Budapest Business Journal 23/22

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of five months, takes a minimum with clients Zolyomi meets of the soil and needs, rich minerality to assess their as well as course their microclimate desires and of varieties takes that indigenous grape producing scent and then for the lab to make it ideal information to world’s best match. some of the create the best service dry vintages 2 wines. Although popularity, The fee for the million in 2 are growing starts at HUF €30,000. best known to Tokaj is still and can go up wines. Tokaji diplomats for its sweet Distinguished is among stars are Essencia (Essence) all Tokaji and movie of who seek the most rare among those extracted is bespoke wines. The juice out Zolyomi’s sheer weight through the fragrances. the sugar m of the grapes and zolyomiparfums.co high, in the content is very Essencia Royal’s case of This nectar 6. Zsolnay Porcelain 2007, 560g/liter. with dry AnIkO fenyvesI signature is usually blended Known for its Tokaji techniques wines to produce eosin glazing case it has this tiles that in but colorful Shoes in Asszú and the 1. Vass can be of a leading shoemakerline been left intact and adorn the rooftops and László Vass is long the small crystal comes from a the Mátyás Church Hall, his sipped from the Hungary who included in works closely with the Great Market pieces spoons price of the bottle: of craftsmen and porcelain produce beautiful is Hungarian daughter Éva to garnered purchase Zsolnay’s 30,000. The wine has Vass Shoes has manufacturer for the HUF for your feet. porcelain straw color and is following in part precious It tourist- a light, an international made are location near the high- fresh notes of apricot. creations having store’s central priced but also for its bodied, despite by hand and limited but heavy Váci utca, and unique bespoke full 2% alcohol content 8 accordingly. Its quality products and more only extremely high sugar to offers classic series are preparedby a of colors the services. Vass balanced by elegant in a wide range and accompanied Shoes ratio is modern designs order, numbered that includes cordovan leathers. acidity. authenticity of in both calf and traditional her husband certificate hand using the size and the Chef Szabina Szulló and selection.hu are crafted by a wonderful job Bespoke and from the year of production, Széll have done of the series. Pick and are also shoemaking techniques. ordinal number vases, unusual flatware, TamásExciting flavor combinations shoes for women of it. ornate ready-to-wear as accessories for men. 4. NUBU back innovative from local beautifully Sure to be a showpiece sumptuous textures readyinventive tiles. available as well or for collection jewelry HUF 135,000 technology and is a piece produced of for The fall-winterNUBU was inspired by Prices start at in any home. Shown artist Viktor Erdei. culinary Reinterpretations the up to HUF 250,000 design house in to-wear models Molnár’s tetragonal Zsolnay in house pieces come with a presentation. are on offer visual artist Vera fabrics, forms and by regional cuisine bespoke boots. the Menu” (from HUF More ornate Zsolnay€20,000. constructions; of the painter’s “Hungarian Evolution more adventurous vass-cipo.hu tag as high as the colors are all reminiscent let the cloth price courses 28,000) while designers comprises eight of zsolnay.hu works. NUBU’s wine “Tasting Menu” range speak for itself in the construction A set menu of 2. Omorovizcaskin care cross (from HUF 31,900).

Vouchers can to pieces. Belts that Gallery Home-grown is also available. their statement its product range accentuate 7. Kieselbach bank also pairings restaurant, via Omorovizca credits history of Budapest’s under wide plies of fabric and collars. the gallery at Budapest be purchased the 2,000-year-old Omorovizca family angular cuts, pocket shapes black, off- This private card.

The auction house specializing transfer or by credit century NUBU’s signature colors are functions as an thermal springs. from 1850-1950 Spa in the 19th grey but are highlighted in a onyxrestaurant.hu Hungarian painters built the Rácz brand was founded white, beige and and blue. in shown, “Flowers auction but the Omorovizca by a descendent of this season by red, dark mauve similar such as the work an at shirts sold Vaszary 2005 his collection uses Artelli tailor made much later in Vase” by János NUBU’s men’s de Heinrich and e for HUF 61 million. 9. feature linen made-to-measur earlier this year the family, Stephen have come up with a elements to the women’s and was established Artelli produces They imported fabrics, accentuated The Kieselbach Gallery and wife Margaret. finest cottons the healing effects and other natural textile details. All items by art historian Tamás Kieselbachworks shirts using the technique for distilling Thomas Mason skincare line. by elegant and sporty Hungarian their NUBU’s rare into England’s from selection directly top frequently exhibits of thermal waters well. If you from Choose from a are among their can be purchased út. exhibitions as and buttons and at non-selling Anti-aging productsto restore the skin’s flagship store on Andrássy December manufacturer. the auction on of fabrics, patterns, measurements Blue can’t make it to sellers and claim The premium nubu.hu website lists paintings a tailor will take your calls and even 21, Kieselbach’s collagen production. house cell regeneration category. in store or make product. Artelli also for sale by thematic Diamond line promotes while perennial 5. Le Parfum Croisette deliver the finished e suits and of the dermis (€175-360), studied kieselbach.hu go the Thermal Cleansing produces made-to-measur Zsolt Zolyomi favorites include start at €150 and contains Hungarian Master perfumer in France voucher denim jeans. Shirts depending on how Balm (€58), which Héviz Lake region. the art of fragrance creation the armed with 8. Onyx Restaurant up in €10 increments would like, such moor mud from and spa is and returned to Hungary trade. His corner from extra details you of pearl buttons, flagship store of his just around the shop on many Omorovicza’s mother út, nestled among the unique skills personal fragrance Located Gerbaud cake as monograms, squares. Hours are set from the renowned located on Andrassy pocket services range brand shops.

3-8 tér, the Michelin-starred a range of limited high-end fashion man: Open from and offers matching consultation (including perfumes from Vörösmarty a lavish interior that can to suit the working sports spoken.

Onyx omorovicza.com German perfume series, handcrafted culinary experience mission p.m. English and or personalized the a unique HUF 69,000) hours. Onyx’s artelli.hu latter involves last up to three cuisine and 3. Royal Tokaji–Aszú preparation. The that perfectly update Hungarian of a bespoke scent which is to Essencia 2007 oldest creation own. In the process, region is the The suits your The Tokaj wine botrytized wines. producer of

on a Our expert went spree fantasy shopping presents and found fancy the here. If you want it best, and you want these from Budapest, local, unique, and very bill. gifts may fill the

Luxury shopping

Business Journal Budapest

Vol. 23. number 22

NOV 27, 2015 – DEC 10, 2015

Hungary’s practical business bi-weekly since 1992 | www.bbj.hu

HUF 1,250 | €5 | $6 | £3.5

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News

Debt reduction not enough for Fitch Hungary’s hopes of having its sovereign debt rating upgraded from ‘ junk’ status were dashed by familiar concerns about political stability, the business environment and external debt. 3

special report

Giving luxury for the holidays If you are ready to splash out for the holidays, we help you find the the best that Budapest has to offer.

Whether you shop online, or on the luxury boulevard of Andrássy út, these gifts can impress. 14

Business

Photo: Mátyás Pődör

Shortage of retail property anticipated Erste Hungary CEO Radovan Jelašić talks about the economy, and his bank’s determination to pitch in, but warns that new burdens on the sector could be a deal breaker. 8

news

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Hungary was underrepresented at Europe’s big retail real estate meet in Cannes, most likely because there is limited retail development here.

The demand for space is seen as outstripping supply. 10

business

EC probe a potential problem for Paks plan

Trying to add value to value added tax

The Commission is investigating whether Rosatom’s no-bid contract to upgrade the nuclear plant amounts to state aid. Expansion has not yet been suspended by the procedure, but that remains a possibility. 4

Top government officials from around CEE gathered in Budapest to seek ways to address a common challenge: Nobody wants to pay their VAT. The problem is said to cost Hungary €2.93 billion a year.

12

special report

Santa Claus relies on logistics parks As e-commerce grows, so does the need for logistics centers to handle deliveries.

The growing demand is transforming the industrial retail sector in Hungary, where the amount of available logistics space is limited. 18

2015.11.25. 19:54

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Budapest Business Journal | Nov 27 – Dec 10, 2015

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of five months, takes a minimum with clients Zolyomi meets of the soil and needs, rich minerality to assess their as well as course their microclimate desires and of varieties takes that indigenous grape producing scent and then for the lab to make it ideal information to world’s best match. some of the create the best service dry vintages the 2 wines. Although popularity, The fee for in 2 million are growing starts at HUF €30,000. best known to Tokaj is still and can go up wines. Tokaji diplomats for its sweet Distinguished is among stars are Essencia (Essence) all Tokaji and movie of who seek the most rare among those is extracted bespoke wines. The juice out Zolyomi’s sheer weight through the fragrances. the sugar of the grapes and zolyomiparfums.com high, in the content is very Essencia case of Royal’s This nectar 6. Zsolnay Porcelain 2007, 560g/liter. with dry AnIkO fenyvesI signature is usually blended Known for its Tokaji techniques wines to produce eosin glazing tiles that in this case it has in Asszú but and the colorful can be of a leading shoemakerline been left intact and adorn the rooftops and László Vass is long the small crystal comes from a his sipped from the Mátyás Church Hall, the Hungary who included in works closely with the Great Market pieces spoons price of the bottle: of craftsmen and porcelain produce beautiful is Hungarian daughter Éva to garnered purchase Zsolnay’s 30,000. The wine has Vass Shoes has manufacturer for the HUF for your feet. porcelain straw color and is following in part precious It tourist- a light, an international made are location near the high- fresh notes of apricot. creations having store’s central priced but also for its bodied, despite by hand and limited but heavy Váci utca, and unique bespoke full 2% alcohol content 8 accordingly. Its quality products and more only extremely high sugar to offers classic series are preparedby a of colors the services. Vass balanced by elegant in a wide range and accompanied Shoes ratio is modern designs order, numbered that includes cordovan leathers. acidity. in both calf and her husband certificate of authenticity hand using traditional the size and the Chef Szabina Szulló and selection.hu are crafted by a wonderful job Bespoke and from the year of production, Széll have done and of the series. Pick are also shoemaking techniques. ordinal number vases, unusual flatware, TamásExciting flavor combinations shoes for women of it. ornate innovative ready-to-wear as accessories for men. 4. NUBU local beautifully tiles. Sure to be a showpiece sumptuous textures back inventive available as well for readycollection from jewelry or HUF 135,000 technology and is a piece produced of for The fall-winterNUBU was inspired by Prices start at in any home. Shown artist Viktor Erdei. culinary Reinterpretations the up to HUF 250,000 design house in to-wear models Molnár’s tetragonal Zsolnay in house pieces come with a presentation. are on offer visual artist Vera fabrics, forms and by regional cuisine bespoke boots. the Menu” (from HUF More ornate Zsolnay€20,000. constructions; of the painter’s “Hungarian Evolution more adventurous vass-cipo.hu tag as high as the colors are all reminiscent let the cloth price courses 28,000) while designers comprises eight of zsolnay.hu works. NUBU’s wine “Tasting Menu” range speak for itself in the construction A set menu of 2. Omorovizcaskin care cross (from HUF 31,900).

Vouchers can to pieces. Belts that Gallery Home-grown is also available. their statement its product range accentuate 7. Kieselbach via bank also pairings Omorovizca credits history of Budapest’s under wide plies of fabric and collars. the restaurant, Budapest gallery be purchased at the 2,000-year-old Omorovizca family angular cuts, pocket shapes black, off- This private card.

The auction house specializing transfer or by credit century NUBU’s signature colors are functions as an thermal springs.

