

Gergely Böszörményi-Nagy CEO Design Terminal

moderator: Előd Solti CEO, Partner Solti & Partners Consulting Kft. Nóra Szily Presenter, Journalist

A KONFERENCIA NYELVE: MAGYAR LANGUAGE OF THE CONFERENCE: HUNGARIANEÁJUSA További információk és regisztráció • For more information and registration:

www.bbj.hu/events/ • e-mail: event@bbj.hu • Tel: +(36) 1 398 0344

Dr. Bertalan Meskó Medical future researcher Medicalfuturist.com

Bertalan Meskó is a medical futurist, who will address the Budapest Business Journalʼs May 20 Hungarian-language conference about the future of inellectual capital in this country. Here he explains more about his exciting field. Q: You describe yourself as a “medical futurist”. What does this mean? A: When I fulfilled my childhood dream and became a doctor and geneticist researcher, I had to realize I wasnʼt satisfied as my geek self who loves technologies was left out of this. Therefore I had to design a new profession in which I can improve the care of patients worldwide by bringing science fiction technologies to everyday medicine. The mission of The Medical Futurist is to prove that it is only possible to improve healthcare globally if a mutual relationship is established between using disruptive technologies in medicine and keeping the human touch. Working as a speaker and consultant with medical technology, pharmaceutical and web companies; as well as universities and governments worldwide, my job is to make sure the advances of technology lead to a better healthcare for everyone! Q: You are the founder of webicina.com. What is it? A: More than 70% of internet using adults in the US look for medical and health information online, and this number is rising quickly. They have access to blogs, podcasts, Facebook groups, mobile apps, Twitter users or Youtube channels, among others, that can provide both e-patients and medical professionals with relevant pieces of information. However, there is currently no way to find those that contain reliable and correct advice. Reviewing this information cannot be done by Google’s algorithm alone - it needs the human touch. Webicina’s expert team provides that missing peer-review, curating more than 6,000 sources to date for free, providing an easy way to collect and browse this vast database. Access to better health and medical advice leads to better healthcare decisions for the patient, fewer medical errors for the physician, and through this, lower healthcare costs. Ultimately, it improves patient-physician relationships, paving the way for participatory healthcare. Q: You are also the founder of themedicalfuturist.com. Could you please elaborate on that?

A: This website was designed to become a news agency that filters the news about future medical technologies both for patients and medical professionals. It includes curated news on the website every day, a daily free newsletter featuring othe one most important article; a very popular Facebook page and a Youtube channel. Q: There are some pretty radical concepts on your blog (scienceroll.com) – with articles about total health monitoring provided electronically at home, a robot that takes blood and even the concept of living forever by merging our bodies with machines (singularity). How fast is medical technology really developing? A: Medical technology is developing at an exponential rate. Our job now is to make sure disruptive innovations are tested and can be applied to everyday medicine. The goal is to make the lives of patients better and the jobs of physicians easier and more satisfying. Q: You are the author of “The Guide to the Future of Medicine: Technology AND The Human Touch”. What is this book about? A: I see enormous technological changes heading our way. If they hit us unprepared, which we are now, they will wash away the medical system we know and leave it a purely a technology–based service without personal interaction. Such a complicated system should not be washed away. Rather, it should be consciously and purposefully redesigned piece by piece. If we are unprepared for the future, then we lose this opportunity. I think we are still in time and it is still possible if an easily digestible and practical guide becomes available. I wrote a book “The Guide to the Future of Medicine: Technology AND The Human Touch” to prepare everyone for the coming waves of change, to be a guide for the future of medicine that anyone can use. It describes 22 trends and technologies that will shape the future including Augmented Reality, Surgical and Humanoid Robots, Genomics, Body Sensors, The Medical Tricorder, 3D Printing, Exoskeletons, Artificial Intelligence, Nanorobots, Virtual–Digital Brains, The Rise of Recreational Cyborgs or Cryonics and Longevity. Q: How advanced is Hungary in medical futurism? A: Futuristic studies are not limited to countries or other geographical limitations. This work includes the use of social media channels to crowdsource the most innovative ideas and key pieces of information. This way I have a digital brain in the form of hundreds of thousands of individuals who help me find a solution for any healthcare problem. Q: Where do you think intellectual capital is heading in Hungary? A: Hopefully in the right direction towards disruptive technologies that can truly change healthcare. Areas with underdeveloped healthcare systems dealing with serious issues every day can only make a step forward by using cheap, comfortable, yet still innovative technologies to connect patients and doctors even more. This way the use of technology can improve the human touch.

NOTE: ALL ARTICLE S M ARKED E XPERT OPINIONS ARE PAID PROMOTION AL C ON TEN T FOR WHICH THE BUDAPE S T BUSINE S S JOURN AL DOE S NOT TAKE RE SP ONSIBILIT Y

Where

Seeing the future of medicine

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News 05

Budapest Business Journal | May 08 – May 21, 2015

NEWS

Immigration questionnaire

IN BRIEF Ad tax set at 5.3% for revenue above HUF 100 mln

EP initiates phone call over death penalty

According to a new bill published on kormany.hu on May 4, the upper bracket of the advertisement tax would be 5.3%, while media companies with revenue of less than HUF 100 million would not have to pay the tax at all. Germany’s RTL Group earlier ﬁ led a complaint to Brussels as its Hungarian subsidiary RTL Klub was the only media outlet that fell into the highest bracket of the current progressive advertisement tax, which reaches up to 50% of revenue.

Martin Schulz, the President of the European Parliament, initiated a phone conversation with Viktor Orbán over the Hungarian Prime Minister’s comments on the need to reconsider the death penalty, Hungarian online daily index.hu reported on April 29. Schulz said he had seen Orbán’s comments in international news reports and said that the reintroduction of capital punishment would be against the European Union’s laws and is essentially “barbarism”, Index reported. The Press Chief at the Prime Minister’s Office Bertalan Havasi told state news agency MTI that the prime minister was “at the service of President Schulz, as usual.”

BSE: Daily share turnover climbs almost 22% in April Daily share turnover on the Budapest Stock Exchange came to HUF 13.5 billion in April, up 21.7% from the previous month, the bourse said on May 4. Spot market turnover exceeded HUF 276 bln for the month, including almost HUF 270 bln in share turnover. The bourse’s main BUX index ﬁnished the month 14.8% higher, as oil and gas company MOL gained 24.2%, OTP Bank rose 13.2% and drugmaker Richter advanced 18.5%. Concorde brokered most deals on the shares market in April, generating 22.5% of turnover. Runner-up was Wood and Company, brokering 17.4% of the total, followed by Erste Befektetési, with 14.8%.

University students protest plans to cut programs University students held their third demonstration in a week on April 26 to express their anger at the Hungarian government’s proposed plans to cut programs. Students started organizing on April 20 after the Ministry of Human Capacities published a draft bill that would terminate graduate programs for social sciences, communication and international relations. A Facebook page created by organizers of the student demonstration said that termination of these programs would mean the Faculty of Social Sciences at ELTE would not be able to survive ﬁnancially.

Neilsen: 5% fewer grocery stores operating The number of grocery stores operating in Hungary was down 5%, to 17,729, in the 12 months leading up to January 2015, according to data compiled by market research company Nielsen, Hungarian news agency MTI reported on May 5. Most store closures were in Budapest, Pest County and in western Hungary. Only a little more than 10% of the country’s grocery stores are above 200 sqm in size. Legislation that came into effect in the spring requires most retailers larger than 200 sqm to remain closed on Sundays. There are currently 19 grocers in Hungary for every 10,000 residents, well over the respective ﬁgures of seven and ﬁve in Austria and Germany, Nielsen added.

Magyar Nemzet’s sports writers resign The ﬁve-member sports staff at Hungarian daily Magyar Nemzet resigned from their posts to join Hungarian economic daily Napi Gazdaság, Hungarian daily Népszabadság Online reported on May 5. Magyar Nemzet is owned by media mogul Lajos Simicska, who earlier this year had a public falling out with his long-time ally Prime Minister Viktor Orbán, and said he would change the slant of his media outlets to become anti-government after being openly Fidesz-friendly for years. At the same time, the already Fidesz-friendly daily Napi Gazdaság has reportedly been going through a transformation with the aim of turning the paper into a Fidesz party organ. Népszabadság said that the ﬁve members of the Magyar Nemzet sports staff had considered leaving ever since Simicska’s break with Fidesz spurred an exodus among other members of his editorial team.

Putin: Abandoning Paks deal would hurt Hungary Russian President Vladimir Putin said on May 5 that it would hurt Hungary’s national interests if the country backed out of the deal to upgrade the country’s sole nuclear power plant at Paks, though he noted that the country could be forced to drop the deal by the European Commission, Russian news agency Tass reported. Following talks with Sergey Kiriyenko, the head of Russia’s stateowned atomic energy company Rosatom, Putin warned that if Hungary cancelled or was forced to refuse the contract “it would have negative repercussions for the country”, International Business Times said. “We offer good terms and advanced technology,” Putin said, according to Tass. Hungary reached a deal last year to have Rosatom upgrade the nuclear plant at Paks, which supplies most of the country’s electricity. The project is expected to cost €12.5 billion, and Hungary was granted a €10 bln line of credit from Russia to help pay for it. The EC has been reviewing the deal, and could possibly raise objections that prevent it from happening.

The Central Office for Administrative and Electronic Public Services (KEKKH) prints a questionnaire created for national consultations on immigration in Budapest on May 5. KEKKH, the official gazette and the Hungarian Post Office are responsible for ensuring that the more than eight million forms are delivered to voters. The questionnaire solicits approval for government plans to tighten restrictions on immigrants, which ‘will be different in many ways from the current European Union regulations’, Hungary’s Prime Minister Viktor Orbán said on Echo TV on May 1. ‘We will need to make Europe and Brussels accept our own regulations,’ Orbán said. ‘It is going to be a big battle, a big fight.’ Hungarian trade house opens in NYC The Hungarian National Trading House (MNKH), set up by the Hungarian state with the mission to establish new opportunities for Hungarian companies on foreign markets, opened its ﬁrst trading house in North America, in New York, National Development Minister Miklós Seszták said on May 5. Representatives of eleven Hungarian companies were present at the opening, with three of the businesses showcasing their operations. The trading house is the 27th of its kind set up by MNKH, Hungarian news agency MTI said, adding that another is expected to open in Canada, and more could be set up in other parts of the United States, depending on results of the enterprise there.

PM: Gov’t to extend regulatory reforms to brokerages Hungary’s government plans to extend regulatory reforms within the ﬁnancial sector to brokerages, Prime Minister Viktor Orbán said in an interview with commercial television station Echo TV on May 1. Orbán said that the government has already introduced legislation to establish an “era of fair banks” and has also renewed the savings cooperative infrastructure. Regulatory renewal will follow at other types of ﬁnancial investment service providers, such as brokerages, he added.

Varga: Banks should lend more when levy is cut Hungary’s National Economy Minister Mihály Varga believes that banks in Hungary “must consider” the reduction of the extraordinary bank levy by the Hungarian government as

“compensation for increased lending”, the minister said in an interview with stateowned Kossuth Rádió on May 6. Whether this requires legal regulation is still a “up for debate”, he added. According to Varga some Hungarian banks have already made concrete commitments to boost their lending activity, while others have been “a little more subdued”. The National Bank of Hungary (MNB) managing director Márton Nagy told Hungarian economic daily Napi Gazdaság on May 6 that the scale of the reduction in the bank levy ought to be tailored to each bank’s increase in lending activity. According to Nagy, banks that perform better than average should be able to participate in the bank levy reduction at an accelerated pace. The Hungarian government early this year signed an agreement with the European Bank for Reconstruction and Development to start cutting the levy next year.

CEE countries eye reverse VAT Hungary, along with Czech Republic, Slovakia, Bulgaria and Austria, are urging joint legislation against VAT evasion, including making the use of reverse VAT a more common practice, National Economy Minister Mihály Varga told MTI on May 4. Following a meeting with his peers from the four countries, Varga said that they all face the same concerns of fraud used to bypass VAT payments. In Hungary, carousel fraud is estimated to rob the state of anywhere between €1.5-2 billion, he added. The aim of the meeting was to coordinate the joint implantation of reverse VAT – the practice of obligating the buyer and not the seller, of goods to pay VAT – to certain groups of products, he said.

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2Business COMPANY NEWS Lower costs lift Richter earnings First-quarter net income of Hungarian drugmaker Gedeon Richter rose 61% to HUF 15 billion from the same period a year earlier as costs fell, an earnings report published May 6 reveals. Earnings per share came to HUF 81 for the period. Revenue edged down 0.7% to HUF 87.7 bln. Direct cost of sales fell almost 3% to HUF 32.1 bln, widening Richterʼs margin and lifting gross profit 0.6% to HUF 55.5 bln.

million in 2014, the company told Hungarian news agency MTI on April 29. EBITDA rose 14.8% to €73.4 mln. Last year, Waberer’s purchased 1,300 new trailers and hired almost 500 lorry drivers. In addition to Hungary, the company’s key markets are Germany, Italy, France, the United Kingdom and Spain. Waberer’s International operates a ﬂeet of more than 3,300 lorries. It has subsidiaries in France, Germany, Italy, Poland, Romania, Slovakia, and the U.K., and plans to establish a unit in the Netherlands by the end of 2015.

Waberer’s revenue increases 10% in 2014

Budapest Bank pays out HUF 59 bln in borrowers’ relief rebates

Revenue of Hungarian road haulage company Waberer’s International rose 9.7% to €496.2

Budapest Bank settled a combined HUF 59 billion in rebates with its clients by

the deadline stipulated in the borrowers’ relief legislation, the lender said on May 4, according to Hungarian news agency MTI. The rebates reached HUF 32 bln for clients with FX mortgage loans and HUF 27 bln for clients with FX car loans, with rebates averaging HUF 1.45 million and HUF 300,000 per client for the mortgages and car loans, respectively. Budapest Bank made HUF 48.5 bln in provisions for the rebates last year. Borrowers’ relief legislation requires lenders to compensate retail clients for using exchange rate margins when calculating repayments on FX loans, once the most popular household lending product in Hungary, and for making unilateral changes to contracts.

Air China to restart Budapest-Beijing direct flights Air China is scheduled to relaunch direct flights between Budapest and Beijing as of May 1, with Airbus A330 planes flying between the capitals four times a week, the airline said at an event in Beijing on April 30. The flights from Beijing will make a short stop in Minsk, Belarus, but there will be no stopover on the return flight from Budapest, the airline said. According to Hungarian news agency MTI, Hungarian ambassador Cecília Szilas said the number of Chinese visitors to Hungary for business and tourism rose 19% in 2014 alone; that number is estimated to double in the next five years.

Syngenta to open financial center in Budapest

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Swiss pesticide and seed company Syngenta is planning to launch a European financial center in Budapest in July, which would create 60 jobs for highly qualified staff, the company said in a statement on April 29. Syngentaʼs Central European regional office has been in Budapest for years, the statement noted. Currently the company

has a headcount of more than 350 in Hungary, with most of the employees working in marketing and sales, and some in production.

INA Q1 profit down 79% Croatian oil and gas company INA, a subsidiary of Hungary’s MOL, had net income of HRK 50 million (€6.6 mln) in the first quarter, down 79% from the same period a year earlier, an earnings report published last week revealed, according to state news agency MTI. Earnings per share reached HRK 5 while revenue fell 31% to HRK 3.8 billion. Operating costs fell at the same pace to HRK 3.67 bln. Revenue of INA’s upstream business fell 43% to HRK 1.24 bln while profit of the segment was down 29% at HRK 701 mln. INA noted the effect of lower oil prices and adverse regulatory changes on its business. Production volume rose 6%, with domestic crude production up 20%, showing the effect of intensive workovers and production optimization activities, INA said. Revenue of the downstream segment fell 32% to HRK 2.58 bln. The business had a HRK 435 mln loss, albeit an improvement over the HRK 491 mln loss in the same period a year earlier.

Varga launches investigation of Uber Hungary’s economy minister Mihály Varga has ordered the ministry and its institutions to launch an investigation in connection with the operation of San Francisco-based transport service Uber in Hungary, the minister wrote on his Facebook page on April 30. “Every passenger has the right to affordable, secure, clean and punctual taxi services. However, if a player appears in the market that does not keep itself to the fundamental conditions for transporting people, and gains advantage on the market, and what is more does not pay taxes, then steps need to be taken,” Varga wrote on his Facebook page.

/ Winner of TED Prize 2013

KEN GOLDBERG / Professor of robotics, UC Berkeley TINA SAABY / Chief Architect of Copenhagen BENJAMIN BRATTON / Director of The Center for Design and Geopolitics ÁDÁM SOMLAI-FISCHER / Co-Founder, Principal Artist, Prezi SARAH DAVIDSON / Founder and CEO, Hello Fearless VLADIMIR SUCHA / Director of EU Science Hub DANIEL EPSTEIN / Founder and CEO, Unreasonable Group

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2 Business

Budapest Business Journal | May 08 – May 21, 2015

Digital platform spurs real human interaction The Meetup platform is not just a social tool. It also brings together a lot of businesses people, especially in the tech sector, providing a good background for future deals. DIANA SEFTON

Alongside bringing people together in cyberspace, the internet has also proven invaluable in helping arrange face−to− face meetings. Here in Budapest, the online Meetup platform is frequently used as a way to create communities of like− minded people – sometimes with benefits for their business. Meetup was founded in 2002 with the mission of bringing people together locally. The web page makes it easy to find members with similar interests – whether that is travel, parenting or business. The platform is widely used to organize social events and special interest groups, but companies have been getting involved as well. Meetup has more than 190,000 groups globally with 21.4 million members in 180 countries. There are more than 300 Meetup groups registered in Budapest. “We don’t sell, we give,” the slogan of the Budapest Business Club, is a good fit for the ideology of many of the businesses involved in Meetup gatherings in Budapest. Rather than seeking immediate commercial benefit or rolling out some kind of sales pitch, which can scare participants away, Meetup organizers seem to be seeking to create communities and share information, as a way to improve the overall knowledge level and business environment in Budapest. They do find, however, that in−person meetings build trust between potential business partners – and they can work as powerful marketing tools. István Maczkó, organizer of Marketing Budapest, a Meetup group, is one person who notes the business benefits of the platform. “I am building my company brand,” he says. He explains that he started the group because there was a lack of general knowledge in his field of marketing, and he wanted to change that. According to Maczkó there were many low quality providers in operation that were merely taking advantage of the gap in users’ knowledge. He noted that he often even invites competitors to speak at his events, and comments: “Educating the customers together brings more customers for all of us.” But along with improving the quality of customers’ overall knowledge of marketing, Maczkó is also improving his business through these meetings, which he says have grown from 50 attendees to more than 100. “I have received more requests for services from the Marketing Meetup than from any other platform

A gathering in Preziʼs designated Meetup room.

Richard Gellai: More than 200 partnerships created. and these clients tend to spend more on services,” he says. “We usually get one or two new customers from every Meetup event, and that is just us, I don’t know how many customers our participating competitors get from these events.”

Tech is a top topic For others, especially startups and various groups involved in technology, the meetings are less about deals and more about building a supporting community. Perhaps that’s why there are more than 130 local groups involved in technology, which represents the fastest− growing category of Meetup group in Budapest. The Meetup with the most members in the capital is the Budapest New Technology Meetup group, boasting more than 3,000 members, according to the Meetup website. Prezi is one of the most widely known companies active in this segment locally. Gabor Török, one of the Prezi Meetup organizers, explains that the company’s involvement in Meetup events is in line with its vision of sharing ideas and building up the technology hub in Budapest. “We want to show that Budapest can be a center for technology and innovation, to show that you can build success here. If you make your environment a better place, it will be better for you to be there,” he says. In other words, a better environment is better for business.

“I have received more requests for services from the Marketing Meetup than from any other platform and these clients tend to spend more on services.” Richard Gellai, co−founder of the local startup Ziteboard and organizer of the Budapest Business Club, echoes this sentiment. “The success of the group is evident in the partnerships that have formed among members, more than 200 that I know of.” He says he originally started the group as a response to what he considered to be a general lack of public knowledge in business development. The companies interviewed all say they also use Facebook, Twitter and Google+ but add that Meetup is best suited for bringing together like−minded people in a community setting. Török of Prezi says, “It is a platform for dialogue. With Facebook and Twitter you can keep in touch but it is far from sitting together and having an in−depth conversation. This way you can build stronger relationships, build communities. It can be a really powerful thing.”

