Budapest Business Journal 2809

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

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BUSINESS JOURNAL BUDAPEST

VOL. 28. NUMBER 9

MAY 8 – MAY 21, 2020

SPECIAL REPORT

Real Estate: Offices

SPECIAL REPORT

Likely Need for More Flexible Space Post-COVID With positive supply and demand fundamentals in the Budapest office market prior to the COVID-19 outbreak, we ask developers and owners how they see the pandemic impacting development, demand and design of office projects. 9 -10 NEWS

Tie Strings Loosened on Deficit Target Apparently wedded to the idea of a “V”-shaped crisis, the government has updated its EU Convergence Program, stating that this year’s recession will be followed by a quick recovery; the EC paints a much darker picture. 3 SOCIALITE

Playing on: Performing Music Under Lockdown For the past few weeks, the Budapest Festival Orchestra (BFO) has been presenting what it calls Quarantine Soirées live from its rehearsal room in Budapest, as David Holzer discovers. 28

Remote Control

INE BUS

SS

Zsuzsanna Tóth, HR director at Vodafone Hungary, talks the BBJ through some of the challenges of running a large organization and looking after staff and customers in these very changed circumstances.  5

1% Haller Gardens.

Where working feels like living.

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Budapest Business Journal | May 8 – May 21, 2020

THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL CONTRIBUTORS: Zsófia Czifra, Kester Eddy,

Bence Gaál, Gergely Herpai, David Holzer, Christian Keszthelyi, Gary J. Morrell, Nicholas Pongratz, Ekaterina Sidorina, Robert Smyth, Zsófia Végh.

LISTS: BBJ Research (research@bbj.hu) NEWS AND PRESS RELEASES:

Should be submitted in English to news@bbj.hu LAYOUT: Zsolt Pataki PUBLISHER: Business Publishing Services Kft. CEO: Tamás Botka ADVERTISING: AMS Services Kft. CEO: Balázs Román SALES: sales@bbj.hu

CIRCULATION AND SUBSCRIPTIONS: circulation@bbj.hu

Address: Madách Trade Center 1075 Budapest, Madách Imre út 13-14, Building A, 8th floor. Telephone +36 (1) 398-0344, Fax +36 (1) 398-0345, www.bbj.hu

What We Stand For: The Budapest Business Journal aspires to be the most trusted newspaper in Hungary. We believe that managers should work on behalf of their shareholders. We believe that among the most important contributions a government can make to society is improving the business and investment climate so that its citizens may realize their full potential.

The Budapest Business Journal, HU ISSN 1216-7304, is published bi-weekly on Friday, registration No. 0109069462. It is distributed by HungaroPress.

Reproduction or use without permission of editorial or graphic content in any manner is prohibited. ©2017 BUSINESS MEDIA SERVICES LLC with all rights reserved.

BBJ-PARTNERS

There is a technique in film pioneered by cameraman Irmin Roberts for Alfred Hitchcock in his 1958 movie “Vertigo”.

In honor of that, it is sometimes called a “vertigo shot”, although it has several other names, including “contrazoom”, “trombone shot” and “dolly zoom”. It was most famously used by Steven Spielberg in “Jaws” for the scene where Sherriff Martin Brody, sitting in a beach chair, realizes there is a shark attack unfolding before his eyes.

While the camera moves in one direction, the focus goes the opposite way. It is a destabilizing, confusing effect; the viewer hardly knows whether they are coming or going.

My point is that life in our “new normal” feels a little like watching one of those “vertigo shots.” So, we begin to approach the release from lockdown, even as the requirements for when and where to wear masks expand.

Neighboring countries change their “state of….” status from “emergency” to “alarm”, while our Prime Minister Viktor Orbán warns of a second wave in the fall.

We are praised (and sometimes upbraided) for our adherence to “stay-at-home” orders and social distancing norms. There is talk everywhere of a gradual lifting of restrictions, yet Britain’s COVID-surviving PM Boris Johnson describes this as the time of “maximum risk.”

There is a slow relaxation of the regulations in Hungary, but not in Budapest or Pest County, where the death rates are highest, and where most of us live and work.

Some schools started reopening in Germany this week; in France they do so from May 11. In Hungary we know two things: schools will not reopen in May (courtesy of Gergely Gulyás, the head of the Prime Minister’s Office), and the school term ends

on June 15. There’s no release as yet for those forced to combine work from home with home schooling.

Just as it is unwise to try and judge the “success” of one country’s war against the coronavirus pandemic with another based purely on death statistics, even on a per capita basis, so it is foolish to compare and contrast with what our neighbors are doing (Austria allowed hairdressers and shopping malls to reopen on May 1). Their journey through the process is different, and at a different point in time, to ours.

But the fact that, according to Johns Hopkins University data, in the Czech Republic there have been 7,841 cases and 252 deaths as of Tuesday evening, May 5, while here we have had only 3,065 cases, and yet 363 deaths, just adds to the general discombobulation.

How do we plan our way out of this? When will the economy reopen? When will we be able to get on a plane again, and will we even be able to afford a ticket when we can? What will happen with the virus in Africa? When, if at all, will a vaccine be developed? The questions pile up like racing cars caught out at a sharp bend on slick tires in a sudden shower. There are no easy answers. In fact, there are precious few answers at all, and certainly none we can pull from the file marked “Tried and Trusted.”

All we can really do is watch out for ourselves and one another as best we can, hope for a fair wind on the vaccine front, trust in good science and keep a jaundiced eye on our political leadership. And of those, frustratingly, the only elements we have any real control over are the first. Stay safe.

Robin Marshall Editor-in-chief

Photo: MTI/Péter Komka

Photo: fortepan.hu/István Péterfy

VISIT US ONLINE: WWW.BBJ.HU

SUFFERING FROM VERTIGO IN THE TIME OF CORONAVIRUS

THEN & NOW

Due to the precautionary measures to keep the coronavirus at bay, secondary school students are required to wear face masks during their written matriculation exams, which started across the country on May 4, as shown in the color photo to the right. In the black and white image from the Fortepan public archive, a student attends an oral matriculation exam under somewhat different circumstances in 1972.

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Budapest Business Journal | May 8 – May 21, 2020

News///macroscope

Tie Strings Loosened on Deficit Target

Apparently wedded to the idea of a “V”-shaped crisis, the government has updated its EU Convergence Program, stating that this year’s recession will be followed by a quick recovery. However, the European Commission paints a much darker picture about the near future of the Hungarian economy.

ZSÓFIA CZIFRA

Following a 2% deficit last year, the Hungarian government has raised its budget deficit goal to 3.8% for 2020 in order to tackle the likely recession this year caused by the novel coronavirus pandemic.

According to the updated Convergence Program, the government has submitted to

From Positive to Stable S&P Global Ratings has affirmed Hungary’s “BBB” sovereign rating but changed the outlook to stable from positive because of pandemic-related risks, state news wire MTI reported.

According to the credit agency, if the economic downturn results in a more permanent weakening of Hungary’s public finances that would put state debt on a firm upward path, or if it puts pressure on Hungary’s balance of payments performance, S&P could weigh a negative rating action.

On the other hand, if, following the temporary shock, Hungary’s economic performance were to return to its previous strong trajectory, boosting its income levels without creating external or fiscal imbalances, S&P could consider a positive rating action.

S&P projects Hungary’s economy will contract by 4% in 2020, but noted that the government and the central bank have introduced measures to cushion the impact of the pandemic on the economy.

Hungary’s Economic Performance (2016-21) (European Commission’s economic forecast, spring 2020) Change in economic performance (GDP) compared to the previous year, per cent

It acknowledges the initial policy measures that have focused on liquidity provision, including a debt moratorium for all borrowers until the end of 2020, but says that the overall fiscal policy response has been muted so far.

According to the EC, the liquidity support and temporary job protection measures offered to companies are likely to provide limited containment only; therefore, household consumption is expected to fall sharply, and thus declining demand and high uncertainty are expected to reduce private investment.

As a result, GDP is projected to decrease by 7% in 2020, while unemployment rate could rise from an annual average of 3.4% in 2019 to 7%, the EC estimates.

In 2021, a partial recovery will follow the sharp decline in 2020. The EC expects the Hungarian economy to expand by 6% in 2021, and says that unemployment rate could fall back to 6%.

However, the output of the economy could remain below its 2019 level, as external demand and tourism flow is expected to recover only gradually. Also, elevated unemployment and a delay in the return of household consumption could also delay the rebound.

The EC emphasizes that there are both upside and downside risks to the projection. It says that more vigorous fiscal policy support could limit the economic fallout in 2020 and hasten the recovery in 2021. On the other hand, it warns that a wave of corporate bankruptcies could weigh on the recovery by restricting job creation and lending.

Source:

the European Union, the economy, which produced a robust growth of 4.9% last year, will shrink by 3% in 2020.

“The deficit, considering the fiscal impacts from the crisis management and recovery measures and the temporary recession in 2020, will remain at a relatively low level, and is expected at 3.8% of GDP this year,” the document reads.

As for the significant setback in the output of the Hungarian economy, it is mainly caused by the delayed or canceled investments. Also, the updated convergence program calculates with an 8.3% decrease in exports and 6.8% setback in imports.

In the meantime, household consumption might further increase, albeit at a slower pace, only by 0.9% after last year’s annual growth of 5%.

V for Victory?

The updated figures for the Convergence Program show that the government still embraces the scenario of a “V”-shaped crisis: following a massive fall this year, it projects a strong rebound in the next few.

In 2021, annual GDP growth is set at 4.8%, and growth rate of more than 4% is expected between 2022 and 2024.

Following a slowdown in the falling trend of the sovereign debt to GDP ratio this year, the tendency is expected to return in 2021, and in 2024 the debt rate could fall below the 60% benchmark value.

“Thanks to the economic policy of recent years, in March the virus met with a resistant economy that had a balanced structure, and accordingly the rebooting of the Hungarian economy may also be successfully assisted by the economy protection measures,” the Ministry of Finance said in a statement on the updated Convergence Program.

The fresh spring forecast from the European Commission is not so optimistic: published on May 6, the prognosis is that a sharp decline will hit the Hungarian economy in 2020, which will be followed by a gradual recovery.

“Before COVID-19, Hungary’s economy was on track for a gradual slowdown after several years of outstanding growth.

Real GDP rose by 4.9% in 2019, and the first monthly indicators in 2020 signaled continued momentum,” the document says.

Muted Policy Response

Obviously, as the EC noted, economic performance in 2020 is expected to depend on the health impact of the virus, the sectoral specialization of the economy, and the economic policy response.

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Numbers to Watch in the Coming Weeks A second estimate of Hungary’s industrial production data will be published on May 13, with the first estimate due to have been published yesterday (Thursday, May 7). The numbers apply to March, and are already expected to show the effects of the pandemic. The March performance of the construction sector, also affected by the virus, will be released on May 14. The most awaited figures will come out the very next day, when KSH publishes the first quarter GDP data on May 15.

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Budapest Business Journal | May 8 – May 21, 2020

Coronavirus ///roundup Masks, Unemployment, Falling Sales and Testing all on the Rise 1st District

2nD District

288 sqm – 5 rooms, Corvin square

55 sqm – 2 rooms, HársHegyi street

70 sqm – 3 rooms, keleti károly street

At the bottom of the Castle Hill, in one of the historical areas of Budapest, this baroque style villa house built in the 18th century has 380 sqm of lot and many make over possibilities.

This renovated, high floor apartment has beau­ tiful panorama over the János Hill and is situa­ ted within a condominium with 2 elevators and reception service. Parking space in the courtyard.

Near Mechwart Park and Millenáris Park, this renovated, sunny and spacious, 1st floor, luxu­ ry apartment has open kitchen and 2 sepa­ rate rooms.

390.000.000 HuF

49.800.000 HuF

68.900.000 HuF

+36.70.365.0827

2nD District

+36.70.376.4138

2nD District

2nD District

+36.70.365.0827

2nD District

164 sqm – 5 rooms, országút area

192 sqm – 6 rooms, balogH ádám street

279 sqm – 5 rooms, nyék

Beautiful panorama over the Buda Hills and Castle District, this high floor apartment has 2 private terraces (11 sqm, 14 sqm) and it is situated within a period building with elevator.

In a diplomatic area, this completely renovated, top floor, luxury, duplex apartment has beauti­ ful panorama from the 95 sqm of rooftop terrace, and a 40 sqm of 2 car garage in the courtyard.

This four­storey detached house in good condi­ tion has 1050 sqm of lot, 2 big terraces, 2 ga­ rages and a lot of storage places. It is located in a green and quiet area.

120.000.000 HuF

199.000.000 HuF

209.000.000 HuF

+36.70.365.0827

3 District rD

+36.70.376.4138

3 District rD

+36.70.376.4138

3 District rD

101 sqm – 3 rooms, selmeCi street

162 sqm – 4 rooms, Hegyvidék

340 sqm – 7 rooms, táborHegy

This very spacious, well divided, garden facing apartment has 31 sqm of terrace and private gas heating. It is situated within a condomi­ nium with common garden and swimming pool.

This three­storey detached house has 870 sqm of lot, 3 bathrooms, sauna, 25 sqm of terrace, beautiful, well­kept garden, swimming pool, garage and 20 sqm of guest house.

In a quiet and green area, this two­storey semi­ detached house has 500 sqm of lot, 2 bath­ rooms, 3 balconies, a terrace, well­kept gar­ den and garage.

57.600.000 HuF

119.000.000 HuF

129.900.000 HuF

+36.70.328.8501

5th District

+36.70.328.8501

+36.70.328.8501

5th District

5th District

183 sqm – 4 rooms, bajCsy-zsilinszky str.

140 sqm – 4 rooms, balaton street

170 sqm – 3 rooms, st. istván CirCuit

This very bright, street facing corner apartment benefits of two bathrooms, two entrances and parking possibility in the courtyard.

Next to the Ministry of Defence, this completely renovated, very bright, street facing, high floor, luxury apartment has 2 bathrooms and a 14 sqm of balcony with a view over the Danube.

This completely renovated, very bright, street facing, luxury smart home has 2 bathrooms and balcony. There is a 100 sqm apartment for sale next to it, the 2 apartments can be united.

380.000 eur

174.900.000 HuF

219.900.000 HuF

+36.70.414.7759

6th District

+36.70.414.7759

7th District

+36.70.414.7759

7th District

103 sqm – 4 rooms, izabella street

52 sqm – 3 rooms, marek józseF street

172 sqm – 5 rooms, jósika street

This spacious, street facing apartment in good condition has private gas heating and it is situ­ ated within a period building, close to the And­ rássy Boulevard.

This completely renovated apartment has li­ ving room with open kitchen, two separate bedrooms and private gas heating. It is located close to the City Park.

In a beautiful, secession style period building with elevator, this completely renovated, unique apartment benefits of 5 spacious rooms, 3 bathrooms and 2 balconies.

59.900.000 HuF

39.900.000 HuF

474.000 eur

+36.1.351.0446

13th District

+36.1.351.0446

13th District

+36.1.351.0446

13th District

70 sqm – 2 rooms, balzaC street

103 sqm – 4 rooms, Csanády street

107 sqm – 4 rooms, Hegedűs gyula street

In one of a quiet streets of the district, this completely renovated apartment has 2 spa­ cious rooms and private gas heating. It is situa­ ted within a nice, period building.

Two separate, renovated apartments. 80 sqm of apartment has 3 bright rooms, kitchen, bath­ room and a nice balcony. 23 sqm of apartment has 1 room, kitchen and bathroom.

This completely renovated, very bright, west facing apartment is divided to 2 separate apart­ ments (86 sqm + 21 sqm) at the moment, but the 2 properties can be united.