1850-1950 Spa in the 19th painters from grey but are highlighted in a onyxrestaurant.hu built the Rácz brand was founded white, beige and and blue. in Hungarian shown, “Flowers but the Omorovizca by a descendent of this season by red, dark mauve similar such as the work an auction shirts Vaszary sold at 2005 his collection uses Artelli tailor made Vase” by János much later in NUBU’s men’s de Heinrich and for HUF 61 million. 9. feature linen made-to-measure earlier this year the family, Stephen have come up with a elements to the women’s and was established Artelli produces They fabrics, accentuated The Kieselbach Gallery and cottons imported wife Margaret. the healing effects and other natural All items Tamás Kieselbachworks shirts using the finest Mason textile line. sporty details. by art historian technique for distilling Hungarian into their skincare top by elegant and England’s Thomasfrom a selection directly from NUBU’s frequently exhibits rare of thermal waters well. If you from Choose are among their can be purchased út. exhibitions as and buttons and at non-selling Anti-aging productsto restore the skin’s flagship store on Andrássy December manufacturer. the auction on of fabrics, patterns, measurements Blue can’t make it to sellers and claim The premium nubu.hu website lists paintings a tailor will take your calls and even 21, Kieselbach’s collagen production. house cell regeneration category. in store or make product. Artelli also for sale by thematic Diamond line promotes while perennial 5. Le Parfum Croisette deliver the finished suits and of the dermis (€175-360), studied kieselbach.hu go the Thermal Cleansing produces made-to-measure Zsolt Zolyomi start at €150 and favorites include contains Hungarian Master perfumer in France denim jeans. Shirts depending on how Balm (€58), which Héviz Lake region. the art of fragrance creationarmed with 8. Onyx Restaurant voucher the up in €10 increments would like, such moor mud from and spa is and returned to Hungary trade. His corner from extra details you of pearl buttons, flagship store of his just around the shop on many Omorovicza’s mother út, nestled among the unique skills personal fragrance Located Gerbaud cake as monograms, squares. Hours are set from the renowned located on Andrassy services range brand shops. tér, the Michelin-starred a range of limited matching pocket Open from 3-8 high-end fashion interior and offers to suit the working man: consultation (including perfumes from Vörösmarty sports a lavish that can omorovicza.com German spoken. perfume Onyx series, handcrafted culinary experience mission p.m. English and or personalized the a unique HUF 69,000) hours. Onyx’s artelli.hu latter involves last up to three cuisine and 3. Royal Tokaji–Aszú preparation. The that perfectly update Hungarian of a bespoke scent which is to Essencia 2007 oldest creation own. In the process, region is the The suits your The Tokaj wine botrytized wines. producer of

on a Our expert went spree fantasy shopping presents and found fancy the here. If you want it best, and you want these from Budapest, local, unique, and very bill. gifts may fill the

1. Vass Shoes

Luxury shopping

Business Journal Budapest

Vol. 23. number 22

noV 27, 2015 – DeC 10, 2015

Hungary’s practical business bi-weekly since 1992 | www.bbj.Hu

HUF 1,250 | €5 | $6 | £3.5

ready to lend a hand

news

Debt reduction not enough for Fitch Hungary’s hopes of having its sovereign debt rating upgraded from ‘ junk’ status were dashed by familiar concerns about political stability, the business environment and external debt. 3

giving luxury for the holidays

business

Photo: Mátyás Pődör

shortage of retail property anticipated Hungary was underrepresented at Europe’s big retail real estate meet in Cannes, most likely because there is limited retail development here.

The demand for space is seen as outstripping supply. 10

news

business

EC probe a potential problem for paks plan

Trying to add value to value added tax

The Commission is investigating whether Rosatom’s no-bid contract to upgrade the nuclear plant amounts to state aid. Expansion has not yet been suspended by the procedure, but that remains a possibility. 4

Top government officials from around CEE gathered in Budapest to seek ways to address a common challenge: Nobody wants to pay their VAT. The problem is said to cost Hungary €2.93 billion a year. 12

Budapest Business Journal 1 year HUF 27,500+VAT 6 months HUF 13,750+VAT 3 months HUF 6,875+VAT

special report

If you are ready to splash out for the holidays, we help you find the the best that Budapest has to offer.

Whether you shop online, or on the luxury boulevard of Andrássy út, these gifts can impress. 14

erste Hungary ceo radovan Jelašić talks about the economy, and his bank’s determination to pitch in, but warns that new burdens on the sector could be a deal breaker. 8

Call +36 1 398-0344, or email circulation@bbj.hu

special report

santa Claus relies on logistics parks As e-commerce grows, so does the need for logistics centers to handle deliveries.

The growing demand is transforming the industrial retail sector in Hungary, where the amount of available logistics space is limited. 18

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the editor says

Refugees are victims, not a threat The reactions of fear and suspicion after the horrible terrorist attacks in Paris are understandable – and they are also just what the terrorists want. The reactions from our prime minister have been predictable, and while innocent deaths are obviously not what he wanted, it does seem to play nicely into his narrative.

In fact, Prime Minister Viktor Orbán has shown little shame about trying to make political hay out of the tragedy in Paris.

Investigations indicate that the terrorists in the Paris attack were not refugees, which makes sense: Refugees are fleeing the violence in Syria, while ISIS is helping to cause it. ISIS has made it clear that they do not like refugees and they do not think people should flee Syria.

They think Syrians should stay and fight – on their side.

As for those who will not join ISIS, the group has proven eager to enslave, torture, rape and murder them.

Some have expressed the fear that members of ISIS would enter Europe or the United States by posing as refugees, but the refugee trail is long and arduous, with the potential for screening at every border.

Unfortunately, ISIS has a network of cooperative members already living in the West. These people can come and go from Europe by getting on a commercial airliner, and only passing through a single passport check. In fact it was such residents of Europe who are blamed in the Paris attacks.

Many of those who would demonize the refugees as potential terrorists are simply mistaken, but in the case

of our prime minister, it appears to be cynical posturing.

He has been ratcheting up his anti-immigrant rhetoric and acting as if the attacks in Paris proved that his intolerance toward refugees was prescient instead of cruel. Playing on people’s fears rather than seeking to address the real causes of our problems is a classic tactic for demagogues like our prime minister. He has seen his popularity rise in the polls due to his fear mongering and he seems likely to play this one note for as long as anyone will listen – though the issue has relatively little to do with Hungary. Even before Hungary diverted the flow of refugees to other countries, almost all of the asylum seekers entering our borders were just passing through on their way to the West. A more relevant concern is the economic migration out of Hungary, as the number of people leaving for greener pastures has always been greater than the number of refugees entering the country.

It is a shame that our leader is ignoring the many true problems that his country has, but we should not be blinded by his hateful bluster. If we are going to defeat the real enemy, it is important to know who they are.

When we lump refugees together with terrorists, and let fear encourage broad hatred, we are doing exactly what the terrorists want.

We need to rise above the fear that the terrorists seek to sow, and that our prime minister seems eager to encourage. We need to fight the real enemy, the terrorists, instead of blaming the victims, the refugees.

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The Budapest Business Journal’s print run is audited by MATESZ, 1034 Budapest, Bécsi út 122-124, a member of IFABC.

Váci utca, one of the main shopping streets of Budapest, features a large number of restaurants and shops, well-frequented by tourists.

In December the street comes alive with festive lights and Christmas shoppers. Above is the street with the Central Market Hall in the background in 1905, and on the left is a more recent view, from December 2004.

2015.11.25. 19:54

1 News BBJ

news

MNB announces acquisition of Budapest bourse  4

news

Here come yuan bonds  5

macroscope

Fitch disappoints with continued ‘junk’ rating Hungary’s reduction of external debt was not enough to earn an upgrade. Political stability, business environment and indebtedness remain the drags, according to the rating agency.

Speaking x of figures

The Budapest Business Journal presents some of the most important macro data of the past fortnight.

3.9%

zsófia czifra

BBJ_2322_news.indd 3

Mónika Kiss, senior analyst with Equilor Befektetési Zrt.

Increase in average gross wages of Hungarian workers in year-on-year terms in the period of January-September, with September figures being lifted chiefly by a salary increase of armed forces and the payment of an additional allowance for those working in the social services sector, Hungary’s Central Statistical Office (KSH) said on November 20.

What about the base rate?

Interest rate expectations in Hungary are not directly linked to the sovereign debt rating, but are rather derived from the inflation forecast, output gap conditions (a measure of unused capacity in the economy) and a complex valuation of the local and international macroeconomic environment, according to Mónika Kiss, senior analyst with Equilor Befektetési Zrt. So the Hungarian National Bank (MNB) instead focuses on European Central Bank (ECB) communications, suggesting that it would adopt a looser monetary policy stance looking forward, continued uncertainty about an interest rate increase from the Fed, and concerns over growth prospects in emerging economies.

During the summer the MNB declared that the interest rate cut cycle was finished, but the easing cycle would be continued with non-conventional tools.

The central bank aims to flatten the yield curve of Hungarian government bonds and to bring the entire yield curve lower, and also plans steps to boost lending to small firms, Márton Nagy, deputy governor disclosed on November 4. Equilor expects the interest rate to remain at 1.35% until the end of 2016, while nonconventional tools might be introduced after the ECB’s meeting in December or early January.

The agency expects the headline deficit to be 2.1% in 2016 and to remain close to 2% in the medium-term as improving economic conditions offset expected tax cuts. The structural deficit is likely to remain stable in the mediumterm at 2.5%.

Debt expected to decline Commenting on government debt, Fitch analysts project a gradual decline from 76.1% last year to 72% by the year 2017 and further to 61% in the year 2022. In order to stay on track with that forecast, Hungary needs to reach approximately 5% nominal economic growth and to curb the budget deficit at 2%.

The current account surplus will increase to 4.3% of GDP in 2015 and remain high over the forecast horizon, reflecting higher exports, low commodity prices, low domestic demand relative to the pre-crisis era

and lower external interest payments, the report noted.

According to Fitch, the desired upgrade from junk status to investment grade requires three elements: Greater political stability and an improved business environment; continued reductions in external indebtedness, supported by current account surpluses; and a reduction in the government debt ratio.

“We expect the first upgrade during the spring of 2016. Greater policy stability, further reductions in the government debt ratio, and continued lowering of external indebtedness are a must currently. In our view, Fitch might break the ice first, followed

by Moody’s,” Kiss from Equilor said.

The list of upgrade requirements does not come as a surprise, as these factors have been repeatedly mentioned over the past few years by all three major ratings agencies. Fitch, Moody’s and S&P are expected to release their 2016 schedules in December.

83%

Proportion of Hungarian internet users who regard being online as a family program, which may include social media usage, online shopping, listening to music, or watching movies, according to a report by eNET entitled ‘Report on the Internet Economy’ and published on November 24.

1.6%

Planned increase in state pension payments made to 2.6 million pensioners, according to a statement by Minister of Human Capacities Zoltán Balog on November 20.

91.5% Hungaryʼs cashflow-based general government deficit, excluding local councils, by the beginning of November.

The deficit reached HUF 816.2 billion of the HUF 892.4 bln full-year target at the end of October, the National Economy Ministry said on November 19.

Source: KSH, MTI

To the disappointment of many, Fitch Ratings left Hungary’s sovereign debt rating in the BB+ category – just one notch below investment grade – on November 20, while keeping the country’s outlook positive.

“Hungary’s long-term sovereign debt has remained in the junk bond category in 2015, the noticeable reduction in external debt not enough to support an upgrade,” Mónika Kiss, senior analyst with Equilor Befektetési Zrt told the Budapest Business Journal.

She said the key rating drivers are the strong economic growth performance in 2014-2015 and high current account surpluses since 2011, supporting external debt reduction. The key economic policy objective from the government and the National Bank of Hungary is to promote commercial lending, and the “SelfFinancing Program”, which increases domestic ownership of government debt. “All agencies would like to see the implementation of the memorandum of understanding agreed between Hungary and the European Bank for Reconstruction and Development (EBRD) and further proof of current trends,” Kiss said.

Fitch expects that Hungary’s GDP will grow 2.9% in 2015 after 3.7% in 2014, driven by an acceleration of European Union (EU) fund disbursements in 2014-2015. High job creation (the unemployment rate was 6.4% in September, whereas it had been above 10% in 2010-2012), low inflation, and relief to household finances following the foreign currency mortgage conversion in early 2015 all support household consumption.

Fitch forecasts that growth will slow from 2016 to 2.3%, as EU disbursement falls markedly, and to remain at about 2% in the medium-term as private sector investment gradually recovers. The ratings agency expects the government deficit to be 2.3% of GDP in 2015, down from 2.5% in 2014, supported by higher tax revenues linked to fast GDP growth. A decline in interest payments (expected to be 3.5% of GDP in 2015 from 4% in 2014 and 4.5% in 2013) linked to very low interest rates domestically and externally, is helping to contain current expenditures.

MACRO

2015.11.25. 19:54

www.bbj.hu

04 News

Budapest Business Journal | Nov 27 – Dec 10, 2015

EC probes Paks, could halt upgrade The €12 billion deal to upgrade Hungary’s sole nuclear power plant in Paks remains in doubt after the European Commission officially announced on November 23 that it had launched an in-depth investigation into the no-bid contract to hire Russia’s Rosatom to do the job.

The deal, which comes with a €10 bln line of credit from Russia, is being investigated on the grounds that it may involve unfair state support to one business. The government had said on November 19 that it was anticipating the EC’s announcement.

A statement from the Hungarian Prime Minister’s Office, issued on November 23, maintained that a rational investor would happily carry out such an investment as returns are expected to be higher than costs.

“At this stage, the Commission has concerns that this investment may not be on market terms, as Hungary argues,” according to a statement posted on the EC’s website. “If the project is found to involve state aid, the Commission will investigate whether as planned it would lead to distortions of competition in particular on the Hungarian energy market.”

Prior to the official announcement by the EC, reports issued on November 19 suggested that the expansion project could be suspended until the

“If the project is found to involve state aid, the Commission will investigate whether as planned it would lead to distortions of competition.” infringement procedure is wound up. No such announcement had been made as of November 25.

“The Commission will in particular assess whether a private investor would have financed the project on similar terms or whether Hungary’s investment constitutes state aid,” the statement on the EC’s website says.