‘Positive’ opinion It is clear that a direct sales−pitch approach will not work with the Meetup community. Groups with such an approach fizzled out during the first four−to−six months, according to Gellai. Many organizers agree that holding regular meetings is key to a Meetup group’s success. In addition to providing interesting content (speakers, ideas), it is also important to allow time and space for networking among the attendees. While some may come for the speaker, others come for the social aspect. Petra

Kaiser, a member of nine Meetup groups who most recently attended the Product Hunt event, comments that her opinion of companies involved in Meetup is “absolutely positive”. She says she sees it as something that young, new and innovative companies are involved in: “It is a good way of networking with people who have similar interests and you can get to know industry leaders better, sometimes see their human side which is interesting.” Gellai of the Budapest Business Club is also interested in giving that human side a voice. He also organizes the KudarcKonferencia or Fail Conference, which provides a platform for business leaders to share their stories of failure in hopes that others can learn important lessons from these experiences. One of the biggest challenges that Meetup organizers face is finding space for their events, which is where company partnerships come in. Renting a space can cost up to HUF 15,000 per hour. Back before he joined Prezi, Török was running the JavaScript Meetup and Prezi offered it a space for its events, which at the time was a rented flat that could accommodate 30 people. Prezi has since changed locations and at its current office has a space specifically designed for this purpose, hosting up to 150 or 200 people. The company allows various Meetup groups to hold events there, and also uses the space for company−wide meetings. Certain government entities have also supported Meetup groups by sponsoring space and or snacks, especially in the tech sector. Maczkó of the marketing group notes that a few of his events have been held at the National Innovation Office’s installations. Gergő Szonyi, organizer of Frontend Meetup, adds that sponsor companies can benefit from the events by being able to recruit employees and introduce the public to their company.

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08 2Business

Budapest Business Journal | May 08 – May 21, 2015

AmCham intensifies its advocacy role Asked by its membership to help improve the environment for conducting business in Hungary, the chamber is advocating at the governmental and private levels. BBJ STAFF

After six months of consultations, involving interviews with more than 80 companies, AmCham Hungary says it has been given a clear mandate: The American chamber of commerce is heeding calls from its membership to help improve the business climate in Hungary through more intensive policy advocacy and private initiatives. “Our goal here is to improve the competitiveness of our country and therefore the chances of our businesses,” said AmCham Hungary president Ferenc Pongrácz, interviewed in late April. AmCham has even put the goal in numbers: It will work to improve Hungary’s ranking in the World Competitiveness Report by ten places in ten years. Hungary is currently ranked 60th out of the 144 countries rated in the report, which looks at 12 “pillars” of competitiveness. AmCham decided to address four of those pillars where it felt it could make a real difference: investment, talent, innovation, and health. Much of this work involves lobbying the government and seeking to influence new legislation. And the AmCham officials say the government has responded well, even allowing AmCham to consult on proposed laws. “Advocacy has always been a key priority for AmCham and a great deal has been achieved in the last 25 years,” according to AmCham CEO Írisz Lippai−Nagy. “What has changed is our approach to advocacy. To be able to better represent the collective interest of our members, first of all, we have defined those areas where AmCham – together with its member companies – can make a real impact in improving the competitiveness of the country.” Lippai−Nagy pointed out that the power of the chambers’ membership makes an important source for advocacy. “AmCham proudly groups the most important representatives of almost all business sectors,” she said. “Not only the economic power represented by our member companies but, most importantly, our brain−power, experience, know−how and international outreach provide the professional basis for elaborating recommendations representing common opinion.” Pongrácz added that the reach of AmCham goes well beyond American firms. “It’s important to mention that the membership is not only American,” he said, explaining that the firms in the chamber are roughly one third American, one third Hungarian and one third from other countries.

AmCham CEO Írisz Lippai-Nagy, left, and its president Ferenc Pongrácz.

Help for education, innovation AmCham firms are especially strong in the IT sector, according to the chamber president. “All top brands are American firms and all of those are AmCham members,” said Pongrácz, who himself is the business development executive for IBM SEE. For these companies, the competitive “pillar” of education is particularly important, he said, adding that most firms in these areas are concerned with higher education, because they need university trained engineers. “We have a very good relationship with the secretary of state for higher education, László Palkovics,” Pongrácz said. “We have represented our members’ interest in the area of higher education for several years, based on roundtable discussions held together with university representatives. One of the outcomes of these talks was that our members could employ a lot more trained engineers and mathematicians to which Palkovics said. ‘Understood, how many will you need?’” Lippai−Nagy noted that the chamber has a history of initiatives to improve education and the sharing of knowledge, such as the language ambassador program, which sees corporate volunteers, including top executives visiting secondary schools, to offer career advice but most especially to encourage students to learn a second language, and to focus on developing their soft skills. “Talent and education is in the forefront of our activities. We believe it is the basis of the long−term success of the country,” said Lippai−Nagy. “We have experienced that it is important to reach out to secondary school students, as they lack important information when making decisions impacting their future.” Not all the tech−minded students in Hungary end up working for the big IT firms. A lot of them start firms of their own. AmCham is also looking to support tech entrepreneurs through advocacy

“We have defined those areas where AmCham – together with its member companies – can make a real impact in improving the competitiveness of the country.” that can encourage innovation and innovative industries. “Innovation is a very important driver for the economy nowadays,” Pongrácz said. “With a small group of people, you can create big value and there are some good examples of that in Hungary as well, and I mean not only Prezi and Ustream.” AmCham’s work in this area includes creating and supporting events, such as partnering with Brain Bar Budapest, a major conference on “tech and humanity” that will be taking over venues all around Budapest from June 4−6. AmCham members can also be the angel investor or matchmaker that startups are looking for, according to Pongrácz. “Significant venture capital is coming into Hungary and we have many members looking at the startup industry here,” he said. AmCham further cooperates with the government through an advisory group that counsels the government’s innovation office. Two of the nine members of the group are AmCham officers, including Pongrácz himself.

Investment and health When it comes to the “competitive pillar” of investment, AmCham is particularly well placed to help, and has good opportunities to cooperate with the government, according to the chamber’s president and CEO. Through an agreement with the Ministry of Justice, “we obtain information about

planned legislation relevant to our members, and our board and regulatory committee create positions, statements or suggestions on these, well−received by the ministry” Pongrácz said. He added that AmCham membership includes the country’s top law firms, and their pro bono policy advisory services are very valuable and highly appreciated. Another important official avenue for encouraging investment is AmCham’s cooperation agreement with the Hungarian Investment Promotion Agency (HIPA), the government office that works directly with potential investors, offering advice and contacts. In fact, much of the investment being made here comes from firms that are AmCham members, who have been in Hungary for a while, Pongrácz said. “According to HIPA, more than 50% is reinvestment from people who are already doing business here,” he explained. And when it comes to outsiders investing, they often turn to AmCham, Pongrácz said, adding: “We are the ones who are here, so if you come to Hungary, you want to talk to someone who has first−hand experience.” As for the fourth “pillar of competitiveness”, health, AmCham can do a lot to help through it’s members, according to Lippai−Nagy. “Our aim is to increase awareness of individual and company responsibility for keeping and/or improving the mental and physical health status of the Hungarian population,” she said. “AmCham can reach out to 160,000 people employed by its members, so we encourage companies to motivate their employees to become more actively involved in the management of their own health (through diet, sports, etc.).” Beyond that, she said, AmCham also reaches out to top management. “AmCham Hungary believes that all stakeholders should view and manage health care as a value producing sector of the economy and consider health care expenditure an investment in the future and a driving force of economic growth,” Lippai−Nagy said.

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2 Business

Budapest Business Journal | May 08 – May 21, 2015

this special report is sponsored by DTZ

THE PROPERTY ADVISER www.dtz.com +36 1 269 6999

Office vacancy seen to be decreasing The share of renewals and new deals shifted in Q1 2015 on the Budapest office market. New deals comprised over 27,000 sqm, out of which 8,000 sqm was signed by companies relocating within stock. Renewals made up 31% of the take-up, while expansions took 19% of the quarterly demand. Changing demand trends and stand-still in new supply results positive high net-absorption figures and decreasing vacancy. Tenants looking for larger headquarters may find that only a few landlords can offer contiguous, good quality office space, which will prompt such tenants to start their search earlier and even consider pre-lets. Average involvement of agencies is more than half of the total office transaction volume including over 40% share of DTZ office agency in Q1 2015.

REAL ESTATE NEWS Starschema leases 900 sqm from CPI Hungary

Group to OTP Property Investment Fund. Citypoint9 comprises 23,000 sqm modern warehouse and office area. DTZ represented the vendor during the negotiations. At the end of 2014, DTZ won an exclusive mandate from MKB Bank Group to advise them on the sale of their portfolio of industrial assets. The portfolio comprises various assets including greenfield sites, vacant production units and warehouse type of schemes.

DTZ Hungary welcomes new colleague

Big Data solutions company Starschema began leasing more than 900 sqm in CPI Hungary’s “A” category Balance Building in the BC99 office park as of the beginning of May, CPI Hungary said in a May 5 press release. “It was a key factor for our decision that Balance Building, both in its quality and exclusivity, met the demands and expectations of our team,” Starschema CEO Péter Csillag said. The CEO added that the building location, flexible leasing conditions and high quality and economical operation conditions were also in favor of the decision.

Citypoint9 finds new owner A successful investment transaction was closed in Q1 2015 in relation to Citypoint9 warehouse and business center. The city logistics type of scheme, situated in an excellent location, was sold by MKB Bank

DTZ has announced that Nóra Fodor joined its office agency team this May. In addition to being a widely respected player on the office market and bringing with her extensive experience, she also has deep knowledge of inward investment, having previously worked for both the Hungarian Investment Promotion Agency (formerly HITA and ITDH). In recent years, Nóra worked at Wing. As a new member of DTZ’s office team she will be involved in both tenant and landlord representation, furthermore she will be participating in consultancy services and feasibility studies too.

KSH: Hungary’s home building permits jump 44% in Q1 The number of permits issued for new home construction jumped by a yearon-year 44% reaching 2,381, in the first quarter of 2015, data from the Central Statistics Office (KSH) revealed May 5. New permits were issued for a total area of 260,200 sqm, up by 40%, while the number of new home completions

fell 7% to 1,572, KSH added. The office said that the proportion of dwellings built by individuals remained unchanged at 56%, the proportion of dwellings built by enterprises was 44%, while in Budapest 82% of all dwellings were built by entrepreneurs.

Home sales jump 59% in April Approximately 12,118 homes were sold in Hungary in April, representing a year-onyear increase of 59%, real estate broker Duna House said on May 4. The number of homes sold was down slightly from 12,263 in March 2015, the real estate broker said, adding that turnover on the market has been growing since March 2014.

MNB: Home loan outlays rise almost 50% in Q1 Outlays of new home loans in Hungary rose 49.8% year-on-year in the first quarter, fresh data from the National Bank of Hungary (MNB) show. Home loan outlays rose to HUF 57.1 billion in January-March from HUF 38.1 bln in the same period a year earlier. Loan outlays have been growing as the housing market has started to recover from the financial crisis. K&H Bank said on May 4 that it expects the home loan market to expand by 30-50% this year. Last year, home sales climbed about 17% to 103,700, data from the Central Statistics Office (KSH) show. Sales are still down from pre-crisis levels: 154,100 homes were sold in 2008 and 191,200 in 2007.

TriGranit Management boasts of good Q1 in shopping centers The first quarter of 2015 brought a 2% increase in footfall with 12.5 million visitors in the shopping centers managed by TriGranit Management Corporation, with almost five million visitors in WestEnd City Center alone, the company said in an April 29 press release. All the shopping centets managed by TGM in the CEE region realized an increase in their visitor numbers in Q1 2015 compared to the similar period of last year, the firm said, adding that the year started off positively for WestEnd City Center which is still the No.1. shopping mall in Budapest. After reaching the highest rental income in its 15th year of operation in 2014, the rents per sqm of WestEnd reached the level of that of the booming years of 2006-07. Footfall in Q1 2015 reportedly equalled 4.8 million visitors.

New senior advisor at CBRE CBRE announced on April 28 that Bernadett Sallay joined the leading property advisor’s Hungarian team. Sallay joined CBRE Hungary as a senior advisor for industrial properties. She comes from FM Logistic, where she worked as key account manager. Sallay graduated as an economist and is a skilled real estate expert who spent almost six years as leasing manager at Prologis, Hungary’s largest logistics developer where she was responsible for the company’s entire 500,000 sqm Hungarian portfolio. Prior to Prologis, she worked at JLL’s industrial department for three years.

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3Special Report Offices & other properties

The easiest way to find the best office for your needs.

Limited supply of quality office stock The shortage of class ‘A’ offices and the limited development of new space means it’s getting harder to lease a good office in this town. GARY MORRELL

The Budapest office market suffers from a limited supply of well−located quality product to meet growing demand as sentiment towards Hungary is showing signs of improvement. This lack of available class “A” product is a major obstacle to development of the office market. However, it is positive that pipeline projects are attracting preleases for projects that are well specified and of a quality comparable to that found in Western Europe in the view of many analysts. New office projects are accredited to international sustainability standards such as LEED and BREEAM. Further, green accreditation is now the norm for high quality office developments from the perspective of developers, tenants and investors. “Although the vacancy rate is above 15%, the availability of large modern contiguous office space is decreasing; only a handful of projects can offer more than 3,000 sqm of modern office space,” said Balázs Simay, head of office agency at DTZ Hungary. Limited development due to economic and political concerns, high vacancy and the difficulty of sourcing debt finance has restricted the supply of new office developments in recent years. This has brought down vacancy rates and put pressure on rentals. Only established European developers and those with the ability to source funds have been able to develop in a market where debt finance is expensive and difficult to source and loan−to−development (LTD) ratios are low. In addition building owners are upgrading older assets in their portfolios to meet growing demand. The Budapest office development pipeline remains low with a resulting limited availability of well located, large class “A” floorplates. Developers such as Skanska, Futureal, Horizon Development,

Budapest One Business Park, at the end of the Metro 4 line.

“Vacancy is falling due to continuing demand and the lack of new delivery. Demand for shared service centers is driving the market due to the location and the relatively low costs of skilled labor.”

This compares to around three million sqm of space in Prague, a city and country of a comparative size, and 4.4 million for Warsaw, now the dominant business center for CEE.

Vacancy drops Atenor, HB Reavis and Wing have undertaken speculative development strategies, often based on a significant proportion of preleases in what has been a difficult economic environment in recent years. Significantly, these developers have the required equity to build or meet strict LTD equity requirements from banks.

Not much in the pipeline Delivery pipeline for this year is limited to the 18,200 sqm second phase (Building C) and the 23,000 sqm third phase (Building B) of Váci Greens by the Belgium Atenor Group and designed by TIBA Architect Studio. Building C will be delivered in July, and Building B in November. The only other delivery will be the 6,000 sqm Erzsébet office center, 100% pre−let to Groupama. David Johnston, head of office agency at Cushman & Wakefield (C&W), the letting

agents for Váci Greens, commented that it is involved in advanced negotiations for both phases. A 6,500 sqm prelease has been signed for Building C with GE Healthcare. Atenor will soon break ground on the 15,500 sqm Building D, which is due to be delivered at the end of 2016 or beginning of 2017. The 16,000 sqm Building A was completed at the end of 2013 and was fully let six months after completion. This gave Atenor the confidence to go ahead with further speculative phases of the complex, financed by its own resources, in what was a challenging market. According to the Budapest Research Forum (comprising CBRE, Colliers International, C&W, DTZ, Eston International, JLL and Robertson Hungary), total modern office stock consists of 2,588,000 sqm of modern class “A” and “B” speculative space, in addition to 642,000 sqm of owner−occupied space.

Budapest office vacancy has fallen towards 15% in a market where vacancy has traditionally been high. This is the lowest rate since 2009. “The South Buda submarket continues to lead the way in terms of having the lowest vacancy rate in the city, now standing at circa 10%, compared to the Budapest wide vacancy rate of 15.7%. This figure is more impressive given that the Budapest vacancy rate has never been below 10%,” added Johnston. Many analysts argue that this is not a true reflection of real vacancy and recorded stock should be further rationalized, as there are a number of outdated first generation buildings from the 1990s that should be taken out of the equation. Further, there is a wide variation in vacancy between the different sub− districts. For example the lowest rate is 10% in South Buda while the Váci út corridor has a higher rate at 18.7%. With regard to

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Tenants want high comfort at low costs Quality property and facility management are essential to keeping the building full, experts say. The Erzsébet office center at Erzsébet királyné útja in the 14th district. deals, 165 were closed in the first quarter with an average size of 388 sqm; 43% of these were new lettings. Total demand for the quarter is put at 64,000 sqm with a total absorption of 14,000 sqm. “Vacancy is falling due to continuing demand and the lack of new delivery. Demand for shared service centers is driving the market due to the location and the relatively low costs of skilled labor,” said Gergely Padós, managing director of C&W Hungary. He expects vacancy to fall to below 15% for this year. DTZ put prime rents at €14−16 per sqm per month for prime buildings. “Budapest is one of the most affordable office locations in Europe,” said DTZ.

Vacancy a concern elsewhere Vacancy is also a concern in the Prague and Warsaw office markets. This stands at more than 15% for Prague and above 13% for Warsaw. Tewfik Sabonyui, managing director of JLL in Czech Republic puts 2015 office supply for Prague at 180,000 sqm, although some of these could be postponed as concerns have been raised of possible oversupply. Savills estimates office supply at 758,000 sqm for Warsaw up to 2017. JLL research records 1.4 million sqm of office space under construction in Poland at the end of 2014; more than 50% of this is in Warsaw. The latest significant Budapest office delivery was the 21,000 sqm Váci Corner office complex by HB Reavis in the ever popular Váci út corridor. The Slovak− based developer expects the complex to be fully let by summer (the latest letting was a 1,200 sqm deal with General Motors for use as a shared service center). The project, designed by Studio 100, has been awarded a BREEAM “Excellent” certification. In another letting CBRE Global Investors on behalf of the CBRE Property Fund Central Europe (PFCE) has signed a 1,800 sqm long−term lease agreement at the 7,000 sqm Liget Center, facing Városliget, with Heineken. The company has established its Hungarian headquarters in the center, which has undergone an intensive fit−out. The Liget Center is a former trade union headquarters built in 1948 and later refurbished by the Dutch architect Erick van Egeraat. The Warsaw office market provides some comparisons as a record− breaking agreement for the lease of 22,000 sqm office space at the Warsaw Spire skyscraper by Ghelamco has been signed. In another deal outside the capital, Skanska Property Poland has leased 16,400 sqm for the HP Global Business Center at its Dominikanski office complex in Wroclaw. DTZ estimates that there is 95,000 sqm

of office space in the pipeline for the next two years. Almost 80% of this is on Váci út. Colliers’ research indicates that four projects are currently under construction with a total of around 80,000 sqm. With regard to pipeline, having concluded a 8,500 sqm prelease at its V17 office project in Váci út, Hungary’s Wing is due to deliver the 12,000 sqm development in mid−2016. According to Noah Steinberg, chairman and CEO of Wing the company has 70% preleased the project. This goes beyond the 50% prelease requirement from lenders that is the current norm. Another prolific Budapest office developer, Skanska Property, has commenced construction of the first 6,600 sqm phase of Nordic Light, its seventh Budapest office project, due to complete in March 2016. The two−phased 26,000 sqm development in the Váci út business district has been given LEED Gold pre− certification and was designed by the Hungarian Mérték Architect Studio. The second 19,000 sqm phase is due to complete in summer 2017. “We are in serious negotiations with possible tenants and have some significant enquiries,” said Andrea Csibi, leasing negotiator at Skanska Property Hungary. Elsewhere, Hungary−based Futureal is seeking preleases for the 70,000 sqm Budapest One business park adjacent to the terminus of the recently completed Metro 4 line on the western edge of Budapest. “We require at least a 10,000−15,000 sqm prelease before going ahead,” said Gábor Futó, founder and co−owner of Futureal. Futureal has a policy of going ahead with a phase of a development only once a substantial prelease has been concluded. With regard to supply, office owners are undertaking refurbishments of second generation buildings. Convergence has acquired a 30,000 sqm office portfolio consisting of three buildings on behalf of the investor, Europa Capital, and is undertaking a complete rehabilitation of the Duna Office Center in Váci út. S IMMO Hungary, the Hungarian subsidiary of the Vienna−based S IMMO AG, has acquired a portfolio of seven Budapest office centers with a total leasable area of around 100,000 sqm that are being upgraded and asset managed to meet the changing specifications and expectations of tenants in Class “A” office centers. The question remains as to when office supply will increase and more developers will enter the Hungarian office market in response to improving economic conditions, growing tenant demand and increased access to development debt finance, as lenders are expected to take a more favorable view with regard to financing projects in Hungary.