58.900.000 HuF

69.900.000 HuF

74.900.000 HuF

+36.70.414.7759

+36.70.414.7759

+36.70.414.7759

gruppo t.F.m. kFt. 1068 budapest, király u. 102. each agency independently owned and operated. • these offers are valid, till the apartments are sold. • these information do not constitute a contractual element.

It has been mandatory to wear a mask or scarf covering mouth and nose in all commercial units, shops, grocery stores, markets, as well as when using taxis, and public transportation since Monday April 27, Mayor Gergely Karácsony announced in a video posted on his Facebook page.

NICHOLAS PONGRATZ

Despite not being formally included in the mayor’s edict (being owned by the state, rather than the city), Magyar Posta has also insisted on customers wearing masks in its premises.

Fortunately for Budapest residents, Hungary has been receiving shipments of millions masks (and hundreds of thousands of testing kits and other pieces of personal protective equipment) from China, including five planes carrying 4.1 million masks and 100,000 tests on May 1, and a 40-car container train on April 27. Aldi has stated it has two million masks in stock, with 500,000 already available to customers in packs of 10 available for HUF 3,999.

As the official figures of the coronavirus’ initial impact on employment become available, it was revealed that in March 2020,

56,000 people

lost their jobs, 54,000 of whom became economically inactive and 2,000 unemployed, according to the Central Statistical Office (KSH).

László Parragh, president of the Hungarian Chamber of Commerce and Industry (MKIK), told independent liberal newspaper Népszava that he estimates the number of unemployed will increase by 4,000-5,000 people per day.

Different indexes from GKI Economic Research Zrt. mildly conflict, with its business climate index falling by an unprecedented 33.1 points in April, but its purchasing managers’ index improving to 33.6 from 28.5 in March.

Half of companies saw at least a 30% drop in sales in March as a result of the coronavirus epidemic, and expect a further significant decline, according to a survey conducted by the National Bank of Hungary (MNB), although many industries saw a more drastic decline. Some 50-90% of the revenues of language schools, for example, may be lost due to the epidemic, according to Villággazdaság.

The Hungarian real estate market fell by 58% in April compared to a year earlier, Duna House told state news agency MTI based on its own data. Nationwide, taxi traffic fell by

90%, according to the National Taxi Association, while Budapest Airport announced it had lost roughly 99% of its usual passengers in April.

Don’t Panic!

In spite of the National Pandemic Alarm survey, which took place in five Central European countries, indicating that Hungary rates at 69.8% on the “Panic Index” (how worried people are about the measures taken to prevent the virus from spreading), one-third of Hungarians expect the COVID-19 coronavirus crisis to end in four-to-six months, but 5% say it will last more than 12 months, according to a representative survey by Nielsen in the European market between March 26 and April 8.

Only 16% of Hungarians are confident that the economy will recover soon after the virus recedes, as revealed by an online survey conducted by K&H on the income situation of households among the Hungarian population

aged

18-65.

However, according to a global, representative survey of the emotions, fears and financial prospects of the population of 22 countries conducted by General Insurance, 51% of Hungarians are more optimistic or strongly optimistic about the outcome of epidemic.

Major testing for coronavirus at various laboratory locations has begun among the population, National Chief Medical Officer Cecília Müller told the daily Operational Council press conference on May 1.

Aside from tests being offered by private firms, including by drive-through, Semmelweis University is now providing coronavirus screening as part of the H-UNCOVER national representative study, which aims to obtain an accurate picture of the epidemiological situation in Hungary.

A high turnout for the study is extremely important to get accurate results in order to target and mitigate the spread of the disease, which will be necessary, as Prime Minister Viktor Orbán has warned that experts expect a second wave in October-November.

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Budapest Business Journal | May 8 – May 21, 2020

Business

PRESENTED CONTENT

Learning how to Support and Motivate Remotely

virus, especially in areas where there was no option to move to an online space. These workers are now looking for work, including some with serious work experience. From HR’s perspective, this means that there is now a much greater opportunity to strengthen the company with skilled colleagues than before the crisis broke out.

Zsuzsanna Tóth, HR director at Vodafone Hungary, talks the Budapest Business Journal through some of the challenges of running a large organization and looking after staff and customers in these very changed circumstances.

BBJ: Are you still recruiting? If so, how are you managing the interview and onboarding processes?

ZsT: The number of Vodafone employees is expanding year by year, accordingly, the search for new employees is still underway, with nearly 70 open positions available. To slow the spread of the virus, Vodafone has introduced a number of measures that affect the daily work of current and prospective employees. New employees are also selected according to a new procedure on online platforms, so there is no personal contact during prescreening, interviewing or admission.

ROBIN MARSHALL

BBJ: How has the HR function at Vodafone changed since the onset of the coronavirus crisis?

Zsuzsanna Tóth: It has changed a lot.

Being between the same four walls can become depressing over time, and most workers have been working from home for a month and a half. We are constantly monitoring the mood of our employees with regular questionnaires, and try to help them in every way.

We have launched our new internal initiative called “Well at Home” to support our colleagues to cope with this unprecedented situation. It’s part of our “Re-Charge” program and aims to improve the physical and mental wellbeing of our employees at home during the COVID-19 epidemic.

It includes several activations around four pillars (“Eat”, “Move”, “Relax” and “Help”) with articles; vlogs; wellbeing pulse surveys; remote working tricks and tips, etc. In addition, we offer psychological, business and life coaching support and an online medical consultancy, should our people need further help.

For example, the program, provides nutritional recommendations to our employees, tailored to the specificities of the current situation. After all, in this situation, the availability of raw materials is limited, and in some respects the possibility of moving around is also restricted; yet, it is very important to eat healthily, and support our immune system.

Regular exercise is also important, and we try to encourage colleagues with some

Zsuzsanna Tóth, HR director at Vodafone Hungary. home exercise plans. The company’s online yoga classes also continue.

We are striving to transfer as many of our previous activities to online platforms as possible. This will help us have some continuity in this time of extreme uncertainty, which gives us a sense of security.

The current situation makes it virtually impossible to live an active social life in the same way as before, so we also launched initiatives that support mental relaxation and help us release the stress we accumulate during the day.

In our online “café”, colleagues can meet virtually, where the focus is on community building and human relationships, instead of work. In addition, our employees can also participate in online games and quizzes.

The idea is to help colleagues overcome the work-related or personal challenges brought about by the new situation, whether they have to do with work organization, collaboration with colleagues or any other challenge.

BBJ: What are you finding to be the biggest challenges in managing large numbers of people working from home?

ZsT: The current situation is new to everyone and, regardless of position, it poses challenges to colleagues.

Managers need to rise to a situation that’s also completely new for them.

As managers, employees and ordinary people, we all face a lot of uncertainty day-by-day, so we need extra attention and empathy, not only at team level but also at company level.

We had to make sure that all of our colleagues are safe, so on March 13 we sent all employees in our Budapest HQ home to work remotely in the upcoming weeks. To support remote working, we extended the VBS (Virtualization-based security) capacity to make sure everyone could reach internal servers, and created useful materials on how to manage teams and work efficiently in such a situation.

We also implemented extra measures to preserve the health of our colleagues who work in retail and in our call centers such as a daily thorough cleaning, providing masks, gloves and hand sanitizers, home working for some CC colleagues, etc. Our team has organized all this in a few days, even though it was one of the greatest challenges in our professional life.

BBJ: What are the workforce implications of the changed circumstances?

ZsT: Unfortunately in many sectors people have lost their jobs due to the

"The current situation is new to everyone and, regardless of position, it poses challenges to colleagues. Managers need to rise to a situation that’s also completely new for them. [...]

We all face a lot of uncertainty day-by-day, so we need extra attention and empathy, not only at team level but also at company level."

BBJ: Are you already beginning to plan for how HR will operate once the "stay at home" restrictions are lifted, or is it too early for that?

ZsT: We are monitoring government actions, and if the circumstances are right and it will be possible to work together safely beyond any doubt, we will consider moving back to the office.

The current situation has taught us many things about our colleagues and our organization, and we are searching for new ways to build on these lessons. Our employees could already work from home before the virus, and I think we can go forward in this way and strengthen the remote working culture across our organization in the future.

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Business

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Budapest Business Journal | May 8 – May 21, 2020

COVID-19 and the M&A Market M&A activity, both globally and in Central Europe, declined dramatically in Q1 2020: Les Nemethy and Sergey Glekov examine why, ponder when there might be an uptick in transactions and make some predictions as to how a partial midterm recovery of activity may occur.

The Corporate Finance Column

M&A Activity in Selected CEE Countries, Million USD

So where is this money likely to go?

3500 Q1 2019

3000

Q4 2019

Q1 2020

2500 2000 1500 1000 500 0

Czech Republic

Poland

Hungary Source: Global M&A Review Q1 2020 by Bureau van Dijk

COVID-19 has had massive economic impact, providing a simultaneous demand and supply side shock to the world economy.

These effects have been well documented (including in our previous columns).

Rather than focus on reasons for economic collapse, from the M&A perspective, the main reason for the dramatic decline is the massive uncertainty created by COVID-19. Yogi Berra’s comment that “Forecasting is difficult, especially the future”, has never been truer.

Let’s analyze this uncertainty around M&A. Even if COVID-19 were to miraculously disappear tomorrow, there would still be enormous uncertainly surrounding the economic effects of the virus: would it be a fast “V”-shaped recovery, a slow “U”-shaped recovery, or an “L”-shaped stagnation?

How fast will unemployment recover?

What stresses will be there on the banking system? How many countries will go into default? Will the globalization process continue forward or reverse? What will happen to supply chains?

There will likely be entirely unforeseeable domino effects. We are only scratching the surface here in terms of the massive uncertainty, even under a scenario of COVID-19 stopping immediately.

But we know the pandemic will continue for many more months to come. It is only now beginning to hit high-density lowincome emerging economies like Brazil,

resources (see “Cross-border M&A Activity Expected to Pick Up” by chinadaily.com).

Note: For the Czech Republic, the surge in Q1 2020 is mainly attributed to several mega deals. For instance, Swedish real estate company Heimstaden acquired a residential property portfolio in the Czech Republic owned and operated by Residomo for a total purchase price of USD 1.4 billion.

Indonesia, India, etc. New hotspots are emerging in developed countries. There is the possibility of re-infection, mutations, etc., uncertainty as to when a vaccine will emerge, and how effective it will be against COVID-19, as well as possible mutations.

An M&A transaction requires a buyer and a seller. Sellers always tend to look at the value of their company optimistically, buyers take a much more cautious approach. With all this uncertainty, the expectations gap between buyer and seller is perhaps wider than ever before.

Most would-be sellers have no intention of accepting distress-type valuation, and would rather wait for markets to recover, while in most cases buyers would insist on valuations approaching distressed levels. Hence the main reason for the dramatic decline in M&A. There are at least two other major reasons for the virtual cessation of M&A activity.

First, lack of liquidity. Most potential acquirers are themselves facing reduced cash flow, and need to keep powder dry to provision for the uncertainty. Second, bank financing has become much more challenging to arrange. Issuance of new bank debt, particularly for SME’s and in Central Europe, is also greatly diminished.

When Might There be a Recovery?

We believe full recovery will not come any time soon, certainly not in the next six-12 months, as it will require a considerable reduction in the aforementioned uncertainties; domino effects will need to work themselves through the system, and the risk from COVID-19 itself will need to at least becoming manageable.

Despite a number of governments talking about removing lockdowns, the risk of reinfection or mutation is still great, and confidence in most governments is low.

Where Might There be a Partial Recovery?

There are quite a few pools of capital available for acquisitions; namely private equity firms, and a number of large corporations, particularly in the high technology area.

According to the Global Private Equity Report 2020 by Bain Research, private equity dry powder, or uncalled capital, hit a record high of USD 2.5 trillion in December 2019 across all fund types, and USD 830 billion for buyouts alone.

There may also be interest from Chinese investors to invest into Europe and Africa, in manufacturing, automotive and natural

1 Distressed assets: Typically, it usually takes a number of months for the “penny to fall”, for owners of distressed enterprises to realize that there is perhaps no way out, other than a distress sale, or for banks to foreclose and then begin disposing of assets. The number of assets and companies sold under distress begins with a trickle, and will end up a flood.

2 Winners from COVID-19: There may be more of these than the reader may realize; just to list a few potential winners: a The most obvious winner may be Amazon, which has announced plans to hire some 175,000 employees since the start of COVID-19. Amazon is not alone. There is a massive shift from physical retail stores to online retailing; b Other internet-based technologies, from online education to telemedicine will benefit; c Certain pharmaceutical companies and health-related companies are also likely to do extremely well.

3 Technology: Google and other technology majors continue to announce deals even during the virus.

The M&A market may have collapsed, but it is far from dead. However, M&A activity will remain suppressed for the foreseeable future; in the meantime, there will be considerable corporate finance activity, as companies attempt to repair or improve their balance sheets, raising equity or obtaining more liquidity through debt, or refinancing debt on more favorable terms.

Les Nemethy is CEO of EuroPhoenix (www.europhoenix. com), a Central European corporate finance firm, author of Business Exit Planning (www. businessexitplanningbook.com) and a former president of the American Chamber of Commerce in Hungary.

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WHO’S NEWS

Do you know someone on the move? /// Send information to news@bbj.hu

Dreher Announces Three Managers

Dreher Breweries announced the strengthening of its management team with three new appointments three experts: Tomáš Kosmák as manufacturing director; Tibor Kovács as engineering manager; and Dániel Kertész as World Class Manufacturing (WCM) manager. According to Dreher, all three have extensive experience in the FMCG area.

Kosmák received a degree in the field of food technology and processing at the Mendel University of Agriculture and Forestry in Brno, the Czech Republic.

Over the course of his career, he has worked at companies such as Pivovar Starobrnó and Heineken.

Tomáš Kosmák After a short stint in the automotive industry, he joined Plzeňský Prazdroj (the manufacturer of Pilsner Urquell, belonging to Asahi Group) prior to joining Dreher at the beginning of 2020.

Kovács worked in a variety of roles in the food industry, spending more than a decade at PepsiCo, before joining CocaCola HBC in 2013. Between 2016 and his appointment at Dreher last October, he acted as a project manager at Detki Keksz Kft. Kertész received a bachelor’s degree in mechanical engineering at Szent István University before earning his master’s in engineering/industrial management at the same institution.

Tibor Kovács For six years, starting from 2013, he worked in a number of manufacturing management positions at Procter & Gamble.

"Our commitment to quality is the most important heritage of Dreher Breweries," says Gábor Békefi, the general manager of the brewery. "I am very glad that we can strengthen our production with three knowledgeable experts who have many years of experience."

He adds, "I think that they are arriving at the company at a very exciting time, when we are going through a renewal while also reinforcing our traditional values, which remained unchanged for 165 years now. I would like to take this opportunity to welcome our new colleagues.”

Managing Director Appointed at McDonald’s Hungary

Paweł Sapek Named Regional Head for Prologis Central Europe

McDonald’s Hungary has announced the promotion of Zsolt Égi as managing director, effective from March 1.

Previously, Égi had acted as director of operations, IT and construction/EQ at the company, a role he held for about a decade. Ágnes Horváth, the previous MD, has decided to leave McDonald’s after 20 years at the company to continue her career elsewhere.

"I am delighted that Zsolt, who, as deputy managing director and specialist responsible for several strategic areas gained significant experience over recent years, and personally took the lion’s share in developing growth strategies and making managerial decisions, is taking over the leadership of the company," McDonald’s developmental licensee partner Sándor Scheer says of the appointment. Égi joined McDonald’s Hungary 20 years ago, as a graduate, working in several positions before becoming director of operations. He received the McDonald’s Presidents’ Award in 2012, and the Ethics Champion Award in 2017 for his performance.

Prologis has announced the appointment of Paweł Sapek as regional head for Central Europe, a role which makes him responsible for maintaining strong team leadership, identifying new opportunities and steering the region towards new paths of development, according to the company.