“This requires a complex analysis. I think it is important that stakeholders can also submit their views,” Margrethe Vestager, commissioner in charge of competition policy, was reported as saying.

According to the EC, the decision to award Rosatom with the upgrade without calling a tender is against the EC’s public procurement rules, but Prime Minister Viktor Orbán said on November 20 that such contracts are common in the case of deals involving nuclear plants.

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NEWS in brief MNB officially announces acquisition of Budapest bourse The National Bank of Hungary (MNB) on November 24 officially announced its acquisition of majority stakes in Hungary’s Budapest Stock Exchange (BSE), adding that on November 20 it signed a contract to purchase a combined 68.8% of BSE shares from CEESEG, a unit of the Vienna Stock Exchange, and from Osterreichische Kontrollbank. On November 23, MNB confirmed to Hungarian news agency MTI earlier reports by Hungarian media, however, it did not comment on the purchase price, which Hungarian online daily napi.hu speculated at HUF 13.2 billion. The price was based on the evaluation of an internationally respected advisor, and reflects the nearly 47% stake the Budapest Stock Exchange holds in Keler, the Hungarian central clearing house and depository, as well, MTI reported on November 24. Ownership data updated on October 31 showed that CEESEG holds 50.46% of the BSEʼs shares, while the Osterreichische Kontrollbank owns 18.35%, MTI reported.

Hungary to change bank levy rules following EC objection

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from collecting the fees, the first installment of which was due at the end of July. Under the approved amendment, fees will now be calculated each year using revenue figures from the previous calendar year, and micro companies and small companies will be given the option to pay a lump sum, MTI reported. The European Commission said in June that it was examining whether the oversight fee “with steeply progressive rate structures” was in line with EU legislation regulating state aid and prohibited Hungary from applying the progressive rates until it concluded its assessment. “At this stage, the Commission has concerns in both cases that the progressivity of the rates based on turnover provides companies with a low turnover a selective advantage over their competitors, in breach of EU state aid rules,” the commission reportedly said. “While a fee based on turnover does not in itself raise state aid issues, the Commission considers at this stage that the progressivity of the fee rates selectively favors companies with a low turnover and gives them an unfair competitive advantage over others,” the EC was cited as saying.

RTL Klub reporters banned from Parliament

The Hungarian government decided at a cabinet meeting to modify rules on the bank levy due to objections from the European Commission, Hungary’s National Economy Minister Mihály Varga said, according to a report by Hungarian news agency MTI on November 23. The changes will establish the foundation for a reduction in the bank levy in 2016, Varga said. Regulations governing the bank levy would probably have to be modified due to objections by the European Commission to two elements of the rules pertaining to Hungary’s agreement with the European Bank for Reconstruction and Development (EBRD), Varga said at a conference on November 12.

The EC has objected to a HUF 10 billion tax preference offered to banks to boost their lending activity during the global financial crisis, as well as a rule that allows deductions for losses by local lenders in Ukraine and Russia due to destabilization, Varga said at the conference organized by business daily Világgazdaság. Under the agreement with the EBRD signed in February, Hungary committed to a reduction in the bank levy and said it would acquire a 15% stake in the local unit of Austria’s Erste bank.

The editorial team of RTL Klub, Hungary’s largest television channel, has been banned from making recordings in the Hungarian Parliament for an undetermined period of time, according to reports on November 20. RTL Klub reported on November 19 during its evening TV news show that the channel’s editorial team had wished to report on Hungarian Prime Minister Viktor Orbán’s joint press statement with NATO officials the day before, but its camera crew and journalists were not granted access.

RTL Klub said a press announcement was published on NATO’s website prior to the event, but RTL reporters were not allowed to enter the room, only state-owned, all news channel M1 and Hungarian news agency MTI. RTL broadcast the recording of the reporters’ attempt to enter the room, in which government spokesperson Zoltán Kovács asked RTL journalists to respect the decision to keep them out. RTL reported that they were told that if they aired this recording they would be banned from the building. They did air it, and they were banned, according to reports.

Government gives in to EC on supermarket fees

OECD: Spending on education in Hungary half the OECD average

The Hungarian Parliament voted on November 17 on an amendment to restore the supermarket oversight fee to its original level of 0.1% of net sales revenue for all companies, Hungarian news agency MTI reported. The European Commission (EC) announced it had opened in-depth investigations into Hungary’s supermarket oversight fee on July 15, thereby preventing the government

According to the “Education at a Glance 2015: OECD Indicators” report on Hungary published by the OECD on November 24, Hungary spends considerably less on education than most other OECD countries and expenditure levels have in fact declined since 2012. “Annual expenditure per student by education institution in Hungary from primary to tertiary level is one of the lowest of

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Here come yuan bonds

Photo: MTI / Balázs Szecsődi

Hungary’s Prime Minister Viktor Orbán shakes hands with Bank of China President Guoli Tian after signing a November 25 cooperation agreement on issuing yuandenominated Hungarian government bonds during a China-CEE summit in the southern Chinese city of Suzhou. According to Hungary’s National Economy Ministry, the agreement enables Hungarian and Eastern European companies and financial institutions to improve their investment activities by borrowing on Chinese financial markets, MTI reported. National Economy Minister Mihály Varga said the agreement means that Hungary could become the first country to issue yuan-denominated government bonds in Central and Eastern Europe. all OECD counties: $5,564 compared to an average $10,220,” the report noted, adding that spending on education dropped from 11% to 13% from the 2008-10 period to the 2010-12 period. These expenditures clearly have an impact on technology available in schools and although, according to results from the Program for International Student Assessment (PISA), 97% of Hungarian principals believed that instruction in their school is “not hindered by a shortage of computers”, yet Hungarian students performed “significantly worse in digital reading that in print reading”, according to the results. Teacher’s salaries are also a concern among Hungarian educational institutions, with upper secondary level teachers earning less than 48% of what a fulltime, full-year employee aged 25-64 with a similar educational background earns, the report said. However, a new Education Act introduced in 2011, could reverse this trend, the OECD added. Although tertiary education substantially increases one’s employment opportunities, participation in tertiary education in Hungary is still quite low, according to the report, which said that only 22% of young Hungarians are likely to receive a bachelor’s degree.

Home made pálinka now taxed at HUF 700 per liter The Hungarian Parliament on November 17 approved legislation raising the tax on the home distillation of pálinka, the traditional Hungarian fruit-based spirit, to HUF 700 per liter, in order to comply with a ruling by the European Court, Hungarian news agency MTI reported. Under the new law, Hungarians distilling pálinka at home for their personal consumption are required to purchase so called “distillation stamps” as of January, for every liter of

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pálinka produced, MTI said, adding that individuals can buy from five to 86 of the stamps. In 2010, legislation was approved allowing Hungarian households to distill the equivalent of 50 liters of pálinka annually for personal consumption free of tax. Later, lawmakers raised the excise tax on pálinka distilled for private consumption by contract distillers to 50%, while introducing a flat tax of HUF 1,000 per year for Hungarians who distill pálinka at home – in order to comply with an EU directive on the normal excise rate for such distillates. But the European Commission asked Hungary to take further measures, and hence the new law, MTI reported.

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83% of Hungarian internet users view being online as a family program For some 83% of Hungarian internet users, being online can now be a family program that may include social media usage, online shopping, listening to music, or watching movies, the latest research of eNET – Telekom entitled “Report on the Internet Economy” shows, according to an announcement issued November 24. The online research the company conducted during the summer of 2015 shows that telecommunications play a central role for 85% of adult Hungarian internet users in their families lives. More than half of the respondents said that the more telecommunication devices a family uses, the more informed they are. Three-quarters of the respondents think that internet makes it easier to get along in life, while two-thirds of those asked agreed that the internet makes family life more convenient.

Although the majority of respondents consider the internet has a positive effect on families, most respondents (62%) perceive both positive and negative impacts.

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expert opinion

Continental ContiTech: A half century of excellence in Szeged

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS are paid promotional content for which the Budapest Business Journal does not take responsibility

A leader in the construction of conveyor belts, hoses and other essential industrial equipment, our firm is involved in broad cooperation with Szeged University as we seek to encourage education initiatives. Our upcoming 50th anniversary party promises to be a memorable celebration and a showcase of our accomplishments.

ContiTech Rubber Industrial Kft. started its production activities in Szeged in 1966. Since then the company has been manufacturing products of a similar type, but with a continuously updated product profile. Currently the company employs nearly 700 people.

The Szeged plant has been a member of the Continental ContiTech group since 2004. Through its production of conveyor belts, fluid and compound materials, the company plays a dominant role in the production of heavy industrial rubber products.

Our main profile consists of three areas: • Due to the significant development of textile conveyor belts, the considerable capacity expansion resulting from the modernization of belt producing machinery, and the reorganization of Dr. Regina Gensigora, Managing Director. production, the Conveyor Belt Workshop in Szeged has become the largest textile conveyor belt factory in Europe. Our and chemical engineers, designers, products reach every corner of the world administrators and economists – all via our domestic and international sales supported by the most modern hardware and software IT background . All of these network.

• The company also produces industrial are important elements of the continuous hoses for every industrial sector, to fulfil development we are undertaking. both general and specific requirements. Thus, it is not at all by accident that the Along with production activities, the length of conveyor belts produced at regional fluid sales headquarters is also the plant in one year is equivalent to the distance between Szeged and Hannover, located here.

The company also carries out high- where our headquarters are located. level research. Emphasis is put on the All these elements together make it research of special oil industrial and possible that the high added value of our marine hoses, which have to meet products is appreciated by the market. Our the customers’ special requirements partners in over 30 countries of the world because of the extreme conditions of reward our efforts by placing their orders the application circumstances of the with Continental ContiTech Szeged. products. Our world-standard products Given the importance of conveyor belt include high-pressure rubber hoses production in Szeged, we intend to make used in marine and land oil research and further investments in machinery to exploitation. These products boast the improve our processes. This development is necessary if we are going to maintain highest professional qualifications.

•The state-of-the-art compound state of the art processes and remain workshop – where rubber compound, competitive on worldwide markets. used as raw material, is produced on two mixing lines – provides not only the 50 years of production in Szeged plant but also sister companies Hungary Our factory in Szeged will celebrate its with their products.

In order to achieve a successful operation, 50th anniversary in 2016. We started our close cooperation between professional operations in 1966, and since then the people of various trades is essential. This company has been involved in producing includes skilled rubber-industry workers rubber products, although the product involved in production, mechanical range has constantly been changing and

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the manufacturing of industrial rubber products.

This training system was started at a national level. As a result of this system, our future colleagues will graduate from higher education with the standard theoretical knowledge while also having the benefit of additional professional practice and experience. The training allows participants to enter the world of work with a considerable competitive advantage.

Nearly half of the training time is spent in the Szeged plant of Continental ContiTech, where students undertake practical training with the help of our excellent technical colleagues. By 2016 we would like to expand our dual training also to the mechatronic faculty, while also increasing the number of participating students.

The dual training is not the only way that Continental seeks to support students. We believe it is important to think about the future generation of employees, and everything we do to improve the talent pool can help us. A good example of this approach is our two scholarship programs, which provide a great opportunity for our company to establish a relationship with our potential candidates, who we hope will be our future colleagues.

Since 2013 we have been contributing to the development of engineering training developing with the times. The factory with the University of Szeged with our has also changed and developed, and ContiTech Pro-Talentis Scholarship. This currently employs nearly 700 people. program provides a 10-month stipend to Plans are already underway for the the most talented engineering student. organization of our anniversary Our other scholarship program took celebration. The event will involve young place at the Faculty of Economics and people too, bringing together past and Business Administration at the University current employees with those who may of Szeged. Under this program, a feebecome our future employees. paying day student was granted the The main focus of the celebration will scholarship for one year – two semesters be our people – the employees of – of study.

Continental ContiTech. Another key area Along with the dual training and to be highlighted by the celebration will scholarship programs, our efforts to be the local environment. We are doing train young colleagues include our our utmost, planning top-standard apprentice programs in various areas, sporting events, professional programs such as the technical department, and conferences. Along with a well- logistics, purchasing, IT, HR, sales etc. deserved celebration of 50 years of We support the University of Szeged good work, we expect the events to help with our professional knowledge, thereby develop our employer branding. fostering the education of professional people who will be highly qualified Training gives students key employees for us in the future. It is also skills an excellent chance to establish a good In 2015, ContiTech Rubber Industrial Kft. relationship with the students. joined a dual training program started Another effort we have with the University by the Mechanical Engineering Faculty of Szeged is our Alma Mater Mentor of the University of Szeged. The aim of Program. Within this program, students this program is to prepare and educate can gain insight into our company’s life, engineers and other professionals for our production processes and the wide future employment. During this training, range of our products. This program participants acquire professional is supported by former students of knowledge that is suitable for the new the university, who are currently our technological processes required in colleagues.