GARY MORRELL

A high standard of property management (PM) is seen as increasingly important for tenants in class “A” office buildings, as cost efficient space that is conducive for a healthy environment for staff is a basic requirement. In addition PM and FM (Facility Management) is an essential element of the strategy for building owners and investors who are striving to upgrade older office buildings. Developers and building owners are utilizing PM and FM systems in order to decrease energy and water use with the resulting lower service charges. At the same time, efforts are being made to reduce the wider environmental impact, in line with EU and national sustainability regulations. Katalin Sermer, country manager at S IMMO Hungary deﬁnes the role of PM as managing the daily business of an office center and maintaining relations with tenants. Service charges are the responsibility of the PM. FM is the “hands−on” part of the business, and now usually involves companies that specialize in this work. The FM ensures that the buildings are operational and if there is a failure it is their responsibility to correct any problems. This can involve intelligent building management systems that, for example, regulate the temperature, or software that records activities and materials used and the life span of equipment. The asset manager oversees the overall performance of a portfolio and ﬁnancial and operational strategies, whereas property and facility managers deal directly with tenants. The largest current Budapest office development project, Váci Greens has achieved BREEAM “Excellent” accreditation and has low−energy consumption appliances with a high efficiency ventilation system according to its developers, Atenor Group. The most recent office addition to the Budapest market delivery was the 21,000 sqm Váci Corner by HB Reavis. This building has also received BREEAM “Excellent” accreditation and has energy

efficient lifts, rainwater harvesting and recycling systems and LED lighting, according to the developer. Both projects, as is increasingly the norm, provide bicycle racks, changing rooms and showers and a direct link to a metro stop, therefore discouraging car use, even for senior members of staff. Skanska is also using PM technology and practices with pipeline projects such as its LEED Gold pre−certiﬁed 26,000 sqm Nordic Light. “The technologies applied in this building represent our commitment to energy−efficient, environmentally−friendly and healthy office space,” said Zoltán Linczmayer, managing director of Skanska Property Hungary. As an established regional developer along with Atenor and HB Reavis, Skanska is able develop a common PM policy utilizing its resources in all its projects across the region. As of the beginning of the year, the company had 12 on−going projects in Central Europe. With regard to facilities provided to tenants, András Schmidt, facility manager at Skanska Hungary commented at the Portfolio FM 2015 Conference on May 6 that, based on feed−back from tenants, the most favored element of the 17,800 sqm Green House was the inner garden that is used as a meeting area. Gábor Onczay, head of project and development services at JLL argued that “free−desking” means that whereas, for example, 100 workstations used to be required, this has now fallen to 70. “This is due to staff spending time in meeting areas and therefore there is a diversity of seating with not everybody requiring a dedicated space,” he said at the Portfolio conference. With limited development ﬁnance available and low development pipeline, owners of older office developments are using PM and FM techniques to upgrade their buildings to meet the perceived needs of tenants for class “A” space. The 20,000 sqm River Estates located on Váci út is undergoing a €2 million refurbishment with a new facade and entrance lobby. In addition a new VRV pump system will bring consumption down by 30−40% while at the same time providing class “A” services according to Katalin Sermer. Convergence has acquired a 30,000 sqm office portfolio consisting of three buildings on behalf of the investor Europa Capital. From that portfolio the company is undertaking a complete refurbishment of the Duna Office Center in Váci út.

Economy Minister Mihály Varga and Cabinet Chief János Lázár at the May 6 conference.

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Green office accreditation becomes the Buildings certified as good for the environment are also good for the bottom line, as offices hoping to be competitive must also be efficient.

achieve than other rating systems and is awarded in three different categories (Asset/Building Management/Occupier),” explained Szircsák. This process has now spread beyond the capital. The ﬁrst green office building in Hungary outside of Budapest is National Instruments’ Science Park in Debrecen, which achieved LEED Gold certiﬁcation.

Number of green buildings grows

GARY MORRELL

Accreditation to an established green organization is the norm for development and value added refurbishment at the class “A” end of the Budapest office market. The conventional wisdom is that buildings with green accreditation have improved efficiency, which delivers lower utility and maintenance charges. In addition, an impartial third party has controlled the quality of a certiﬁed building’s planning, construction, and operation. This beneﬁts the developer and investors who have higher returns, and also minimizes the environmental impact. In general, tenants now require green accreditation and an office project needs to be constructed and operated in accordance with EU environmental regulations. “In 2014 the green office area continued to grow rapidly; now the proportion of green offices is exceeding 23% of the entire stock,” said Norbert Szircsák, senior associate

Váci Greens by Belgium’s Atenor Group. of Green Advisory Services at Colliers International. “Taking into consideration the size of offices currently under certiﬁcation, this number will grow to 30% by the end of 2015,” Szircsák added. The most commonly used certiﬁcation organizations in Hungary are the U.S.− based LEED (Leadership in Energy & Environmental Design) and the European− based BREEAM (Building Research

Establishment Environmental Assessment Methodology). In addition, a small minority of office buildings have been certified by the German/Austrian DGNB accreditation system. BREEAM In−Use certifications now account for almost 40% of the total green office stock. “The popularity of BREEAM In−Use certification is driven by the flexibility of the rating system, which is perceived as both easier and faster to

The proportion of accredited buildings is set to grow as, according to research by the Hungarian Green Building Council (HuGBC), all planned class “A” office and retail projects are green accredited. Indeed all office deliveries over the last three years have been green accredited. Pál Baross, President of HuGBC says that green accreditation can be viewed from three approaches – developer, investor and tenant. “From the perspective of a developer, sustainability certification is a necessity in order to source development finance and to successfully let a project. From the view of an investor, green certification is now mandatory if a core or value project is to be purchased. From the tenants’ perspective, potential occupiers require sustainability accreditation. This relates to the need for a work place to be a healthy environment with regard to such issues as air quality, humidity and the provision of natural light. Green buildings

EXPERT OPINION

OFFICE DEVELOPMENT OF THE YEAR 2015 THE CEEQA GOES TO: EIFFEL PALACE

Horizon Development moved to the international real estate arena with its most recent commercial development, Eiffel Palace. Running against top quality sustainable office buildings from Poland, the Czech Republic and Romania, the authentically restored 19th century Budapest building still came out best in the Central and Eastern European comparison. CEEQA (the Central and Eastern European Real Estate Property Awards) is a regional celebration of the outstanding success stories of the New Europe property sector. The prestigious gala – annually taking place in Warsaw, Poland – attracted nearly 700 regional and international real estate

leaders from more than 50 countries this year. Winners were announced in twentysix categories, acknowledging exceptional individuals, companies and projects. The Office Development of the Year category – sponsored by Knight Frank – was decided among the top 10 shortlisted candidates, with the only Hungarian project to ring the bell. The elected jury comprised top executives from international developers, real estate agencies, banks, investors, asset and wealth management companies, law firms and the media, with globally trusted consulting firm Deloitte supervising all aspects of the stringent judging process.

The event was organized in association with The Financial Times that ran a related special report on the Central and Eastern European property scene, where Eiffel Palace also made it to the headlines as a symbol of the positive turn on the Hungarian property market.

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norm in Budapest have lower utility costs, lower maintenance costs, and lower capital expenditure costs. In addition, green buildings deliver an improved indoor environment that has been shown to increase occupant productivity, in this way a healthy work environment is a productive work environment. Also there is a need to lower energy consumption in a 2,000−3,000 sqm office space,” he said. With regard to recent deliveries, HB Reavis has completed the 21,000 sqm Váci Corner office complex in Váci út. The complex was designed by the prolific architect László Szász and has been awarded a BREEAM Excellent accreditation. Another project, the first 18,000 sqm phase of Váci Greens by Belgium’s Atenor Group, has also received a BREEAM “Excellent” certification. Investors have purchased other recent green accredited deliveries. Erste Asset Management has completed the purchase of the second phase of the 20,000 sqm Vision Towers from Futureal, and the Hungarian fund now owns the whole of the complex, having earlier acquired the northern wing of the center. Vision Towers has BREEAM “Very Good” and “Excellent” sustainability credentials. Similarly, the Eiffel Palace by the Hungarian developer Horizon Development, located in the central fifth district of Budapest, has been purchased by the Hungarian National Bank (MNB) for a reported €45 million. The renovated project is basically a new building that has been constructed onto the original 1890s classic Central European facades. Horizon Development achieved both LEED and BREAAM accreditation. According to Horizon, the complex has a highly efficient glass facade, 75% interior access to daylight, 90% of space has city views and energy saving features, it boasts 33% reduced water costs and 12% of the building was constructed with recycled materials. Skanska Property Hungary has sold the 17,800 sqm Green House office center to the Hungarian open−ended property fund, Torony Real Estate Investment Fund. The complex is the only LEED “Platinum” certified office building in Hungary according to Skanska. The company is currently developing the Nordic Light office center. The two−phased 26,000 sqm development in the Váci út business district has been pre−certified with “Gold” LEED certification for core and shell, and the final certification will be awarded in the first year of operation. The certification reflects design features that include elements of water and energy efficiency. The complex includes the provision of bike storage with

“The proportion of green offices is exceeding 23% of the entire stock. Taking into consideration the size of offices currently under certification, this number will grow to 30% by the end of 2015.” showers, electric car parking/charging facilities, as well as water efficient energy and solar collecting for hot water; Skanska’s aim is to fully pre−lease and create an exit strategy with a sale to investors.

Existing stock getting certified The outlook for this year is also positive; major investment funds including CA Immo and ImmoFinanz are now in the process of certifying their portfolios of existing buildings, which will add at least another 200,000 sqm of certified buildings to the green office stock in 2015. “As competition grows, we expect that existing office building owners will continue to improve and make their buildings more sustainable in order to maintain the attractiveness of their assets,” said Szircsák. Green buildings are increasingly attractive to international tenants according to Colliers. Last year, 30.6% of new leases occurred in green buildings. As essentially every new building is certified, the highest ratio (71%) was among pre−leases With regard to the development process, Baross of the HuGBC argues that sustainability issues have become part of the broader checklist in the development process, and sustainability accreditation is now a condition set by lenders. In this sense, green elements need to be incorporated from the design stage and developers, architects, cost consultants and financiers need to coordinate their roles from the inception of a project. For example, office developers need to anticipate environmental regulations that could be introduced three years down the line. Regional developers such as Skanska, Atenor, and HB Reavis have a sustainable development policy on all their projects throughout Europe. HuGBC therefore sees itself as an advocate for “environmentally responsible solutions” in construction regulations, including energy efficient construction and reconstruction.

National Instruments’ Science Park in Debrecen.

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EXPERT OPINION

Property market performs better with remnants of the crisis still present While lawyers keep on handling non-performing portfolios, the climate is getting better for new investments, too. Simultaneously, the Sunday shopping ban prevents the retail sector from keeping up with the promising trends of the recovering Budapest property market.

Sándor Habóczky

Tamás Balogh

Partner, Head of Real Estate SCHOENHERR HETÉNYI ATTORNEYS AT LAW

Attorney at law SCHOENHERR HETÉNYI ATTORNEYS AT LAW

HUNGARIAN REAL ESTATE MARKET’S good rental objects works for the landlords who are becoming more confident again, RECOVERY CONTINUES Real estate investments finally show both in terms of accelerating lease term upturn following the era of the financial negotiations and setting the pace with market crisis. The Hungarian real estate the applicable legal conditions. Generally market shows clear signs of recovery, speaking, the office building owners tend appears to follow a decent growing to be less generous with financial incentives path and the macroeconomic indicators and more consistent with key legal terms, seem to be more favourable than before. among others, rent indexation and lease CEE investors are now seeking new termination options. Lessors in the retail sector are in a less opportunities here as well, the country is offering more attractive prices than favorable position. The recent new law on restriction of Sunday work practically bans Poland or even Czech Republic. In the past few years, we have mainly shopping malls from opening on Sundays seen transactions for consolidation and and the unhappy retailers may potentially restructuring of real estate portfolios, as make their landlords unhappy, too; raising collaterals for non-performing or sub- the amendment of rent definitions and performing loan arrangements, and this rent payment terms of existing lease trend seems to be continuing is also fuelled arrangements with regard to restricted by large stock of assets this year. Thus, opening hours has been an issue in recent legal assistance for investors and financial transactions (e.g. financing and/or sale of institutions in connection with failed projects, property companies with tenant portfolio). bad debts and litigations relating to these The relevant civil law provisions do suggest the tenant may be proportionately released non-preforming assets are still quite typical. Also as a consequence of the crisis, the from rent payment obligation for the term realignment of the DIY market – being most he is unable to utilize the leased premises affected by the drop of consumer power, for the contracted purpose, which primarily constructions and residential developments is the retail business with predetermined – and relevant chain store transactions were opening hours in shopping malls. Some indicative of the past few years. Several lease arrangements are “smart” enough in players underwent a process of massive favor of the landlord either by suggesting the consolidation in this segment, requiring tenant should fully comply with regulations effective crisis management, significant on opening hours at al times, or by excluding costcuts and the increase of efficiency at the the landlord’s risk and liability for any same time, while others could not maintain restrictions of use on the basis of mandatory their position under the currently adverse legal provisions or public law. Some other market environment. The consolidation of lease arrangements “automatically” resolve these businesses was a complex exercise the issue by way of defining the rent as the and involved not only financial stabilization, combination of a base rent and a variable but required an effective handling of potential rent, the latter being subject to the actual insolvency or liquidation threats and related volume of trade or revenue realized by the liability concerns of the management and tenant. Many lease contracts have surely been the owners of these companies. recently reassessed and renegotiated LANDLORDS GETTING STRONGER, for the above reasons, with the relevant SUNDAY SHOPPING BAN MAKES LIFE terms having either been left unchanged or amended, hopefully without escalating the DIFFICULT FOR THE RETAIL SECTOR Daily legal practice particularly shows matter into a legal dispute. awakening and settling of the office market. Not only developing market indicators, such as declining Budapest vacancy rates, high rate of net absorption and intense takeups, but also changing legal conditions characterize recent property market developments. An increasing demand for www.schoenherr.eu

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‘Fair’ banks and the residential market The so−called ‘Fair Bank Act’, which came into effect in February, seeks to protect mortgage borrowers by imposing new regulations on lenders. We spoke to Gábor Tokodi, deputy−CEO at FHB Bank, about the impact of the new legislation on mortgages and the residential real estate market. ZSUZSA SZABÓ

in Hungary, though in Budapest this percentage is much higher. Residential investment has been increasing since 2014, due to the current low interest rate environment and the minimum, stable though in some cases double−digit, returns in the rental market. For this reason, commercial property funds are growing again in popularity. These factors often encourage even those people who have been renters to purchase property. We should not forget the first−home buyers, who have a 25% market share. They play a dominant role in the housing market and did not have a bad experience with FX loans and decreasing property values in recent years. As early career employees, their income will go up and state aid mortgage support is also designed to help them.

How has the recently introduced “fair banking” law shaped the mortgage loans market? A: The new legislation creates mortgages with long−term interest rates. Two different loan products can now be offered in the market: the fixed−interest rate loan, which typically lasts for a five− year period, and the reference rate loan, based on the 6−month BUBOR rate plus a margin set by the creditor. Furthermore, creditors can also offer interest subsidy loans for five and 20 years.

What criteria are set for lenders under the new legislation? A: Noteworthy changes include strict though beneﬁcial consumer protection aspects. In the new bill, every bank is permitted to modify its fees only once per year, at the beginning of April. Another adjustment is that the creditor is expected to provide the loan agreement seven days early, so the consumer can get familiar with the conditions of the contract.

Aside from increased paperwork, what is the extra cost of the new law for

banks? A: Implementation of the fair bank and the forintization of FX loans were taking place at same time. Both activities required a great amount of expenditure, not only in the field of development but also in the whole network of each bank, including training on processes and rules connected to the new/adjusted loan products.

In your view, what is the overall reaction of the bank segment to the new legislation? A: The banks adapted to the new regulation quickly, and all the members of the sector came out with their adjusted loan products in a short period of time. The active market players are targeting the so−called “good” consumers, by trying to maintain and extend their portfolios with the better, more profitable clients.

What is the impact of the stricter mortgage lending environment on the real estate market? A: Under the new legislation, borrowers must put up a higher percentage of their own financial contribution and officially confirm a higher income. Therefore some borrowers who could apply for loans up until now would not be able to do so. On the one hand, employees who have not been declaring all of their income for taxes have fewer opportunities to take a loan. On the other hand, consumers who have declared, legal income and plan to buy a property in a favorable

Gábor Tokodi: He would bet on District XI.

“After the increasing number of property transactions in 2014, I expect further growth this year, hopefully reaching the 2008 level, which means 154,000 transactions. The increase would primarily come from owner-occupied dwellings being sold.” location may receive beneficial loan arrangements due to interest rebates offered by the creditor. In the case of mortgages, the annual percentage rate (APR) charged could be under 4%, while it was above 10% a couple of years ago.

What are your expectations for sales of owner−occupied

dwellings and new homes in 2015? A: After the increasing number of property transactions in 2014, I expect further growth this year, hopefully reaching the 2008 level, which means 154,000 transactions. The increase would primarily come from owner− occupied dwellings being sold, because the market for new developments is only growing slightly.

What proportion of residential purchases do you expect to be for investment, and what proportion will be as residences? A: Investors own a signiﬁcant share of the housing market, primarily in the downtown area. They prefer inner districts because the properties can be let easily, and at a good price, for shorter or longer periods of time. Still, residential dwelling customers make up the majority of the whole market. Based on the experience of FHB’s subsidiary dealing in real estate and acting as intermediary in real estate transactions, investment property sales are about 30−35% of the whole volume

What are the “push” factors in the Hungarian real estate market? What are the obstacles? A: Cheaper debts and state support for families coming into force in summer are push factors. Discounted credit can be requested for owner−occupied dwellings, as well. Another important factor to mention is that property prices are still low compared to the period of the last housing boom. According to the FHB House Price Index, housing prices are 20% lower than the peak in 2008. Prices are now at the level of 2003 in nominal terms. Additionally, the stable yields in the rental market and the caution caused by the brokerage scandals could bolster property sales. Emigration has dual effects on the real estate market. On the one hand, it results in decreased demand; on the other hand, earnings made abroad are usually invested into real estate in Hungary. An obstacle in the real estate market is the high VAT on new buildings, which has a negative impact on new construction and results in a reduced supply.

In your personal view, what are good residential property investments in Budapest in the upcoming years? A: Demand basically determines what makes a good investment. From an investor’s perspective, it is reasonable to purchase property close to universities/ campuses (districts 9, 11, and 13) and rent to students. Those who are ready to put in more effort might want to concentrate on locations favored by tourists, letting out flats short−term, for example through airbnb. It is also beneficial to invest into renewed residential property, with at least two rooms, in a good location. Due to the opening of Metro 4, flats located on this line in District 11 could be a good purchase. Personally, I would invest in good quality, multi−family properties on the Buda side – such as District 11. I would also take into consideration value− added attributes like a garage or a place for parking a car.

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After big sale, CE LAND stays keen on Budapest The asset management firm just oversaw a major deal involving three office buildings in the capital, and they are eager to continue their role as a major actor in the market. Csaba Széll, has been the Managing Director of CE LAND Holding Asset Management Ltd. since its founding in 2011. He previously led Europolis Real Estate Asset Management Kft. in Hungary and Croatia. Prior to joining Europolis in 2004, he was Head of Property Development and Facility Management of Budapest Bank, a GE Capital affiliate in Hungary, for five years. During his 20 years of active presence in the real estate market in Hungary and CEE he worked for Healey & Baker, Cushman & Wakefield at their offices in London and Budapest. Széll has degrees in architecture and economics from Technical University of Budapest and Corvinus University in Budapest and a postgraduate MsC degree in Business Economics and European Property Development at University College London.

What does an asset management company do after reducing its portfolio of properties through a string of successful sales? It finds new assets to manage. “Some people were saying, ‘it’s good you sold a lot of buildings, but now that you’ve sold them, your company doesn’t have much to do’,” says Csaba Széll, Managing Director of CE LAND Holding Asset Management Ltd. In fact, Széll’s firm is currently handling several assets – including the Budapest office buildings of Duna Towers and the Laurus Building – and they anticipate more work. “We have some new business in the pipeline and we are very serious about staying in the market,” Széll says. “Thanks to our expertise and track record we expect new mandates.” The firm has done pretty well with its old mandate, selling five major properties in nine months. This included the sale of three office

buildings, Kálvin Center, Baross52 and Duna Office Center, as a single portfolio, in a deal that was just completed in April. “For our client, the main strategic aim was to sell the buildings, and we achieved that,” Széll says. “We were very happy that we could package these buildings as a portfolio, and present them, for a foreign investor who had a clear vision to exit the market.” The deal saw a group of investors buying all three properties from Austrian Volksbank Real Estate Services (VBRES). These three properties were the latest sold from a portfolio that CE LAND started managing in 2012 for VBRES. In all, CE LAND sold five properties in this portfolio – including the latest three as well as the Dexagon Office Building and the Atlanta shopping center in Törökbálint – all since August. These sales are all the more impressive because they come at a time when the office market is still only beginning to undergo recovery. “Our company made a significant part of all the sales in the market,” says Széll, noting that doing so involved hard work from his team. “We and our asset management services really contribute to the value of these three buildings,” Széll says. “This is clear proof that active involvement in a building’s life can add value.” Challenging market The sale of the three-building portfolio was especially challenging because one of the properties in the portfolio, the Duna Office Center, was a so-called firstgeneration office building, constructed in the 1990s, when the capitalist-era Budapest office market was just getting started.