Zsolt Égi

Dániel Kertész

Business | 7

Égi says, "It is a great honor and pleasure for me to accept the invitation of the owner, Sándor Scheer, to act as managing director, and control the McDonald’s network in Hungary and Progress Étteremhálózat Kft. during the upcoming period, which includes plans of dynamic growth and expansion."

Paweł Sapek Sapek is now responsible for overseeing the company’s entire CE portfolio across Poland, the Czech Republic, Slovakia, and Hungary, with a total area of 4.2 million sqm. In addition, he will run the Polish branch of Prologis and directly supervise operations in Hungary.

He has more than 23 years of experience in real estate and project management.

He joined the company in 2015 as senior vice president, country manager Poland, overseeing the company’s investment and operating activities in Poland.

“Paweł has been central to Prologis’ efforts in the region over the last five years to reinforce our approach as primarily a customer-centric one, where we leverage our scale, reach and innovation to create long-lasting relationships with our customers,” says Ben Bannatyne, president Europe, Prologis.

Sapek graduated in marketing and management from the University of Economics in Katowice. He also holds a postgraduate diploma in logistics management from the Warsaw School of Economics. In 2019, the Royal Institution of Chartered Surveyors made him a Fellow of RICS (FRICS) for outstanding individual achievements in the real estate and construction industry.

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Special Report Real Estate: Offices

Market Talk: Likely Need for More Flexible Space Post-COVID

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New Office Hubs Attracting Developers

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Crisis to Accelerate Some Trends, but Quality Buildings Will Maintain Value

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Strong Office Demand Expected to Continue After the Crisis

12

Interior Central to a Successful Office Project

14

News in Brief

26

How are developers and owners coping with contruction under coronavirus, and what are their expectations for the market once the crisis has passed?

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Budapest Business Journal | May 8 – May 21, 2020

Market Talk: Likely Need for More Flexible Space Post-COVID With positive supply and demand fundamentals in the Budapest office market prior to the COVID-19 crisis, the Budapest Business Journal asks developers and complex owners how they see the pandemic and its aftermath impacting the development, demand for and design of office projects.

hygiene procedures, according to requests.

Up to now, I can report that contractors are performing their contracted commitments up to almost nearly 95%, which is very good news.

Nikolett Püschl Leasing and development director Atenor Hungary

We see that work in our portfolio has progressed properly so far, nevertheless, we are cautious with regard to deadlines, due to unexpected negative influences.

GARY J. MORRELL

Fortunately, the current pandemic situation did not result in any delay in our office projects, neither building-wise nor leased premises wise.

By the time of the start of the lockdown, we had already achieved a very advance status in all of three ongoing constructions.

All materials were already in place and, furthermore, our development strategy of not using a general contractor but working with subcontractors who are fully managed by our in-house project managers proved to be the most secure and professional choice.

Nikolett Püschl Due to the recent extraordinary situation, obviously the whole economy is impacted in some way. The office market is a segment that may show only a temporary change. In the last four-to-five weeks we have experienced that most occupiers are more careful, which is paired with a slight slowing down, although we do not expect less demand and any necessity for a change in pricing.

With regard to construction, we have introduced the strictest health and

Those developments which are under construction are likely to be completed.

There might be some delays, due to more cautious site management, but the products will be there.

Office developments under planning may suffer some delays until the market responds to post-COVID demands, but we expect no serious fallback in the volume of office development.

It is hard to say what the impact of the virus will be, but humans are a social species and it has become clear in the past weeks that, besides productivity, people have a desperate need to communicate and interact face-to-face, which tells me that demand will be there.

For sure, occupiers’ needs will somewhat slow and companies will be more cautious with new leases and expansions, but I suspect no major change in demand.

We are already experiencing some tenant interest related to fit-out corresponding to social distancing (especially in the social areas of an office space), so this pandemic will influence design and fit-out.

Ede Gulyás So far, we have had little chance to see the impact of the COVID-19 virus clearly, but we think it could be varied: the temporary slowdown of business activity, rationalization of business operations, decrease of activity on a permanent basis, restructuring or, in the worst case, the shutdown of businesses with no return could occur.

With regard to continuing to attract investors, just like after the last economic crisis, this will depend on how Hungary will be able to stand the ground, what central measures will be taken to keep enterprises alive and assist them to start prospering again, and how our whole economy reacts and comes out of this situation.

We have a small and vulnerable economy, but with forecasts saying that we will be among the least affected, a peaceful recovery would result in good sentiment towards us.

I do not think that the rental level will decrease; this is still a reasonable and necessary income for owners for a proper business case.

Depending on the actual consequences of the virus and the real demand experienced during the coming period, I assume that developments may slow down, may be postponed and rental areas rationalized, but the price level will not fall.

Ede Gulyás Managing director CA Ammo Hungary

Mátyás Gereben Naturally, PM and FM have to adapt and we have to ensure that building systems (especially air handling) and operational processes correspond to a higher level of health and safety requirements.

Mátyás Gereben Country manager CPI Hungary

Fortunately, we secured the critical assets in time, so currently we do not suffer any delays. In the short-term, smaller lease negotiations are being placed on hold; however, these are not necessarily cancelled as the fundamental demand remains.

Accordingly, the commercial real estate market is in a waiting position to find some forecastable trend.

Special Report | 9 This may have a weakening effect on leasing deals over the medium-term.

The methods of prevention and protection are known and understood in the real estate market. Since it is a common interest for both occupiers and landlords, a practical and safe approach for collaboration will be the first topic of the kick-off meeting of any current and new project.

The same applies for guidelines and future approaches regarding existing tenancies once the “back to the office” period resumes.

Dr. Melinda Szilágyi We believe that this experience has helped both employers and employees to understand the nature and the advantages and limits of home-office. We do not expect the downsizing of office leases in the near future; however, fit-out and space planning (allocation and utilization of areas within offices) are perceived as likely to change and adapt.

Moreover, as a result of the current situation, the IT systems of companies will enjoy a more dynamic and robust development.

Dr. Melinda Szilágyi Asset manager Diófa Asset Management

After only seven weeks of our everyday lives being directly affected by the COVID-19 pandemic, it would be too soon to draw any major conclusions. Long-term economic impacts are difficult to predict from where we stand today. We maintain our prudent planning to be able to minimize the risk of our projects being delayed.

When it comes to the construction of our ongoing Szervita Square Building project, we are still on track. We have the manpower available to continue everything as planned. As per the delivery of building materials, we have started to experience minor delays, but we still hope we can accomplish our projected Q4 2020 handover.

We have not experienced any decline in the demand for top quality office or retail space, neither in our own developments nor in the ones entrusted to our leasing and property management divisions by prestigious international funds. New inquiries reached us in March and April, and we are positive that the upcoming months will bring more deals.

Continued on page 10 ► ► ►

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Special Report

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Budapest Business Journal | May 8 – May 21, 2020

Continued from page 9 ► ► ►

Property, professionalism, trust since 2004.

Árpád Center Office Building

The most imminent changes will be seen in our property and facility management practices. Horizon Development’s PM division manages premium multi-tenant office buildings including Eiffel Palace, Promenade Gardens, Váci 1 and Park Atrium. We acted quickly and took all necessary health and safety measures to responsibly react to the current situation.

Central Business Center

Attila Kovács

CityZen Office Building

Architecture, design and the fit-out of commercial interiors will most likely also be touched by the idea of social distancing and increased personal health concerns, which might ultimately result in a more generous use of space when planning layouts and seating concepts.

Attila Kovács Managing partner Horizon Development

We are taking the current situation seriously and are aware that recent events will impact the whole economy, including our own business.

At this time, it is too early to estimate the impact on our industry, but we believe that [the experience with] home working will lead more companies to ask for more flexibility in their office setup.

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Viktor Nagy We had already recognized this trend before the very recent coronavirus crisis; that is why this is a key feature of our myhive office concept. Offices and shops remain places of work and exchange and

that will be so even after the COVID pandemic; however, it is too early to estimate the potential impacts of COVID in these sectors.

Tenants will most probably allow home office work more frequently and that is why more flexible office space will be in demand.

With regard to recent events, we are constantly monitoring the needs of tenants in our properties and are taking necessary steps like increasing the disinfection frequency or the distribution of hand sanitizer dispensers, etc.

We think companies will ask for more flexible solutions, as offered by myhive, and we are well prepared for these market needs.

Viktor Nagy Country manager operations Immofinanz Hungary

If we look at the big picture on the market, short delays can be expected in on-going projects; in the case of delivery from abroad and due to the stay-at-home restrictions, the workforce management might have to be adjusted, as many foreign workers have decided to return home.

Borbála Telekesi-Csuhay Additionally, other regulations limiting everyday operations have caused a slow-down in administrative processes, which may also affect, first and foremost, new projects.

In my opinion the crisis could only slightly affect demand in the shortterm. According to our experience, the agreements in progress are still ongoing, since the decisions can be delayed for a few weeks, or even a few months. We can expect a short-term decrease in new deals, but the number of large tenant interest is still significant.

This period has proved that home office can be implemented in lot of areas and there is no need for a constant office presence for employees. Another thing which has been highlighted is that people are in general social creatures.

Therefore, I think working completely from home is highly unlikely, as it negatively affects efficiency. People need change in their environment for inspiration and for motivation; they need human contact and team work is more effective in person at the office.

Borbála Telekesi-Csuhay Sales and asset management director Property Market

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New Office Hubs Attracting Developers One of the major challenges for office developers in Budapest is to source suitably-sized, well-located development plots that provide visibility, at a time when competition for such space is becoming more intense, as the Budapest Business Journal discovers.

GARY J. MORRELL

The established trend is for office development to be undertaken in urban locations that are integrated into the wider city. It is important to evaluate a project on the community level and not just as a stand-alone building, according to Zsombor Barta, president of the Hungarian Green building council (HuGBC).

The preference for workplaces within an urban environment is reflected in figures from the Budapest Research Forum that puts vacancy in-non central Pest at a very low 1% compared to 33.6% for the periphery.

With the norm now for projects located in urban environments, developers are delivering schemes that are perceived as providing a reciprocal benefit for staff and residents in the vicinity.

“Every location is different and a new building has to be adapted into its environment. In order to achieve this, open dialogue is required with the municipality, urban planners, other developers and representatives of local inhabitants,” comments Mátyás Gereben, country manager for Hungary at CPI Property Group.

The Váci Corridor remains the favored Budapest development destination with

almost

900,000 sqm

of stock as of the turn of the year, according to Cushman & Wakefield, with vacancy of 4% and the highest share of take-up in the Budapest office market.

However, with the growing popularity of the area, well-located sites have becoming more difficult to source and developers are looking at other areas of the city.

The outer boulevard is now developing into an office hub with the Aréna Business Campus by Atenor and the Liberty office complex, from Wing, which has already delivered the Magyar Telekom headquarters nearby.

12,500 sqm Szervita Square Building, an office, retail and residential complex by Horizon Development.

Attila Kovács, managing partner of the developer, says the number of plots in the CBD is becoming more scarce and competition growing.

What Budapest does have is quality development sites on the Buda riverfront where, for example, Wing is developing the headquarters of evosoft Hungary, part of the Siemens Group.

South Buda has been established as something of a high-tech hub for Budapest and the sub-market is the second most active with 173,000 sqm under construction, according to Cushman & Wakefield, alongside total office stock of around 380,000 sqm with vacancy of

about

5%.

Another south Buda waterside development is BudaPart by Property Market on the bank of the Danube at the Kopaszi Gát (Kopasz Dam).

“BudaPart, as a project with mixed functions, offers a complex opportunity for its tenants. Thanks to being located next to the Danube and Kopasz Dam, we are close to nature and a green environment, but as a result of the neighborhood’s services, the workers can enjoy the urban vibe as well,” says Borbála TelekesiCsuhay, sales and asset management director at Property Market.

PRESENTED CONTENT

Crisis to Accelerate Some Trends, but Quality Buildings Will Maintain Value Once economic life recovers from the COVID-19 pandemic, it is likely we will find that certain trends have been accelerated, says Bence P. Balázs, real estate investment director at Diófa.

ROBIN MARSHALL

Exactly to what extent those changes will be visible is still to be played out, he says. The crisis has forced companies to embrace the concept of home office, for example. But for everyone who has found it to be a surprisingly efficient mode of operation, there will be others who lack a proper workspace or simply miss the human element of meeting and working with colleagues.

And that will still be the case once the challenges and frustrations of combining working from home with home schooling are removed from the equation, he believes.

“I think flexibility will be the key, and we, the market, will develop a hybrid structure,” Balázs tells the Budapest Business Journal. “It makes sense to allow people to decide for themselves and perhaps do one or two days a week remotely if they enjoy working that way.”

Balázs was made responsible for leading and overseeing the asset, fund and investment management activities of the open and closed-end commercial real estate funds managed by Diófa in March of this year, having joined the company as real estate portfolio manager in October.

His 13-year career includes stints working in Germany, CEE and Australia.

One noticeable side effect of greater WFH has been less traffic on the roads and better air quality, even in downtown Budapest. Environmental issues play particularly strongly with the younger generations, and Balázs says he thinks this might become a factor for businesses anxious to secure the best staff.

Satellite Hubs

High-rise Ban

The most challenging area for development sites continues to be the historic core of Budapest, where planning regulations do not allow for the development of a high-rise central business district as has been the case in Warsaw, for example.

One rare development project in Budapest’s historical center is the

BudaPart GATE by Property Market.

Special Report | 11

“We might see more ‘near office’ or temporary office solutions: having one main headquarters office might no longer be a 100% good solution for companies wanting to attract a solid workforce. Smaller satellite hubs, which you can reach using sustainable transport and with reduced travel time will become more prevalent,” he says.

“On the other hand, I think there will be a shift towards more flexible space. That trend will continue and the crisis will become a catalyst for a reduction in fixed work stations as IT tech becomes more prominent.”

Which is not, let us be clear, to say that Balázs is predicting the end of the office era. “We currently have low supply of commercial space, the fundamentals of the market are good and there is still inherent demand, especially in the office and logistics markers. Some sectors will clearly recover quicker than others;

Bence P. Balázs F&B and hospitality may take a bit more time to get back to normal.”

The assets Diófa manages in its portfolio are all buildings with high added value, with premium location and market positioning and a solid mix of high-profile domestic and international tenants, Balázs insists. “I do not see any sign of a shift in valuations.”

Indeed, his vision for the future, once past the coronavirus crisis, is to “retain and expand the core assets” and continue developing the relationships with long-term clients wherever possible. But that is not all.

“Given the solid returns for the funds managed by us, we aim to acquire some new institutional investors in both open and closed funds,” the real estate head says. He adds that Diófa is also looking into opportunities to “expand the portfolio range at a CEE level with new and ‘less traditional’ assets”, though he won’t, at this stage, be drawn further into saying what those might be.

About Diófa Asset Management The company handles institutional and retail funds worth more than EUR 1 billion (HUF 340 bln). The real estate portfolio managed by Diófa Asset Management includes high value Class “A” office buildings such as Alkotás Point, Green House, V17 and the buildings A, E and G of Infopark, core in-city logistics properties (DÜP and Innove) as well as the newly rejuvenated Shopmark shopping center.

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Budapest Business Journal | May 8 – May 21, 2020

Strong Office Demand Expected to Continue After the Crisis Office (along with logistics) is the commercial real estate sector in the most favorable position concerning the coronavirus crisis and its wider impact and aftermath, in the view of most analysts the Budapest Business Journal has spoken to.

Balance Hall, at Váci út 99, is billed by its developer CPI as a “conscious building”.

GARY J. MORRELL

With strong demand fundamentals, Hungarian and regional developers such as Atenor, HB Reavis, CPI, GTC, Skanska, Horizon Development, Futureal and Wing have in recent years been able to move forward with office projects with the confidence that debt finance can be sourced if required, tenants can be found and preleases concluded.