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COMPANY news

Diehl opens €10 mln production hall in Hungary

Germany-based Diehl Aerosystems on November 13 inaugurated a €10 million production hall at its Hungarian aircraft parts base in Nyírbátor, Hungarian news agency MTI reported. The 5,500 sqm production hall is an extension to Diehl Aircabin Hungary’s existing 3,300 sqm production space at its Hungarian unit, MTI said. The base employs more than 300 workers, but the company is planning to double headcount by the end of 2018.

Magyar Építő to renovate grand hall in Museum of Fine Arts Hungarian construction company Magyar Építő won a tender for the renovation of a grand hall in Budapest’s Museum of Fine Arts, with a net bid of HU 6.1 billion, Hungarian news agency MTI reported on November 16. The hall has been closed to the public for 70 years but will reopen when a threeyear renovation the museum is currently undergoing is completed, MTI said.

Masterplast continues expansion of factory in Serbia Masterplast, Hungarian trading company and manufacturer of thermal insulation materials, has launched the second phase of its €8.4 million project in Subotica, Serbia, according to an announcement issued by the company on November 17. The project, which received a €2 mln Serbian state grant, is expected to create

at its wooden flooring plant in Kecskemét, Hungary, and expects to raise headcount at the firm by 30%, according to an announcement issued November 19. The company said it hopes to increase revenue by 10%, or HUF 1.7 billion, as a result of the technology expansion at its factory in Kecskemét.

Continental Romania welcomes new director 205 new jobs in the factory once the expansion is completed in 2016.

CPI Property Group welcomes new leader Attila Madler (pictured) has been appointed director of asset management for the Hungarian branch of CPI Property Group, an announcement issued on November 13 says.

Madler, who has more than ten years experience in real estate asset management, will be responsible for leading the CPI portfolio asset management department, stabilizing work processes and standardizing a longterm strategy, the announcement said.

ANY net income falls 10% in Q1-Q3 Net income of ANY Security Printing Company fell 10% to HUF 726 million in Q1-Q3 from the same period a year earlier, an earnings report published on November 17 shows. Revenue dropped 6% to HUF 16.1 billion, but improved margins reduced the direct cost of sales further, by 8% to HUF 11.3 bln. Gross profit slipped 1% to HUF 4.8 bln.

A fall in other costs lifted operating profit by about 1% to HUF 1.1 bln, the report said.

Graboplast launches HUF 700 mln expansion in Kecskemét Flooring company Graboplast will invest HUF 700 million in a technology upgrade

Zoltán Dapsy (pictured) has been appointed director of quality assurance and ESH at Continental Hungary’s central electronic plants unit in Nagyszeben, Romania, from November., according to an announcement issued on November 25. Dapsy has been working with Continental since 2003.

Elmű, Émász profits fall as margins narrow After-tax profit of regional electricity distributors Elmű and Émász, both majority-owned by Germanyʼs RWE-EnBW, fell in Q3 from the same period a year earlier as material costs rose, according to earnings reports published on November 18. Elmű, which distributes electricity in the capital, said its after-tax profit fell 3.5% to HUF 3.1 billion. Émász, which distributes electricity mainly in the north of the country, said its after-tax profit dropped 33% to HUF 1.2 bln.

Tokaj Kereskedőház welcomes new CEO Péter Szappanos has been appointed CEO of Hungarian state-owned winery Tokaj Kereskedőház, replacing Enikő Király Gaálné, who has held the position since February 1, according to an announcement issued on November 23. Szappanos has been with the company as a leading advisor for the strategic planning of the companyʼs renewal process since mid-April in 2014.

Stretch Conference on leadership set for Dec. 9-11 Stretch Conference, the ultimate meeting place to discuss hot trends and best practices in leadership and management, will take place for the third time in Budapest December 9-11. The conference once again looks at the issue of organization, which is what Ustream and Prezi sought to address when they launched the event in 2013.

While last year’s event had the harmony of individual performance and teamwork efficiency on the agenda, this year organizational challenges and consequential changes are in the limelight. Current key topics include organizational agility, experimental mindset and learning organizations, change management, self-organization, acceptance, and defining corporate mission.

Scheduled speakers include: James Clear, Niklas Modig, Brian Robertson and Anne Loehr.

See details at: stretchcon.com.

Skanska Hungary welcomes new leader Marcin Łapiński (pictured) has been appointed managing director at Skanska Property Hungary, effective as of January 1, according to a press release issued on November 24. Łapiński currently holds the same position in Romania. Zoltán Linczmayer and Aurelia Luca will be nominated for the newly established roles of country directors in the company’s Hungarian and Romanian units respectively, the announcement added.

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Budapest Business Journal | Nov 27 – Dec 10, 2015

Erste CEO discusses plans to grow in Hungary While he cautions that recent moves by the government could be a deal breaker, Radovan Jelašić talks about his bank’s plans to sell an ownership stake to the state and to increase its lending activities here.

“This transaction is conditional on the MoU, which includes no additional burdens on the banking sector – read no additional burden regarding the Quaestor fund as well.“ Program”, such as the interest rate swap or lower capital requirements for credit institutions willing to step up their lending to SMEs, seem really favorable for banks.

A: This program is definitely music to our ears. We committed ourselves in the MoU to increase our lending anyway in three areas: Agriculture; public sector employees; and energy efficiency. This program will help us deliver on that. I am confident that banks thinking long-term in Hungary and interested in increasing their stake in lending are fully going to utilize it; Erste definitely wants to be a top user of this credit line.

zsófia végh

Erste Bank plays a key role in the government’s plans for the banking sector.

In a memorandum of understanding signed with the European Bank for Reconstruction and Development (EBRD) in February, the government promised to lower the banking tax, to refrain from placing undue burdens on the banks in the country, and to take other steps to improve conditions for banks here. In conjunction with that agreement, Erste Hungary agreed to sell 15% ownership stakes to both the EBRD and to the Hungarian state. In line with the government’s strategy, Erste has been increasing its activities here and in September the bank said it had agreed to take over the retail business of Citi in Hungary.

But in April, the government passed a law requiring banks in Hungary to add to a fund to compensate people who lost money when the Quaestor brokerage went broke, apparently due to fraud.

Local banks rejected the idea that they should be forced to contribute to the compensation fund.

On November 6, Andreas Treichl, CEO of the Austria-based Erste Group said the Quaestor fund could be a dealbreaker, and that Erste was reconsidering selling its stake to the government. On November 17, the Constitutional Court ruled against the law to force banks to pay into the so-called “top-up” fund.

The Budapest Business Journal spoke to Erste Hungary CEO Radovan Jelašić about the deal with the state, as well as the role that Erste is planning to play in the government strategy – and in the Hungarian economy.

Jelašić (Jelasity Radován in Hungarian) was governor of the National Bank in Serbia between 2004-2010. He was born in Baja, Hungary, in 1968.

Q

Where does the deal with EBRD and the Hungarian state stand right now?

A: We are working with full speed on this transaction: We are hoping that by the end of the year we can have an agreement in principle. For signing contracts, to have the entire legal documentation and the financial part of

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Q

What impact will the program have on debtors’ confidence and borrowing?

A: Not only Europe but Hungary as well is swimming in an excess of liquidity.

Although we are trying to increase the amount of credit to our SMEs, the utilization is substantially lower than previously. Early repayment from our clients is significant; they prefer to use their own money and not get indebted.

But it is crucial that there is a growing level of confidence: GDP is growing, the budget is stable, public debt is decreasing, interest rates are at record low, etc. We do hope this is going to contribute to improved lending.

Radovan Jelašić: ‘A new era in the relationship of the banking sector and the Hungarian government.’ (Photos: Mátyás Pődör)

Q

Part of the new scheme will allow banks to acquire from each other clients who have been tied to their bank with longterm NHP loans. Do you think the “Growth Supporting Program” will stir up the market?

A: People generally underestimate how difficult it is for clients to pick a new bank. It is surprising (for us and the central bank) how few clients want to change banks. Once banks notice their client wants to change, they first improve conditions, than create administrative burdens. Those clients who take the effort and go fishing for better offers usually stay at the original bank, which will refinance them at the best possible offer the client received from a different bank.

the transaction, we will definitely need some involvement of the EBRD, as well. the first quarter of next year. Of course, We are pleased not only to hear the we have to be aware that this transaction continuous support from the government is conditional on the Memorandum of representatives but also to see concrete Understanding (MoU), which includes no deliveries based on that document: The additional burdens on the banking sector law on private individual’s bankruptcy, – read no additional burden regarding the the conversion of foreign currency loans Quaestor fund as well. We also hope that to forint ones, regular meetings between the rate of the bank tax cut will remain the Banking Association, the banks, as it was originally set and will not be the central bank and the ministry, the modified by Parliament. development of new tools to be used now by the central bank for the new growth In light of State Secretary program. Additional statements from Ágnes Hornung and ministers and state secretaries stating their commitment provide us with a high Minister János Lázár’s level of confidence that the government is recent statements, do you think the going to do whatever is needed in order to government is committed to pushing Will the new scheme deliver on that. through the deal with the original change that? Will banks conditions? be willing to acquire more A: The MoU started a new era in the Certain elements of clients from each other? relationship of the banking sector the central bank’s new A: Ours is definitely an aggressive bank; and the Hungarian government, with “Growth Supporting ready to grow both organically and via

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Budapest Business Journal | Nov 27 – Dec 10, 2015

acquisition, which is rather atypical today. We love competition and would like to see that clients are much more proactive. On the other hand, defensive and monopolistic banks know exactly where to find the point while still keeping a relatively high margin and avoid a steeper change, saying that all banks will eventually charge the same. The pricing of banks is not the most transparent either. All these factors contribute to the fact that the vast majority of clients are not changing [banks]. And this is why we decided that if we want to grow in such an environment, the best thing to do is acquisition – so we acquired Citi’s retail business.

The other reason for the acquisition was that we want to be an active contributor to the consolidation of the banking sector and move forward. If I look around, there is no other player in Hungary right now who is following a similar strategy. Not even more profitable banks or those that have lighter baggage to carry from the past are as active as Erste. I hope that this is going to be appreciated not only by the government but the Hungarian central bank as well. They say that there should be no more than six large banks; we will be one of them.

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to call centers, internet and mobile applications. In a couple of years, other channels, which have already improved efficiency in our branches, will become more important.

Q

Are you planning to close branches in the short run?

A: We are not planning to shut down any: if we look at the number of clients, transactions, interfaces we have, our branches are among of the most efficient – not only in Hungary but within Erste Bank Group as well. Compared to some competitors, our strategy is not to go backwards and solve the problem of profitability exclusively by cutting costs, but rather through acquisitions and increasing efficiency.

Economies of scale will substantially improve with the Citibank transaction; our cost of completion should also come back to below 50% in 2016-17. If loans are performing even with lower margins in an improving macroeconomic environment, we can be profitable.

Q

Like many banks, Erste Bank Hungary has built workout groups to deal with its non-performing loans (NPLs).

What is going to happen to them?

Many of Citi’s services are A: The corporate workout department of a very different nature will be dissolved by the end of the than those of Erste Bank year. We have sold and solved the Hungary – what do you plan to take vast majority of the portfolio, so we over from them? don’t need such an organizational unit A: They are the best in class with anymore. The majority of our claims regards to credit card service, wealth were sold and realized in such a way that management and they have very good we did not have to suffer losses on them. call centers and agent networks – so During the last 12 months we have also there is a lot we can and have to maintain. seen a massive improvement in real At the same time, our product range is estate NPLs as well. GDP increases, the much bigger than Citi’s so, for example, MoU, growing confidence, the country those clients can have a mortgage loan or having a positive outlook – let’s be a building society contract, too. We hope frank: if you look at the fundamentals, we would be able to commit those who this already is an investment grade have had only a part of their banking country. All of these contribute to the “The reason why Hungary does not have an investment grade today services with Citi to bank exclusively fact that the demand for real estate NPLs with Erste in the future. has increased. We are benefitting from has nothing to do with economics or macroeconomic data. It only Our target toward clients is that we that by selling substantially above the has to do with a bit more time the country needs to make sure want to make sure that the customers book value. The appearance of MARK transferred from Citi to Erste will notice Zrt. has affected the process positively, there is much more confidence among all the actors.” basically nothing. We work on a huge IT too. Buyers also realize this is the time project in the background to ensure that to bring forward their purchases before the service level is the same as when it they are taken by MARK Zrt. We are still selling at the best possible price. I am lending. We welcome every tool to was maintained by Citi. We can – and waiting for the first concrete prices from ready to take the risk of keeping some increase lending in Hungary, as it is a will – retain the best people, and out of it, as it is going to set a new benchmark of these assets a little longer in order to win-win for all participants. these two good banks we can make an for these transactions. We are also realize a substantial profit.

Wouldn’t investors rather even better bank. We will be the largest actively working with it on the sale of One aim of the “Growth see an environment that is credit card provider in the country, the some of our real estate NPLs. Supporting Program” is to safe to invest in? number two in the retail loan portfolio; A: Here the future is far more important bridge the gap in corporate regarding the number of clients, we will How big is Erste Bank than the past.