In fact, according to Széll, a lot of the office supply in Budapest can be considered old. “The Budapest market is oversupplied with aged assets, built in a period when building technology was not advanced,” he says, noting that rapid developments in construction methods and green buildings made these buildings seem to age even faster. This situation developed, according to Széll, because most of the office buildings in the capital were constructed during the city’s boom time, 2000-2008, and the so-called “first generation” offices were built before that. “Now the Budapest office market is 20 years old,” Széll notes. “Most of these buildings are aged, not just physically but also in terms of perception. People consider them old.” But according to Széll, the imperfect state of the building stock allows his firm to set itself off from the competition. “It is better for us to work in a market where there are challenges, because then we have something to add as an assets manger,” he explains. He says that handling a portfolio with older buildings is not a problem; it is just different from handling new buildings. “Asset management is set by the life cycle of the building,” Széll says. “Asset management is the added value that is tailor-made to the different life stages of the building.” Making a difference in the market For Széll, the Budapest market is more than a challenge; it is a personal interest. A student and professed lover of architecture and urban planning, Széll boasts more than 20 years of active work in the Central and Eastern European market, with most of that

Duna Tower work focused right here in Budapest. He shows a clear interest and knowledge when discussing the capital, its various neighborhoods and the perceptions people have of those neighborhoods. According to Széll, this interest in the market will keep him, and CE LAND, in Budapest. “We are here for the long-term. Our team is dedicated and we are confident we can make a difference in this market,” he says. Founded in Budapest in 2011, as an affiliate of Land Hungary, CE LAND has expanded its operations to Croatia, but the firm maintains a strong focus on Hungary and Budapest. “We were just nominated by Immorent in Vienna to lease out their Laurus Office building and also to reposition it on the market.” The Laurus building, located in Kőbánya at the transport hub of Határ út near the airport, was completed around 2011, during a major trough in the local office market. Another asset that CE LAND is managing is Duna Tower, owned by VBRES. Located next to the Arpad Bridge, the Duna Tower is one of the buildings that helped establish the so-called Váci út corridor as a prime neighborhood for offices in Budapest. “Duna Tower and Laurus Buildings are enough to keep us busy for the rest of the year,” says Széll. But it is clear that he will be looking beyond CE LAND’s existing portfolio, constantly seeking new buildings to manage both in Hungary and in Croatia.

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Residential rental demand dwarfs supply A confluence of forces is driving up the numbers of would−be renters in Budapest, while the available stock of long−term leases is limited. Prices have responded to the point where a 60 sqm flat costs the average Hungarian monthly wage, but the market is still out of equilibrium for now. LEVENTE HÖRÖMPÖLI-TÓTH

If you want to hear about the turbulence in the Budapest rental market, just ask Anikó Lantos, director of training at the real estate agency Buda City Cartel. “It’s totally insane out there. There are simply no apartments for reasonable rent on the market. Even if you have the cash and you are willing to pay six months upfront, you need to be very lucky to snatch a decent place. Small ﬂats are gone before you know it and formerly stigmatized neighborhoods are gaining acceptance as desperate would−be tenants scan the property landscape for property targets,” says Lantos. “Rental conditions have also toughened. The times where you negotiated the amount or the payment timing of your deposit are gone. And prices have skyrocketed within a matter of months.”

An unfolding drama In terms of rents, the Hungarian capital is far from Luxembourg levels, where a room can easily cost €500. For that much, you get a 60 sqm apartment in Budapest, excluding public utility expenses. That amount is, however, equivalent to the average Hungarian monthly net wage, which reflects the drama behind the price hike fairly well. “At the end of the day the market decides how much landlords can charge,” Imre Legény, managing director of alberlet.hu, a leading rental search website says. He adds, though, that up to 80% of rental deals in Hungary are struck in the capital, and the bulk of that demand in Budapest concerns the inner districts. “Fees of smaller apartments in downtown soared by 40−50%, but rents in the suburbs rose only by 10−15% in the past 1−1.5 years,” László Balogh, chief business expert of leading Hungarian real estate advertisement portal ingatlan.com points out. Landlords can also avail themselves of the possibility of short−term rentals, for Airbnb− style arrangements, and their confidence in being able to find tenants is rock solid. “Private individuals believe that they can rent out their properties alone, without the help of agents. In Q1 2015, the number of rentals offered by them increased by 1%, whilst those listed by agents dropped by 40%,” Balogh highlights.

Tenants at the gates The battle to get the most desired properties is led by an army of potential tenants. Foreign and domestic students make up an always−renewing basis and many people move to work here. Demand is further fueled by the high number of divorces and those who prefer to pocket the difference between the revenue from renting out their own homes and the cost spent on renting. “In addition, a change of attitude is gaining ground among the young. A big number of them go to live in the West and they bring home a new approach to life, so they are a lot less obsessed with possession. The spread of the startup culture helps this trend grow, and that adds even more people

László Balogh.

“Even if you have the cash and you are willing to pay six months upfront, you need to be very lucky to snatch a decent place. ” to the tenant bunch,” Legény says. Another group of searchers are homeowners who could not service their mortgage loan debt (denominated typically in Swiss francs) and were forced to move to rental properties. And a lot of Swiss franc debtors that have managed to keep paying that mortgage so far may decide soon to become tenants, which phenomenon would put further pressure on prices. The reason why they may do so is rooted in the fact that all loans taken out in foreign currency had to be converted into Hungarian forints by government decree and considerable amounts of money are also due to be paid back by banks to clients on statutory grounds. Many may therefore use the situation to pay off their debts by selling their home and end up on the rental market as customers instead.

The transactions that never happened “As the crisis began to unfold, rents dropped just like sales prices did, but then they started an upwards trajectory of their own

Anikó Lantos.

Attila Déry.

from 2011 onwards,” Attila Déry, senior analyst at Otthon Centrum, a major real estate agency tells the Budapest Business Journal. One reason for that rise can be attributed to the fact that people delayed their property purchases. Whilst the number of sales transactions on the market had reached 225,000 countrywide in 2006, it skydived to some 85,000 in 2012. As experts point out, up to 400,000 purchases were put on hold during the recession. “Many did not buy in 2009−2013 and chose to wait for a more stable economic climate and falling property prices to come. These transactions that never happened have put continuous pressure on demand,” Gábor Rutai, senior PR and analytical manager at Duna House, a top real estate agency says. The crisis deterred buyers on many fronts. “Monthly mortgage payments went up and the sales market was dead. Now both took a positive turn,” Legény says. True enough, forint loans are more tempting than ever. The average total cost of credit in Hungary, at 13% in early 2012, is down to just above 6% three years on, according to the ﬁgures of the National Bank of Hungary (MNB). In parallel, due to the MNB’s base interest rate cutting policy, individuals can bag only some 1.8% on their bank deposits nowadays, a ﬁgure that was 5% as recently as in February 2013.

Hysteria in top gear These factors are pushing investors to start buying at last. “Research shows that one−third of the purchase agreements in Budapest are concluded with the intention of renting out the property,” Balogh notes. Others put that ratio at 50%. In either case, the killer instinct of investors is surely a main driver behind the overall elevated number of purchase transactions. “The purchase market is just as hysterical as the rentals one. You don’t have the time to think if the property is centrally located and thus suitable for Airbnb, many are rushed into making a down payment even without checking the property deed,” Lantos says. Buyers can count on a gross ROI of 6−10% per year on average. This vitalizes Hungarians and foreigners alike to join the hunt. So supply for available rentals is going up after all, which should ease the pressure due to the current scarcity of available rental ﬂats. But can rents defy this trend? “Their substantial rise will not last for years; their growth rate should slow down and stabilize on a sustainable path. Cheap loans and government subsidies available for buying second−hand ﬂats will strengthen buying too. Therefore, we don’t expect any strong upswing on the rentals market in the long run,” Déry projects. One thing is certain: tenants are counting the days for a change in trend.

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Budapest Business Journal | May 08 – May 21, 2015

Airbnb gets blame for lack of available leases LEVENTE HÖRÖMPÖLI-TÓTH

Where have all those apartments gone? This question tortures people searching property rentals for a longer−term period in Budapest. As residential property sales are seeing a long−awaited boom, many units are bought for the purpose of renting−out – but for the short−term. Big bucks are expected from placing them on Airbnb or similar web sites where owners hope to double or triple their revenues by targeting tourists seeking a flat for a few days. “It all started with places that were given to foreign students who would move out for the summer. Thanks to their solid financial background and the often−lavish allowances from their own state, they could be charged a lot more than locals. For the summer months their flat was then rented out to tourists. This way owners cashed in magnificently on two accounts,” Imre Legény of alberlet.hu explains. “The tourism peak season has stretched in the meantime, now covering the period from Easter to Halloween. And the number of visitors from abroad is set to go up by 5−6% per year.” Under such circumstances, going short−term is regarded as hitting the jackpot. “Those who are buying flats to rent put them on Airbnb, especially in districts 5, 6, and 8. This further reduces the number of apartments for long−term lease and so it drives prices up. Airbnb has become big,”

Anikó Lantos of Buda City Cartel stresses. Attila Déry of Otthon Centrum detects the trend as well, but notes that there is no exact data on the change of that segment as a large chunk of its activity is pursued under the radar. Short−term leasing also incurs a lot of costs and effort, since it requires management on a daily basis and continuous advertising. The effect on pricing is also up to the given area: This kind of lease appears only in districts frequented by tourists. “Assuming that several investors bring their capital over to the real estate market from other forms of savings where the investment did not need daily attention, their thing is more a long− term lease. Renting−out for the short− run can be deemed rather more as an enterprise,” Déry adds. Gábor Rutai of Duna House, in turn, can’t identify an impact of Airbnb on the long−term market. “We are talking about two separate genres here with different target audiences and risk factors. Those who want to have a smaller return with low risk, go for the long−term version, and those preferring to aim for bigger revenue at a higher risk and the price of daily work pick short−term,” Rutai says.

EXPERT OPINION

S IMMO builds on a strong track record of management The S IMMO Group (Asset & Property Management) Hungary has been operating in Hungary since 2001 as a subsidiary of the Vienna-based S IMMO AG. The strategic core shareholders are Erste Group and Vienna Insurance Group. The company focuses on acquisitions, letting, refurbishment, active asset and portfolio management, and project development. The S IMMO Hungary portfolio consists of seven office buildings totalling 100,000 sqm in addition to the Budapest Marriott Hotel. S IMMO have purchased all properties in their Hungary portfolio and the Hungarian subsidiary is responsible for property management while the asset management of the portfolio is carried out in conjunction with the Austrian mother company. According to S IMMO, the management strategy is based on the in-house property management of high quality properties while leasable areas are tailored to the needs of tenants based upon long standing partnerships. “A building must be well kept and have appropriate services and all this has to be done at a reasonable and marketable price to satisfy the needs of tenants and fill any vacant space,” said Katalin Sermer, Country Manager of S IMMO Hungary.

River Estates The 10,700 sqm Blue Cube office building on Váci út, built in 2002, now has a new lobby designed by the architect, Andrea Boldizsár. This will be the first green accredited building in the S IMMO Hungary portfolio, and will be finished later this year.

Source: KSH

PURPOSE FOR CONSTRUCTION OF RESIDENTIAL BUILDINGS IN BUDAPEST 2011

2012

2013

2014

For own use

727

697

504

554

For lease

117

119

210

For sale

2,339

820

1,229

1,243

Total

3,183

1,636

1,758

2,007

Blue Cube Pódium

Construction lags behind booming rental market Much of the blame for there not being enough rentals in Budapest goes to the poor performance of the construction industry. Numbers don’t lie: while more than 12,000 residential properties were built in Budapest in 2005, that figure shrank to 1,636 in 2012, a record all−time− low. Another local feature is that hardly any of those flats are made for lease, unlike in Western European countries where municipalities or the government are heavily engaged in such programs. “A shrinking supply of newly−built flats has only limited impact on the rentals market, since neither developers nor institutional investors think in terms of building for lease on a market basis. The newly built constructions can find their way to tenants only through private owners,” Attila Déry of Duna House says. Another factor is the Hungarian peculiarity of an extremely high home

ownership rate of nearly 90%. According to Eurostat, in wealthier OECD states it normally ranges from 45 to 75%. “Hungary should move towards a healthier rate. And a stable rental market would be needed where tenants could plan for 2−5 years or longer. Now they can be given an ultimatum of a rent increase of 15−40% overnight,” Anikó Lantos of Buda City Cartel notes. Regulation seems overdue, but in the meantime hopes are high for normalization, according to senior analyst Gábor Rutai of Duna House. “Luckily, under improving market conditions ever more investors are returning and completing half−ﬁnished projects or are launching new ones. The results of it will be apparent in 2−3 years. Unfortunately, until then the current state will remain,” he says. — Levente Hörömpöli−Tóth

The company is in the process of upgrading the office buildings in its portfolio. The Pódium office building, completed in 1992, is being renovated and now provides 5,900 sqm of highly efficient office space in central Budapest with a panoramic view of the skyline of the city. In addition, office units on the upper floors have terraces suitable for business meetings and social activities. The top floor has a 360 degree panoramic view and a roof terrace. The 21,300 sqm class A River Estates located on Váci út is being refurbished with a new facade and entrance lobby. In addition the HVAC system has been modernised and will bring considerable saving in consumption. A 200 sqm green roof terrace is being created at the 6,200 sqm Buda Center located on Hegyalja út in Buda.

“These buildings were constructed before 2006 and therefore it takes more time to turn them green. The goal of these projects is to ensure that the offices meet the standards of the 21st century. We have already implemented some measures such as the collection of selected waste and have been looking at water and energy conservation systems and pushing service charges down. We have invested into every building and done an extensive modernisation of the Heating Ventilation and Air Conditioning System (HVAC) in one building,” commented Katalin Sermer. The Hungarian portfolio is regarded as a long-term scheme by S IMMO and the priority plan is to continually upgrade the properties.

www.simmoag.hu

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

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Budapest Business Journal | May 08 – May 21, 2015

Sunday closings: An assessment Gyula Gyalay−Korpos has a lot of interest in Hungarian shopping centers and a lot to lose from the new law that requires most malls in Hungary to close on Sundays. We learned about the impacts of the new law from the man who heads the Hungarian Council of Shopping Centers and runs ECE, a firm that owns and operates several malls in Hungary.

ANDRÁS ZSÁMBOKI

Who does the Hungarian Council of Shopping Centers (MBSZ) represent? A: Some 85−90% of shopping centers operating in Hungary have joined the council. The membership includes both shopping malls proper – i.e. complexes that house a variety of stores – and hypermarket chains such as Tesco.

How did shopping malls respond to the law ordering retailers to stay closed on Sundays? A: At this point we cannot yet draw overarching conclusions. The time that lapsed since the law came into effect has been too short to really produce realistic results. Five Sundays have passed since March 22, the launch of the new measure; and even though the Hungarian Revenue Service (NAV) is able to assess turnover ﬁgures as cash registers are now directly connected to NAV online, no turnover ﬁgures can be analyzed in such

Gyula Gyalay-Korpos: “I expect the 1-2% growth to drop close to zero.” a short time as the already experienced ﬁve− week period of Sunday closure. The next time for shopping malls to declare VAT is going to be early July; that is when the government will learn how revenues produced during the second quarter of 2015 compare to the second quarter of last year. I myself do not expect a

decrease in turnover compared to the same quarter of last year, because the last quarter of 2014 and the ﬁrst quarter of 2015 have produced a signiﬁcant increase compared to the same periods a year before. Instead, I expect the 1−2% growth to drop close to zero as a result of the Sunday closure.

One would assume that members of Hungarian Council of Shopping Centers have at least expressed sentiments about their experiences with the Sunday closure. A: The law clearly orders stores above 200 square meters to stay closed. Under 200 sqm, family−operated businesses are allowed to stay open while all others must stay shut – except for drug stores, bakeries and service providers. However, the new legislation leaves the opportunity open for shopping malls to remain open, and catering units within the malls are allowed to operate as well. So are movie theatres. On the ﬁrst weekends after the law came into effect, almost all malls experimented with that; by today, however, only malls featuring movie theatres are opening their doors to the public. Otherwise, cafés, bars and restaurants have experienced a disastrous decrease in the number of their Sunday customers. People visit such catering units in shopping malls when they go around shopping, it seems. Without the so−called magnet tenants, customer attendance at the

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catering units drops radically; on Sundays, only a small fraction of people visit movie theaters, and an even smaller number of moviegoers drop by cafés after the show. Compared to that, fast food restaurants have performed relatively well since March 15.

What do we know about customers’ responses to closed stores? A: On March 22, most customers seemed startled and confused facing the lowered shutters of the shops. Today, they seem less confused. Foreign customers, on the other hand, tend to be quite astonished. I

Closing the shops on Sunday does not automatically mean that the day’s turnover is entirely lost. I assume the members of MBSZ are experimenting with various methods to try and shift customer attendance toward the other days. A: Partially, that happened by itself; our members say the number of visitors on Fridays and Saturdays has risen but, according to their expectations, the increase will not fully compensate for the lost day. As the managing director of ECE, the corporation that partially owns and operates the Árkád shopping malls countrywide, I can tell you that the turnover on

“The problem is that on shopping days stores and supermarkets are getting overcrowded; Saturday is already overburdened, while on weekdays everyone has limited time to shop. On Friday afternoons and on Saturdays, the parking lots are already as full as they can be.” do not only mean tourists, but the citizens of neighboring countries too, those who used to come shopping in Hungarian towns near the borders. But there are differences: while people from Slovakia seem well− informed, customers coming from Serbia do not necessarily know about the new law in Hungary. Several of our members reported customer outrage at bakeries. According to the law, bakers can sell their products until noon on Sundays; employers at bakeries thus refused to serve customers a little bit after noon even when they apparently had several loaves on stock in the store. The uncertainty of customers is contagious: turnover ﬁgures are so exasperating that even tenants who could stay open according to the terms of the law hesitate to do so.

Fridays has risen by approximately 15−17%, and that on Saturdays by 24−27%. However, I cannot provide you with exact numbers about the whole sector until around September, because only ﬁve weekends have passed since the law has gone into effect.

Shopping mall owners are fighting to redirect the customers to days other than Sunday. A: Almost all the shopping malls try to extend their evening hours as much as possible on weekdays. This is especially important in those sectors where late night hours provide a solution for unpostponable necessities such as buying groceries. But in other sectors such as the fashion

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business, new ways have to be invented to lure in customers. In the fashion sector, a successful example is the Glamour Days in Árkád Mall and elsewhere. The problem is that on shopping days, stores and supermarkets are getting overcrowded; Saturday is already overburdened, while on weekdays everyone has limited time to shop. On Friday afternoons and on Saturdays, the parking lots are already as full as they can be.

Can it be guessed yet which shopping centers will suffer the biggest turnover losses, those in the capital or those in the county capitals? A: Those on the edge of Budapest will suffer the biggest losses since their turnover was focused primarily on weekends. They have few cash registers and few parking lots, so it is hard for them to reorient their visitors toward other days. We do not know much about how the shopping habits of the people in Budapest will change. But for reasons of convenience, they will probably stick to shopping malls. It is easy to park there and there are a wide variety of shops. In the countryside, it is much more likely that people will switch to family−owned grocers, which are open on Sundays as well. Exact numbers are unforeseeable. For example, the inhabitants of Eger may have completely different habits from those of Kaposvár. The most unpredictable factor is the behavior of tourists in areas like Lake Balaton. During their vacation, they are often unaware of the day and now, to their astonishment, they will face the closed doors of their favorite shopping malls. In the long−term, this may affect tourism negatively. Originally, world heritage sites and the major tourist areas of Lake Balaton were to be made exempt from the law. Later, however, such exemptions were recalled – which startled everyone in the tourism industry.

Official: Favoring Hungarian-owned stores is OK There is nothing wrong with supporting the Sunday closing law as a way to give Hungarian retailers an advantage over foreign competition, Deputy Speaker of the Hungarian Parliament Gergely Gulyás said in a May 5 interview published by origo.hu. “Allowing small Hungarian retail shops to be open [on Sundays] has, no doubt, clear economic advantages,” said Gulyás (pictured). Although he said, “in terms of a value−driven decision, there are other factors to be considered apart from short−term political gain”, Gulyás was apparently the ﬁrst government official to admit that there is some favoritism for Hungarian retailers built into the law. The law says that, with the exception of family−owned businesses, shops of more than 200 sqm in size must close on Sunday, and it came into effect on March 15. Critics have said the law reduces the possibility of retail sales and therefore has a negative impact on the economy. The idea was rejected twice in the past, because the Economy Ministry was opposed to it as being bad for business, until the bill was ﬁnally rewritten to favor smaller stores – including those that are part of the Hungarian CBA chain, the owner of which has been a major donor to the ruling Fidesz party.

BLUE CUBE

RESIDENCE OFFICE BUILDINGS ADDRESS 1138 Budapest, Váci út 182. YEAR BUILT 2002 FREE SPACE 3,590 sqm PUBLIC TRANSPORT metro line M3,

ADDRESS 1027 Budapest, Ganz utca 16 &

Kacsa utca 15-23. BUILDING YEAR 2010 FREE SPACE 3,600 sqm PUBLIC TRANSPORT Bus: 11, 86, 160 Tram: 4,6 Metro 2, HÉV CONTACT Krisztina Major Tel: +36 30 748 8320

bus No. 105, 120, 15 CONTACT Barbara Baráth +36 20 984 4977

Zoltán Fábián: + 36 20 497 2181

E-mail: krisztina.major@raiffeisenevolution.com

Blue Cube office building is located on Váci út , right next to Duna Plaza and the M3 metro station. It is a perfect setting to work in . Be our tenant and enjoy the comfort of abundant parking facilities, the well-equipped conference room, high tenchnical standards, efficent configuration, peaceful inner garden and the Unilever shop in-house.