Budapest office supply has continued to boom with vacancy falling to some of the lowest levels on record. At the same time, supply has been relatively constrained in comparison with past cycles and preleases now constitute a significant part of the market; companies looking for quality, well-located contiguous office space have to plan ahead.

Market and societal pressures have exerted an influence on developers and building-owners to meet the demands of tenants and their staff to embrace sustainable development policies.

Architects and interior designers are being employed to deliver ever more imaginative projects to meet more sophisticated demands from building users.

With regard to the impact of the COVID19 virus, Cushman & Wakefield says ongoing projects are proceeding with no delays reported, although permitting processes have slowed.

“Office is seen as the second least affected market sector, if the traditional long-term leases are taken into consideration. Clients seem to be advancing new lease plans, the only limiting factor is the lack of office viewings,” says Adorján Salamon,

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Contact: Atenor Hungary Kft. 1138 Budapest, Váci út 121-127.

Zoltán Borbély Country Director +36 1 785 52 08, borbely@atenor.eu

Nikolett Püschl Development & Leasing Manager +36 1 785 52 08, puschl@atenor.eu

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CEO of Eston International, an international associate of Savills.

“However, co-working/serviced offices could be put to the test with the current use of home offices. If companies and workers explore this approach [further],then it could change not only co-working but the traditional office approach,” Salamon says.

Total Stock

Total modern office stock in Budapest now stands at around 3.7 million sqm, 3.1 million of which is leasable class “A” and “B” complexes, according to the Budapest Research Forum (consisting of CBRE, Cushman & Wakefield, JLL, Colliers International, Eston International and Robertson Hungary).

The overall vacancy rate in Budapest stands at 6.2% as of the first quarter of the year. Total leasing demand for 2019 amounted to 637,00 sqm, which is the highest annual volume on record. In a Central European comparison, total modern office space in Prague stands at 3.67 million sqm, with a 5.4% vacancy rate, according to the Prague Research Forum.

The market has a potential pipeline of more than 570,000 sqm. Development of large-scale, phased speculative project by developers such as Atenor, HB Reavis and CPI reflects both the positive indicators in the Budapest office market and long-term

market confidence in the ability to let and sell a project onto investors.

Cushman & Wakefield have traced an improved pipeline of 180,000 sqm for 2020, 60% of which is pre-let. The first 27,00 sqm phase of the Budapest ONE Business Park

by Futureal and the 18,000 sqm first office phase of BudaPart by Property Market were completed in Q1.

JLL has traced 14 office projects that are due to deliver this year, the largest of which is the 34,500 sqm Agora Hub and the 34,000 sqm Agora Tower, both part of the phased 36,000 sqm Agora Budapest project.

Belgium’s Atenor has been developing the phased 130,000 sqm Váci Greens office in Váci út with Buildings “F” and “E” completing the project. In parallel with this, the developer has also undertaken development of the speculative, phased

“Office is seen as the second least affected market sector, if the traditional long-term leases are taken into consideration. Clients seem to be advancing new lease plans, the only limiting factor is the lack of office viewings.”

85,000 sqm Aréna Business Campus in the outer boulevard of Budapest.

“Our ongoing developments, Váci Greens ‘F’ and ‘E’ as well as Aréna Business Campus ‘A’, are progressing as per their original plans. We do not have any delay as of today,” comments Nikolett Püschl, leasing and development director at Atenor Hungary.

New Supply

The new supply scheduled for 2021 amounts to 211,000 sqm, all of which is currently under construction, while the new supply expectations for 2022 are about 280,000 sqm, although the vast majority of the latter volume is still in the planning phase and is therefore at risk of kick-off delays, in addition to the actual timeline dragging out, according to Anikó Kovács, head of office agency at CBRE. Wing has manufactured a role for itself as a build-to-suit developer for high tech companies. The company is due to complete the 22,000 sqm, Univerzum Office Building, a BTS project that will form the Evosoft headquarters at the Nobel Prize Winners Research & Development Park. Simultaneously, the company is developing the speculative, 42,000 sqm Liberty Office Building, adjacent to the BTS Magyar Telekom HQ it was also responsible for.

Special Report | 13 In what is described by GTC as the largest deal for an office building that is under construction ExxonMobil have signed a 27,000 sqm prelease for the whole of the Pillar office center, located close to the Váci út Corridor in District XIII, due for delivery in the first quarter of 2022.

The new supply scheduled for 2021 amounts to 211,000 sqm, all of which is currently under construction, while the new supply expectations for 2022 are about 280,000 sqm, although the vast majority of the latter volume is still in the planning phase.

Another significant prelease was of 11,000 sqm at Green Court, again in the Váci Corridor, due to be delivered by Codic in early 2022. A software development company has signed a 7,500 sqm prelease at Atenor’s 23,500 sqm Váci Greens Building “E”.

These preleases reflect the growing confidence of tenants in the market as previously companies needed to see a building close to completion before concluding a letting.

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Horizon Development’s premium mixed-use LEED Platinum downtown building has reached its highest point, and its elegant glass façade elements have also been mounted on the retail, office and residential floors. The luxury property now reveals most of the final visual features it will display by its Q4 2020 completion.

The multifunctional property will be home to offices (floors 1–4), luxury residences (floors 5–6) and retail units (floor -1, ground floor, gallery). While offices are all pre-leased, some retail units are still available for lease. The exclusive 1,500 sqm commercial space (1,050 sqm ground floor + 450 sqm gallery) offers 4–7 retail units with exquisite visibility and branding options. Szervita Square—steps away from Fashion Street, Váci Street and Deák Square—is the ultimate retail location where premium brands can benefit from exceptionally high footfall numbers and maximize their brand exposure and turnover.

The city’s historic, cultural, and business center with its great appeal provides the perfect setting for stores, showrooms, restaurants or cafés. The developer’s plan to revitalize the entire area entails the creation of a larger, green community space in front of the building that will re-establish the original function of Szervita Square. szervita.com horizondevelopment.hu

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Interior Design Central to a Successful Office Project Issues related to interiors are increasingly integrated into the concept, design and project management of office developments in reaction to tenant and staff demands and, increasingly, stringent environmental regulations, market players tell the Budapest Business Journal.

GARY J. MORRELL

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As people return to the workplace, office owners will need to take the needs of employees in the post-virus environment into consideration.

In addition to pricing and location as the two dominant decision-making factors, there is an increasing need for “human elements” to serve the comfort and wellbeing of employees, meaning the design of a building is naturally tenant focused.

“The design process has already taken into consideration the requirements of accreditation and thus we have already incorporated many features such as bicycle racks, shower facilities, rain water collection system and disabled accessibility into the plans,” comments Mátyás Gereben, country manager for Hungary at CPI Property Group.

“The interesting part was to incorporate sustainable methodologies during the construction, such as special waste management and building materials, or establishing sustainable working conditions for the construction workers,” Typical myhive space offered by Immofinanz in its offices. Gereben explains.

As an example of the provision of amenities seen now, the BREEAM Indeed, as developers strive to deliver BREEAM, the U.S.-based LEED or, “Excellent” accredited Telekom ever more highly specified and sustainable increasingly, WELL, is now the norm headquarters by Wing, designed by office complexes, interior and exterior for development at the higher end of the TIBA Architects Studio, provides around design has essentially become part of the Hungarian office market. same process.

This bundles together issues including Sustainability accreditation from an the office environment, the provision of independent, third-party sustainability amenities and the well-being and retention work places and includes a 300-person conference center, 700 sqm fitness organization such as the U.K.-based of staff and productivity.

5,000

3

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

center and sauna with a panoramic view of the city, roof top running track, two restaurants, two cafes and a launderette.

Dominant Trend

Budapest has around 1.5 million sqm of sustainability accredited office space, according to Colliers International, representing 40% of total space. More than that, of the 570,00 sqm of space under construction now, almost all is accredited.

According to the Hungarian Green Building Council (HuGBC), around 10 projects are in the process of assessment for WELL precertification or certification, a reflection of the importance of interior design and property management.

The wellness of workforce and longer staff retention has become a central concern for building owners; this involves the provision of a healthy and esthetically appealing working atmosphere, according to Zsombor Barta, president of HuGBC. WELL accreditation can have a more direct impact on tenants’ life and daily activities. A healthier atmosphere in the building, more natural light and fresh air in the office space can have a significant effect on staff well-being and productivity.

Employees increasingly also prefer an eco-friendly environment and eco-friendly materials used within the space, according to Valter Kalaus, managing partner

“The big question is how much extra building owners are willing to pay for them [eco-friendly elements].

There is no question, it is slightly more expensive; however, it might be more efficient to operate the building in the long-run.

Furthermore, in a WELL certified building, tenants tend to be happier and more productive, therefore less likely to move out at the end of the lease term.” of VLK-Cresa Ltd, experts on tenant representation.

“The big question is how much extra building owners are willing to pay for them. There is no question, it is slightly more expensive; however, it might be more efficient to operate the building in the long-run. Furthermore, in a WELL certified building, tenants tend to be happier and more productive, therefore less likely to move out at the end of the lease term. The retention of tenants can make

Special Report | 15

a big difference in addition to having a healthy environment,” Kalaus says.

Office tenants have become significantly more educated and demanding over the few past years.

“The office (space) has become a major HR-tool to retain and attract talents, so the requirements have changed drastically. The key is flexibility and high quality to foster creativity, team-work and productivity in the office,” the managing partner says.

“The interior design and the atmosphere have to reflect clearly what the company is all about. Again, flexibility is key and having multifunctional areas where your people can work effectively. We have to acknowledge that different companies and different people work in different ways and the created environment has to cater towards different needs within the organization. This is a difficult task, especially when you take into consideration the differences among different generations and their needs in your office,” he adds.

A Different Future?

Analysts see the necessity for changes in, for example, spacing and lay out as a consequence of the current health crisis.

“In the current situation, almost every company has been forced to reorganize or re-plan their business. While a

significant portion of office workers are now working from home, many companies are looking to the flex office market to provide temporary quiet accommodation in individual or small team offices in a bid to maintain employee productivity,” says Hubert Abt, CEO of New Work, one of the major providers of serviced office space in Hungary and Central Europe.

“We have also seen a number of major occupiers turn to the flex office market to support their business continuity plans,” he adds.

Against this background of a growing complexity of demands from tenants, and by extension staff, total fit-out (including soft and additional costs) are rising.

Hard fit-out cost elements are generally

split

80-20%

between developer and tenant, according to CBRE. On top of this, the remaining cost elements (such as furniture) are covered by the tenant.

“When a tenant selects an office building, most of the time the exterior design of the building is a given; an average tenant in a typical situation cannot change that. Either you like or not; either it fits your company image or not,” points out Kalaus.

“On the other hand, the interior design of an office space can easily be changed, it can be custom-made and fitted-out to exactly how that company wants to reflect its image, functionality, etc. We see significantly more office lease transactions being done with the involvement of an interior designer,” he concludes.

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BUDAPEST

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06.05.20 09:40

16 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

Category 'A' Office Buildings in Greater Budapest

500 5

32 908

15–16 HUF 1000

A

in-hOuse fACility mAnAGement

BAnk BRAnCh/Atm

✓

suitABle fOR disABled peOple

✓

24-hR ReCeptiOn, seCuRity seRviCes

Wellness And spORt seRviCes

✓

GReen enviROnment

RestAuRAnt/CAfé ✓

–

✓

–

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

independent pOWeR supply

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

8

BiCyCle pARkinG

nO. Of elevAtORs nO. Of pARkinG spACes

66,984 71,859

leAsinG AGent, nAme WeBsite

WAste ReCyClinG

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

CuRRent mAjOR tenAnts

GReen teChnOlOGies

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

nO. Of levels

COmpAny WeBsite

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

Ranked by net office space (sqm)

OWneRship (%) hunGARiAn nOn-hunGARiAn

AddRess phOne emAil

Hungária Greens Kft (100% owned by Atenor SA) –

1087 Budapest, Hungária körút 30.

(1) 785-5208 info@atenor.hu

ARénA Business CAmpus www.arenabusinesscampus.hu 1

✓ ✓ ✓ ✓

1138 Budapest, Váci út 116-118.

(1) 238-0359 info@agorabudapest.com 1112 Budapest, Balatoni út 2/A (1) 266-2181 office@futurealgroup.com 2051 Biatorbágy, Sasbérc út 1.

(1) 382-7560, (70) 370-6666 office@gamma-am.hu

2

AGORA BudApest

61,732 71,489

16

500 5

34 1,217

A A

A

✓

✓

✓

✓

✓

✓

✓

–

HB Reavis Ingatlan✓ ✓ ✓ ✓ fejlesztési Alap (100) –

3

BudApest One

57,000 66,000

8

500 5

894

A

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

4

tópARk Be my City

55,000 220,000

4

150 5

81 3,000

12–13.9 3.5

NA

✓

✓

✓

✓

✓

✓

✓

5

liBeRty iROdAház

39,978 40,728

9

1,200 5

18 682

A A

A

✓

✓

✓

✓

✓

✓

6

millennium GARdens

37,000 74,844

4 floors, deep garage +11

500 5

12 496

A A

A

✓

–

✓

✓

✓

✓

36,916 40,900

9

– 5

16 580

14 3,88

ExxonMobil, Honeywell, Ecolab

✓

✓

✓

✓

✓

✓

✓

A

✓ ✓ ✓

–

A A

1139 Budapest, Váci út 81.

(1) 412-3680 leasing@gtc.hu

35,900 50,800

9

250 5

4+3+3 425

12.5–13.5 HUF 1450

Atmedia, KRKA, Magyar Posta, NSC, Orbico, Samsung, Prémium Pénztárak

✓

✓

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

– CPI Property Group (100)

1138 Budapest, Dunavirág utca 2–6.

(1) 225-6600 hungary@cpipg.com

32,000 38,000

9

200 5

18 640

14.5–15.5 HUF 1550

Albemarle, Regus, Ferrero

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓ ✓ ✓

–

– CA IMMO (100)

1133 Budapest, Váci út 76.

(1) 501-2800 office@caimmo.hu

31,200 38,400

Ground floor+8

221 5

25 733

13-17 HUF 1250

A

✓

✓

✓

✓

✓

✓

✓

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

– Immofinanz AG (100)

1134 Budapest, Váci út 45.

(1) 236-0435 mail@immofinanz.com

7

– 5

14 443

A A

NAV

✓

✓

✓

✓

✓

✓

–

–

✓ ✓ ✓

www.agorabudapest.com

www.futurealgroup.com/hu

gamma-am.hu

www.wing.hu

www.millenniumgardens.hu

GAMMA Properties Kft., ✓ ✓ ✓ ✓ gamma-am.hu

Futureal (100) – (100) –

Cushman&Wakefield 1097 Budapest, Kft., Wing Zrt. (100) Könyves Kálmán körút 32. www. ✓ ✓ ✓ ✓ ✓ – (1) 451 4760 cushmanwakefield.com, sales@wing.hu JLL, www.jll.com 1095 Budapest, CBRE, – Lechner Ödön fasor 10/B www.cbre.hu, Colliers ✓ ✓ ✓ ✓ ✓ Revetas Capital (100) (1) 456-6200 International, leasing@trigranit.com www.colliers.hu

CenteR pOint www.gtc.hu 7

GAteWAy OffiCe pARk www.gatewaybc.hu, www.cpipgroup.hu 8

CApitAl squARe

www.caimmo.com, www.capitalsquare.hu 9

myhive átRium pARk

www.myhive-offices.com/hu 10

30,548

✓ ✓ ✓ ✓

11

spiRAl

12

mill pARk

30,315 56,026

8

350 5

16 541

A A

A

✓

✓

✓

✓

✓

✓

–

A

✓ ✓ ✓ ✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

13

BAnk CenteR

30,041 52,180

11

200 5

17 475

20 4.6

MKIK, BorsodChem, Affidea

✓

✓

✓

✓

✓

✓

✓

Avestus Real Estate Hungary

✓ ✓ ✓ ✓

– (100)

14

euROpe tOWeR

30,000 38,000

15

A A

A A

A A

Erste Bank Hungary Zrt.