The reason why Hungary financing until the next round of EU be approximately the third.

Hungary’s NPL portfolio?

A: We are still talking about funds starts to come in. This program does not have an investment grade today has nothing to do with economics Modernization/ 21% NPL share in our portfolio – but this still being an artificial tool to boost or macroeconomic data. It only has is continuously decreasing. Some of the lending, what do you think of the digitalization has a cost to do with a bit more time the country largest transactions will be finalized in a central bank’s room for maneuver/ side, not to mention the needs to make sure there is much more involvement in the lending process? few weeks. challenges fully digital banks pose.

A: The time when central banks could confidence among all the actors and A: This challenge has been around for lean back and say, “we are only in charge rating companies get more “hard-core How long until the NPL nearly a decade, everybody has been of price stability, the market will take evidence” that we are starting a new era writing off branches for years. Although portfolio is cleared?

I definitely don’t think we need 130 A: If you had asked me a year care of the rest” is over. The central with the MoU. I think it is a matter of branches in Hungary, our almost one ago, I would have told you the sooner, bank in Hungary took a proactive weeks before this country will receive million clients do need the personal the better. Now that I see the upside role in trying to solve the problems of something it has deserved anyway contact. Slowly, but surely we are moving we can make, we are rethinking the banks inherited from the past – offering because of the macroeconomic data – many responsibilities from the branches compromise between selling fast and some “carrots” and to support increased and that’s an investment grade.

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Real Estate news

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Budapest Business Journal | Nov 27 – Dec 10, 2015

Limited space to meet retail demand Sales may be growing but retail space is not, and nothing new is due before 2017.

Gary J. Morrell

With no major new development ongoing in the Budapest retail market, there was a limited Hungarian presence at the recent MAPIC, the international retail property trade show at the Palais des Festivals in Cannes last week. As is the pattern with its Talking retail on the Riviera: The scene of the MAPIC festival in Cannes. wider property sector counterpart MIPIM, which is held in March, Poland, Czech deliveries in recent years and, with no there is often a waiting list of tenants. In Republic and Slovakia all – in contrast to projects currently under construction, the response to pent up demand, owners have Hungary – had a strong presence. The next completions will not be until 2017 been undertaking asset management Eurovea retail, residential and leisure at the earliest. With economic concerns of their centers with refurbishments. center on the Danube in Bratislava, for causing uncertainty among developers, Developers, in partnership with local example, was showcased. “The extension pipeline projects have not gone ahead, authorities, have also been developing of the center is driven by demand from even though these are by established the infrastructure of the major high retailers from Slovakia and overseas. We European developers who have delivered streets in the center of Budapest. have had very good feedback from talking projects elsewhere in CEE. The supply New retail supply has reached historic to retailers at MAPIC,” said Balázs Magyar, side of the Budapest retail market could lows in recent years, according to CBRE. Director of Eurovea. be regarded as challenging, as leading Since 2012, less than 50,000 sqm of new Despite a rise in retail spending, there retailers entering the market require large retail space has been delivered in Hungary. have been no new major shopping center units in the best shopping centers where JLL says total shopping center stock in

Budapest is at around 770,000 sqm in 25 assets. By way of comparison, current stock in Czech Republic stood at 2.65 million sqm at the end of the first half-year, according to JLL, while around 80,000 sqm is under construction. In neighboring Slovakia, developers are delivering projects in regional cities. The €50 million Forum Poprad by the prolific CEE retail developer Multi Development has delivered 22,000 sqm of retail and leisure space in the center of Poprad in the Tatra mountain region.

Retail sales are strong

Retail sales in Hungary grew by 6.1% year-on-year for the first half of 2015 – a clear acceleration compared to previous years, according to CBRE; similarly high levels were last seen in 2006. Although growth in the economy and retail sales is expected to slow, retail sales figures are forecast to remain fairly robust, according to Cushman & Wakefield. With regard to demand, CBRE has registered a growing number of new retailers on the Hungarian market. Thirteen brands have already entered or are scheduled to enter the market this year as they target prime high street locations and prime shopping centers in Budapest.

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Rózsavölgyi Salon Arts & Café – More than literature – theater Loves, stormy passions, comedy, drama, impressive cast and a real coffee house atmosphere- Rózsavölgyi Salon offers all these to its audience.

The theatre is located above the Rózsavölgyi Music Store, in the heart of the city, not far from Deák Ferenc Square.

Rózsavölgyi Music Store is the oldest shop in Pest, and has been dealing with the same business for 165 years, up until today. The store was reshaped and embellished for the 100th anniversary of the building and new café and art centre was added, Rózsavölgyi Salon Arts & Café, which opened its door to the public on Poetry Day, April 11, 2012.

An important idea of Rózsavölgyi Salon art concept is to show primarily such Hungarian and international contemporary works, which has not yet been played in Hungary. Many of these are stage adaptations based on famous novels, written specifically on the request of the Salon.

This year the Salon has several season premieres: offering two Hungarian premieres and a world premiere to the public. The season started on September 1, in Szervita Square with presenting the restored version of the novel written by Émile Ajar: The Life Before Us in the direction of Róbert Alföldi. Éric-Emmanuel

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Schmitt’s Mysterious Liaisons is made in coproduction; the psychological piece is played by two actors and tells about the encounter of a Nobel Prize-winning writer and a young journalist. Continuing further on the route of emotions and love affairs, in December, the audience of Rózsavölgyi is presented by the Hungarian premiere of a modern day women’s story, the comedy of Jean-Marie Chevron: Amazons,

directed by János Szarka.The year 2016 Piroska Molnár and Tamás Jordán, also begins with a premiere of Mark St. Kossuth Prize-winning actors in Jerome Germain: The God Committee directed Kilty’s Dear Liar! and in Hindi Brooks and

by Péter Valló with a fabulous casting. Romance.com performances teach us of The dramatic text delve into similar topic well-meaning white lies and of platonic as another work of the author, The Last love.

Hour, which was also set to stage in the Rózsavölgyi Salon by Róbert Alföldi. One Rózsavölgyi Salon is the only theatre in critic called The God Committee very Budapest where the public is welcomed aptly indeed the combination of Twelve with the full experience of the perfect Angry Men and E.R.The Salon additionally Budapest night: While you go to a theatre recommends the following plays: Anna you can also enjoy a nice meal and a fine Gavalda: I loved her, starring Anna Györgyi, drink beforehand. and Tibor Szilágyi. Pierre Sauvil: Sunshine for both of us with the impressive play of Tibor Szervét and Vera Sipos. Both plays are about the depending on each other, and the difficulties and joys of living together. Se veled se nélküled szerelmi kapcsolatokat boncolgat Bernarde Slade Válótársak és a Katarina Mazetti A pasi a szomszéd sír mellől c. darabok, melyekben Für Anikó partnerei Lengyel Ferenc, illetve Schneider Zoltán.

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Budapest Business Journal | Nov 27 – Dec 10, 2015

Analysts consider the best performing Budapest shopping centers to be the 47,000 sqm Allee, the 44,000 sqm Mammutt, and the 31,500 sqm MOM center in Buda. In Pest, the dominant centers are the 66,000 sqm Arena Plaza, the 45,000 sqm WestEnd City Center and the 68,000 sqm Árkád shopping center.

All have waiting lists for tenants and therefore are able to command the highest rents. There is a widening gap between the primary and secondary markets.

Malls are going to have to evolve to meet changing times and needs, experts say. “Shopping centers will be forced to change their image. In the coming years, we can expect mainly qualitative changes in the comfort of shopping,” said Dominika Jedrak, director of research and consultancy at Colliers International Poland in a presentation on Central European retail at MAPIC “Slowly, these changes are already becoming visible; this applies to both new projects and modernizations undertaken by the owners of older buildings. Innovations can also be seen in the rapid development of e-commerce and the growing number of retail chains opening new sales channels.

Shopping centers will have to adapt to the changing strategies of retail chains and take up the related technological, organizational and financial challenges,” he added.

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“Shopping centers will also be forced to change their image.

In the coming years, we can expect mainly qualitative changes in the comfort of shopping.”

There are three major pipeline projects in Budapest awaiting the green light for building to start. “The market has not justified the development of new shopping centers and needs a continued rise in demand for construction to commence,” commented Viktória Szabó, head of retail at Cushman & Wakefield. “However, we are now moving in the right direction for new development in the next two to three years. The pipeline projects are in good locations and the question is whether the developers can source the required number of anchor tenants. These need to be the right tenants, who are not located in competing centers.”

The planned 44,000 sqm Etele City Center by Futureal is located next to the Budapest One business park, adjacent to the terminus of the recently completed Metro 4 line on the western edge of Budapest. The project is intended to become a business and leisure hub that

It’s beginning to look a lot like Christmas on Budapest’s Fashion Street. will include retail and service elements adjacent to office centers. Germany’s ECE has agreed to project manage the development. Another pipeline project is the 37,000 sqm Mundo shopping center in Zugló by the Polish developer Echo Investment. ECE, meanwhile, is planning the 50,000 sqm Árkád Acqincum; when

one of these three pipeline projects might actually go ahead remains to be seen. The last Budapest delivery was the 20,000 sqm expansion and refurbishment by ECE of the existing Árkád Budapest at Örs vezér tér in District X, bringing the size of the development to 68,000 sqm and making it the largest retail center in Hungary.

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Budapest Business Journal | Nov 27 – Dec 10, 2015

CEE officials discuss ways to collect more VAT Officials from the ministries of finance of five CEE countries called for a coherent approach to combat VAT fraud and increase VAT collection at a Budapest conference hosted by PwC.

Daniel Anghel, PwC CEE indirect tax leader told conference participants. This clearly calls for intensifying the exchange of best practices and tackling the issue in a coordinated manner.

Will reverse charges cure all?

As Anghel further stressed, some legislative and administrative measures have already been taken, with more to come. The most success has thus far been attributed to the reverse charge mechanism, now used by each of the countries represented at the levente hörömpöli-tóth seminar. Among the actions promising improvement are stricter reporting If you have ever received an invoice obligations and joint and several from your hairdresser or your plumber in VAT liability requirements. Greater Hungary after their work was done, you powers to VAT inspectors, tighter road should feel privileged. After all, this is a transportation control, monitoring of land where tax evasion is perceived as a Andrej Babis, the Czech deputy prime e-invoices and keeping a register of risky national sport. taxpayers are also expected to help. minister and minister of finance, speaks Non-compliance on a mass scale, at the conference on VAT. (Photo: MTI/ “The Hungarian government supports in turn, blasts craters in government Zoltán Máthé) the introduction of the reverse charge finances. According to European mechanism in new areas such as the pork Commission data, the so-called VAT gap, officials and PwC experts from the meat sector, agricultural products or sugar the difference between the VAT revenues countries. and the food trade,” said Mihály Varga, that the state budget should collect and Romania is worst off, with the VAT gap Hungary’s Minister for National Economy. actual VAT revenues, amounts to 24.4%, at 41.1%, but with numbers ranging from “In our point of view, this is the most representing a yearly loss of €2.93 billion 22.4% to 34.9% they don’t look promising effective tool to fight cross-border VAT in Hungary. in Czech Republic, Poland or Slovakia, fraud. We are working hard together with Respective figures are similarly either. the Czech Minister of Finance to achieve alarming in the whole CEE region. In “This common problem is costing the that the extension of the scope of the order to address the problem and discuss state budgets of our five CEE countries reverse charge be within the discretion of possible cooperation, a November 19 around €27 bln annually, which is individual member states.” conference was held in Budapest, with substantially higher than Slovakia’s As he reminded, by making online the participation of high-ranking overall yearly tax revenues of €21.8 bln,” cash registers compulsory for a large

number of businesses, the budget had raked in at least an extra HUF 180-190 bln. Encouraged by this development, the same obligation will be imposed on service providers such as garages, taxis and fitness centers.

Learning from Western Europe

A coordinated effort is urgently needed, because tax evaders and criminals are becoming increasingly creative. “We have recently seen that VAT fraud patterns used in the past in Western European countries are replicated in CEE. Carousel fraud and missing trader fraud were identified in CEE in areas such as scrap metal, food and agriculture industries, textiles, IT components, mobile phone, real estate and retail trade,” Tamás Lőcsei, tax leader at PwC Hungary said.

Not only the CEE region struggles, though. “The EU as such is very inefficient at collecting VAT, especially compared to Australia, Singapore or New Zealand.

According to 2013 data, the VAT gap of the then EU-26 was 15.2% or €167 bln.

More alarmingly, during the 45 years while the European Court of Justice has been dealing with cases of VAT infringements, nearly half of the cases are from the last six years,” Ine Lejeune, partner at Law Square Belgium noted.

“The compliance gap needs to be tackled, but proportionate solutions are required whilst respecting human rights and the protection of the Single Market is equally important,” she concluded.