RIVER ESTATES

Both RESIDENCE 1 and 2 office buildings have been put up in the center of Buda, an elegant neighbourhood of the 2nd district Víziváros. The complex located only one block from the busy traffic of Margit körút and Fő utca, in the area bordered by the quiet Ganz and Kacsa utca, within short walking distance from the main transport junctions of Inner Buda, Széll Kálmán tér and Batthyány tér.

ÓBUDA GATE ADDRESS 1134 Budapest, Váci út 35. YEAR BUILT 1998 FREE SPACE 5,300 sqm PUBLIC TRANSPORT metro line M3, trolley No. 75, 79 CONTACT Barbara Baráth +36 20 984 4977

ADDRESS 1023 Budapest Árpád fejedelem útja 26-28. BUILDING YEAR 2001 FREE SPACE 4,236 sqm PUBLIC TRANSPORT Tram 17, Bus 9, 86, 160, 260 CONTACT alapkezelo@diofaalapkezelo.hu

Zoltán Fábián: + 36 20 497 2181

River Estates has been redesigned from numerous technical and aesthetical aspects.This category A office building is situated at the beginning of the Váci corridor at the intersection of Dózsa György út. It offers bright and efficient office spaces of nearly 20,000 sqm on ten levels. The building is only a one minute walk from the „Dózsa György” station of the blue-line metro. The property offers noteworthy amenities such as a restaurant, fitness center, three-level underground garage, on-site banking as well as 24-hour reception and security service.

The grade „A” Óbuda Gate office building located on Danube bank in a key Central Buda location offering 14,000 sqm office area with high technical standards. Large continuous areas are still available in Óbuda Gate. The building can be easily accessed from Buda and Pest Side by public transportation and by car. Óbuda Gate and its vicinity are well-provided with amenities such as restaurants, banks and shopping facilities.

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20 3

Property in numbers

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Budapest Business Journal | May 08 – May 21, 2015

INDUSTRIAL MARKET FOR BUDAPEST AND PEST COUNTY, Q1 2015 Logistics Park

City Logistics

Total

BUDAPEST RESIDENTIAL RENTS District

Rent in HUF/m2

3,303

Completions (sq m) - - Modern stock (sq m)

1,699,200

186,410

1,885,610

3,080

Vacant space (sq m)

239,380

33,610

273,000

2,927

BUDAPEST OFFICES Q1, 2015

Vacancy Rate (%)

14.1%

18.0%

14.5%

2,801

Completions (sqm)

New (sq m)

11,480

5,600

17,080

2,635

Speculative Stock (sqm)

2,587,780

Renewal (sq m)

70,970

2,634

Expansion (sq m)

15,830

1 980

17,810

2,558

Owner-occupied Stock (sqm)

642,320

Pre-lease (sq m)

2,544

Leasing Activity (sq m)

98,280

7,580

105,860

Total Stock (sqm)

3,230,100

2,542

2,326

Vacancy (sqm)

506,940

1,950

Vacancy Rate (%)

15,7%

1,887

Pre-lease (sqm)

1,709

1,708

New Lease (sqm)

27,270

1,674

Lease Expansion (sqm)

11,970

1,672

Lease Renewal (sqm)

20,090

1,619

1,618

Owner takeover

4,680

1,592

Total Leasing Activity (sqm)

60,010

1,574

1,571

Net Absorption (sqm)

13,960

1,517

1,442

SOURCE: BRF ADVERTISEMENT

SOURCE: BRF

JLL Hungary expects continued good times in industrial real estate market After the outstanding performance of the industrial real estate market in 2014, the positive sentiment has being continuing in the first quarter of 2015, according to a May 6 statement from JLL Hungary. ”Although the leases have decreased compared to the last quarter of 2014, which usually shows a stronger performance, the results in the first quarter of 2015, however, show a 55% better performance compared to the corresponding period of 2014 and the emerging occupier enquires predict the continuation of this tendency,” the statement said.

According to Roland Kis, Head of Industrial Department at JLL, both logistics and manufacturing segments have been strenghtening in the first quarter and this market recovery can be observed in Budapest and in the countryside as well. ”Another interesting and gratifying observation is that the greater demands for over 10,000 m2 (the expansion applies to both new and existing areas), appear in the market in increasing numbers, which will stimulate new developments due to the limited supply,” he said. –BBJ STAFF

SOURCE: Otthontérkép, Portfolio

Our company was established in . We deal with the renovation and reconstruction of houses, flats, oﬃces, shops, etc. Our activities include electrical wiring, engineering (water. gas, heating, airconditioning), masonry, paintwork, facing, coating, joinery, etc.

Why should you choose us? Because we oﬀer: • expertise • excellent quality • reasonable prices • dependability

• • •

precise, immaculate work communication in English or German if required a guarantee of our work

Please do not hesitate to contact us at the following: e-mail: nett@t-online.hu, iroda@nett-kft.hu, phone: + web: www.nett-kft.hu

“PUT YOUR TRUST IN US.”

TERRAPARK IRODAPARK ADDRESS 2040 Budaörs, Liget utca 3/2. BUILDING YEAR from 1995 ongoing PUBLIC TRANSPORT Bus 40, 140, 240, 88,

188, 287, Terrapark shuttle bus CONTACT

Tel: +36 20 9848 999 info@terrapark.hu

Terrapark, Hungary’s first office park of Western European quality, currently is home to more than 80 companies in Budaors. Thanks to its excellent accessibility and favorable location, it offers high-quality office space in a natural environment. Terrapark offers office solutions at flexible conditions from 15 sqm to as much as 2,000 sqm on one floor.

GRUPPO T.F.M. KFT. 1068 Budapest, Király u. 102.

1ST DISTRICT

3RD DISTRICT

6TH DISTRICT

11TH DISTRICT

9TH DISTRICT

13TH DISTRICT

83 SQM – 3 ROOMS, ATTILA STREET

127 SQM – 5 ROOMS, TORONYA STREET

72 SQM – 2 ROOMS, Ó STREET

146 SQM – 4 ROOMS, RÁDAY STREET

130 SQM – 4 ROOMS, TORMA STREET

57 SQM – 2 ROOMS, TAKSONY STREET

At the bottom of the Buda Castle, this bright and spacious apartment with open kitchen and private gas heating is situated in a renovated period building.

Part of a house with beautiful view, renovated, beneﬁts of separate rooms, 2 bathrooms, big terrace, 300 sqm of garden, garage and a separate studio apartment.

Adjacent to St. István Basilica. This sunny apartment is situated within a beautiful period building that has been completely renovated without disturbing the original features.

In a pedestrian area, in a period building with elevator, this renovated, sunny, street facing apartment has 3 separate bedrooms, 1 living room with open kitchen and private gas heating.

This two storey family house that needs renovation has 650 sqm of lot, 2 bathrooms, nice veranda and parking space in the courtyard.

Beautiful panorama over the city from the 45 sqm of roof terrace, this high ﬂoor, exclusive style apartment has parking space in the garage and it is situated in new building with elevator.

23.900.000 HUF

59.900.000 HUF

31.900.000 HUF

48.000.000 HUF

+36.1.201.0403

2ND DISTRICT

+36.1.430.1403

3RD DISTRICT

+36.70.3156.087

6TH DISTRICT

+36.70.414.7126

10TH DISTRICT

30.900.000 HUF

+36.1.720.2433

160.000 EUR

12TH DISTRICT

+36.70.414.7759

14TH DISTRICT

106 SQM – 3 ROOMS + HALL, MARGIT CIRCUIT

200 SQM – 5 ROOMS, SEREGÉLY STREET

186 SQM – 7 ROOMS, ANKER LANE

168 SQM – 3 ROOMS, SZÁRAZ STREET

46 SQM – 2 ROOMS, MÁRVÁNY STREET

28 SQM – 1 ROOM, ILKA STREET

This very spacious and sunny, street facing apartment that needs renovation has private gas heating and it is situated in a renovated building with elevator.

This three storey family house built on 529 sqm of lot and has open kitchen, 2 bathrooms, terrace, balcony, two car garage and 7 parking spaces.

For investment. This large apartment is situated in the very heart of the city, at the corner with Deák Square. The windows face Király Street.

This very spacious and nice family house built on 615 sqm of lot and has big terrace, alarm system, garage and well kept garden with sprinkler system.

This very bright and quiet, high ﬂoor apartment that needs renovation is situated in a well maintained building with elevator.

This completely renovated, quiet apartment has sleeping gallery, fully ﬁtted kitchen, parking space in the courtyard and it is situated in a nice building with renovated facade.

26.900.000 HUF

69.900.000 HUF

59.000.000 HUF

55.000.000 HUF

+36.1.201.0403

2ND DISTRICT

+36.1.430.1403

4TH DISTRICT

+36.70.3156.087

7TH DISTRICT

+36.70.268.5017

10TH DISTRICT

16.500.000 HUF

+36.1.789.2846

7.490.000 HUF

12TH DISTRICT

+36.70.322.3697

15TH DISTRICT

89 SQM – 3 ROOMS, PASARÉTI STREET

86 SQM – 3 ROOMS, TELKES STREET

21 SQM – 1 ROOM, HÁRSFA STREET

460 SQM – 8 ROOMS, LAVOTTA STREET

47 SQM – 2 ROOMS, TORNALJA STREET

320 SQM – 6 ROOMS, PESTÚJHELY

This completely renovated, very spacious apartment beneﬁts of 2 separate bedrooms, 1 living room, balcony and it is situated in a well maintained condominium, in a green area.

Part of a family house, with 547 sqm of common lot. The apartment has separate rooms, terrace, separate entrance and parking space in the courtyard.

This completely renovated, quiet apartment has private gas heating and it is situated in a well maintained condominium, close to the Erzsébet Circuit.

This two storey luxury house has 966 smq of lot, terrace, swimming pool in the beautiful garden and garage. There is a second building in the lot with 2 rooms, kitchen and bathroom.

This very quiet and sunny, garden facing apartment has separate rooms, balcony and private gas heating and it is located in the Buda hills.

This 4 storey family house that needs renovation has 476 sqm of lot, 2 kitchens, 3 bathrooms, 2 balconies and garage.

41.900.000 HUF

21.990.000 HUF

9.900.000 HUF

99.900.000 HUF

20.500.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.1.782.7275

4TH DISTRICT

+36.70.322.3697

7TH DISTRICT

+36.70.268.5017

11TH DISTRICT

+36.1.789.2846

46.900.000 HUF

13TH DISTRICT

+36.70.398.8754

15TH DISTRICT

80 SQM – 3 ROOMS + HALL, MECSET STREET

140 SQM – 7 ROOMS, FÓTI STREET

35 SQM – 1 ROOM, ERZSÉBET CIRCUIT

54 SQM – 3 ROOMS, BERCSÉNYI STREET

44 SQM – 2 ROOMS, TÜZÉR STREET

170 SQM – 5 ROOMS, RÁKOSPALOTA

View over the Rose Garden of Gül Baba, this apartment beneﬁts of 2 balconies, rosewood parquet in the rooms, granite cladding in the kitchen and marble cladding in the bathroom.

This completely renovated, two storey family house built on 400 sqm of lot, has 2 bathrooms, terrace, garage and it is located in a garden suburb area.

Next to the Madách Theatre, this very spacious and quiet apartment that needs renovation is situated in a nice period building with elevator.

This street facing, high ﬂoor apartment that needs renovation has closed loggia and it is situated in a well maintained building with elevator.

In a new built, very nice condominium with elevator, this high ﬂoor apartment beneﬁts of living room with open kitchen, bedroom, balcony and parking space.

This two storey family house in good condition built on 422 sqm of lot, has fully ﬁtted kitchen, 2 bathrooms, terrace, balcony, parking space and well kept garden.

54.900.000 HUF

37.500.000 HUF

53.350 EUR

21.500.000 HUF

26.990.000 HUF

49.900.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.1.782.7275

5TH DISTRICT

+36.70.322.3697

+36.1.784.0707

7TH DISTRICT

11TH DISTRICT

154 SQM – 4 ROOMS, HIDEGKÚTI STREET

62 SQM – 2 ROOMS, BÉCSI STREET

125 SQM – 4 ROOMS, WESSELÉNYI STREET

72 SQM – 2 ROOMS, BARTÓK BÉLA STREET

In a new built building, this duplex, well divided apartment has open kitchen, separate rooms, 2 bathrooms, 60 sqm of terrace, 2 car garage and beautiful private garden.

In the heart of the city, this completely renovated, street facing, high ﬂoor apartment has open kitchen and it is situated in a building with elevator.

This street facing, very bright and spacious apartment that needs renovation has private gas heating and it is located close to the very green Almássy Square.

This very bright, street facing, high ﬂoor apartment in good condition has separate rooms, 2 balconies and it is situated in building with elevator.

69.900.000 HUF

54.900.000 HUF

28.000.000 HUF

26.900.000 HUF

+36.1.376.6080

2ND DISTRICT

+36.70.222.5063

5TH DISTRICT

+36.70.322.3697

8TH DISTRICT

+36.1.784.0707

82 SQM – 3 ROOMS, FALK MIKSA STREET

62 SQM – 2 ROOMS, REVICZKY STREET

108 SQM – 3 ROOMS, ZÁMORI STREET

In a new building, this quiet and very spacious apartment has 3 separate bedrooms and 1 living room with ﬁreplace, terrace, garage and private garden.

Nice view from the windows, this completely renovated, high ﬂoor, luxury apartment has private gas heating and it is situated in a beautiful period building with elevator.

This completely renovated, very sunny and quiet, high ﬂoor apartment with private gas heating is located in a period building, in one of the most beautiful street of the district.

In a quiet and green area, this mansard apartment has separate rooms, open kitchen, separate entrance and garage and it is situated in a small condominium.

105.000.000 HUF

69.900.000 HUF

25.900.000 HUF

27.900.000 HUF

+36.70.222.5063

+36.70.414.7126

+36.70.398.8754

The Moment when you think of a cosy home Are you searching for apartment?

11TH DISTRICT

130 SQM – 4 ROOMS, ORSÓ STREET

+36.1.376.6080

+36.70.414.7759

+36.1.720.2433

www.tecnocasa.hu CONTACT US: INFO@TECNOCASA.HU

EACH AGENCY INDEPENDENTLY OWNED AND OPERATED. • THESE OFFERS ARE VALID, TILL THE APARTMENTS ARE SOLD. • THESE INFORMATION DO NOT CONSTITUTE A CONTRACTUAL ELEMENT.

Find the best office for your needs. by CBRE

22 3

WWW.BBJ.HU

Budapest Business Journal | May 08 â&#x20AC;&#x201C; May 21, 2015

Category A office buildings in greater Budapest

12â&#x20AC;&#x201C;14 1,150 HUF

Magyar Posta, SAMSUNG, AON, Tesco

400 5

15 600

12â&#x20AC;&#x201C;13 2.80

Âť

200 3

19 609

12.50â&#x20AC;&#x201C;13 1,100 HUF

$OEHPDUOH .&, Ferrero, First Clients

BANK BRANCH/ATM

IN-HOUSE FACILITY MANAGEMENT

SUITABLE FOR DISABLED PEOPLE

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

RESTAURANT, CAFĂ&#x2030;

INDEPENDENT POWER SUPPLY

AVERAGE MONTHLY RENT ON APR. 1, 2015 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2015 (EURO/SQM)

4+3+3 426

BICYCLE PARKING

NO. OF ELEVATORS NO. OF PARKING SPACES

250 3

LEASING AGENT, NAME, WEBSITE

WASTE RECYCLING

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

CURRENT MAJOR TENANTS

GREEN TECHNOLOGIES

SERVICES

NATURAL LIGHT AND AIR VENTILATION

NO. OF LEVELS

COMPANY WEBSITE

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDING (SQM)

RANK

Ranked by net office space (sqm)

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

1138 Budapest, DunavirĂĄg utca 2â&#x20AC;&#x201C;6. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

â&#x20AC;&#x201C; ,PPRĂ&#x20AC; QDQ] *URXS (100)

1096 Budapest, SoroksĂĄri Ăşt 32â&#x20AC;&#x201C;34. (1) 451-8040 (1) 236-0436 J NRR#LPPRĂ&#x20AC; QDQ] FRP

Âť

â&#x20AC;&#x201C; (100)

1133 Budapest, VĂĄci Ăşt 76. (1) 501-2800 (1) 501-2801 RIĂ&#x20AC; FH#FDLPPR KX

â&#x20AC;&#x201C;

Âť Âť

1134 Budapest, VĂĄci Ăşt 45. (1) 451-8040 (1) 236-0435 RIĂ&#x20AC; FHVBKX# LPPRĂ&#x20AC; QDQ] FRP

1054 Budapest, 6]DEDGViJ WpU (1) 302-9010 (1) 302-9020 anett.eles@bankcenter.hu

GATEWAY OFFICE PARK www.gatewaybc.hu, www.cpigroup.hu 36,050 50,800

HALLER GARDENS www.hallergardens.hu

32,500

Âť

â&#x20AC;&#x201C;

C&W, ESTON

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC; HOG .IW

CAPITAL SQUARE www.capitalsquare.hu 32,000 38,000

Ă TRIUM PARK www.atriumpark.hu

31,200 61,400

Âť

Âť Âť

-// .IW BercsĂŠnyi NĂłra, 2UPRV 6]LOiJ\L 6]LOYLD ZZZ MOO hu, Robertson Hungary, www. robertson.hu

â&#x20AC;&#x201C; $OOLDQ] *HQHUDOL (100)

â&#x20AC;&#x201C;

Âť Âť

1138 Budapest, 1pSIÂ UGĹ&#x192; XWFD (1) 785-4985 (1) 799-8879 info@celand.hu

Âť

Âť Âť

1051 Budapest, 6]pFKHQ\L ,VWYiQ WpU Â˛ (1) 473-1209 â&#x20AC;&#x201C; info@ roosevelt-budapest.com

356 5

24 418

12.50â&#x20AC;&#x201C;13.50 950 HUF

Âť

30,041 54,184

255 3

17 480

16â&#x20AC;&#x201C;20 1,281 HUF

Citibank, Regus, Weil, Hays Hungary, Ferrari Budapest

Avestus Real Estate, www. avestusrealestate .com

29,717 32,410

100 3

10 395

14 3.60

IBM, Huawei, Metlife, iGate

â&#x20AC;&#x201C;

CE Land Holding ,QJDWODQKDV]QRVtWy .IW www.celand.hu

Âť

130 3

Âť Âť

Âť

â&#x20AC;&#x201C;

Âť

Âť Âť

28,045 43,000

215 5

12 399

Âť Âť

Diageo, EY, Tower International, IT Cinema, Euromedic

â&#x20AC;&#x201C;

-// ZZZ MOO hu; Cushman & :DNHĂ&#x20AC; HOG ZZZ cushmanwakeĂ&#x20AC; HOG KX FRP

â&#x20AC;&#x201C;

Âť Âť

27,278 29,450

270 5

10 388

12.00â&#x20AC;&#x201C;12.50 1,150 HUF

Ericsson, GEA EGI, Swietelsky, TATA

â&#x20AC;&#x201C;

$,* /LQFROQ .IW www.aiglincoln. hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; Heitman (100)

27,050 28,846

150 3

2++ 538

Âť

3.80

Viacom, LeasePlan, AstraZeneca, Reckitt Benckiser

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC; HOG .IW www.cushmanZDNHĂ&#x20AC; HOG KX FRP

Âť Âť

1113 Budapest, Bocskai Ăşt 134â&#x20AC;&#x201C;146. (1) 888-0395 (1) 888-0399 YHUD ]ROWDQ#HX MOO FRP

26,500 30,100

60 3

15 385

11.75â&#x20AC;&#x201C;12.50 990 HUF

Evosoft, British Telecom, Dalkia

â&#x20AC;&#x201C;

CA IMMO

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1117 Budapest, Budafoki Ăşt 91â&#x20AC;&#x201C;93. (1) 501-2800 (1) 501-2801 RIĂ&#x20AC; FH#FDLPPR KX

Âť

250 3

Âť Âť

Âť

â&#x20AC;&#x201C;

Âť Âť

1138 Budapest, VĂĄci Ăşt 135â&#x20AC;&#x201C;139. (1) 350-4010 (1) 350-4011 info@bsr.hu

â&#x20AC;&#x201C;

BANK CENTER www.bankcenter.hu 5

DUNA TOWER OFFICE BUILDING www.dunatower.hu 6

ROOSEVELT 7/8 www.roosevelt-budapest.com 29,000

WEST END BUSINESS CENTER www.westendbusinesscenter.hu

SCIENCE PARK www.sciencepark.hu

DOROTTYA UDVAR 10 www.dorottya.net

1132 Budapest, VĂĄci Ăşt 20â&#x20AC;&#x201C;26. (1) 799-3120 (1) 799-3121 â&#x20AC;&#x201C; 1117 Budapest, ,ULQ\L -y]VHI XWFD Â˛ (1) 382-5100 (1) 382-5101 info@aiglincoln.hu