A

A

A

A

A

A

A

–

29,800 31,500

16

152 5

10 436

16–18 4.2

IBM, Huawei, Metlife, TMF Group, Lofis

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

www.gtc.hu

www.millpark.hu

www.bankcenter.hu

–

A

dunA tOWeR

www.dunatower.hu 15

–

A A

A

A

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

✓ ✓ ✓

–

A A

A

A

1134 Budapest, Dózsa György út 128-130.

(1) 412-3680 leasing@gtc.hu 1095 Budapest, Soroksári út 44.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu 1054 Budapest, Szabadság tér 7.

(1) 302-9010 anett.eles@bankcenter.hu 1138 Budapest, Népfürdő utca 24–26.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1138 Budapest, Népfürdő utca 22.

(1) 412-3680 leasing@gtc.hu

3

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

Wellness And spORt seRviCes

24-hR ReCeptiOn, seCuRity seRviCes

GReen enviROnment

suitABle fOR disABled peOple

in-hOuse fACility mAnAGement

BAnk BRAnCh/Atm

✓

✓

✓

✓

✓

✓

✓

9

250 5

8 232

A A

A

✓

–

✓

✓

✓

✓

✓

www.futurealgroup.com/hu/

17

ROOsevelt

29,000 A

myhive hAlleR GARdens www.myhive-offices.com/hu 18

19

West end Business CenteR

www.westendbusinesscenter.hu

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

–

A A

60–376 5

15 818

14.5-17 HUF 1250

A

✓

✓

✓

✓

✓

✓

✓

28,065 43,000

7

A

5

12 399

A A

A

–

–

✓

✓

✓

✓

✓

A

250 5

8 566

A A

A

✓

–

✓

✓

✓

✓

✓

3

A

8 554

A A

A

✓

–

✓

✓

✓

✓

✓

9

350 5

11 507

16–18 3.3

A

✓

–

✓

✓

✓

✓

26,500 30,100

8

380 3

15 841

14.5–15 HUF 1765

Siemens, British Telecom, Transcom

✓

–

✓

✓

✓

26,309 29,043

7

84 5

16 385

16–16.5

ExxonMobil

✓

–

✓

✓

7

490 5

10 388

14.5–15.5 HUF 1380

A

✓

–

✓

3

A

12 360

A A

A

✓

–

A

✓

DHL, Volánbusz, Studio In-Ex, CO-OP, MÁV-HÉV

✓

4

21

pARkWAy

www.psg-irodahazak.hu

27,600 31,200

9

22

BARtók udvAR ii.

27,000

www.bartokudvar.hu

A A

Ground floor+7

27,956 29,018

www.dorottya.net

–

28,520 34,300

dOROttyA udvAR

A

OWneRship (%) hunGARiAn nOn-hunGARiAn

✓ ✓ ✓

–

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

20

independent pOWeR supply

RestAuRAnt/CAfé

A

BiCyCle pARkinG

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

488

A A

leAsinG AGent, nAme WeBsite

WAste ReCyClinG

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

A

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

nO. Of levels

500 5

CORvin7

nO. Of elevAtORs nO. Of pARkinG spACes

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

8

RAnk

29,595 31,745

16

www.roosevelt-budapest.com

GReen teChnOlOGies

CuRRent mAjOR tenAnts

COmpAny WeBsite

Special Report | 17

✓ ✓ ✓ ✓

– IMMOFINANZ AG (100)

AddRess phOne emAil

1083 Budapest, Szigony utca 26-30.

(1) 266-2181 office@futurealgroup.com 1051 Budapest, Széchenyi István tér 7–8.

(1) 473-1209 tamara.szanto@ eur.cushwake.com 1095 Budapest, Soroksári út 30–34.

(1) 236-0435 mail@immofinanz.com 1132 Budapest, Váci út 20–26.

(1) 451-4760 office@mompark.hu 1113 Budapest, Bocskai út 134–146.

(1) 888-0395 info@lodge-im.com 1087 Budapest, Könyves Kálmán körút 54–58.

(1) 327-2050 info@ psg-irodahazak.hu 1115 Budapest, Bartók Béla út 105-113.

(1) 481-4530 info@infogroup.hu

✓ ✓ ✓

–

A A

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

–

Dorottya Udvar Holding Kft. (100) –

A

✓ ✓ ✓

–

A A

✓

–

✓ ✓ ✓

–

Infogroup Csoport (100) –

✓

–

CA IMMO

✓ ✓ ✓

–

– CA IMMO (100)

1117 Budapest, Budafoki út 91–93.

(1) 501-2800 office@caimmo.hu

✓

✓

–

A

✓ ✓ ✓ ✓

A A

1134 Budapest, Dózsa György út 61–63.

(1) 412-3680 leasing@gtc.hu

✓

✓

✓

–

CBRE, www.cbre.hu

✓ ✓ ✓ ✓

– Woodpecker Acquisitions (100)

✓

✓

✓

✓

✓

A

✓ ✓ ✓

–

OTP Ingatlanbefektetési Alap (100) –

1117 Budapest, Irinyi József utca 4–20.

(1) 374-3040 office.hungary@cbre.com 1138 Budapest, Váci út 135–139.

(1) 412-8300 –

✓

✓

✓

✓

–

✓

A

✓ ✓ ✓

–

– Tippin Corporation ( A ), Optimum ( A )

1054 Budapest, Szabadság tér 17.

(1) 374-3040 richard.vigh@cbre.com

–

✓

✓

✓

✓

✓

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

–

– MCAP Global Finance (100)

1097 Budapest, Könyves Kálmán körút 11.

– info@lodge-im.com

OTP Prime Ingatlanbefektetési Alap (100) –

1138 Budapest, Bence utca 1.

(1) 336-0900 alapkezelo@ otpingatlanalap.hu

ip West

www.caimmo.com, www.ipwest.hu 23

pillAR

www.pillar.gtc.hu

24

A

25

sCienCe pARk

www.sciencepark.hu

26,102 29,498

26

BsR CenteR

25,000

26

exChAnGe pAlACe

25,000 50,000

Underground+8

1,000 5

13 1,000

A A

28

népliGet CenteR

24,863 28,780

9

250 5

12 478

4

www.bsr.hu

–

www.nepligetcenter.com

A

8

A

6

300 5

12 399

A A

A

✓

✓

✓

✓

✓

✓

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

24,200 47,000

8

– –

12 370

15–16 HUF 1450

Bank of China, Citi, Vodafone

✓

–

✓

–

✓

✓

–

–

✓ ✓ ✓

–

– CPI Property Group (100)

1087 Budapest, Hungária körút 40–44.

(1) 225-6600 hungary@cpipg.com

24,000 26,000

9

300 5

9 407

15.5–16.5 HUF 1700–1770

IBM, Tresorit, Continental

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield. hu

✓ ✓ ✓

–

– CA IMMO (100)

1092 Budapest, Köztelek utca 6.

(1) 501-2800 office@caimmo.hu

CORvin teChnOlOGy pARk 1-2

23,749 27,390

8

250 5

10 A

A A

A

✓

✓

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

(100) –

pROmenAde GARdens

23,311

A

18 340

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

váCi GReens B épület 29 www.vacigreens.hu

24,770 25,303

ARenA CORneR

www.arena-corner.hu 30

City GAte

www.caimmo.com, www.citygate.hu 31

32

www.futurealgroup.com 33

www.promenadegardens.hu

A

6

5

1082 Budapest, Bókay utca (1) 266-2181 office@futureal.hu 1133 Budapest, Váci út 80.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

Special Report

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

–

✓

✓

✓

✓

✓

✓

✓

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

22,305 24,137

6

250 5

17 A

A A

A

✓

✓

✓

✓

✓

✓

✓

–

21,525 23,445

7

500 5

12 323

17–18 HUF 1000

A

✓

✓

✓

✓

✓

✓

✓

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

✓ ✓ ✓ ✓

City Tower Kft. (100% owned by Atenor SA) –

1138 Budapest, Váci út 129–133.

(1) 785-5208 info@atenor.hu

15 1,100

KLM Magyarországi fióktelepe, Bamba Marha Burger Bár, Sperbank, Magnet Bank

✓ ✓ ✓

–

Erste Ingatlan Kft. (100) –

1088 Budapest, Rákóczi út 1–3.

(1) 268-4300 info@ersteingatlan.hu

✓ ✓ ✓ ✓

– Terrafinanz GmbH (100)

2040 Budaörs, Liget utca 3/2.

(23) 423-323 info@terrapark.hu

–

Váci Corner Offices Kft. (100) –

1138 Budapest, Váci út 144–150.

(1) 580-2280 info@vacicorneroffices.hu

Torony Ingatlan Befektetési Alap (100) –

1123 Budapest, Alkotás utca 50.

(1) 382-5100 ingatlan@ diofaalapkezelo.hu

BAnk BRAnCh/Atm

in-hOuse fACility mAnAGement

suitABle fOR disABled peOple

24-hR ReCeptiOn, seCuRity seRviCes

GReen enviROnment

Wellness And spORt seRviCes

RestAuRAnt/CAfé

independent pOWeR supply

17–18 HUF 1000

leAsinG AGent, nAme WeBsite

BiCyCle pARkinG

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

12 341

CuRRent mAjOR tenAnts

WAste ReCyClinG

nO. Of elevAtORs nO. Of pARkinG spACes

7

500 5

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

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

GReen teChnOlOGies

nO. Of levels

COmpAny WeBsite

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

18 | 3

OWneRship (%) hunGARiAn nOn-hunGARiAn

AddRess phOne emAil

City Tower Kft. (100% owned by Atenor SA) –

1139 Budapest, Fiastyúk utca 4-8.

(1) 785-5208 info@atenor.hu

(100) –

1082 Budapest, Futó utca 35-45.

(1) 266-2181 office@futureal.hu

váCi GReens f épület www.vacigreens.hu

34

35

CORvin tOWeRs

www.futurealgroup.com

23,305 25,053

✓ ✓ ✓ ✓

✓ ✓ ✓

–

váCi GReens e épület www.vacigreens.hu

36

37

eAst-West Business CenteR www.ersteingatlan.hu

38

BudAöRs teRRApARk C+d

39

váCi CORneR OffiCes

www.terrapark.hu

www.vacicorneroffices.hu

21,500 29,000

21,282

12

165 5

7 222

✓

–

✓

✓

✓

✓

✓

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

S&T, Partner in Petfood, Ricoh, Flaga, GDF Suez, Diversey, Groupe SEB, Goodmills, Gemma, NAOS (Bioderma), Hanes (Bellinda), Honda, Rockwell, SágaFoods, ✓ Hungaroflotta, PBA, HPIX, Homlok Építő, Kersia, Controltech, Zalaco, Dexon Systems, Trane, E-Plan, Budasensor, JS Logistics

✓

✓

✓

✓

✓

✓

Terrapark Kft., www.terrapark.hu

✓

–

✓

✓

✓

✓

–

–

5

15 1–3

13 398

7.5–10 3

8

200 5

9 363

A A

A

20,539 25,100

7

482 5

9 395

A A

Bayer, Euronet, Medicover, NuSkin, Signal, Veeva

✓

–

✓

✓

✓

✓

✓

A

21,047 33,000

AlkOtás pOint

www.whitestar-realestate.com 40

White Star Real Estate Kft., www. whitestar-realestate. com

✓ ✓ ✓

✓ ✓ ✓ ✓

41

White hOuse

20,404 21,574

9

– 5

14 299

A A

A

✓

–

✓

✓

✓

✓

–

A

✓ ✓ ✓

–

A A

42

visiOn tOWeRs

20,312 25,178

8

– –

A A

A A

A

A

A

A

A

A

A

A

–

A

A

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

43

RiveR estAtes

20,245 30,141

10

700 5

11 357

14 4.20

DIGI, Life 1, Danone, Erzsébet Táborok, P.Dussmann, KIFÜ

✓

✓

✓

✓

✓

✓

–

S IMMO APM Hungary Kft.

20,200 42,000

8 (7 floors)

500 5

10 399

15.5 4.1

ING, Deloitte, Roche, NN

✓

–

✓

✓

✓

✓

✓

Horizon Development

7

700 5

A A

A A

A

✓

–

✓

✓

–

✓

–

A

12 388

A A

Fundamenta Lakáskassza, Hewlett-Packard, Concorde Értékpapír, Erste Bank, Waberer Medical Center

✓

–

✓

✓

✓

✓

400 A

12 404

A A

A

✓

–

✓

✓

✓

www.whitehousebudapest.hu

–

www.simmoag.hu

A

A

✓ ✓ ✓ ✓

– S IMMO AG (100)

1134 Budapest, Váci út 47.

(1) 374-3040 – 1134 Budapest, Váci út 29–31.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1134 Budapest, Váci út 35.

(1) 429-5050 office@simmoag.hu

pARk AtRium

www.parkatrium.hu

44

–

– (100)

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

A

✓ ✓ ✓ ✓

(100) –

1117 Budapest, Alíz utca 3.

(1) 327-2050 office@robertson.hu

✓

W-Facility Kft.

✓ ✓ ✓ ✓

A A

1123 Budapest, Alkotás utca 55–61.

(70) 451-2589 info@hillside.hu

✓

✓

–

✓ ✓ ✓ ✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

✓ ✓ ✓ ✓

– ZFP Realitní Fond (100)

45

OffiCe GARden iv

19,663 21,200

46

hillside OffiCes

19,656 21,923

8

47

nORdiC liGht

19,629 19,668

8

48

váCi GReens C épület www.vacigreens.hu

18,920 20,035

6

– –

6–9 301

A A

A

✓

–

✓

✓

✓

✓

–

–

49

ResidenCe 1-2

18,770

6

614 5

5 247

A A

A

✓

–

✓

✓

–

✓

–

Robertson Hungary, www.robertson.hu

www.officegarden.hu

www.hillsideoffices.hu

–

www.robertson.hu

A

5

✓ ✓ ✓

✓ ✓

–

–

– LFPI Group (100)

1133 Budapest, Váci út 96–98.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1138 Budapest, Bence utca 3.

– info@zfpinvest.com 1027 Budapest, Kacsa utca 15–23.

(1) 327-2050 office@robertson.hu

3

www.bbj.hu

RestAuRAnt/CAfé

Wellness And spORt seRviCes

24-hR ReCeptiOn, seCuRity seRviCes

GReen enviROnment

suitABle fOR disABled peOple

in-hOuse fACility mAnAGement

BAnk BRAnCh/Atm

250 3

9 450

12.5–13 HUF 1600

A

✓

✓

✓

✓

✓

✓

–

Cushman&Wakefield Kft., www. cushmanwakefield. hu

independent pOWeR supply

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

10

BiCyCle pARkinG

nO. Of elevAtORs nO. Of pARkinG spACes

18,700 19,000

leAsinG AGent, nAme WeBsite

WAste ReCyClinG

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

CuRRent mAjOR tenAnts

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

nO. Of levels

COmpAny WeBsite

Special Report | 19 GReen teChnOlOGies

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

Budapest Business Journal | May 8 – May 21, 2020

OWneRship (%) hunGARiAn nOn-hunGARiAn

AddRess phOne emAil

– CA IMMO (100)

1074 Budapest, Rákóczi út 70–72.

(1) 501-2800 office@caimmo.hu

R70 OffiCe COmplex www.r70.eu, www.caimmo.com 50

✓ ✓ ✓

–

1123 Budapest, Alkotás utca 53.

(1) 487-5501 office@mompark.hu 1117 Budapest, Alíz utca 2.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 1062 Budapest, Teréz körút 55–57.