Education conference aims to boost competitiveness AmCham Hungary and the Hungarian Investment Promotion Agency cooperated on a gathering meant to promote knowledge that can boost the economy.

“Along with education, sports, health care and social inclusion deserve extra attention and a coherent strategy because only improving all of these together will result in enhanced competitiveness,” Balog said. “We have a lot to do in terms of improving digital literacy, too.

Although internet use around here is at an average level for European standards, Hungarian students score poorly on computer literacy.”

The minister expressed optimism regarding the dual training system. “This AmCham Hungary and the Hungarian popular method connects the economy Investment Promotion Agency (HIPA) with education,” he said. Finally, he brought together decision makers, reminded attendees that, following teachers and corporate leaders at the recent wage hikes in higher education the November 19 “Competitive Education overall quality of universities is expected Conference” in order to explore to get better. However, he highlighted cooperation between the relevant that it must go together with learning stakeholders and to encourage dialogue languages. “There are 40,000 out there that leads to Hungary’s enhanced who cannot get their degree because competitiveness. they don’t have a language certificate.

Minister of Human Capacities Zoltán The ability to communicate in a foreign Balog, the keynote speaker, runs a tongue is a great part of competitiveness,” “super-ministry” that includes in its Balog said. remit education, sports, church affairs, The conference was an important culture, youth and family affairs, social milestone in the consultation process affairs and inclusion and health. He told AmCham initiated with the government a conference participants that education is year ago, and which has already resulted a long-term investment and could not be in its “Policy Agenda” document covering viewed in isolation. the next three-year period. A key element

Shown at the November 19 conference are, from right, HIPA President Róbert Ésik, Minister of Human Capacities Zoltán Balog and AmCham Hungary’s President Ferenc Pongrácz. (Photo: MTI) of that agenda concerns Hungary’s human capital, which can be best used only if the demands of the corporate sector and academia are harmonized.

The aim of the event was to determine current problems and available strengths in the field of education and then to present such findings to the prime minister, the ultimate objective being that the country should be raised ten places in the Global Competitiveness Index (GCI) rankings within ten years.

As AmCham Hungary’s President

Ferenc Pongrácz stressed, the organization contributes to achieving this goal through its talent-related programs that primarily promote entrepreneurship, language learning and women’s economic engagement.

Róbert Ésik, the president of HIPA, reminded the conference of why a welleducated workforce is so important to the business world. “According to our experience, decisions as to where a particular investment should be carried out are influenced by four main factors: The overall economic climate; the labor market situation and the education system; infrastructure and logistics; and the level of development of the supplier market. Now the human factor is gaining ever more value,” he said. “Our goal is to get a direct, two-way-dialogue going between the government and AmCham’s member companies.”

The conference also ensured a platform for teachers to exchange information with invited business executives and HR professionals. The idea was to allow teachers to become more familiar with the expectations of the business world, and for companies to better know what support schools need from the private sector.

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3Special Report BBJ

Luxury gifts

High-end holiday shopping in the capital

Our expert went on a fantasy shopping spree and found fancy presents here. If you want the best, and you want it from Budapest, these unique, and very local, gifts may fill the bill.

rich minerality of the soil and microclimate as well as indigenous grape varieties make it ideal for producing some of the world’s best wines. Although dry vintages are growing in popularity, Tokaj is still best known for its sweet wines. Tokaji Essencia (Essence) is among the most rare of all Tokaji wines. The juice is extracted through the sheer weight of the grapes and the sugar content is very high, in the Aniko fenyvesi case of Royal’s Essencia 2007, 560g/liter. This nectar is usually blended with dry 1. Vass Shoes wines to produce Tokaji László Vass is a leading shoemaker in Asszú but in this case it has Hungary who comes from a long line been left intact and can be of craftsmen and works closely with his sipped from the small crystal daughter Éva to produce beautiful pieces spoons included in the for your feet. Vass Shoes has garnered purchase price of the bottle: an international following in part for the HUF 30,000. The wine is store’s central location near the tourist- a light, straw color and has heavy Váci utca, but also for its high- fresh notes of apricot. It is quality products and unique bespoke full bodied, despite having services. Vass offers classic and more only 2% alcohol content but modern designs in a wide range of colors the extremely high sugar in both calf and cordovan leathers. Shoes ratio is balanced by elegant are crafted by hand using traditional acidity. shoemaking techniques. Bespoke and selection.hu ready-to-wear shoes for women are also available as well as accessories for men. 4. NUBU Prices start at HUF 135,000 for readyto-wear models up to HUF 250,000 for The fall-winter collection from local design house NUBU was inspired by bespoke boots. visual artist Vera Molnár’s tetragonal vass-cipo.hu constructions; the fabrics, forms and colors are all reminiscent of the painter’s 2. Omorovizca Home-grown skin care range works. NUBU’s designers let the cloth Omorovizca credits its product range to speak for itself in the construction of the 2,000-year-old history of Budapest’s their statement pieces. Belts that cross thermal springs. The Omorovizca family under wide plies of fabric accentuate built the Rácz Spa in the 19th century angular cuts, pocket shapes and collars. but the Omorovizca brand was founded NUBU’s signature colors are black, offmuch later in 2005 by a descendent of white, beige and grey but are highlighted the family, Stephen de Heinrich and his this season by red, dark mauve and blue. wife Margaret. They have come up with a NUBU’s men’s collection uses similar technique for distilling the healing effects elements to the women’s and feature linen of thermal waters into their skincare line. and other natural fabrics, accentuated Anti-aging products are among their top by elegant and sporty details. All items sellers and claim to restore the skin’s can be purchased directly from NUBU’s collagen production. The premium Blue flagship store on Andrássy út.

Diamond line promotes cell regeneration nubu.hu of the dermis (€175-360), while perennial favorites include the Thermal Cleansing 5. Le Parfum Croisette Balm (€58), which contains Hungarian moor mud from the Héviz Lake region. Master perfumer Zsolt Zolyomi studied Omorovicza’s flagship store and spa is the art of fragrance creation in France located on Andrassy út, nestled among and returned to Hungary armed with the unique skills of his trade. His high-end fashion brand shops. services range from personal fragrance omorovicza.com consultation (including a range of limited series, handcrafted perfumes from 3. Royal Tokaji–Aszú HUF 69,000) or personalized perfume Essencia 2007 preparation. The latter involves the The Tokaj wine region is the oldest creation of a bespoke scent that perfectly producer of botrytized wines. The suits your own. In the process, which

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takes a minimum of five months, Zolyomi meets with clients to assess their needs, desires and of course their scent and then takes that information to the lab to create the best match.

The fee for the service starts at HUF 2 million and can go up to €30,000.

Distinguished diplomats and movie stars are among those who seek out Zolyomi’s bespoke fragrances. zolyomiparfums.com

6. Zsolnay Porcelain Known for its signature eosin glazing techniques and the colorful tiles that adorn the rooftops of the Mátyás Church and the Great Market Hall, Hungarian porcelain manufacturer Zsolnay’s precious porcelain creations are made by hand and priced accordingly. Its limited 8 series are prepared to order, numbered and accompanied by a certificate of authenticity that includes the year of production, the size and the ordinal number of the series. Pick from Chef Szabina Szulló and her husband beautifully ornate vases, unusual flatware, Tamás Széll have done a wonderful job jewelry or tiles. Sure to be a showpiece of it. Exciting flavor combinations and in any home. Shown is a piece produced sumptuous textures back innovative

by Zsolnay in house artist Viktor Erdei. culinary technology and inventive Reinterpretations of More ornate Zsolnay pieces come with a presentation. regional cuisine are on offer in the price tag as high as €20,000.

“Hungarian Evolution Menu” (from HUF zsolnay.hu 28,000) while the more adventurous “Tasting Menu” comprises eight courses 7. Kieselbach Gallery (from HUF 31,900). A set menu of wine This private Budapest gallery also pairings is also available. Vouchers can functions as an auction house specializing be purchased at the restaurant, via bank in Hungarian painters from 1850-1950 transfer or by credit card. such as the work shown, “Flowers in a onyxrestaurant.hu Vase” by János Vaszary sold at an auction earlier this year for HUF 61 million. 9. Artelli tailor made shirts The Kieselbach Gallery was established by art historian Tamás Kieselbach and Artelli produces made-to-measure frequently exhibits rare Hungarian works shirts using the finest cottons imported at non-selling exhibitions as well. If you from England’s Thomas Mason textile can’t make it to the auction on December manufacturer. Choose from a selection 21, Kieselbach’s website lists paintings of fabrics, patterns, and buttons and a tailor will take your measurements for sale by thematic category. in store or make house calls and even kieselbach.hu deliver the finished product. Artelli also produces made-to-measure suits and 8. Onyx Restaurant voucher denim jeans. Shirts start at €150 and go Located just around the corner from up in €10 increments depending on how the renowned Gerbaud cake shop on many extra details you would like, such Vörösmarty tér, the Michelin-starred as monograms, mother of pearl buttons, Onyx sports a lavish interior and offers matching pocket squares. Hours are set a unique culinary experience that can to suit the working man: Open from 3-8 last up to three hours. Onyx’s mission p.m. English and German spoken. is to update Hungarian cuisine and artelli.hu

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Christmas on Andrássy Budapest’s own high street turns into a winter wonderland at this time of the year, with shops full of holiday cheer offering some of the fanciest gifts available in the city – often at eye-popping prices.

Whether you are ready to splash out, or just doing a little window shopping, a stroll down the boulevard can be a rewarding way to pass some time. Shown here are some of the interesting gifts we came across during a Saturday afternoon on Andrássy út.

PHOTOS: Moni Lazar/LaMography

Madison Perfumery

Built as Sándor Török’s Opera Patika, an apothecary in 1931, this space feaures a unique gallery and staircase with splendid wooden furnishings. Madeleine Florescu, owner of Madison Perfumery, didn’t have to change much when she moved in. The shop, which held little bottles of chemicals now has bottles of perfume. Madison stocks exclusive fragrances, niche colognes, hard-to-find perfumes, room scents, incense and similar items. Andrássy út 26, (36) 30 288 5833, madisonperfumery.com

Stan Ahuja

Custom suit maker Stan Ahuja opened its first store in Budapest in 2009, before opening two more in Prague and Bucharest. The flagship store here is an elegant and cozy place to choose meticulously hand-made suits, coats, shirts trousers and ties.

Each suit is the result of two to three consultations with a project taking four to five weeks until completion in general. Andrássy út 38, stanahuja.com, (361) 354 0195.

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Herend Porcelain

The famous Hungarian manufacturer of artisan ceramics, Herend Porcelain has several stores selling hand-made masterpieces decorated by talented painters, from around HUF 15,000 up to “make an offer”. Founded in 1826, the firm’s hard-paste porcelain – a mixture of kaolin, feldspar and quartz – is ornamented in Hungarian folklore motifs and other styles. Andrássy út 16, herend.com, (361) 374-0006.

Gucci

The Hungarian boutique of luxury brand Gucci is in a beautifully restored old shop with modern touches, where you can buy the world-renowned bags for men and women (like those at left), as well as clothing – like the dress above, which goes for slightly more than HUF 600,000. Andrássy út 23, gucci.com/ hu/stores/andrassy-23, (361) 322 0971.

Breitling

Breitling’s elegant, minimalist shop exhibits a vast array of the luxury manufacturer’s finest watches, including the Breitling Bentley GMT Light Body with Black Diamond Limited Edition series, shown immediately at right: Only 100 of these watches were made and the store has the second one in the series, going for €26,490. Andrássy út 14, breitling.com/en/retailers/boutiques/, (361) 952 1427.

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E-commerce drives demand for logistics properties As shopping moves online, the need for bricks-and-mortar retail outlets may have declined slightly, but logistics property is now more important than ever – and this is true of Hungary too.

Czech their logistics: Prologis Park Prague Jirny.

Gary j. morrell

There is a Santa Claus, and he lives online. The digital revolution, which has already changed the way we shop and may actually reduce the need for retail space, is also making dramatic changes in the logistics business – as well as the real estate market it serves.

Demand from e-commerce companies is rising throughout Europe, and investment into the sector is on the up.

In Central and Eastern Europe, demand is particularly evident in Poland and Czech Republic where, for example, Amazon has established distribution centers.

In Hungary, demand for e-commerce space has been relatively limited in

Santa uses Amazon these days. comparison, though there was a recent letting of 7,660 sqm to eMag at the logistics center in Üllő, owned by Raiffeisen Bank. Demand for space is expected to increase, although there is a lack of available contiguous space in the Hungarian logistics sector, which may cause some problems. Low development in Hungary has brought about a fall in vacancy and established European

industrial developers are actively assessing the development possibilities.

Development strategies are, in general, built-to-suit driven, or the acquisition of income producing product, reflecting remaining concerns over the economy and the previously high industrial vacancy in Hungary.