IP WEST www.ipwest.iroda.hu 11

BSR CENTER OFFICE BUILDING www.bsr-center.hu 12

26,000

Âť

Find the best office for your needs. by CBRE

WWW.BBJ.HU

Âť Âť

Âť

14 349

Âť Âť

Âť

â&#x20AC;&#x201C;

Âť Âť

250 5

6â&#x20AC;&#x201C;9

Âť

12.50â&#x20AC;&#x201C;13.85 2.66

General Electric (GE), GE Healthcare, Sykes Interntional, Enterprise Communications, Atenor

Cushman & :DNHĂ&#x20AC; HOG .IW

Equity (Âť) Atenor (Âť)

1138 Budapest, VĂĄci Ăşt Ăşt 117â&#x20AC;&#x201C;119. (1) 785-5208 (1) 785-5209 info@atenor.hu

24,200 47,000

100 3

12 370

12 3.90

Vodafone, Citibank, Bank of China, &RJQL]DQW

â&#x20AC;&#x201C;

C&W, ESTON

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

1087 Budapest, +XQJiULD N|U~W Â˛ (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

24,000 (Phase 1) 26,000 (Phase 1)

Âť 5

Âť

450

Âť Âť

Âť

(100) â&#x20AC;&#x201C;

23,000 33,000

Âť

3+2 200

10-13 1,200 HUF

Âť

â&#x20AC;&#x201C;

Colliers International, www.colliers.hu

â&#x20AC;&#x201C;

Âť Âť

22,800 25,000

157 3

10 407

12â&#x20AC;&#x201C;13 1,200 HUF

NSN, IBM

â&#x20AC;&#x201C;

CA IMMO

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1092 Budapest, .|]WHOHN XWFD (1) 501-2800 (1) 501-2801 RIĂ&#x20AC; FH#FDLPPR KX

CORVIN TOWERS 21

22,000 25,000

659 5

WRZHU 440

13.75 4.19â&#x20AC;&#x201C;4.27

1082 Budapest, FutĂł utca 35-41. (1) 266-2181 (1) 688-5498 RIĂ&#x20AC; FH#IXWXUHDO KX

BANK BRANCH/ATM

IN-HOUSE FACILITY MANAGEMENT

SUITABLE FOR DISABLED PEOPLE

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

RESTAURANT, CAFĂ&#x2030;

INDEPENDENT POWER SUPPLY

Âť Âť

LEASING AGENT, NAME, WEBSITE

BICYCLE PARKING

AVERAGE MONTHLY RENT ON APR. 1, 2015 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2015 (EURO/SQM)

Âť

150 3

CURRENT MAJOR TENANTS

WASTE RECYCLING

NO. OF ELEVATORS NO. OF PARKING SPACES

Âť Âť

SERVICES

NATURAL LIGHT AND AIR VENTILATION

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

Âť Âť

COMPANY WEBSITE

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDING (SQM)

Âť

200 3

RANK

NO. OF LEVELS

GREEN TECHNOLOGIES

Underground+5

Budapest Business Journal | May 08 â&#x20AC;&#x201C; May 21, 2015

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1097 Budapest, .|Q\YHV .iOPiQ N|U~W (1) 473-1209 (1) 473-1210 i.kerekes@ KRUL]RQGHYHORSPHQW KX

Âť

Âť Âť

1134 Budapest, VĂĄci Ăşt 80â&#x20AC;&#x201C;84. (1) 473-1209 (1) 473-1210 i.kerekes@ KRUL]RQGHYHORSPHQW KX

NĂ&#x2030;PLIGET CENTER www.nepliget-center.com 26,000

Âť

â&#x20AC;&#x201C;

PARK Ă TRIUM

Âť 26,000

Âť

PROMENADE GARDENS www.promenadegardens.hu 15

25,000

Âť

VĂ CI GREENS 16 BUILDING B www.vacigreens.hu

24,500

Âť

â&#x20AC;&#x201C;

Âť

Âť Âť

1068 Budapest, 'y]VD *\|UJ\ ~W %

Âť Âť Âť

ARENA CORNER www.arena-corner.hu, www.cpigroup.hu 17

BUDAPEST ONE www.futureal.hu

EAST-WEST BUSINESS 19 CENTER ZZZ HDVW ZHVW LURGDKD] LQIR

1112 Budapest, %ROGL]ViU XWFD Â˛ (1) 266-2181 (1) 688-5498 RIĂ&#x20AC; FH#IXWXUHDO KX 1088 Budapest, 5iNyF]L ~W Â˛ (1) 235-7770 (1) 235-7767 â&#x20AC;&#x201C;

CITY GATE www.citygate.iroda.hu

www.futureal.hu

TERRAPARK C+D www.terrapark.hu 21,282

Âť

â&#x20AC;&#x201C;

(100) â&#x20AC;&#x201C;

S&T, Ricoh, Flaga, *') 6XH] 3DUWQHU in Petfood, Welt 2000, Trane, Bioderma, Progast, Goodmills, Dexon Systems, Edco, Patona ĂŠs tsa, Bellinda, Duropack

7HUUDSDUN .IW www.terrapark.hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; 7HUUDĂ&#x20AC; QDQ] *PE+ (100)

%XGD|UV /LJHW XWFD (23) 423-323 (23) 423-324 info@terrapark.hu

â&#x20AC;&#x201C;

$,* /LQFROQ .IW www.aiglincoln. hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; Heitman (100)

1123 Budapest, AlkotĂĄs utca 48â&#x20AC;&#x201C;50. (1) 382-5100 (1) 382-5101 info@aiglincoln.com

â&#x20AC;&#x201C; (100)

1134 Budapest, VĂĄci Ăşt 35. (1) 429-5050 (1) 429-5055 RIĂ&#x20AC; FH#VLPPRDJ KX

â&#x20AC;&#x201C; Skanska Central Europe Holding B.V. (100)

1133 Budapest, VĂĄci Ăşt 96â&#x20AC;&#x201C;98. (1) 382-9100 (1) 382-9129 leasing@skanska.hu

TriGranit Holding (26) Heitman Hepp IV (74)

1095 Budapest, /HFKQHU gG|Q IDVRU (1) 374-5696 (1) 374-5668 scsikos@trigranit.com

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1074 Budapest, 5iNyF]L ~W Â˛ (1) 501-2800 (1) 501-2801 RIĂ&#x20AC; FH#FDLPPR KX

Âť

15 1

13 344

7â&#x20AC;&#x201C;10 3

20,500 25,100

380 5

9 395

13.00â&#x20AC;&#x201C;13.50 1,380 HUF

Bayer, Concorde, Euronet, Medicover, Signal

20,245 21,340

400 3

11 352

11â&#x20AC;&#x201C;13.50 1,100 HUF

Citibank, DIGI, Gilda Max, HostLogic

Robertson, www.robertson.hu

20,140 43,976

400 5

12 404

12.95â&#x20AC;&#x201C;13.50 3.30

Âť

â&#x20AC;&#x201C;

CBRE, www.cbre.hu

MILLENNIUM TOWER III 26

20,050

Âť 5

8 300

Âť Âť

&XVKPDQ :DNHĂ&#x20AC; HOG www.cushmanZDNHĂ&#x20AC; HOG FRP CBRE, www.cbre.hu

200 3

9 450

10.90â&#x20AC;&#x201C;11.90 1,100 HUF

â&#x20AC;&#x201C;

ESTON International, www.eston.hu, DTZ, ZZZ GW] FRP

Âť

ALKOTĂ S POINT www.alkotaspoint.hu

RIVER ESTATES www.simmoag.hu 24

NORDIC LIGHT www.skanska.hu

www.millenniumcitycenter.hu

Âť

R70 OFFICE COMPLEX www.r70.iroda.hu 27

18,700 19,000

.HOHU 'HYHORU

Find the best office for your needs. by CBRE

â&#x20AC;&#x201C;

OFFICE GARDEN III ZZZ RIĂ&#x20AC; FHJDUGHQ KX

18,50 5

Âť Âť

12.50 960 HUF

Âť

250 5

6â&#x20AC;&#x201C;9

Âť

12.50â&#x20AC;&#x201C;13.85 2.66

General Electric (GE), GE Healthcare, Sykes Inter-national, Enterprise Communications, Atenor

www.vacigreens.hu

CORVIN ONE 32

18,000 20,000

51 5

6 342

13â&#x20AC;&#x201C;13.50 3.95

Epam, DAS, ERGO, Futureal

www.futureal.hu

Âť

KRISZTINA PALACE

18,000 22,600

400 5

7 399

12.75â&#x20AC;&#x201C;13.50 3.59

Deutsche Leasing, Emirates, Innodox, Johnson&Johnson, 0D]DUV

ZZZ NULV]WLQDSDODFH KX

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC; HOG .IW

Duna Medical Center, JTI, Oracle, Abbott LaboratoULHV $EE9LH ./0 NestlĂŠ

&XVKPDQ :DNHĂ&#x20AC; HOG www.cushPDQZDNHĂ&#x20AC; HOG hu.com, CBRE, www.cbre.com

Âť

18,500

Âť

18,500

Âť

TERRAPARK NEXT B www.terraparknext.com

BANK BRANCH/ATM

IN-HOUSE FACILITY MANAGEMENT

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

RESTAURANT, CAFĂ&#x2030;

SUITABLE FOR DISABLED PEOPLE

Âť

1123 Budapest, AlkotĂĄs utca 53. (1) 799-3120 (1) 799-3121 â&#x20AC;&#x201C;

â&#x20AC;&#x201C; IVG Funds (100)

Âť Hungary, www.

GRT Group (100) â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC; HOG .IW

Equity (Âť) Atenor (Âť)

(100) â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

TriGranit Development Corporation (26) Heitman European Property Partners IV (74)

â&#x20AC;&#x201C; JP Morgan Asset Management (100)

Robertson robertson.hu

1117 Budapest, GĂĄbor DĂŠnes utca 2. (1) 382-7560 (1) 382-7570 RIĂ&#x20AC; FH#JDPPD DP KX 1117 Budapest, $Ot] XWFD (1) 327-2050 (1) 327-2055 LQIR#RIĂ&#x20AC; FHJDUGHQ KX 1138 Budapest, VĂĄci Ăşt 117-119. (1) 785-5208 (1) 785-5209 info@atenor.hu 1082 Budapest, FutĂł utca 47â&#x20AC;&#x201C;53. (1) 266-2181 (1) 688-5498 RIĂ&#x20AC; FH#IXWXUHDO KX 1123 Budapest, Nagyenyed utca 8â&#x20AC;&#x201C;14. (1) 268-1288 (1) 268-1289 info.budapest@ eur.cushwake.com 1093 Budapest, /HFKQHU gG|Q IDVRU (1) 374-5696 (1) 374-5668 scsikos@trigranit.com

Âť

400 3

6 254

11â&#x20AC;&#x201C;13 3.80

Getronics, Oberbank

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC; HOG .IW www.cushPDQZDNHĂ&#x20AC; HOG hu.com

17,100 18,452

179 5

8 287

Âť Âť

Vodafone, Boehringer IngelKHLP &RJQL]DQW Panalpina MagyaURUV]iJ

&XVKPDQ :DNHĂ&#x20AC; HOG www.cushmanZDNHĂ&#x20AC; HOG FRP CBRE, www.cbre.hu

TriGranit Holding (26) Heitman Hepp IV (74)

17,042 20,055

20 1

5 245

9â&#x20AC;&#x201C;11 3.50

DuPont, Johnson, Diversey, Invitel, TOTAL, Coca-Cola, Hellenic, Carlsberg

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC; HOG .IW

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; JP Morgan (100)

17,000 30,000

360 3

5 406

12â&#x20AC;&#x201C;12.50 1,100 HUF

HP, Novartis

â&#x20AC;&#x201C;

CA IMMO

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1114 Budapest, BartĂłk BĂŠla Ăşt 43â&#x20AC;&#x201C;47. (1) 501-2800 (1) 501-2801 RIĂ&#x20AC; FH#FDLPPR KX

300 5

8 291

12.25â&#x20AC;&#x201C;13 3.40

Lufthansa Systems, EIT, National Instruments

â&#x20AC;&#x201C;

2UPRV 6]LOiJ\L 6]LOYLD ZZZ MOO KX

Âť Âť

1117 Budapest, Neumann JĂĄnos utca 1 E (1) 489-0202 (1) 489-0203 RIĂ&#x20AC; FH#JDPPD DP KX

168 5

6 252

12.95â&#x20AC;&#x201C;14 2.80

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

â&#x20AC;&#x201C;

Torony Real Estate Investment Fund (100) â&#x20AC;&#x201C;

1134 Budapest, .DVViN /DMRV XWFD (1) 888-4120 (1) 888-4171 DODSNH]HOR# GLRIDDODSNH]HOR KX

Âť 5

6 310

12.50 960 HUF

Shell, TATA, Syngenta, Pirelli

â&#x20AC;&#x201C;

64 3

6 160

13â&#x20AC;&#x201C;13.50 4.20

Âť

100 3

2 313

8 1,266 HUF

Viasat, Unicredit, Fundamenta

250 3

4 177

10â&#x20AC;&#x201C;11 2.50

Âť

â&#x20AC;&#x201C;

250 5

6â&#x20AC;&#x201C;9

12.50â&#x20AC;&#x201C;13.85 2.66

General Electric (GE), GE Healthcare, Sykes Interntional, Enterprise Communications, Atenor

17,138

www.millenniumcitycenter.hu

GAMMA 3URSHUWLHV .IW

Âť Âť

MARGIT PALACE 35 OFFICE BUILDING

MILLENNIUM TOWER I 36

ADDRESS PHONE FAX EMAIL

Âť Âť

17,800 23,000

www.margitpalace.com

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

Âť

MILLENNIUM TOWER II 34

www.millenniumcitycenter.hu

INDEPENDENT POWER SUPPLY

STRABAG Zrt., Lufthansa Systems, 3DQQRQWHM

-// ZZZ MOO hu; Cushman :DNHĂ&#x20AC; HOG www.cushPDQZDNHĂ&#x20AC; HOG hu.com

BICYCLE PARKING

Âť Âť

LEASING AGENT, NAME, WEBSITE

WASTE RECYCLING

7 350

18,526

SERVICES

NATURAL LIGHT AND AIR VENTILATION

200 3

INFOPARK BUILDING D

NO. OF ELEVATORS NO. OF PARKING SPACES

Âť Âť

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

12 468

ZZZ PRPSDUNRIĂ&#x20AC; FH KX

VĂ CI GREENS 30 BUILDING C

170 5

3Ă&#x20AC; ]HU <RXQJ & Rubicam, Tower International, GroupM, BonitĂĄs, Tesa Tape, Thales, 1LWURJpQPĹ?YHN

18,638 48,000

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

GREEN TECHNOLOGIES

AVERAGE MONTHLY RENT ON APR. 1, 2015 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2015 (EURO/SQM)

MOM PARK OFFICES 28

WWW.BBJ.HU

Budapest Business Journal | May 08 â&#x20AC;&#x201C; May 21, 2015

CURRENT MAJOR TENANTS

NO. OF LEVELS

COMPANY WEBSITE

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDING (SQM)

RANK

24 3

Âť

1027 Budapest, Henger utca 2. (1) 225-0912 (1) 375-0445 info@margitpalace.com 1095 Budapest, /HFKQHU gG|Q IDVRU (1) 374-5696 (1) 374-5668 scsikos@trigranit.com %XGD|UV PuskĂĄs Tivadar utca 12. (1) 225-0912 (1) 375-0445 RIĂ&#x20AC; FH#FRQYHUJHQ FH FRP

BARTĂ&#x201C;K HĂ Z ZZZ EDUWRNKD] LURGD KX 38

INFOPARK BUILDING E 38 www.infopark.hu, www.gamma-am.hu

17,000

Âť

GREEN HOUSE ZZZ GLRIDDODSNH]HOR KX 40

16,800 17,800

OFFICE GARDEN II 40 ZZZ RIĂ&#x20AC; FHJDUGHQ KX

16,800 27,000

WESTEND CITY

16,600

42 CENTER OFFICES www.westendiroda.hu

Âť

â&#x20AC;&#x201C;

Robertson Hungary, www.robertson.hu

GRT Group (100) â&#x20AC;&#x201C;

ESTON International Zrt., www.eston.hu

â&#x20AC;&#x201C;

Âť Âť

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

1139 Budapest, VĂĄci Ăşt 99. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

1139 Budapest, VĂĄci Ăşt 140. (1) 268-1288 (1) 268-1289 reception-hungary@ HX MOO FRP 1138 Budapest, VĂĄci Ăşt 117-119. (1) 785-5208 (1) 785-5209 info@atenor.hu

1117 Budapest, $Ot] XWFD (1) 327-2050 (1) 327-2055 LQIR#RIĂ&#x20AC; FHJDUGHQ KX 1162 Budapest, VĂĄci Ăşt 1â&#x20AC;&#x201C;3. (20) 369-1111 (1) 374-6571 info@trigranit.com

BUSINESS CENTER 99 www.cpigroup.hu 16,505 17,024

BUSINESS CENTER 140 44 www.irodatkeres.hu, ZZZ GW] FRP KX

VĂ CI GREENS 44 BUILDING D www.vacigreens.hu

16,000 23,800

16,000

Âť

â&#x20AC;&#x201C;

JLL, www. MRQHVODQJOD salle.hu, DTZ, ZZZ GW] FRP

â&#x20AC;&#x201C;

Âť Âť

Cushman & :DNHĂ&#x20AC; HOG .IW

Equity (Âť) Atenor (Âť)

Find the best office for your needs. by CBRE

AVERAGE MONTHLY RENT ON APR. 1, 2015 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2015 (EURO/SQM)

8 350

11.500-12.50 1,140 HUF

BME Infokom, Phillips, HP

14,870 15,500

150 3

6 268

11.90 3.20

Âť

â&#x20AC;&#x201C;

14,370 27,000

8+ underground

200 3

6 280

11â&#x20AC;&#x201C;13 3.60

Adidas, Xapt, QualySoft, Helly Hansen, Tupperware, CEZ, 273 . +

â&#x20AC;&#x201C;

6â&#x20AC;&#x201C;7

60 3

8 247

10.50 3.50

Âť

â&#x20AC;&#x201C;

Âť

Âť 69

10.50 1,260 HUF

Âť

13,900 24,000

98 3

9 215

11 3.80

McCann Erickson, *I. 70) $686 Culevit, Travel 6HUYLFH .IW (55& ,27$ $GG9DO .IW

13,315 18,115

3â&#x20AC;&#x201C;8â&#x20AC;&#x201C; 6

15 1

3â&#x20AC;&#x201C;3 350

9 4.50

General Motors, Tesa Tape, .DLVHU .UDIW .DUGH[

13,291 14,885

2,400 2

7 258

6.30â&#x20AC;&#x201C;10.50 3.90

Dravanet, Euronet, LMGL Invest

â&#x20AC;&#x201C;

13,128 17,670

250 3

4 136

Âť Âť

5(*86 2IĂ&#x20AC;FHV Budapest Bank, Levi Strauss, Tellabs, Groupama Garancia Insurance

â&#x20AC;&#x201C;

BASF, CPI Property Group, EOS, Samsung, Imhaus

15,022 26,000

GREENPOINT 7 47

ZZZ RIĂ&#x20AC;FHJDUGHQ KX

www.greenpoint7.hu

BUDAWEST OFFICE 48 BUILDING www.budawest.net

â&#x20AC;&#x201C;

BANK BRANCH/ATM

IN-HOUSE FACILITY MANAGEMENT

SUITABLE FOR DISABLED PEOPLE

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

RESTAURANT, CAFĂ&#x2030;

LEASING AGENT, NAME, WEBSITE

INDEPENDENT POWER SUPPLY

NO. OF ELEVATORS NO. OF PARKING SPACES

130 5

OFFICE GARDEN I 46

GREEN TECHNOLOGIES

SERVICES

BICYCLE PARKING

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

CURRENT MAJOR TENANTS

WASTE RECYCLING

NO. OF LEVELS

COMPANY WEBSITE

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDING (SQM)

RANK

Budapest Business Journal | May 08 â&#x20AC;&#x201C; May 21, 2015

NATURAL LIGHT AND AIR VENTILATION

WWW.BBJ.HU

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

Âť Âť

1117 Budapest, $Ot] XWFD (1) 327-2050 (1) 327-2055 LQIR#RIĂ&#x20AC;FHJDUGHQ KX 1075 Budapest, .pWKO\ $QQD WpU (1) 451-8040 (1) 451-8041 JHUJHO\ NRR#LPPRĂ&#x20AC;QDQ] FRP

â&#x20AC;&#x201C;

Robertson Hungary, www. robertson.hu

â&#x20AC;&#x201C;

&%5( .IW www.cbre.com

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; ,PPRĂ&#x20AC;QDQ] *URXS (100)