(1) 785-4985 info@celand.hu 1117 Budapest, Gábor Dénes utca 2.

(30) 822-5466 tarroe@wing.hu 2040 Budaörs, Szabadság út 117.

(20) 222-1212 nfo@adventum.hu

51

mOm pARk iROdák

18,629 48,000

6

230 5

13 486

A A

A

✓

✓

✓

✓

✓

✓

✓

A

✓ ✓ ✓ ✓

A A

52

OffiCe GARden ii

18,600 27,000

8

A A

6 310

A A

A

✓

–

✓

✓

–

✓

–

–

✓ ✓ ✓ ✓

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

53

eiffel téR iROdAház www.eiffelter.hu

18,500 23,500

7

250 5

10 365

A A

A

✓

✓

✓

✓

✓

✓

✓

A

✓ ✓ ✓ ✓

A A

53

infOpARk d épület

18,500

7

500 5

A A

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

55

BudAöRs OffiCe pARk

18,000 22,000

3-8-8

A A

5 410

A A

A

✓

–

✓

✓

✓

✓

–

A

✓

18,000 21,000

8

– 5

8 250

15.5–17

A

✓

✓

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield. hu

✓ ✓ ✓

–

– CA IMMO (100)

1095 Budapest, Lechner Ödön fasor 8.

(1) 501-2800 office@caimmo.hu

17,856 30,001

6

280 –

7 399

A A

A

✓

–

✓

✓

✓

✓

✓

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

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1123 Budapest, Nagyenyed utca 8–14.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

–

BudaPart Auratus Kft. (100) –

1117 Budapest, Dombóvári út 27.

(1) 241-0080 sales@budapart.hu

www.momparkoffice.hu

–

www.wing.hu

www.budaorsofficepark.hu

A

–

–

– (100)

✓ ✓

(100) –

millennium tOWeR iii www.millennium-towers.hu, www.caimmo.com 55

57

kRisztinA pAlACe –

A

BudApARt GAte 17,638 20,092

12

300 5

9 401

15.5–17.5 HUF 1300

A

✓

✓

✓

✓

✓

✓

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

www.budapart.hu 58

1036 Budapest, Lajos utca 48–66.

(20) 222-1212 info@adventum.hu 2040 Budaörs, Edison utca 4.

(1) 700-8013 office@ bluehousecapital.com 1027 Budapest, Henger utca 2.

(1) 266-9441 info@adventum.hu

59

BudA squARe

17,400 18,400

6

A A

6 394

A A

A

✓

–

✓

✓

✓

✓

✓

A

✓ ✓ ✓

–

(100) –

60

teRRApARk next B

17,042 20,323

A

300 5

6 240

A A

A

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

– Bluehouse Capital (100)

61

mARGit pAlACe iROdAház

17,034 19,227

6

A A

8 254

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

17,000 30,000

9

360 3

5 406

14–14.5 HUF 1380

HP, Novartis

✓

–

✓

–

✓

✓

✓

–

✓ ✓ ✓

–

– CA IMMO (100)

1114 Budapest, Bartók Béla út 43–47.

(1) 501-2800 office@caimmo.hu

17,000 18,600

8

– 5

6 300

15.5–17

Nestlé, KLM

✓

–

✓

✓

✓

✓

–

Cushman&Wakefield Kft., www. cushmanwakefield. hu

✓ ✓ ✓

–

– CA IMMO (100)

1093 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 office@caimmo.hu

146 5

4+1 104

14–15 4

dm, Egyenlő Bánásmód Hatóság, Imperial Dental, MNB

✓

–

✓

✓

✓

✓

–

White Star Real Estate Kft., www. whitestar-realestate. com

✓ ✓ ✓ ✓

5

A

5 427

A A

A

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

GRT Group (100) –

– 5

6 254

11.5–12 HUF 1200

A

✓

–

✓

✓

✓

✓

✓

JLL, www.jll. hu

✓ ✓ ✓

–

– IMMOFINANZ AG (100)

1139 Budapest, Teve utca 1 a-c (1) 236-0435 mail@immofinanz.com

✓

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

–

Bpart Aspius Kft. (100) –

1117 Budapest, Dombóvári út 26.

(1) 241-0080 sales@budapart.hu

–

www.terraparknext.com

www.margitpalace.com

(100) –

BARtók ház

www.caimmo.com, www.bartok-haz.hu 62

millennium tOWeR ii

www.millennium-towers.hu, www.caimmo.com 62

64

kRisztinA plAzA

16,941 17,825

7

65

OffiCe GARden iii

16,922 18,500

6

16,644 17,310

Ground floor+9

www.krisztinaplaza.hu

www.officegarden.hu

A

– (100)

myhive thiRteen | GlOBe www.myhive-offices.com/hu 66

BudApARt City

www.budapartcity.hu 67

16,582 19,755

7

300 5

10 411

16.5–19.5 HUF 1400

A

✓

✓

✓

✓

✓

1122 Budapest, Krisztina körút 39.

(1) 382-5100 info@ whitestar-realestate.com 1117 Budapest, Alíz utca 4.

(1) 382-7020 grtgroup@grtgroup.hu

15.5–17

16,241 20,200

7

1,200 5

9 299

17-18

✓

✓

✓

✓

✓

✓

–

Cognizant, Vodafone

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓ ✓ ✓

–

– CA IMMO (100)

A

✓

–

✓

✓

✓

✓

–

– www. greencourtoffice.hu

✓ ✓ ✓

–

DG 148-Béta Kft., DG 144 Kft. (100) –

–

✓ ✓ ✓

–

A A

Robertson Hungary Kft., ✓ ✓ ✓ www.robertson.hu

–

– LFPI group (100)

independent pOWeR supply

✓

BiCyCle pARkinG

A

leAsinG AGent, nAme WeBsite

WAste ReCyClinG

A A

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

BAnk BRAnCh/Atm

6 254

in-hOuse fACility mAnAGement

370 5

suitABle fOR disABled peOple

7

24-hR ReCeptiOn, seCuRity seRviCes

16,300 18,800

A

GReen enviROnment

6

Wellness And spORt seRviCes

250 5

CuRRent mAjOR tenAnts

RestAuRAnt/CAfé

7

GReen teChnOlOGies

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

www.futurealgroup.com

16,352 17,867

nO. Of elevAtORs nO. Of pARkinG spACes

CORvin One

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

68

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

nO. Of levels

COmpAny WeBsite

Special Report net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

20 | 3

✓ ✓ ✓ ✓

OWneRship (%) hunGARiAn nOn-hunGARiAn

AddRess phOne emAil

(100) –

1082 Budapest, Futó utca 47–53.

(1) 266-2181 office@futureal.hu

1095 Budapest, Lechner Ödön fasor 6.

(1) 501-2800 office@caimmo.com

millennium tOWeR i

www.millennium-towers.hu, www.caimmo.com 69

A

70

GReen COuRt OffiCe

71

GtC metRO

16,182 16,182

9

– 5

6 222

A A

Budapest Bank

✓

–

✓

✓

✓

✓

✓

72

OffiCe GARden i

16,022 26,000

7

346 5

6 320

A A

A

✓

–

✓

✓

–

✓

–

16,015 17,090

3+ground floor+8

2,000 5

6 284

17 3

A

✓

–

✓

✓

✓

✓

✓

16,000 23,800

Groiund floor+8

250 3

4 177

A A

A

6

130 5

6 291

A A

Lufthansa Systems, EIT, National Instruments, 3M

www.greencourtoffice.hu

www.gtc.hu

www.robertson.hu

A

1134 Budapest, Dózsa György út 142–144.

(1) 266-6000 info.hungary@codic.eu 1138 Budapest, Váci út 193.

(1) 412-3697 leasing@gtc.hu 1117 Budapest, Alíz utca 1.

(1) 327-2050 office@robertson.hu

BAkeRstReet 73

https://atenor.eu/en/projects/ bakery/

Business CenteR 140 74 www.cushmanwakefield.hu

✓

–

✓

✓

✓

✓

–

CBRE, www.cbre.hu, Colliers International, www2.colliers.com/hu

✓

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

–

–

✓ ✓

✓

–

infOpARk e épület www.diofaalapkezelo.hu

16,000 17,300

74

76

váCi GReens A épület www.vacigreens.hu

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

15,693 24,803

Ground floor+6

533 5

8 269

A A

A

✓

–

✓

✓

✓

✓

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

15,500 18,300

10

– 5

6 252

A A

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

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

14,602 15,647

6

300 5

8 260

A A

A

✓

✓

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

Szerémi Greens Kft. (100% owned by Atenor SA) –

1117 Budapest, Hengermalom út 18.

(1) 785-5208 info@atenor.hu

A A

1138 Budapest, Váci út 140.

(1) 268-1288 info.budapest@ eur.cushwake.com

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Neumann János utca 1/E (1) 888-4120 ingatlan@ diofaalapkezelo.hu

VG 117 Ingatlankezelő Kft. (100) –

1138 Budapest, Váci út 117–119.

– –

Torony Ingatlan Befektetési Alap (100) –

1134 Budapest, Kassák Lajos utca 19.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

SkyGreen Buildings Kft. (100) –

1138 Budapest, Váci út 121–127.

– –

Kopaszi Gát Kft. (100) –

1117 Budapest, Hengermalom út 70.

(1) 241-0080 sales@budapart.hu

GReen hOuse

www.diofaalapkezelo.hu 77

–

váCi GReens d épület www.vacigreens.hu 78

BudApARt hARBOR

✓

✓

✓

✓

✓

✓

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

MNB, PwC Magyarország, Apple, British Chamber of Commerce in Hungary, ✓ British Business Centre, Eiffel Esthetics, Eiffel Bistro, St. Andrea Restaurant

–

✓

–

✓

✓

–

Horizon Development

✓ ✓ ✓ ✓

– (100)

1055 Budapest, Bajcsy-Zsilinszky út 78.

(1) 473-1209 leasing@ horizondevelopment.hu

✓ ✓ ✓ ✓

Bécsi Greens Kft. (100% owned by Atenor SA) –

1034 Budapest, Bécsi út 64-86.

(1) 785-5208 info@atenor.hu

Gladiátor I. Ingatlan Befektetési Alap (100) –

1134 Budapest, Róbert Károly körút 54–58.

(1) 451-4280 – 1077 Budapest, Wesselényi utca 16.

(1) 479-6020 office@addvalgroup.com

www.budapart.hu

14,600 16,882

79

7

300 5

11 427

14.5–16.5 HUF 1400

eiffel pAlACe

www.eiffelpalace.hu 14,500

80

A

7+5 under ground

A

5

7 236

A A

A

14,489 15,503

4

1,000 5

7 315

20 3

A

✓

–

✓

✓

✓

✓

✓

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

ROseville

www.atenor.eu/en 81

–

82

skyliGht City

14,459 20,305

8

1,200 5

6 228

A A

A

✓

✓

✓

✓

✓

✓

–

–

✓ ✓ ✓ ✓

83

CentRál udvAR

13,900 24,000

5

287 5

9 215

A A

A

✓

–

✓

✓

✓

✓

–

A

✓ ✓ ✓

www.skylightcity.hu

www.centraludvar.com

–

rav Central Udvar Kft. (100) –

3

www.bbj.hu

24-hR ReCeptiOn, seCuRity seRviCes

GReen enviROnment

suitABle fOR disABled peOple

in-hOuse fACility mAnAGement

BAnk BRAnCh/Atm

90 3

8 248

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

–

Erste Ingatlan Kft. (100) –

1103 Budapest, Kőér utca 2/A (1) 268-4300 info@ersteingatlan.hu

13,800 14,666

7

2,000 5

A

200

A A

Takarék csoport

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Magyar tudósok körútja 9.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

3

A

7 252

A A

A

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓ ✓

A A

✓ ✓

independent pOWeR supply

Wellness And spORt seRviCes

6–7

BiCyCle pARkinG

RestAuRAnt/CAfé

13,858 27,000

leAsinG AGent, nAme WeBsite

WAste ReCyClinG

CuRRent mAjOR tenAnts

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

www.laurusoffices.hu

nO. Of elevAtORs nO. Of pARkinG spACes

lAuRus iROdAházAk

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

84

GReen teChnOlOGies

nO. Of levels

COmpAny WeBsite

Special Report | 21

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

Budapest Business Journal | May 8 – May 21, 2020

infOpARk G épület www.diofaalapkezelo.hu 85

OWneRship (%) hunGARiAn nOn-hunGARiAn

AddRess phOne emAil

1138 Budapest, Váci út 188.

– – 1033 Budapest, Polgár utca 8–10.

(1) 332-2200 info@bif.hu

86

v188

13,637 14,175

6

87

viGAdó pAlOtA iROdAház

13,605 16,486

7

A A

4 12

A A

A

✓

–

✓

–

✓

✓

✓

–

13,600 15,550

Ground floor+7

223 5

6 266

16 HUF 1200

A

✓

–

✓

✓

✓

✓

–

CBRE, www.cbre.hu

euROpOlis pARk BudApest AeROzOne

13,000 65,000

A

120 3

6 200

A A

A

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

A A

infOpARk C épület

13,000

Ground floor+6

500 5

6 A

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

–

– (100)

13,000 19,800

9

– –

6 221

14.5–16 HUF 1450

EOS, IFRC, Samsung, Swiss Clinic, Trigranit, ✓ WHO

✓

✓

–

✓

✓

–

–

✓ ✓ ✓

–

– CPI Property Group (100)

1132 Budapest, Váci út 30.

(1) 225-6600 hungary@cpipg.com

13,000 14,600

7

350 5

5 230

14–14.5 HUF 1700

A

✓

–

✓

–

✓

✓

–

Cushman&Wakefield Kft., www. cushmanwakefield. hu

✓ ✓ ✓

–

– CA IMMO (100)

1027 Budapest, Kapás utca 6–12.

(1) 501-2800 office@caimmo.hu

12,997 27,527

8

400 5

6 316

14.85–16 HUF 1450

A

✓

✓

✓

✓

✓

✓

–

CBRE, www.cbre.hu

✓ ✓ ✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

12,900 13,942

6

250 5

5 247

A A

LOreal, Regus, NKM

✓

–

✓

✓

✓

✓

–

A

✓ ✓ ✓

–

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1023 Budapest, Árpád fejedelem útja 26–28.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

12,700 13,700

5

250 3

6 375

A A

IBM, ATOS Magyarország Kft., Invitech

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

–

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Neumann János utca 1.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

3

A

6 280

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

–

(100) –

1118 Budapest, Rétköz utca 5.

(1) 309-0909 info@budawest.net

A

–

✓

–

✓

✓

✓

–

✓ ✓ ✓

–

– (100)

1075 Budapest, Madách Imre út 13–14.

(1) 268-1900 info@madachtrade.hu

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

–

(100) –

1033 Budapest, Polgár utca 8–10.

(1) 332-2200 info@bif.hu

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

–

Torony Ingatlanbefektetési Alap (100) –

1134 Budapest, Váci út 17.

(1) 888-4120 ingatlan@ diofaalapkezelo.hu

www.v188.hu

www.bif.hu

–

✓

BIF (100) –

myhive GReenpOint 7

www.myhive-offices.com/hu 88

89

– 89

www.wing.hu

A

✓ ✓ ✓ ✓

– IMMOFINANZ AG (100)

1075 Budapest, Kéthly Anna tér 1.

(1) 236-0435 mail@immofinanz.com 2220 Vecsés, Lőrinci út 59–61.

– – 1117 Budapest, Gábor Dénes utca 4.