“The economy is growing, companies are expanding and e-commerce is

developing. As a result, the demand for logistics and production properties is growing, in effect increasing their value,” said Ferdinand Hlobil, head of CE (Poland, Czech Republic, Slovakia, Hungary and Romania) industrial at Cushman & Wakefield.

A recent study of the e-commerce possibilities in the Polish market

by Prologis and JLL sees the major difference between “traditional logistics” and “e-commerce” as fast deliveries, various collector points (BTC instead of B2B) and high seasonality that requires flexible warehouse capacity. Delivery becomes part of brand marketing and merchandise ordered on-line including fast moving goods as well as slow moving products. The study argues that Poland’s market is on track to achieve

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“With regard to e-commerce requirements, you need to distinguish between pure e-commerce companies and retailers who have also introduced a web service to order products. Retailers most probably already have a warehouse and possibly they need to extend this or re-arrange logistics systems within the building.”

700,000 sqm in new lease agreements by 2020.

According to surveyed logistics operators, the most important specifications for an e-commerce warehouse include: Flexibility to expand or contract leased space; mezzanine levels; high levels of security; ancillary space; intensive heating, ventilation and air-conditioning; and plenty of parking for employees. With regard to location, the key factor is the availability and access to staff, access to an extensive road network and proximity to the endcustomer.

Logistics property specs Regarding the needs of e-commerce tenants, Colliers International list building specifications such as specialist docks and doors, and use of mezzanines and suitable floors. Higher yield utilization is required from the site, as are additional parking spaces and the potential for growth, as well as possibilities for expansion and flexibility.

Location requirements include proximity to labor and carrier hubs, ample surge labor and proximity to the major markets.

Domonkos Joó, an industrial expert working in the Hungarian market, argues that class “A” industrial centers require at least a ten meter clearance in height, a sprinkling system, heating, an office area of 5-10% for a logistics park and around 15% for a business park type development, loading docks, drive-in gates, proper insulation and a park-like environment. “With regard to e-commerce requirements, you need to distinguish between pure e-commerce companies and retailers who have also introduced a web service to order products,” said Joó. “Retailers most probably already have a warehouse and possibly they need to extend this or re-arrange logistics systems within the building. Pure e-commerce companies like eMag or Amazon need new space.

An e-commerce company delivers on a daily basis and therefore vans and small trucks carry out the delivery service; this requires drive-in gates rather than docking with the option to load smaller trucks. Large logistics parks were designed for larger trucks with a large quantity of goods. For e-commerce, location is also very important providing easy access to major markets such as the Budapest area,” he added.

CE take-up has outperformed development in the first half year with the resulting fall in vacancy reaching a 6.8% average, the lowest figure in the last nine years. “The decrease in vacancy is most prominent in Hungary, where the vacancy rate decreased by two percentage points to the current 13.7% within six months. If Hungary keeps this pace up, it could reach a healthy

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vacancy rate of about 10% around the turn of the year,” said Hlobil of Cushman & Wakefield.

More than 600,000 sqm of new stock was built in Central Europe in the first half of the year, as opposed to 520,000 sqm in the same period of 2014, while 2.1 million sqm of space was leased compared to 1.9 million sqm in the previous year according to Cushman & Wakefield. Hungary lags behind its neighbors with its 1.84 million sqm of industrial stock. In total there is 18.5 million sqm in the region with Poland approaching the ten million square meters mark and Czech Republic having reached five million square meters.

More stock outside of the city However, Joó argues that this figure is an underestimate of stock for Hungary, as it does not take account of stock outside Budapest, although from the reverse perspective there is also older stock that can no longer be defined as class “A”. “If you look at Czech statistics, then this includes projects outside the capital while in Hungary numbers are only for Budapest, and countryside projects are not included,” he explained.

“There are certainly projects in the countryside that are class “A”. In this comparison Hungary is not so far behind Czech Republic. With regard to the BRM [business rules framework] calculation, all the agencies should agree on clear definitions and register all buildings in the countryside. Vacancy is around 12%; this seems high but this does not tell the real story, as availability is very fragmented with 2,000 sqm here and 3,000 sqm there. A park can offer 10,000 sqm, but this is split into two or three units,” Joó said.

Prologis, Panattoni and CTP are the leading Central European industrial developers in terms of market share. In Hungary, Prologis is following a dual strategy of development and acquisition and has a portfolio of more than 615,000 sqm of space. The company has an additional 20,000 hectares of development land.

“We are considering Hungary and, after our activity in Romania, there are some offers coming from Hungary,” said Jaroslav Kaizr, business director at CTP. Tamás Beck, head of industrial at Colliers International Hungary anticipates that one or two logistics buildings will be developed on a speculative basis in welllocated parks with high or full occupancy as a further drop in vacancy can be expected in early 2016. Rising demand is mainly driven by the industrial/ automotive sector. However, fast moving consumer goods and 3PLs (companies that work with shippers to manage their logistics operations) may also play a more important role if retail consumption continues to grow.

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WHAT’S

ON Mick Harvey November 27, Budavári Művelődési Ház A long-time associate of Nick Cave – from the Birthday Party to the Bad Seeds – multiinstrumentalist Harvey draws from his musical past to produce dark and cinematic songs balanced by the warmth and deadpan humor that dominates his performances.

He will perform solo for this show. bem6.hu Christmas Market November 27-December 25, Four Seasons Hotel Gresham Palace The Four Seasons Hotel is hosting its second annual Christmas market this year, which will feature traditional Hungarian fare, the work of local designers, unique arts and crafts and the obligatory mulled wine. The market is located along Zrínyi utca, adjacent to the hotel and in the northern wing of the hotel’s grand lobby. thegreshambudapest.hu Stylewalker Day & Night November 28, various venues This city-wide event is held at participating design shops, showrooms and galleries – more than 20 venues in

Fun things to d o in Budapest for the nex t t wo weeks.

all – where visitors can choose from the unique wares on offer or take part in programs organized specifically for this event. Join a design tour to get the full spectrum of the local design scene. The bulk of the venues are located in Districts V, VI and VII. The event starts at 2 p.m. on Saturday and runs late into the night. stylewalker-event.webflow.io Japanese Festival November 28-29, Pesti Vigadó The International Japanese Festival showcases the work of the teachers of the Budapest’s Japanese cultural center as well as its students. The festival looks to acquaint visitors with traditional and contemporary Japanese culture through exhibitions and performances.

For this year’s festival, which runs over the course of one weekend, traditional Japanese choirs will perform as well as Kodo drummers and traditional dancers.

Also featured are calligraphy and origami exhibitions, tea ceremonies and sake tastings. Entry to all events is free but visitors must register for each day prior to attending. vigado.hu Tigran Hamasyna Trio November 30, Palace of Arts Armenian pianist Tigran Hamasyna is

Lead ballerina Radinya Dace performs in the ‘Nutcracker’ at the Hungarian State Opera House. (Photo: MTI/Zoltán Máthé) considered one of the most outstanding young jazz musicians of his generation and he follows the principle that mainstream jazz is far more exciting when blended with electronics, classical music, Armenian folk motifs or even poetry. His virtuosity, musicality and individual way of thinking have won the enthusiastic praise of Chick Corea and Brad Mehldau, as well as Herbie Hancock, while Trilok Gurtu went as far as to say that he saw the Keith Jarrett of the future in Hamasyan.

The pianist released a new album in the spring of 2015 entitled “Mockroot” and on this special occasion he and his trio will hold a workshop prior to the concert to provide insight into the complex, polyrhythmic forms of their music. mupa.hu Várfok 25 From November 30, Várfok Gallery A vital component of the independent Hungarian contemporary art scene,

Várfok will celebrate 25 years in Budapest and its role in fostering Hungarian artists and art since the fall of communism.

This exhibition is likely to be one of the better representations of Hungarian independent art. varfok-gallery.eu Nutcracker December 1-20, Hungarian State Opera House A perennial Christmas favorite, the “Nutcracker” returns to the Hungarian State Opera House for a month of performances. The story tracks Marie and Misha on a magical Christmas Eve journey as they travel to the wintry world of the Snow Queen and visit the magnificent palace of the Sugar Plum Fairy. The story is set in Imperial Russia to a score by Tchaikovsky. Be sure to check the schedule as many shows have already sold out. opera.hu

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Budapest Business Journal | Nov 27 – Dec 10, 2015

Arany Kaviár: A golden oldie that stays fresh The luxurious setting, pampering service and fine Russian foods help keep this classic restaurant among the ranks of the capitalʼs best. bbj staff

Back in the early 1990s, there were only a handful of non-Hungarian restaurants in Budapest, and precious few top-quality restaurants, but Arany Kaviár managed to be both, offering gourmet Russian cuisine and top-notch service.

Now that the gastronomy scene in the capital has matured, Arany Kaviár still manages to stand out from the crowd, with the kind of superior food, service and ambience that have made the restaurant a regular feature in the Michellin and Gault & Millau guides.

Staying on top means being ready to change and update – like the recent hiring of the creative new chef László Kanász, and the addition of a “winter garden”, which provides an atmospheric new venue for a fine meal. The elegant setting

The new winter garden at the Arany Kaviár.

The big staff of the Arany Kaviár keeps diners well cared for.

is complemented by the remarkable service – from a large, attentive staff, who are always around when you need them and out of the way when you don’t.

The manager, the sommelier and the more senior wait staff have all proven themselves in top western European restaurants.

But none of this would matter if it were not for the excellent food. Of course, the “Golden Caviar” is famous for its caviar, which they sell in jars to take home as well. Ordering off the menu, you can splash out on 30 grams of beluga caviar for HUF 59,900 or try the same amount of wild salmon caviar for a more sensible HUF 6,900. In between those prices are a range of diverse offerings of fish eggs, all served with “blini”, or

Russian crepe, sour cream, boiled egg, butter and onions.

Notwithstanding the name, the restaurant has always been about much more than caviar. A range of Russia’s finest food is on display here, and in the hands of chef Kanász, traditional meals have become lighter, and have taken on more subtle flavoring. The marinated herring with lemon grass, goat cheese, beetroot and herring caviar is more about the actual herring than the marinade, and the way the beef stroganoff is prepared here makes it more like ordering a rich steak. The sturgeon, sourced from a fish farm in Hungary, is delicate, tasty and also light.

A great way to enjoy a real culinary tour of Russia is to go for one of the tasting

menus. The six-course “Traditional Menu” is a reasonable HUF 14,900, plus an additional HUF 7,000 if you want to pair each course with a different glass of wine – or a different vodka. The wines are generally Hungarian, though sometimes range further abroad, and the vodkas are generally Russian and superb.

For all the upgrades in the cuisine and space at Arany Kaviár, it is good to see that some of the tradition remains. As it has been for 20 years, the restaurant is still owned by Attila Molnár and his partner Szása Nyíri, who acts as executive chef and kitchen muse. And, as always, the service is classy and capable, and makes diners feel special.

Thanks to its strong traditions and its constant improvement, the good old Golden Caviar is still shining.

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23

Wine: Vintners intervene on behalf of nature The natural wine movement is producing some excellent Hungarian vintages. rob smyth

The natural wine movement continues to capture the imagination of wine lovers both locally and globally, but is the stuff any good, rather than just good for us (in small amounts of course)? The answer is a resounding yes, if the predominantly Hungarian wines that flowed at the second “Mitiszol?”(literally, “What are you drinking?”) tasting are anything to go by.

In fact some of the finest wines made in Hungary were among their number; wines with a real sense of place and the grape varieties that made them. The wineries that were presenting their wares in the cool, contemporary setting of Millenáris on November 14 are part of the Terra Hungarica group of natural winemakers.

The natural wine movement is as polarizing as it is exciting and this year’s Mitiszol? served up plenty of unique and exciting wines, although the odd twist of nature brought about a few highly unconventional turns to the flavors. These included the so-called barnyard aromas of brett (brettanomyces), or the nail polishlike whiff of volatile acidity. This is indeed what can happen when nature is allowed to take its course and a back to basics approach adopted. Advocates of natural winemaking nonchalantly pass off fowl flavors as being much better than the conventional alternative, while detractors jokingly thank progress for the invention of herbicides and pesticides. Nevertheless, a touch of animal character can indeed bring complexity to a wine if there is good fruit alongside.

Natural wine can mean one of several things; it can be organic on paper (i.e. certified) or merely in practice (so we have to take the winemakers word for it), whereby only traditional treatments such as copper and sulfur and a bunch of natural solutions, such as rose oil, are used to treat

Tasting natural wines at CultiVini. the vines, with minimal sulfur used in the cellar to keep the wine fresh. Biodynamic winemaking takes things even further and follows the work and ideology of Austrian social philosopher Rudolf Steiner, with treatments prepared in special ways, even buried in the ground in a cow’s skull, and applied at specific times decreed by lunar cycles and the like.

One aspect of natural winemaking is the use of the yeast inherent in the grapes and cellar to ferment the wine, as opposed to deploying commercial yeast.