â&#x20AC;&#x201C;

(100) â&#x20AC;&#x201C;

1118 Budapest, 5pWN|] XWFD (1) 309-0909 (1) 309-0900 info@budawest.net

â&#x20AC;&#x201C;

CE Land HoldLQJ .IW www.celand.hu

â&#x20AC;&#x201C;

. $ 5HDO (VWDWH 0DQDJHPHQW .IW (100) â&#x20AC;&#x201C;

1103 Budapest, .Ĺ&#x192;pU XWFD $ (1) 785 4985 (1) 799 8879 info@celand.hu

Âť

2UPRV 6]LOiJ\L 6]LOYLD ZZZ MOO KX

Âť

Âť Âť

Âť

Âť Âť

1139 Budapest, Teve utca 1. (1) 489-0202 (1) 489-0203 UHFHSWLRQ KXQJDU\#HX MOO FRP

â&#x20AC;&#x201C;

$GG9DO .IW www.addvalgroup.com, DTZ, ZZZ GW] FRP

â&#x20AC;&#x201C;

SEB ,QJDWODQNH]HOpVL .IW (100) â&#x20AC;&#x201C;

1077 Budapest, WesselĂŠnyi utca 16. (1) 479-6020 (1) 479-6029 info@centraludvar.com

â&#x20AC;&#x201C;

ESTON, www.eston.hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

%XGD|UV 6]DEDGViJ ~W (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC;HOG

â&#x20AC;&#x201C;

Âť Âť

1138 Budapest, VĂĄci Ăşt 188. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

â&#x20AC;&#x201C;

Âť Âť

1072 Budapest, 5iNyF]L ~W (1) 799-3120 (1) 799-3121 â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

1132 Budapest, VĂĄci Ăşt 30. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

2220 VecsĂŠs, /Ĺ&#x192;ULQFL ~W Â˛ (1) 501-2818 (1) 501-2801 RIĂ&#x20AC;FH#FDLPPR KX

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1027 Budapest, .DFVD XWFD Â˛ (1) 346-6443 (1) 346-6448 NULV]WLQD PDMRU# raiffeisenevolution.com

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1027 Budapest, .DSiV XWFD Â˛ (1) 501-2800 (1) 501-2801 RIĂ&#x20AC;FH#FDLPPR KX

LAURUS OFFICES ZZZ ODXUXVLURGDKD]DN KX 13,973 27,000

GLOBE13 OFFICE 50 BUILDING www.irodatkeres.hu

CENTRĂ L UDVAR 51

www.centraludvar.com

13,945

Âť

â&#x20AC;&#x201C;

BUDAĂ&#x2013;RS OFFICE PARK ZZZ EXGDRUVRIĂ&#x20AC;FHSDUN KX www.cpigroup.hu 52

â&#x20AC;&#x201C;

VĂ CI 188 www.vaci188.com, www.cpigroup.hu 53

EMKE OFFICE 54 BUILDING www.emke.hu

BUSINESS CENTER 30 www.bc30.hu, www.cpigroup.hu 13,000 19,800

283 3

4+2 221

10â&#x20AC;&#x201C;11.5 1,130 HUF

60 3

6 260

11â&#x20AC;&#x201C;12 1,080 HUF

BMW, Fedex

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC;HOG

EUROPOLIS PARK BUDAPEST AEROZONE â&#x20AC;&#x201C; 55

13,000 65,000

RESIDENCE 1 OFFICE BUILDING 6

286 3

5 177

11.50 3.80

ELI-HU, Gnocco, Aegis Media, Futurmed, Primal, 0DJ\DU 7XUL]PXV Zrt., DiĂĄkhitel .|]SRQW

300 3

6 230

12â&#x20AC;&#x201C;13 1,200 HUF

Cemex, Santander, Swedish Embassy

ZZZ UHVLGHQFHLURGDKD] KX 13,000 21,200

â&#x20AC;&#x201C;

ESTON International

VĂ?ZIVĂ ROS OFFICE CENTER ZZZ YL]LYDURV LURGD KX 55

13,000 14,600

â&#x20AC;&#x201C;

Find the best office for your needs. by CBRE

Ă&#x201C;BUDA GATE 12,900 13,942

INFOPARK BUILDING C www.infopark.hu

12,703

150 5

5 265

10â&#x20AC;&#x201C;13.5 3.90

Âť

145 3

4 164

12,233 12,634

250 3

4 174

3.50

12,200 13,600

300 3

Âť

3.300

www.convergen-ce.com 61

Âť

â&#x20AC;&#x201C;

INDEPENDENT POWER SUPPLY

BICYCLE PARKING

WASTE RECYCLING

ADDRESS PHONE FAX EMAIL

Torony Real Estate Investment Fund (100) â&#x20AC;&#x201C;

1023 Budapest, Ă&#x2030;USiG IHMHGHOHP ~WMD 26â&#x20AC;&#x201C;28. (1) 888-4120 (1) 888-4171 DODSNH]HOR# GLRIDDODSNH]HOR KX

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; HGA Capital (100)

1117 Budapest, GĂĄbor DĂŠnes utca 4. (1) 210-0566 (1) 210-0095 borbala.farago@ strabag-pfs.hu 1134 Budapest, VĂĄci Ăşt 37. (1) 225-0912 (1) 375-0445 &VDED ]HOH\# convergen-ce.com

â&#x20AC;&#x201C;

STRABAG Property and Facility Services Zrt., www. strabag-pfs.hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1117 Budapest, Neumann JĂĄnos utca 1. (1) 501-2800 (1) 501-2801 RIĂ&#x20AC; FH#FDLPPR KX

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; German (100)

1075 Budapest, MadĂĄch Imre Ăşt 13â&#x20AC;&#x201C;14. (1) 268-1900 (1) 269-6684 info@madachtrade.hu 1054 Budapest, AkadĂŠmia utca 6. (1) 268-1288 (1) 268-1289 EXGDSHVW#GW] FRP 1095 Budapest, /HFKQHU gG|Q IDVRU (1) 374-5696 (1) 374-5668 scsikos@trigranit.com

Âť

Cargill 0DJ\DURUV]iJ Zrt., Optimal0DQDJHPHQW .IW

â&#x20AC;&#x201C;

ConvergenCE, www.convergen-ce.com

6 375

11â&#x20AC;&#x201C;12 1,200 HUF

IBM, Panasonic, Invitel

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC; HOG

7â&#x20AC;&#x201C;9

18 1

4 250

10 1,250 HUF

/LOO\ +XQJiULD .IW /DNDWRV .|YHV pV TĂĄrsai Zrt., Morley Allen & Overy Iroda, $33(//2 .IW

11,700 13,500

180 5

5 142

18.50 5.40

Raiffeisen Bank, .LQVWHOODU 0*<26=

â&#x20AC;&#x201C;

11,536 17,950

3 under ground + underground+7

DUNA OFFICE CENTER

L'OrĂŠal, Regus, Sony

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

Cushman & :DNHĂ&#x20AC; HOG ZZZ cushmanwakeĂ&#x20AC; HOG KX FRP Robertson, www.robertson.hu

www.obudagate.hu 59

LEASING AGENT, NAME, WEBSITE

NATURAL LIGHT AND AIR VENTILATION

BANK BRANCH/ATM

IN-HOUSE FACILITY MANAGEMENT

SUITABLE FOR DISABLED PEOPLE

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

CURRENT MAJOR TENANTS

WWW.BBJ.HU

Budapest Business Journal | May 08 â&#x20AC;&#x201C; May 21, 2015

GREEN TECHNOLOGIES

SERVICES

RESTAURANT, CAFĂ&#x2030;

AVERAGE MONTHLY RENT ON APR. 1, 2015 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2015 (EURO/SQM)

NO. OF ELEVATORS NO. OF PARKING SPACES

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

NO. OF LEVELS

COMPANY WEBSITE

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDING (SQM)

RANK

26 3

181 5

6 235

Âť Âť

Âť

â&#x20AC;&#x201C;

INFOPARK BUILDING A ZZZ LQIRSDUNBD LURGD KX

AKADĂ&#x2030;MIA BUSINESS 64 CENTER ZZZ GW] FRP

MILLENNIUM 65 BUILDING "H" www.millenniumcitycenter.hu

MOM PARK TOWERS

V48

BUDAPALOTA

â&#x20AC;&#x201C;

&XVKPDQ :DNHĂ&#x20AC; HOG www. FXVKPDQZDNHĂ&#x20AC; HOG com, CBRE, www.cbre.hu

Âť Âť

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; Deutsche Asset & Wealth Management (100)

1123 Budapest, &V|UV] XWFD (1) 268-1288 (1) 268-1289 info.budapest@ eur.cushwake.com 1132 Budapest, VĂĄci Ăşt 48 e-f (1) 266-6000 (1) 266-6002 info.hungary@codic.eu 1122 Budapest, .ULV]WLQD N|U~W Â˛ (1) 451-4280 (1) 451-4289 sales@wing.hu 1093 Budapest, &]XF]RU XWFD Â˛ (1) 451-4280 (1) 451-4289 sales@wing.hu 1134 Budapest, VĂĄci Ăşt 17. (1) 451-4280 (1) 451-4289 sales@wing.hu 1093 Budapest, .|]UDNWiU XWFD Â˛ (1) 382-7560 (1) 382-7570 RIĂ&#x20AC; FH#JDPPD DP KX

â&#x20AC;&#x201C;

Codic Hungary .IW ZZZ FRGLF eu

â&#x20AC;&#x201C; Codic International S.A. (100)

Âť

7 180

Âť Âť

Âť

â&#x20AC;&#x201C;

JLL, www. MRQHVODQJODVDOOH. com

â&#x20AC;&#x201C;

%XGD 3DORWD .IW (100) â&#x20AC;&#x201C;

140 3

6 408

9.95â&#x20AC;&#x201C;14 1,250 HUF

Âť

â&#x20AC;&#x201C;

ESTON International, www.eston.hu

â&#x20AC;&#x201C;

:LQJSURMHNW .IW (100) â&#x20AC;&#x201C;

Âť Âť

8 209

Âť Âť

Âť

â&#x20AC;&#x201C;

ESTON International, www.eston.hu

9 .IW

â&#x20AC;&#x201C;

120 3

4 133

12â&#x20AC;&#x201C;13.50 2.90

Henkel, MSC, Bisnode

â&#x20AC;&#x201C;

Robertson, www.robertson.hu

â&#x20AC;&#x201C; IVG Funds (100)

â&#x20AC;&#x201C;

'DQXELXV +i]DN ,QJDWODQKDV]QRVtWy Zrt., Wallis Asset Management Zrt. (100) â&#x20AC;&#x201C;

1138 Budapest, VĂĄci Ăşt 141â&#x20AC;&#x201C;143. (20) 971-4728 (1) 899-9801 vasadi.tamas@wallis.hu 1056 Budapest, VĂĄci utca 81. (1) 411-0442 (1) 235-0007 vaciutca@ vaciutcacenter.hu

10,584 19,134

RIVERPARK OFFICES

9,865

www.vaciutcacenter.hu

Âť

www.wing.hu

VĂ CI UTCA CENTER

Âť

10,662 36,000

www.wing.hu

300â&#x20AC;&#x201C;6000 5

9,700 14,713

Âť Âť

11,462 25,541

DANUBIUS HOUSES 72 (I-II-III)

'7= ZZZ GW] com, Cushman& :DNHĂ&#x20AC; HOG ZZZ FXVKPDQZDNHĂ&#x20AC; HOG com

13â&#x20AC;&#x201C;14

Âť

â&#x20AC;&#x201C;

6 120+40

71 www.riverpark.hu, www.gamma-am.hu

â&#x20AC;&#x201C;

11,500 13,500

V17

â&#x20AC;&#x201C;

12.50â&#x20AC;&#x201C;14 4.20

STUDIUM OFFICE

â&#x20AC;&#x201C;

9 230

69 BUILDING www.wing.hu

â&#x20AC;&#x201C;

137 5

www.wing.hu

Âť

www.v48.hu

â&#x20AC;&#x201C;

&XVKPDQ :DNHĂ&#x20AC; HOG .IW www. FXVKPDQZDNHĂ&#x20AC; HOG com, -// ZZZ MOO KX

11,500 12,200

www.rreef.com

7 + underground

www.madachtrade.hu

12,000 14,500

8+underground

MADĂ CH TRADE 63 CENTER

7+underground

30 6 months

7 260

Âť Âť

Âť

$& 1LHOVHQ .IW Etalon-Informatika .IW ,7/ *URXS .IW Naturadent, 3255 .IW

9,600 21,000

72 3

6 166

10â&#x20AC;&#x201C;12 4.30

9,386 10,665

350 3

5 185

9.50â&#x20AC;&#x201C;10 1,200 HUF

Unilever, EATON, restaurant Menta

9,174 9,907

20 1

5 199

7.50â&#x20AC;&#x201C;9.50 3.50

Roche, Continental +XQJDULD .IW Cushman & :DNHĂ&#x20AC; HOG .IW Johnson Diversey

â&#x20AC;&#x201C;

Âť

â&#x20AC;&#x201C;

9iFL XWFD &HQWHU .IW (100) â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

VĂĄci utca &HQWHU .IW www.vaciutcacenter.hu

â&#x20AC;&#x201C;

Colliers International, www.colliers.hu

â&#x20AC;&#x201C; (100)

1138 Budapest, VĂĄci Ăşt 182. (1) 429-5050 (1) 429-5055 RIĂ&#x20AC; FH#VLPPRDJ KX

â&#x20AC;&#x201C;

Cushman & :DNHĂ&#x20AC; HOG .IW

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; JP Morgan (100)

%XGD|UV PuskĂĄs Tivadar utca 12. (1) 225-0912 (1) 375-0445 RIĂ&#x20AC; FH#FRQYHUJHQ FH FRP

BLUE CUBE www.simmoag.hu 74

TERRAPARK NEXT A www.terraparknext.com

Find the best office for your needs. by CBRE

INDEPENDENT POWER SUPPLY

BICYCLE PARKING

LEASING AGENT, NAME, WEBSITE

WASTE RECYCLING

BANK BRANCH/ATM

IN-HOUSE FACILITY MANAGEMENT

SUITABLE FOR DISABLED PEOPLE

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

CURRENT MAJOR TENANTS

3 GREEN TECHNOLOGIES

SERVICES

RESTAURANT, CAFĂ&#x2030;

AVERAGE MONTHLY RENT ON APR. 1, 2015 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2015 (EURO/SQM)

NO. OF ELEVATORS NO. OF PARKING SPACES

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

NO. OF LEVELS

COMPANY WEBSITE

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDING (SQM)

RANK

Budapest Business Journal | May 08 â&#x20AC;&#x201C; May 21, 2015

NATURAL LIGHT AND AIR VENTILATION

WWW.BBJ.HU

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

1139 Budapest, VĂĄci Ăşt 99. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

1146 Budapest, +XQJiULD N|U~W Â˛ (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

â&#x20AC;&#x201C; (100)

1051 Budapest, %DMFV\ =VLOLQV]N\ ~W (1) 429-5050 (1) 429-5055 RIĂ&#x20AC; FH#VLPPRDJ KX

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1085 Budapest, .iOYLQ WpU (1) 225-0912 (1) 375-0445 &VDED ]HOH\# convergen-ce.com

BALANCE BUILDING www.balancebuilding.hu, www.cpigroup.hu 8,753 14,453

300 3

2 170

9.90 3.80

6WDUVFKHPD .IW

8 1,150 HUF

%XGDSHVW .|UQ\pNL 7|UYpQ\V]pN Groupama, Ă&#x2013;ko-Pannon

â&#x20AC;&#x201C;

C&W, ESTON

M3 BUSINESS CENTER "A" www.m3bc.hu, www.cpigroup.hu 8,700 9,980

90 3

2 121+225

CITY CENTER www.simmoag.hu 8,682 9,286

63 3

4 100

12.50 1,200 HUF

300 3

4 116

Âť

KĂ LVIN CENTER www.convergen-ce.com 79

INFOPARK BUILDING B www.infopark.hu

INFOPARK BUILDING I 81 www.infopark.hu

8,448 9,139

8,447

Âť

8,229

Âť

3.90

220 3

3 130

10.50â&#x20AC;&#x201C;13.00 3.30

50 3

3 100

10â&#x20AC;&#x201C;13 3.90

Tumlare, AFP, Associated Press, Itochu, Jetro, Sopron Bank, Dow Jones, Embassy of Belgium Wallonia Foreign Trade and Investment Agency, 3OD]PDIHUH]LV Ă llomĂĄs, Reed Faludi Wolf Theiss Ă&#x153;gyvĂŠdi Iroda, Alpiq (QHUJLD 0DJ\DURUV]iJ Texas Instruments +XQJDU\ .IW *(2; +XQJDU\ .IW .HOO\ 6HUYLFHV .IW $HJRQ 0DJ\DURUV]iJ

Âť

â&#x20AC;&#x201C;

C&W, ESTON

barbara. barath@ simmoag.hu. ]ROWDQ IDELDQ# simmoag.hu

ConvergenCE, www.convergen-ce.com

STRABAG Property and Facility Services Zrt., www. strabag-pfs.hu

â&#x20AC;&#x201C; HGA Capital (100)

STRABAG Property and Facility Services Zrt., www. strabag-pfs.hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; HGA Capital (100)

DiĂłfa Real Estate Investment Fund (100) â&#x20AC;&#x201C;

1082 Budapest, hOOĹ&#x192;L ~W (1) 888-4120 (1) 888-4171 DODSNH]HOR# GLRIDDODSNH]HOR KX

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

1146 Budapest, +XQJiULD N|U~W Â˛ (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

â&#x20AC;&#x201C;

0LOOHQiULV ,URGDKi] .IW

â&#x20AC;&#x201C;

1024 Budapest, /|YĹ&#x192;Ki] XWFD (1) 489-0202 (1) 489-0203 reception-hungary@ HX MOO FRP VDOHV#ZLQJ KX

â&#x20AC;&#x201C; HGA Capital (100)

1062 Budapest, Aradi utca 8â&#x20AC;&#x201C;10. (1) 210-0566 (1) 210-0095 borbala.farago@ strabag-pfs.hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

1139 Budapest, VĂĄci Ăşt 91. (1) 225-6600 (1) 225-6601 sales.hungary@cpipg. com

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1122 Budapest, Maros utca 19â&#x20AC;&#x201C;21. (1) 429-5050 (1) 429-5055 RIĂ&#x20AC; FH#VLPPRDJ KX

â&#x20AC;&#x201C;

Ă&#x153;48 OFFICE BUILDING ZZZ GLRIDDODSNH]HOR KX 7,648 8,145

127 5

5 126

12.00-13.50 3.60

Âť

3 121+225

8 1,150 HUF

Fornax ICT, Interticket, Credit Express

5 40

12.90â&#x20AC;&#x201C;14.90 1,200â&#x20AC;&#x201C;1,250 HUF

4 339

9.00â&#x20AC;&#x201C;11.50 3.50

â&#x20AC;&#x201C;

1117 Budapest, Infopark sĂŠtĂĄny 3. (1) 210-0566 (1) 210-0095 borbala.farago@ strabag-pfs.hu 1117 Budapest, Infopark sĂŠtĂĄny 1. (1) 210-0566 (1) 210-0095 borbala.farago@ strabag-pfs.hu

M3 BUSINESS CENTER "B"

MILLENĂ RIS CLASSIC 84 OFFICE BUILDING www.irodatkeres.hu, www.wing.hu

OKTOGON HOUSE 85 ZZZ RNWRJRQKD] KX

7,600 11,200

7,375 12,763

4+underground

www.m3bc.hu, www.cpigroup.hu

42 3

150 3

6,809

Âť

100 3

Âť

â&#x20AC;&#x201C;

C&W, ESTON

â&#x20AC;&#x201C;

-// .IW BercsĂŠnyi NĂłra, ZZZ MOO KX

â&#x20AC;&#x201C;

STRABAG Property and Facility Services Zrt., www. strabag-pfs.hu

â&#x20AC;&#x201C;

BUSINESS CENTER 91 www.cpigroup.hu 6,600 9,000

65 3

2 75

9.50 1,100 HUF

Danfoss, Mattel, Coty, Forum Media, *DU]RQ *) )DNWRU Grenkeleasing, BNM

150 3

4 69

11â&#x20AC;&#x201C;13 1,200 HUF

I-Insight, Educatio, Replise

â&#x20AC;&#x201C;

barbara. barath@ simmoag.hu. ]ROWDQ IDELDQ# simmoag.hu

MAROS UTCA BUSINESS CENTER www.simmoag.hu 87

6,534 7,166

â&#x20AC;&#x201C;

Find the best office for your needs. by CBRE

Âť Âť

2IĂ&#x20AC; FH RI Immigration and &LWL]HQVKLS

BANK BRANCH/ATM

IN-HOUSE FACILITY MANAGEMENT

SUITABLE FOR DISABLED PEOPLE

GREEN ENVIRONMENT

24-HOUR RECEPTION AND SECURITY SERVICES

WELLNESS AND SPORT SERVICES

RESTAURANT, CAFĂ&#x2030;