(1) 451-4280 info@wing.hu

quAdRA

www.quadra.hu 89

víziváROs OffiCe CenteR www.vizivaros.eu. www.caimmo.com 89

BAlAnCe hAll

www.balancehall.hu 93

óBudA GAte

www.obudagate.hu 94

infOpARk A épület www.diofaalapkezelo.hu 95

96

BudAWest iROdAház

12,680 27,000

8

97

mAdáCh tRAde CenteR

12,000 14,500

7–9–12

28 1

4 240

HUF 1600

98

flóRián udvAR iROdAház

11,952 28,500

4

16 1

6 240

13 3.3

11,840 18,000

11

170 5

6 209

A A

www.budawest.net

www.madachtrade.hu

www.bif.hu

Lakatos, Köves és Társai Zrt.,, Lilly Hungária Kft., ✓ APPELLO Kft., MiniCRM Zrt. Nem Média Zrt./Portfolió, Criterion Holding Kft, Inforádió, CIG Pan- ✓ nónia/MKB-Pannónia Alapkezelő Zrt.

v17

www.v17.hu 99

E.ON

✓

Special Report

4

11,700 13,500

Ground floor+6

110 5

5 142

A A

A

✓

–

✓

–

5

A

A A

A A

A

A

A

A

24-hR ReCeptiOn, seCuRity seRviCes

GReen enviROnment

suitABle fOR disABled peOple

in-hOuse fACility mAnAGement

BAnk BRAnCh/Atm

Wellness And spORt seRviCes

RestAuRAnt/CAfé

✓

✓

✓

✓

✓

✓

independent pOWeR supply

6 151

leAsinG AGent, nAme WeBsite

BiCyCle pARkinG

– 5

CuRRent mAjOR tenAnts

WAste ReCyClinG

nO. Of elevAtORs nO. Of pARkinG spACes

9

GReen teChnOlOGies

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

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

11,736 12,581

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

nO. Of levels

COmpAny WeBsite

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

22 | 3

OWneRship (%) hunGARiAn nOn-hunGARiAn

AddRess phOne emAil

– KGAL (100)

1134 Budapest, Váci út 37.

(1) 225-0912 bzadori@convergen-ce.com

Cityzen OffiCes

www.cityzenirodahaz.hu 100

AkAdémiA Business 101 CenteR

www.cushmanwakefield.hu

A

Cargill, CEDCO, DKÜ, Doktor 24, Friesland ✓ Campina, Invitel, Otis, Tech Mahindra

ConvergenCE, www. convergen-ce.com

✓ ✓ ✓ ✓

✓

✓

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

–

✓

–

A A

A

A

A

A

–

A

A

A

A

A A

101

mOm pARk tOWeRs

11,700 13,500

6

103

v48

11,500 15,000

6

A A

A A

A A

A

A

A

A

A

A

A

A

–

A

A

A

A

– Codic International S.A. (100)

103

studium iROdAház

10,676 36,000

7

249 5

A A

A A

A

A

A

A

A

A

A

A

–

A

A

A

A

(100) –

105

AdvAnCe tOWeR i

10,622 12,275

8

5

A

4 169

A A

A

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓ ✓

106

szeRémi iROdAház

10,545 14,000

13

240 3

11 206

13 3.6

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

✓

–

✓

✓

✓

✓

–

Eston Zrt., www.eston.hu

✓ ✓ ✓

–

107

nORdiC liGht tRiO

10,300 24,870

7

–

✓ ✓ ✓

–

108

váCi utCA CenteR

10,245 21,100

10

10,000 12,300

7

www.cushmanwakefield.hu

www.v48.hu

www.eston.hu

www.erstealapkezelo.hu

www.wing.hu

www.skanska.hu

www.vaciutcacenter.hu

5

221

A

A A

A

✓

–

✓

✓

✓

✓

–

A

6 133

A A

A

✓

–

✓

–

✓

✓

✓

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

–

5

A

6 247

15.5–17

K&H, Oracle

✓

✓

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield. hu

–

80 5

4 133

14–15 3.9

A

✓

–

✓

✓

✓

✓

–

A

5+2 179

A A

A

✓

–

✓

✓

✓

✓

–

–

3

A

3 145

A A

A

–

–

✓

✓

–

✓

–

Robertson Hungary, www.robertson.hu

UFB, Novodata, Herbioticum Distributor, StreamNet, Fővárosi ✓ Vízművek, OTP Pénzügyi Pont, Lactalis

–

✓

✓

✓

✓

–

S IMMO APM Hungary Kft.

✓

✓

✓

✓

✓

–

–

A

3

Erste Nyíltvégű Euró Ingatlan Befektetési Alap (100) – WING Zrt. (100) –

1054 Budapest, Akadémia utca 6.

(1) 268-1288 info.budapest@ eur.cushwake.com 1123 Budapest, Csörsz utca 45.

(1) 268-1288 info.budapest@eur. cushwake.com 1132 Budapest, Váci út 48 e-f (1) 266-6000 info.hungary@codic.eu 1093 Budapest, Czuczor utca 2–10.

(1) 877 1000 info@eston.hu 1134 Budapest, Váci út 43.

(1) 920 2161 erstealapkezelo@ erstealapkezelo.hu 1114 Budapest, Szerémi út 4.

(1) 451-4760 info@wing.hu

1133 Budapest, Véső utca 7.

(1) 382-9100 property@skanska.hu 1056 Budapest, Váci utca Center Kft. Váci utca 81.

(100) (1) 411-0442 – vaciutca@vaciutcacenter.hu A A

millennium tOWeR "h" épület 109

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

RiveRpARk iROdák

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

9,965 A

8

A

GAMMA Properties Kft., ✓ ✓ ✓ ✓ gamma-am.hu

111

BudA pAlOtA

9,852 15,000

Ground floor+8

112

dévAi iROdAház

9,665 11,700

9

113

Blue CuBe

9,459 15,290

5

400 5

5 185

12–12.5 4.2

9,400 14,450

10

– 5

9 170

13.5 HUF 1450

Advisesoft, BPIon, Brendon, Carrier, Euler Hermes, Interticket, Starschema

4 208

A A

Bázis Office Center, BFK, BuildExT, Magyar Konyha Magazin, NN Biztosító, Salzgitter Mannesmann

✓

–

✓

✓

✓

✓

✓

ConvergenCE, www.convergen-ce. com

http://optimabudapest.hu

www.robertson.hu

www.simmoag.hu

5

✓ ✓ ✓

✓ ✓ ✓ ✓

✓ ✓ ✓

–

– CA IMMO (100)

– (100) (100) – A A

1095 Budapest, Lechner Ödön fasor 9.

(1) 501-2800 office@caimmo.hu

1093 Budapest, Közraktár utca 30–32.

(1) 382-7560 office@gamma-am.hu 1122 Budapest, Krisztina körút 6.

(1) 792-2611 – 1134 Budapest, Dévai utca 26–28.

(1) 327-2050 office@robertson.hu

– S IMMO AG (100)

1138 Budapest, Váci út 182.

(1) 429-5050 office@simmoag.hu

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

–

CBC Ingatlanfejlesztő Kft. (100) –

1027 Budapest, Horvát utca 12–26.

(1) 225-0912 bzadori@ convergen-ce.com

✓ ✓ ✓ ✓

BAlAnCe BuildinG

www.balancebuilding.hu 114

CentRAl Business CenteR

✓

✓ ✓ ✓

www.convergence.com

9,393 12,158

9

– 5

116

AtRinOvA

9,240 14,824

7

– 5

3+1 107

A A

A

✓

–

✓

–

✓

✓

✓

–

✓ ✓ ✓ ✓

– Deka Immobilien Investment GmbH (100)

117

teRRApARk next A

9,174 9,907

8

100 3

4 100

A A

A

–

✓

✓

✓

–

✓

–

–

✓ ✓ ✓

–

– Bluehouse Capital (100)

118

City CenteR

8,956 11,686

8

100 5

4 100

16–18 4.2

Tumlare, AFP, Itochu, Jetro, Sopron Bank, Belgian Embassy Walloon Region, Samsonite, Reed

✓

✓

✓

✓

✓

✓

✓

S IMMO APM Hungary Kft.

✓ ✓ ✓ ✓

– S IMMO AG (100)

115

www.atrinova.hu

www.terraparknext.com

www.simmoag.hu

✓ ✓ ✓

1054 Budapest, Bajcsy-Zsilinszky út 42–46.

– 2040 Budaörs, Puskás Tivadar út 4.

(1) 700-8013 office@ bluehousecapital.com 1051 Budapest, Bajcsy-Zsilinszky út 12.

(1) 429-5050 office@simmoag.hu

3

www.bbj.hu

Wellness And spORt seRviCes

24-hR ReCeptiOn, seCuRity seRviCes

GReen enviROnment

suitABle fOR disABled peOple

in-hOuse fACility mAnAGement

BAnk BRAnCh/Atm

– 5

8 260

11.5–12.5 HUF 1200

A

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

– IMMOFINANZ AG (100)

independent pOWeR supply

RestAuRAnt/CAfé

Ground floor+4

BiCyCle pARkinG

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

8,900 10,300

leAsinG AGent, nAme WeBsite

WAste ReCyClinG

nO. Of elevAtORs nO. Of pARkinG spACes

CuRRent mAjOR tenAnts

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

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

GReen teChnOlOGies

nO. Of levels

COmpAny WeBsite

Special Report | 23

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

Budapest Business Journal | May 8 – May 21, 2020

OWneRship (%) hunGARiAn nOn-hunGARiAn

AddRess phOne emAil

1037 Budapest, Szépvölgyi út 35–37.

(1) 236-0435 mail@immofinanz.com

szépvölGyi Business pARk www.immofinanz.com 119

120

mOmentum OffiCes

8,707 11,000

7

400 5

4 142

A A

A

–

–

✓

✓

✓

✓

–

–

✓

–

✓

–

Csörsz utca Ingatlanfejlesztő Kft. (100) –

121

Westend OffiCes www.westendiroda.hu

8,566 16,600

7

667 5

6 160

15.5 4.50

Oberbank, Unisys

✓

✓

✓

✓

✓

✓

✓

Eston Zrt., www.eston.hu

✓

–

✓

–

Gránit Pólus Management (100) –

122

infOpARk B épület

8,500

Ground floor+6

500 5

A A

A A

A

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

– (100)

Aegon Hungary, Alpiq Energia, GEOX, Kelly Services, Philip Morris, Safeguard, Wolf Theiss Faludi Erős

✓

–

✓

✓

✓

✓

✓

ConvergenCE, www.convergen-ce. com

A

–

–

✓

✓

✓

✓

–

–

www.wing.hu

A

kálvin squARe

www.kalvinsquare.hu 123

8,448 9,139

9

300 5

4 116

4.5

8,330 12,158

3

246 5

6 349

11–11.5 HUF 1200

A

OffiCe CAmpus

www.immofinanz.com 124

yBl pAlOtA iROdAház 125

8,009 12,000

kinnARps hOuse

www.yblpalota.hu

126

www.kinnarpshouse.hu

CMS Magyarországi Fióktelepe, Oppenheim Law Firm, Grafton Recruitment ✓ Kft., Klub Rekreáció Kft. (AYCM), Magyar Pénzváltó Kft., Lohn Law Firm

– KGAL (100)

1085 Budapest, Kálvin tér 12.

(1) 225-0912 bzadori@convergen-ce.com

–

– IMMOFINANZ AG (100)

1095 Budapest, Gubacsi út 6 B (1) 236-0435 mail@immofinanz.com

✓ ✓

–

Y.B.L. Lindner Kft. (100) –

1053 Budapest, Károlyi utca 12.

(1) 411-0434 yblpalota.titkarsag@ t-online.hu

✓ ✓ ✓

–

– Kinnarps I Falköping AB (100)

1133 Budapest, Váci út 92.

(1) 237-1251 recepcio@kinnarps.hu

–

(100) –

1052 Budapest, Szervita tér 8.

(1) 473-1209 leasing@ horizondevelopment.hu

✓ ✓ ✓ ✓

Robertson Hungary Kft., www.robertson.hu, ✓ ✓ ✓ CBRE, www.cbre.hu

–

✓

–

✓

✓

–

Vass Szilvia, Y.B.L. Lindner Kft., www.yblpalota.hu

–

✓

✓

✓

✓

–

–

5

130 3

5 56

15 4.8

7,947 9,018

6

A A

4 108

A A

7,800 25,000

7+5 under ground

A

9 240

A A

Spaces

✓

–

✓

✓

✓

✓

✓

A

✓ ✓ ✓

A

5

5 126

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

Kinnarps Hungary Kft., Rail Cargo Hungaria Zrt.

✓

1124 Budapest, Csörsz utca 49-51.

– – 1062 Budapest, Váci út 1–3.

(1) 374-6500 info@granitpolus.hu 1117 Budapest, Infopark sétány 3.

(1) 451-4280 info@wing.hu

–

szeRvitA squARe BuildinG www.szervita.com 127

10

Appeninn Holding (100) –

128

ü48 iROdAház

7,648 8,145

6

129

GizellA lOft

www.gizellaloft.hu

7,627 8,167

8

985 5

2 100

12 1,150

A

✓

–

✓

✓

✓

✓

✓

Eston Zrt., www.eston.hu

✓ ✓ ✓

–

WING Zrt. (100) –

130

infOpARk i épület

7,500

Ground floor+6

50 3

A A

A A

A

✓

–

✓

✓

✓

✓

✓

–

✓ ✓ ✓

–

– (100)

131

dexAGOn iROdAház

6

A A

A A

A A

A

A

A

A

A

A

A

A

A

A

A

A

A

(100) –

3

A

5 151

A A

A

✓

✓

✓

✓

–

✓

✓

–

✓

–

✓

–

Raiffeisen Ingatlan Alap (100) –

www.appeninnholding.com

www.wing.hu

www.erstealapkezelo.hu

teRRApARk BudAöRs

132 (d5-8, d13 tömBök) www.raiffeisenirodak.hu/ ingatlan/terrapark

A

7,300 A

1082 Budapest, Üllői út 48.

(1) 346-8869 info@appeninnholding.com 1143 Budapest, Gizella út 51-57.

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

(1) 451-4280 info@wing.hu 1117 Budapest, Fehérvári út 50–52.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu 2040 Budaörs, Puskás Tivadar út 7–11.

(1) 477-8490 irodaberlet@raiffeisen.hu

7,288 8,367

3

7,255 8,636

6

– 5

5 161

15–16 HUF 1450

LogMeIn, Silka

–

–

✓

–

✓

✓

–

–

✓ ✓

–

–

– CPI Property Group (100)

1061 Budapest, Andrássy út 9.

(1) 225-6600 hungary@cpipg.com

7,170 11,200

5

A A

A A

A A

A

–

–

✓

✓

–

✓

–

–

✓

–

✓

–

WING Zrt. (100) –

1068 Budapest, Dózsa György út 84/A (1) 413-2700 agnes.kantor@cbre.com

3

180 5

3 200

4.5–9.5 HUF 400–1100

Agility, Airmax, Bernleier, Bolloré, Fedex, Panalpina, UPS, Szerelvénybolt, Booklog

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

– CPI Property Group (100)

2220 Vecsés, Üllői út 807.

(1) 225-6600 hungary@cpipg.com

AndRássy pAlACe

www.andrassypalota.hu 133

134

liGet CenteR

www.ligetcenter.hu

AiRpORt City lOGistiC pARk

www.airportcity.hu 135

7,000 48,200

Special Report

A

✓

–

✓

–

✓

✓

–

6,900 9,200

Ground floor+7

– 5

3 216

11–13 HUF 1200

A

✓

–

✓

✓

✓

✓

–

BAnk BRAnCh/Atm

in-hOuse fACility mAnAGement

suitABle fOR disABled peOple

24-hR ReCeptiOn, seCuRity seRviCes

GReen enviROnment

Wellness And spORt seRviCes

RestAuRAnt/CAfé

independent pOWeR supply

A A

leAsinG AGent, nAme WeBsite

BiCyCle pARkinG

3+1 130

CuRRent mAjOR tenAnts

WAste ReCyClinG

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

6

500 5

6,930 7,200

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

nO. Of elevAtORs nO. Of pARkinG spACes

–

GReen teChnOlOGies

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

hunGáRiA CenteR 136

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

nO. Of levels

COmpAny WeBsite

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

24 | 3

OWneRship (%) hunGARiAn nOn-hunGARiAn

AddRess phOne emAil

1143 Budapest, Hungária körút 17–19.

(1) 236-6400 alapkezelo@ otpingatlanalap.hu 1139 Budapest, Pap Károly utca 4–6.