Although wild fermentation can ultimately lead to more complexity, more can also go wrong. Commercial yeast generally makes a cleaner and quicker fermentation, with more pungent aromas. From Tokaj, Királyudvar’s natural wines are typically a tad restrained on the nose and save most of the action for the actual drinking, which after all is what wines are for. Királyudvar Sec 2012 (85% Furmint and 15% Hárslevelű) made Jancis Robinson’s Wine of the Week in October. The “Madonna of wine” is not one to be taken in by a wine that gives all on the nose but lacks the goods on the palate. She commended this one for being so “utterly autumnal” and for its “combination of nerve, density and strong quince flavor”.

From Szekszárd, Posta’s Cabernet Franc 2012 avoided the kind of alcohol burn

that can blight some of the wines of this southern region and despite the warm vintage, it has a few cool climate notes of mint and eucalyptus alongside the ripe black cherry and cassis. This might have as much to do with Posta’s vineyard being in a windy spot, rather than the way it is made. While the alcohol sure isn’t low, it is well integrated with plenty of fruit and layers of flavor to carry it off. This is currently one of my favorite Hungarian reds, and blew me away when I tasted it blind and handed it 92 points. It packs in a lot of value for the great price of HUF 4,200 a bottle and is as good as anything coming out of Szekszárd. It contrasts nicely with Tamás Szecskő’s Cab Franc 2012 from Mátra which is leafy in a way that is reminiscent of how the grape performs in the Loire, as well as fresh and juicy with cranberry notes and an exciting salty finish. It was only made in the tank, which helps put the emphasis on the fruit.

Szecskő’s Mátra neighbor and great friend Bálint Losonci feels that organic grape growing can lead to lighter alcohol in the wines, which could have something to do with the vines being less vigorous without an artificial helping hand. He also feels it is the best way to capture the unique qualities of the terroir. Losonci’s pale ruby Pinot Noir 2014 is another very good Pinot, following on from the superb 2013, with its precise red fruit, tingling acidity and stony finish, and while not as concentrated as its predecessor, it very much has that Pinot Noir X factor.

Franz Reinhard Weninger, an Austrian vintner who makes wine on both sides of the border, is a prime example of how a move in a more natural direction can change your wine to better capture the essence of the terroir. Now his wines are more medium-bodied than full but exude both remarkably pure flavors of the grapes that made them and the subtle earthiness of the place of growth. Both Weninger’s Kékfrankos and that of Péter Wetzer from Sopron really showed the kind of complex wines that Hungary’s most widely planted red grape is capable of at Mitiszol?

Berlin lawyer turned Villány winemaker Horst Hummel believes that pesticides and synthetic fertilizers change the structure and character of

wine. Furthermore, he feels they have brought about sweet tannin character in much of the wine flowing out of Villány.

Hummel, and fellow German natural cellar Wassmann, have breathed fresh life and flavor into Villány wines and even made wines from the Portugieser grape seriously complex. Both will also be appearing at the Label Grand Karakterre tasting, which brings together many leading organic and biodynamic winegrowers from Austria, Croatia, Czech Republic, France, Germany, Hungary, Italy, Spain, Slovakia, and Slovenia, in Vienna on December 4.

Terra Hungarica’s wines are available from Terroir Club or from the wine shop at the Terminal Market at Erzsébet tér.

CultiVini steps up natural wine focus The CultiVini Wine Bar (Párizsi utca 4, District V) is a neat spot for getting some valuable wine tasting in at your own pace, without getting disturbed by overbearing servers and sommeliers eager to show off their wine knowledge. However, help is on hand from the expert, English-speaking staff should you be looking for it. To get tasting, you simply pick up a glass and put credit on a card (a minimum of HUF 3,000) that you insert in the dispenser containing the wine that you’re interested in.

CultiVini recently hosted the insightful Natural Wine Talks roundtable discussion in which a number of leading figures from Hungary’s natural wine movement explained their philosophies.

The wine bar is in the process of increasing its selection of natural wines up from the 15 it already serves and will have 20 from December. The test of a new wine bar can be measured in its ability to surprise and it was here that I first tasted wines from Badacsony’s Bencze Birtok, which included an invigorating Olaszrizling and a savory Pinot Noir, both from the 2013 vintage.

In all, CultiVini has 52 nicely selected wines that offer a comprehensive overview of Hungarian wine. More than 150 wine labels are available to purchase to take away. Look out for the wines of Rejiji from Villány, which is the cellar of the Finnish/Hungarian husband and wife team who own CultiVini.

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

1ST DISTRICT

2ND DISTRICT

7TH DISTRICT

4TH DISTRICT

11TH DISTRICT

13TH DISTRICT

94 SQM – 4 ROOMS, PAULER STREET

185 SQM – 5 ROOMS + HALL, LIPÓTMEZEI STR.

226 SQM – 7 ROOMS, TÁBOR STREET

98 SQM – 4 ROOMS, BAROSS SQUARE

61 SQM – 3 ROOMS, IRINYI JÓZSEF STREET

63 SQM – 3 ROOMS, KRESZ GÉZA STREET

In a new building with elevator, this very spacious, high standard apartment has separate rooms, 2 balconies, 2 bathrooms, air conditioning system and parking space.

In a quiet side street, this very spacious, duplex apartment benefits of private gas heating, balcony, winter garden and wine cellar.

This completely renovated, two storey family house built on 357 sqm of lot, benefits of two bathrooms, terrace, balcony, swimming pool and garage in the garden.

Nice panorama over the Baross Square, this completely renovated apartment has fully fitted kitchen, air conditioning system, balcony and it is situated in a period building with elevator.

This street facing, high floor apartment benefits of separate rooms, balcony and it is situated in a building with elevator. Close to the Budapest University of Technology and Economics.

This very sunny, street facing apartment has separate rooms, big balcony and it is situated in a building with elevator, close to the WestEnd shopping mall.

87.500.000 HUF

68.000.000 HUF

67.000.000 HUF

32.900.000 HUF

23.490.000 HUF

26.990.000 HUF

+36.1.201.0403

2ND DISTRICT

+36.1.376.6080

2ND DISTRICT

+36.1.782.7275

5TH DISTRICT

+36.1.351.0446

7TH DISTRICT

+36.1.720.2433

11TH DISTRICT

+36.70.701.2348

13TH DISTRICT

80 SQM – 3 ROOMS, GANZ LANE

262 SQM – 4 ROOMS, FILLÉR STREET

30 SQM - 1 ROOM, ST. ISTVÁN CIRCUIT

97 SQM – 4 ROOMS, RÓZSA STREET

97 SQM – 3 ROOMS, TÓTH ÁGOSTON STREET

136 SQM – 4 ROOMS + HALL, HEGEDŰS GYULA STR.

This completely renovated, very sunny, well divided, high floor apartment has air conditioning system, open kitchen and it is situated in a well maintained building with elevator.

Nice view over the Buda Hills from the 3 terraces, this two storey family house built on 978 sqm of lot, benefits of 3 separate bedrooms, living room, air conditioning system and 2 car garage.

This apartment is a perfect solution for anybody seeking a renovation project in an area which is perfect for investment.

Next to the beautiful Rózsák Square, this sunny, street facing, apartment has separate rooms, sleeping galleries, private gas heating and it is situated in period building with renovated facade.

This family house that needs renovation built on 510 sqm of lot, has private gas heating, terrace, garage and it is located in a family house area.

This very spacious, high floor, duplex apartment that needs renovation has 2 kitchens, 2 bathrooms, private gas heating and it is situated in a building with elevator.

35.900.000 HUF

139.000.000 HUF

17.500.000 HUF

34.900.000 HUF

37.900.000 HUF

35.900.000 HUF

+36.1.201.0403

2ND DISTRICT

+36.1.336.1706

3RD DISTRICT

+36.70.3156.087

5TH DISTRICT

+36.1.351.0446

7TH DISTRICT

+36.1.720.2433

12TH DISTRICT

+36.70.701.2348

15TH DISTRICT

120 SQM – 4 ROOMS, ALVINCI STREET

91 SQM – 3 ROOMS, ILONKA STREET

80 SQM – 3 ROOMS, BALASSI BÁLINT STREET

122 SQM – 4 ROOMS, HEVESI SÁNDOR SQUARE

171 SQM – 5 ROOMS, DIÓS ÁROK

185 SQM – 5 ROOMS, RÁKOSPALOTA

Beautiful view over the city, in a quiet and green side street, this separate part of a house has big terrace and swimming pool in the private garden.

This very well divided part of a house has panorama over the city from the terrace, underfloor heating, garden, parking lot and a separate studio apartment belongs to it.

This sunny apartment is located on the 3rd floor of a building opposite the Olimpia Park, near Kossuth Square. The apartment and the building are also in a good state.

Next to the Magyar Theatre, in a very nice period building with elevator, this very spacious and bright, street facing apartment that needs renovation has 2 separate entrances.

This four storey, completely renovated terraced house has 2 bathrooms, 2 terraces, balcony, parking space in the garden and it is located in a quiet and green area.

This family house that needs renovation built on 1056 sqm of lot, benefits of 2 kitchens, 2 bathrooms, 20 sqm of terrace and beautiful garden.

47.000.000 HUF

29.900.000 HUF

49.900.000 HUF

38.000.000 HUF

95.000.000 HUF

26.000.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.1.430.1403

3RD DISTRICT

+36.70.3156.116

5TH DISTRICT

+36.1.351.0446

9TH DISTRICT

+36.1.789.2846

12TH DISTRICT

+36.70.398.8754

15TH DISTRICT

108 SQM – 5 ROOMS, ÜRÖMI STREET

150 SQM – 4 ROOMS, CSILLAGHEGY

100 SQM – 3 ROOMS, SEMMELWEIS STREET

106 SQM – 3 ROOMS, RÁDAY STREET

240 SQM – 5 ROOMS, MÁTYÁS KIRÁLY STREET

130 SQM – 4 ROOMS, KERTVÁROS

This two storey family house has 70 sqm of beautiful garden, very sunny living room with open kitchen and two separate bedrooms.

Good connection to public transport.

This three storey semi-detached house has 576 sqm of lot, living room with open kitchen, 3 bathrooms, 2 terraces, 2 balconies, winter garden, sauna and 2 parking spaces.

This completely renovated, furnished apartment is located on the second floor of a renovated building near Astoria and Ferenciek’s Square, in the heart of the city.

In a nice pedestrian street, this very spacious apartment that needs renovation has separate rooms and private gas heating. Ideal for investment.

Beautiful panorama from the 40 sqm of terrace, this duplex part of a house has 2 separate entrances, separate bedrooms, 2 bathrooms, private garden and garage.

In the garden suburb area, this two storey family house has 800 sqm of lot, 2 kitchens, 2 bathrooms, balcony, garage and nice garden.

49.900.000 HUF

44.900.000 HUF

64.900.000 HUF

34.990.000 HUF

115.000.000 HUF

+36.1.336.1706

2ND DISTRICT

+36.1.430.1403

3RD DISTRICT

+36.70.3156.116

6TH DISTRICT

+36.1.720.2433

10TH DISTRICT

97 SQM – 3 ROOMS, KURUCLESI STREET

160 SQM – 4 ROOMS, TÁBORHEGY

68 SQM – 3 ROOMS, OKTOGON SQUARE

278 SQM – 11 ROOMS, BODZA STREET

This completely renovated, very spacious and sunny, top floor apartment has terrace, private garden and it is situated in a small condominium, next to forest.

Beautiful panorama over the city, in a new, luxury subdivision, this very spacious and bright, duplex apartment has separate rooms, 2 bathrooms, balcony, 2 terraces and parking space.

This bright apartment situated within a nice, recently renovated period building. Only a few meters away from the pedestrian Liszt Ferenc Square.

This renovated, three storey family house built on 640 sqm of lot, has two bathrooms, terrace, fitness room, garage and playground in the garden.

62.500.000 HUF

119.000.000 HUF

33.000.000 HUF

79.900.000 HUF

+36.1.376.6080

2ND DISTRICT

+36.1.430.1403

+36.70.3156.087

4TH DISTRICT

7TH DISTRICT

48 SQM – 2 ROOMS, CSÍKSOMLYÓ STREET

52 SQM – 2 ROOMS, WESSELÉNYI STREET

460 SQM – 8 ROOMS, LAVOTTA STREET

This lot has beautiful panorama and 15% coverage possibility, electricity and water on it, gas is in the street. It is located in a very quiet, green area.

In a new subdivision, this bright apartment has living room with open kitchen, bedroom, private gas heating, balcony and parking space.

Historical Jewish area. Apartment in a good shape which is available immediately. Nice period building.

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.

66.500.000 HUF

20.500.000 HUF

24.900.000 HUF

99.900.000 HUF

+36.1.782.7275

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39.000.000 HUF

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The Moment when you think of a safe home

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10TH DISTRICT

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Are you looking for apartment?

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.

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