INDEPENDENT POWER SUPPLY

AVERAGE MONTHLY RENT ON APR. 1, 2015 (EURO/SQM) AVERAGE MONTHLY SERVICE CHARGE ON APR. 1, 2015 (EURO/SQM)

4 72

LEASING AGENT, NAME, WEBSITE

BICYCLE PARKING

NO. OF ELEVATORS NO. OF PARKING SPACES

5+1

Âť

GREEN TECHNOLOGIES

SERVICES

WASTE RECYCLING

MINIMUM LEASABLE OFFICE SIZE (SQM) MINIMUM LEASE TERMS (YEARS)

CURRENT MAJOR TENANTS

WWW.BBJ.HU

Budapest Business Journal | May 08 â&#x20AC;&#x201C; May 21, 2015

NATURAL LIGHT AND AIR VENTILATION

NO. OF LEVELS

COMPANY WEBSITE

NET OFFICE SPACE (SQM) TOTAL GROSS SIZE OF BUILDING (SQM)

RANK

28 3

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

ADDRESS PHONE FAX EMAIL

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1135 Budapest, 6]HJHGL ~W (1) 429-5050 (1) 429-5055 â&#x20AC;&#x201C;

â&#x20AC;&#x201C;

Magyar Posta TakarĂŠk Real Estate Investment Fund (100) â&#x20AC;&#x201C;

1027 Budapest, .DSiV XWFD Â˛ (1) 888-4120 (1) 888-4171 DODSNH]HOR# GLRIDDODSNH]HOR KX

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1065 Budapest, 1DJ\PH]Ĺ&#x192; XWFD (1) 429-5050 (1) 429-5055 RIĂ&#x20AC; FH#VLPPRDJ KX

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

1016 Budapest, +HJ\DOMD ~W Â˛ (1) 429-5050 (1) 429-5055 RIĂ&#x20AC; FH#VLPPRDJ KX

1027 Budapest, *DQ] XWFD (1) 346-6443 (1) 346-6448 NULV]WLQD PDMRU# raiffeisenevolution.com

TWIN OFFICE CENTER www.simmoag.hu 6,163 7,212

â&#x20AC;&#x201C;

barbara. barath@ simmoag.hu. ]ROWDQ IDELDQ# simmoag.hu

BUDA BUSINESS CENTER ZZZ GLRIDDODSNH]HOR KX 89

6,000 6,500

80 3

3 167

9â&#x20AC;&#x201C;12 3.65

350 3

2 87

11.50 1,100 HUF

Unicredit Bank

15 2

2 65

7â&#x20AC;&#x201C;10 1,150 HUF

OASE, Mood Media, PR-Agent, Rewart, Dow AgroSciences

5,500 9,600

570 3

2 79

12 3.80

5,390 (Phase 1) 5,961 (Phase 1)

200 3

2 258

10.00â&#x20AC;&#x201C;12.00 4

Exo-Bit, Ad Novum

â&#x20AC;&#x201C;

Colliers International, www.colliers.hu

â&#x20AC;&#x201C;

barbara. barath@ simmoag.hu. ]ROWDQ IDELDQ# simmoag.hu

PĂ&#x201C;DIUM www.simmoag.hu 5,722 5,890

â&#x20AC;&#x201C;

BUDA CENTER www.simmoag.hu 5,628 6,218

RESIDENCE 2 OFFICE BUILDING ZZZ UHVLGHQFHLURGDKD] KX 92

THE QUADRUM www.quadrum.hu

ANDRĂ SSY 12 www.andrassy-11-12.hu

5,007

Âť

11.00â&#x20AC;&#x201C;13.50 3.20

â&#x20AC;&#x201C;

JCDecaux Hungary, Platinium Group, Biomedica, RE SURMHFW GHYHORSPHQW .IW =(1 6WXGLR .IW &KHPLQRYD

Curver, Lufthansa 7HFKQLN 1.+ Truck Force One

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; (100)

â&#x20AC;&#x201C;

$,* /LQFROQ .IW www.aiglincoln.hu

â&#x20AC;&#x201C;

Âť Âť

2220 VecsĂŠs, Lincoln Ăşt 1. (1) 382-5100 (1) 382-5101 info@aiglincoln.hu

â&#x20AC;&#x201C;

STRABAG Property and Facility Services Zrt., www. strabag-pfs.hu

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; HGA Capital (100)

1061 Budapest, AndrĂĄssy Ăşt 12. (1) 210-0566 (1) 210-0095 borbala.farago@ strabag-pfs.hu

Âť

ESTON International, www.eston.hu DTZ, ZZZ GW] FRP

Âť

â&#x20AC;&#x201C; (100)

1027 Budapest, *DQ] XWFD (1) 501-2800 (1) 501-2801 RIĂ&#x20AC; FH#FDLPPR KX

â&#x20AC;&#x201C; CPI Property Group (100)

2200 VecsĂŠs, Ă&#x153;llĂ´i Ăşt 807. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

â&#x20AC;&#x201C;

List Group (100) â&#x20AC;&#x201C;

1075 Budapest, WesselĂŠnyi utca 16. (1) 479-6020 (1) 479-6029 RIĂ&#x20AC; FH#DGGYDOJURXS FRP

1117 Budapest, Budafoki Ăşt 209. (1) 225-6600 (1) 225-6601 sales.hungary@ cpipg.com

100 3

Âť

150 3

4 58

12.50â&#x20AC;&#x201C;13

180 1

3 150

9 3.50

Benteler, Trilak, .Â KQH 1DJHO FedEx, Panalpina, UPS, CEVA

105 2

2 40

Âť

TNS Hoffmann, Takenaka, FOX, Serendi, Gemalto, Peach Amber

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; CPI Property Group (100)

â&#x20AC;&#x201C;

GAMMA 3URSHUWLHV .IW

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; IVG Funds (100)

1062 Budapest, AndrĂĄssy Ăşt 93. (1) 382-7560 (1) 382-7570 RIĂ&#x20AC; FH#JDPPD DP KX

GAMMA 3URSHUWLHV .IW

â&#x20AC;&#x201C;

â&#x20AC;&#x201C; IVG Funds (100)

1052 Budapest, .iURO\ N|U~W (1) 382-7560 (1) 382-7570 RIĂ&#x20AC; FH#JDPPD DP KX

Âť

â&#x20AC;&#x201C;

CANADA SQUARE www.caimmo.hu 4,900 6,000

Âť

Canadian Embassy, Budapest City Court

Âť

Âť Âť

AIRPORT CITY LOGISTIC PARK www.airportcity.hu 96

4,000 30,000

AUSTRIA HOUSE 97

3,218

www.addvalgroup.com

Âť

4.20

â&#x20AC;&#x201C;

$GG9DO .IW www. addvalgroup. com

BC209 www.cpigroup.hu 2,258 2,600

ANDRĂ SSY 93 OFFICE 99 BUILDING www.gamma-am.hu

K6 OFFICES 100

www.gamma-am.hu

1,801

Âť

1,470

Âť

100 3

Âť 70

7 3.50

SmartX Solutions .IW ,7 :DUH .IW 8OWL1RXV .IW

Âť

1 12

12.75-13.95 4

Âť

240 1

8-9 4.3

Unicredit Bank, Distinction

Âť

â&#x20AC;&#x201C;

Find the best office for your needs. by CBRE

WWW.BBJ.HU

Budapest Business Journal | May 08 â&#x20AC;&#x201C; May 21, 2015

Facility management companies YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON APR. 1, 2015

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

â&#x20AC;&#x201C;

2004 506

WING Zrt. (49) 675$%$* 3URSHUW\ and Facility Services GmbH (51)

LĂĄszlĂł VĂĄgĂł Gyula JĂĄszai *iERU /DQGL

1095 Budapest, MĂĄriĂĄssy utca 7. (1) 299-2150 (1) 210-0095 LQIR#VWUDEDJ SIV KX

â&#x20AC;&#x201C;

1994 27

SĂĄndor CsĂĄnyi (Âť), SĂĄndor DemjĂĄn (Âť), SĂĄndor NyĂşl (Âť) 3HWHU 0XQN Âť)

Philip M. Evans =ROWiQ /HKRF]N\ 'iQLHO 3D]VLW]N\

1062 Budapest, VĂĄci Ăşt 3. (1) 374-6500 â&#x20AC;&#x201C; LQIR#WULJUDQLWPDQDJHPHQW FRP

(100) â&#x20AC;&#x201C;

Ferenc BatĂĄri â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1148 Budapest, )RJDUDVL ~W (1) 468-4080 (1) 468-4088 mail@future-fm.hu

OTHER

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

REAL ESTATE DEVELOPMENT

MAINTENANCE

FINANCE MANAGEMENT

INFRASTRUCTURAL SERVICES

MAJOR CLIENTS IN 2014

TECHNICAL SUPERVISION

SERVICES

OTHER (%)

LOGISTIC AND TRADE FACILITIES (%)

INDUSTRIAL FACILITIES (%)

PORTFOLIO

OFFICE BUILDINGS (%)

COMPANY WEBSITE

NET REVENUE FROM FACILITY MANAGEMENT IN 2014 (HUF MLN)

TOTAL NET REVENUE (HUF MLN) IN 2014

RANK

Ranked by total net revenue (HUF mln) in 2014

STRABAG PROPERTY AND FACILITY SERVICES ZRT. ZZZ VWUDEDJ SIV KX 1

12,100

11,900

â&#x20AC;&#x201C;

0DJ\DU 7HOHNRP 02/ TVK, Erste Bank, WING

â&#x20AC;&#x201C;

Inditex Group, H&M, ,0$; 0DUNV 6SHQFHU

â&#x20AC;&#x201C;

TRIGRANIT MANAGEMENT ZRT. ZZZ WULJUDQLWPDQDJHPHQW FRP 2

5,577

FUTURE FM LĂ&#x2030;TESĂ?TMĂ&#x2030;NYGAZDĂ LKODĂ SI 3 ZRT.

Âť

â&#x20AC;&#x201C;

KRAFT FM Ă&#x153;ZEMELTETĂ&#x2030;SI Ă&#x2030;S SZOLGĂ LTATĂ&#x201C; KFT.

â&#x20AC;&#x201C;

&OHDQLQJ technical operation, security services, JDUGHQLQJ FDU Ă HHW PDQDJH PHQW FDWHULQJ document PDQDJHPHQW

â&#x20AC;&#x201C;

2008 117

IstvĂĄn JĂĄszberĂŠnyi (64), 3pWHU 0HGYHF]N\

â&#x20AC;&#x201C;

IstvĂĄn JĂĄszberĂŠnyi, JĂĄnos Kocsis BalĂĄzs Erdei â&#x20AC;&#x201C;

1139 Budapest, 3DS .iURO\ XWFD Â˛ (1) 465-7050 (1) 465-7051 info@kraft-fm.hu

â&#x20AC;&#x201C;

Surface specialist processes

2005 18

(100) â&#x20AC;&#x201C;

(UQĹ&#x192; 1DJ\ â&#x20AC;&#x201C; â&#x20AC;&#x201C;

1136 Budapest, 3DQQyQLD XWFD (1) 339-8569 (1) 238-0422 info@fakultasfm.hu

5($/ 6RIWZDUH .IW Âť) , Drexler & Co +ROGLQJ .IW Âť) â&#x20AC;&#x201C;

GĂĄbor DĂŠcsi Zsolt Jurecska .LQJD .XUWD

1023 Budapest, /DMRV XWFD Â˛ (1) 423-0000 (1) 423-0001 LQIR#GRPHIVJ KX

5,384

Âť

2,791

Âť

273 %DQN 1\UW %13 3DULEDV 5HDO (VWDWH 0DJ\DURUV]iJ .IW GDF SUEZ, Erste ,QJDWODQ .IW

72.60

&RFD &ROD +XQJDU\ 'DQXELXV +RWHOV $,* /LQFROQ 'HEUHFHQL 6SD

â&#x20AC;&#x201C;

(QHUJHWLFV Ă&#x20AC; W RXW

FAKULTĂ S FM LĂ&#x2030;TESĂ?TMĂ&#x2030;NYGAZDĂ LKODĂ SI KFT. 5

5,384

www.kraft-fm.hu

www.fakultasfm.hu

BĂĄcs-Kiskun County hospital, Budapest (UĹ&#x192;PĹ? =UW Szombathely prison, Vodafone 0DJ\DURUV]iJ =UW

www.future-fm.hu

â&#x20AC;&#x201C;

937

927

6.40

â&#x20AC;&#x201C;

1991

Âť

DOME FACILITY SERVICES GROUP KFT. ZZZ GRPHIVJ KX J

735

510

â&#x20AC;&#x201C;

Raiffeisen Real Estate )XQG (XUySD 5HDO Estate Investment )XQG %LJJHRUJHÂˇV +ROGLQJ (VWRQ International Zrt.

491

479

â&#x20AC;&#x201C;

,PPRĂ&#x20AC; QDQ] $* Emerson Worldwide, Brooke Henderson *URXS 836

â&#x20AC;&#x201C;

1999 44

7LERU %DORJK

â&#x20AC;&#x201C;

Szabolcs Pataki *\|UJ\ 2VYiWK GĂĄbor Kelemen

1112 Budapest, %UDVVy ~W (1) 248-3800 (1) 248-3809 center@millenia.eu

275

â&#x20AC;&#x201C;

$NiFOLJHW /RJLVWLFV Center Kft., Erste Mutual Investment Fund, Cushman & :DNHĂ&#x20AC; HOG .IW

â&#x20AC;&#x201C;

)LW RXW HQHUJ\ PDQDJHPHQW FRQVXOWLQJ

2012 19

$QGUiV 6yO\RP Dorottya GyĂśrk 6yO\RPQp

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4 Socialite Wine: Classy Kékfrankos comes of age Hungary’s most widely planted red is finally showing its true colors. ROB SMYTH

Following last month’s Kékfrankos Most! tasting held at the Sofitel Budapest Chain Bridge hotel, there was a tangible feeling left on the palate that Hungary’s most widely planted red wine grape is finally making classy wines up and down the land. The quality bar of this once maligned bulk wine workhorse is consistently being raised as Hungarian vintners realize the importance of having a local flagship grape. And a damned good grape this is. Pelzberg comes from the often− overlooked southern Hungarian region of Tolna and the Grál Winery. The winery’s far from cheap Pelzberg Kékfrankos Válogatás

2012 came out of the blue to win the recent Kékfrankos blind tasting organized by Borászportál Bormagazin, winning over the jury with its freshness, fruitiness, elegance and balance; properties that have all too often been missing from Hungarian red wines made from the grape. The grape also makes for a killer rosé thanks to its refreshingly high acidity and the lively strawberry and raspberry notes it oozes when picked early. 2014 looks set to see some big rosés hit the shelves as some of the fruit in this tricky vintage was viewed by vintners as not being good enough for red but fine for good rosé. This appeared to be the case with organic Gajdos from Eger whose 2014 was mouth filling and very satisfying with juicy cherry notes. Another good one from 2014 came from fellow Eger producer János Boyki, with tutti frutti and watermelon aromas and flavors. These two producers also impressed with their reds; the former’s 2009 packing in a wide range of floral, red fruit and forest floor notes. Despite being quite intense,

this wine tipped the scales at a welcomingly restrained 13.5% alcohol. It’s also nice to find some older vintages of Kékfrankos knocking around, which are hard to come by as not much gets set aside. However, this is a grape, which picks up considerable complexity as it ages.

Serious complexity Also in the north eastern region of Eger, the exciting young winemaker Marcell Bukolyi has the knack of getting that bit more out of Kékfrankos than is usual and the barrel sample from 2013 from the limestone of Nagy Eged Hill looks set to become another fine wine. His 2009 was picking up serious complexity with a nice tobacco note emerging alongside the juicy forest fruit. Sometimes Kékfrankos is at its best forming the backbone of flagship blends, such as Bikavér in both Eger and Szekszárd. Eger’s St. Andrea only uses the grape these days for Bikavér and to very good effect. Merengő 2011 is currently coming into its own with a striking range of youthful

to more mature flavors from sour cherry, raspberry, blackcurrant to eucalyptus and black pepper to burnt leaves. From Sopron, which dangerously dubs itself as the “Capital of Kékfrankos” despite the fact that many of its offerings can be thin and tart, Garger impressed with Kék, which had fruit, spice and a nice chunky touch of tannin to give the wine grip. It is worth noting that some of the most consistently impressive Kékfankos in Hungary comes from biodynamic Austrian winemaker Franz Weninger who plies his trade on both sides of the border. Etyeki Kúria also has vineyards in Sopron and its debut single varietal Kékfrankos offering from the 2013 vintage is a nice addition to its stellar portfolio. Down in the warmer southern climes of Villány, where the grape exudes more black fruit notes than elsewhere, Sauska and Heumann showed the fuller face of the variety with impressively muscular efforts that were held together by the grape’s trademark lively acidity.

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4 Socialite

Budapest Business Journal | May 08 – May 21, 2015

Fine dining: Magyar QTR

several regions represented. Ask the staff to guide you through a liquid tour of the Hungarian countryside. Though the name has changed, the management and the chef remain, and they continue to run a laid-back establishment with a lovely riverside terrace, perfectly located for sipping summer whites and rosés. It’s open noon to midnight and makes an excellent choice for a meal near the Great Market Hall. See more at www.magyarqtr.com

EXPERT OPINION

Continental’s OEM share in Europe over 30% Daniel Rábai CEO CONTINENTAL HUNGARIA KFT 2014 was a very strong year for Continental as a supplier of original equipment tires to vehicle manufacturers, with sales to both European and Asian automakers contributing to the positive outcome. In Europe, Continental obtained additional approvals from manufacturers across almost all vehicle categories, from sub-compact cars to luxury limousines. At the same time, new deals were concluded in Asia, not least with local Chinese manufacturers – a first for Continental. The tire specialist from Hanover offers a wide range of options for original equipment tires and can develop matching solutions for almost any vehicle concept. For many years now, Continental has maintained a strong presence among European manufacturers. “We have cornered over one third of the original

equipment market in Europe” says Daniel of these products are manufactured at Rabai, CEO of Continental Hungaria Kft. the Continental plant in Hefei, China. By “But that doesn’t mean we can meet every producing ‘in the market for the market’, customer requirement almost without the company eliminates the expensive trying. On the contrary, developing the and complex business of transporting tires for the various types of vehicle is tires to China from Europe or the US. invariably a major challenge that calls “On the Hungarian replacement for every effort from our engineers.” As market, Continental saw a growth of well as shipping original equipment 11,5% in 2014 compared to 2013. With tires to automakers, Continental also this increase the total sale of car tire supplies the aftermarket, be it through manufacturers in Hungary reached 2,35 car dealerships or through the tire trade. million pieces, approaching the volume Many of the premium manufacturers of the market before the financial crisis have additional letters or symbols added years. The middle class segment’s to the sidewall of tires that they have ‘quality’ products showed the most significant growth by 14,9%, while approved. Continental’s products proved a premium tire sales increased by 9,3% success with the US automakers, too. and budget segment products grow by There the company meets around 10,8%.” says Daniel Rábai. “Regarding one sixth of the demand for original the seasons, the turnover of summer equipment tires and, given the current tires increased by 14,6% and winter tire buoyancy of new car sales in the US, segment gained by 8,6%” – he adds. the company see additional potential Recent years have brought an ongoing for Continental. Success stories from rise in automakers’ expectations of Asia are another positive development their tire manufacturers. Earlier mostly for the Hanover-based company. Here, safety, handling, comfort, and mileage Continental now supplies not only were the only things that counted, Japanese and Korean automakers, but today low rolling resistance, puncture Chinese manufacturers as well. Most resistance, very low noise generation,

and adaptation to powertrain and engine concepts have also come to the fore. This led, for instance, to Continental developing ContiSeal technology for one major vehicle manufacturer, a system that enables the tire to automatically reseal smaller punctures in the tread. Several other manufacturers put their trust in ContiSilent technology, where a special material inside the tire ensures low noise levels in the vehicle interior. Increasingly, the manufacturers are calling for easily identifiable marking of these special tires. Audi, for example, has its tires marked AO (Audi Original), while BMW tires feature a star, and Mercedes tires bear the letters MO. For the near future, Rábai is expecting this trend to continue: “For us as manufacturers these markings are a means of profiling our own brand in the tire sector, as well as indicating the various performance characteristics.” Rábai goes on to note, however, that “normal” car tires for the aftermarket are as suitable as ever for universal use with the highest safety standards. The car driver, he says, cannot really tell the difference between replacement tires and original equipment.

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

After a few years of using the odd name “The Cheetah and the Spaceship”, which came from the label of a boutique Hungarian wine, the owners of the restaurant at Belgrád Rakpart 18 have renamed their establishment Magyar QTR. Indeed it is a “Hungarian quarter”, featuring creatively updated traditional dishes like fogas from Lake Balaton with garlic risotto, smoked pork tongue with radish salad and pig knuckle in “Mrs. Pékʼs style”. Also very Hungarian, and very well chosen, is the wine list, with vintners from