(1) 236-0435 mail@immofinanz.com

✓

–

OTP Ingatlanbefektetési Alap (100) –

✓ ✓ ✓

–

– IMMOFINANZ AG (100)

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

–

myhive thiRteen | xenteR www.myhive-offices.com/hu 137

JLL, www.jll. hu

1062 Budapest, Aradi utca 6–8.

(1) 299-2150 info@ neopropertyservices.hu 1122 Budapest, Maros utca 19–21.

(1) 429-5050 office@simmoag.hu 1065 Budapest, Nagymező utca 46–48.

(1) 877-1000 info@eston.hu

138

OktOGOn ház

6,811 7,280

7

160 5

4 329

A A

A

–

✓

✓

✓

✓

✓

–

NEO Property Services Zrt., ✓ ✓ ✓ www. neopropertyservices.hu

–

– (100)

139

mAROs BC

6,741 8,891

8

90 5

4 69

12.5–13.5 4.20

Oktatási Hivatal, Vialto Consulting

–

–

✓

✓

✓

✓

–

S IMMO APM Hungary Kft.

✓ ✓ ✓

–

– S IMMO AG (100)

6,658 6,802

8

527 5

A A

A A

A

A

A

A

A

A

A

A

Eston, www.eston.hu

A

A

A

(100) –

6,600 9,000

5

250 5

2 75

10–11 HUF 1450

IQ Soft, Kom Zrt., Mattel, Regus

✓

–

✓

–

✓

✓

–

–

✓ ✓ ✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 91.

(1) 225-6600 hungary@cpipg.com

6,500 7,325

4

350 5

2 80

13.5 HUF 1450

Buchbinder, BV technology, ✓ Colonnade, Interticket Kft., Starschema Kft.

✓

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

www.oktogonhaz.hu

www.simmoag.hu

CORneR6 Business

140 CenteR www.eston.hu

A

BC91

wwww.bc91.hu 141

BAlAnCe lOft

www.balanceloft.hu 142

143

tWin OffiCe CenteR

6,163 7,212

5+1

A A

4 72

A A

A

–

–

✓

–

✓

✓

–

–

✓ ✓ ✓

–

A A

1135 Budapest, Szegedi út 35.

– –

144

BudA Business CenteR

6,000 6,500

7

80 3

2 167

11–12.5 HUF 1150

Takarékinfo Zrt., Ad Novum

–

–

✓

–

✓

✓

–

–

✓ ✓ ✓

–

(100) –

1027 Budapest, Kapás utca 11–15.

– –

145

BudA CenteR

5,913 7,944

7

80 5

2 65

11.5–14 4.20

–

–

✓

✓

✓

✓

–

S IMMO APM Hungary Kft.

✓ ✓ ✓

–

– S IMMO AG (100)

1016 Budapest, Hegyalja út 7–13.

(1) 429-5050 office@simmoag.hu

146

pódium

5,739 8,119

9

350 5

2 87

14–16 4.20

–

–

✓

–

✓

✓

–

S IMMO APM Hungary Kft.

✓ ✓ ✓

–

– S IMMO AG (100)

1065 Budapest, Nagymező utca 44.

(1) 429-5050 office@simmoag.hu

✓

–

✓

–

✓

✓

–

A

✓ ✓ ✓

–

– (100)

1052 Budapest, Deák Ferenc utca 5.

(1) 473-1209 leasing@ horizondevelopment.hu

Eston Zrt, www.eston.hu

✓ ✓ ✓

–

WING Zrt. (100) –

GAMMA Properties Kft., ✓ ✓ ✓ gamma-am.hu

–

A A

–

–

www.simmoag.hu

www.simmoag.hu

váCi 1

www.vaci1.hu 147

Cushman & Wakefield, DVM group, H&M, Horizon Development, Mastercard, Ostermann, OTP, Play’n GO

5,700 13,800

6

A A

11 A

A A

6

338 3

2 149

12 4

Trans-sped, Navigator ✓ Informatika Zrt.

–

✓

✓

✓

✓

✓

5

130 3

4 23

12.9–13.7

IngenieuRinG-Sterner, Prezi.com, Magyar ✓ Telekom, Apacuka

–

✓

✓

✓

✓

✓

5,455 6,023

Ground floor+5

168 5

2 87

11,5 HUF 1250

A

–

–

✓

✓

✓

✓

–

Robertson Hungary Kft.., www.robertson.hu

✓ ✓ ✓

–

– IMMOFINANZ AG (100)

1138 Budapest, Váci út 189-191.

(1) 236-0435 mail@immofinanz.com

5,410 5,575

Ground floor+5

112 5

2 93

12.3–12.5 HUF 1250

A

✓

–

✓

✓

✓

✓

✓

Cushman&Wakefield Kft., www. cushmanwakefield.hu

✓ ✓ ✓

–

– IMMOFINANZ AG (100)

1036 Budapest, Kórház utca 6–12.

(1) 236-0435 mail@immofinanz.com

5,390 13,704

5

200 3

2 459

A A

A

✓

–

✓

✓

✓

✓

✓

A

✓ ✓ ✓ ✓

Erste Ingatlan Alap (100) –

2220 Vecsés, Lincoln út 1.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

148

máRiássy mOdeRn www.wing.hu

5,693 5,868

149

meRkuR pAlOtA

5,609

www.merkurpalota.com

Radio Factory, ProMontel, Rustler, Rewart, Oase, Emineo, Straumann, Aktuál Bau Geometry Global, Code Cool, Black Swan, Egon Zehnder, Magyar Államkincstár

A

A

OptimA A

www.immofinanz.com 150

GlOBe 3

www.immofinanz.com 151

152

the quAdRum

www.erstealapkezelo.hu

1095 Budapest, Máriássy utca 5–7.

(1) 451-4760 info@wing.hu 1065 Budapest, Nagymező utca 54–56.

(1) 382-7560 office@gamma-am.hu

3

www.bbj.hu

5,000 8,500

5

✓

✓

✓

✓

✓

✓

–

✓ ✓ ✓ ✓

(100) –

A

A A

A

–

–

✓

–

✓

✓

–

Lodge & Partners Investment Management LLC

✓ ✓ ✓ ✓

– (100)

150 5

3 93

A A

A

✓

–

✓

–

✓

✓

–

–

A

2 88

A A

A

✓

–

✓

✓

–

✓

3

A

2 66

A A

A

–

–

✓

✓

✓

Canadian embassy

–

–

✓

✓

A

independent pOWeR supply

✓

BiCyCle pARkinG

A

leAsinG AGent, nAme WeBsite

WAste ReCyClinG

A A

seRviCes

nAtuRAl liGht, AiR ventilAtiOn

BAnk BRAnCh/Atm

2

in-hOuse fACility mAnAGement

920 5

suitABle fOR disABled peOple

5

24-hR ReCeptiOn, seCuRity seRviCes

5,007 5,629

GReen enviROnment

eCOdOme

155 http://redwoodholding.hu/ ecodome-irodahaz

3

Wellness And spORt seRviCes

www.krauszpalota.hu

250 5

RestAuRAnt/CAfé

kRAusz pAlOtA

6

GReen teChnOlOGies

AveRAGe mOnthly Rent On ApRil 1, 2020 (euRO/sqm) AveRAGe mOnthly seRviCe ChARGe On ApRil 1, 2020 (euRO/sqm)

154

www.futurealgroup.com

5,384 6,122

Special Report | 25

CuRRent mAjOR tenAnts

nO. Of elevAtORs nO. Of pARkinG spACes

CORvin CORneR

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

153

nO. Of levels

COmpAny WeBsite

net OffiCe spACe (sqm) tOtAl GROss size Of BuildinGs (sqm)

RAnk

Budapest Business Journal | May 8 – May 21, 2020

OWneRship (%) hunGARiAn nOn-hunGARiAn

–

Redwood Holding Kft. (100) –

–

Robertson Hungary Kft., ✓ ✓ ✓ www.robertson.hu

–

A A

✓

–

Robertson Hungary Kft., ✓ ✓ ✓ www.robertson.hu

–

A A

✓

✓

–

–

–

– CA IMMO (100)

1027 Budapest, Ganz utca 16.

(1) 501-2800 office@caimmo.hu

1133 Budapest, Árbóc utca 6.

(1) 225-0912 bzadori@convergen-ce.com

mBC Business CenteR

4,930 7,166

6

157

BüROCenteR West

4,825 6,900

4

4,800 5,000

6

150 5

2 51

14–14.5

4,700 5,373

6

– 3

4 66

A A

AG Mamas, Alfa Pharmacy, Aquarea, Aurum, Cellaphone, Eurorisk, Octonull/ Bilingo, SDL, SVEA, VS-Faktor

✓

–

✓

✓

✓

✓

✓

ConvergenCE, www. convergen-ce.com

✓ ✓ ✓ ✓

Árpád Office Building Kft. (100) –

250 5

3 59

14–15.5 3

A

–

–

✓

✓

✓

✓

–

CBRE , www.cbre.hu

✓ ✓ ✓ ✓

Alphagon Ingatlanfejlesztő Kft. (100) –

2

A

2 81

9 5

Naturaqua, Lima Design

–

–

✓

✓

–

✓

–

Eston Zrt, www.eston.hu

✓ ✓ ✓

–

A A

400 5

2 –

20 3.5

A

–

–

✓

–

–

–

–

Colliers International, www2.colliers.com/hu

–

–

–

Optinvest Zrt. (100) –

3

A

1 60

A A

A

–

–

✓

–

–

✓

–

–

✓ ✓ ✓

–

A A

8

89 3

2 40

A A

A

✓

–

✓

–

–

✓

✓

A

✓ ✓ ✓

–

– Wigan Acquisition (100)

3,214 3,600

4

A A

2 35

21

A

✓

–

✓

✓

✓

✓

–

–

✓ ✓ ✓

–

– (100)

3,125 3,462

9

250-300 3

2 –

A A

A

✓

–

✓

–

✓

✓

–

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

(100) –

3,015 3,500

10

A

2 29

A A

A

–

–

✓

✓

✓

✓

–

Robertson Hungary Kft., ✓ ✓ ✓ www.robertson.hu

2,327 2,511

6

3

A

1 47

A A

A

–

–

✓

–

✓

✓

–

–

2,258 2,600

3

100 3

– 70

10 HUF 1450

Brother, ITWare, SmartX Solutions, Walter

–

–

✓

✓

–

✓

–

5+2

2,201 5

2 19

A A

A

–

–

✓

✓

✓

–

–

3

A

1 12

A A

A

–

–

✓

✓

–

–

–

4

600 1

1 35

A A

A

–

–

✓

–

–

✓

–

7

A A

A A

A A

Skyscanner

–

–

✓

–

–

–

✓

GAMMA Properties Kft., – gamma-am.hu

–

4

300 5

1 –

A A

Dentons, Micheal Kors

–

–

✓

–

–

–

–

Lodge&Partners Investment Management, ✓ ✓ www.lodge-im.com

www.robertson.hu

3

1082 Budapest, Futó utca 31–33.

(1) 266-2181 office@futureal.hu Budapest, Andrássy út 12.

– krauszpalota@ lodge-im.com 1016 Budapest, Mészáros utca 13.

– office@redwoodholding.hu 1012 Budapest, Vérmező út 4.

(1) 327-2050 office@robertson.hu 1111 Budapest, Nagyszőlős utca 11–15.

(1) 327-2050 office@robertson.hu

✓ ✓ ✓

156

www.robertson.hu

AddRess phOne emAil

CAnAdA squARe www.caimmo.com 158

A

áRpád CenteR 159

www.arpadcenter.hu

160

AlphAGOn

4,379 4,693

5

161

n97

3,625 4,500

7

162

iRányi pAlACe

3,326 3,551

6

163

pAnORámA ház www.indotek.hu

3,300 4,000

4

164

AusztRiA ház

3,218

165

hOmeWORk

166

deák pAlOtA

–

www.eston.hu

www2.colliers.com/hu-HU

www.addvalgroup.com

www.homework.hu

www.deakpalota.hu

WestpOint Business

167 CenteR www.robertson.hu 168

mOzsáR tRAde CenteR www.mozsartc.hu

A

3

A

✓ ✓ ✓

✓

–

A A

✓ ✓ ✓

–

A A

–

✓ ✓ ✓

–

– CPI Property Group (100)

Operator Estate Kft., www.mi9.hu

✓ ✓ ✓

–

(100) –

✓

–

A A

✓ ✓ ✓

–

A A

✓

–

A A

–

–

– AEW (100)

1117 Budapest, Dombóvári út 9.

(30) 397-6247 mz@bischoffcpn.hu 1124 Budapest, Németvölgyi út 97.

(1) 877-1000 info@eston.hu 1056 Budapest, Irányi utca 17.

(1) 336 4200 linda.hargitai@colliers.com 1134 Budapest, Váci út 19.

(1) 688-1700 – 1052 Budapest, Vármegye utca 3–5.

(1) 479-6020 office@addvalgroup.com 1024 Budapest, Margit körút 19-21.

(1) 266-6000 info.hungary@codic.eu 1052 Budapest, Deák Ferenc utca 15.

(1) 411-2660 info@immobilia.hu 1131 Budapest, Váci út 18.

(1) 327-2050 office@robertson.hu 1066 Budapest, Mozsár utca 16.

(1) 301-0186 info@mozsartc.hu

BudAfOki Business CenteR www.bc209.hu 169

170

mARkó iROdák 9 www.mi9.hu

2,201 2,630

171

AndRássy 93 iROdAház

1,801

172

v175

www.eston.hu

1,500 7,500

173

k6 iROdAház

1,470

174

ullmAnn pAlOtA

www.gamma-am.hu

www.gamma-am.hu

ww.ullmannpalota.hu

A

A

1,439 2,171

3

GAMMA Properties Kft. ✓

–

–

1117 Budapest, Budafoki út 209.

(1) 225-6600 hungary@cpipg.com

1051 Budapest, Markó utca 9.

– koszeghy.erzsebet@ lokomotivhaz.hu 1062 Budapest, Andrássy út 93.

(1) 382-7560 office@gamma-am.hu 1138 Budapest, Váci út 175.

(1) 451-4280 sales@wing.hu 1052 Budapest, Károly körút 6.

(1) 382-7560 office@gamma-am.hu 1061 Budapest, Andrássy út 11.

– ullmann@lodge-im.com

26 | 3

Special Report

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

News///in brief Demand for CEE Real Estate Still High in 2019 According to an analysis by UBS, demand for real estate in Central and Eastern European markets has grown rapidly in recent years, at least up until the end of last year, says uzletem.hu. This is shown by the fact that capital inflows into the region increased from EUR 9 billion to EUR 13 bln between 2015 and 2019. Some 45% of the total volume of capital inflows came to Poland, 25% to the Czech Republic and 15% to Hungary, while in Romania, Bulgaria and Slovakia, the volume of real estate investments was a fraction of this. According to the analysis, the region is popular with international investors mainly due to high returns, which are significantly higher than in Western Europe. According to MSCI data, the average return in 2019 exceeded 10%, while in more developed European markets the level was below 6%.

Graphisoft Park Pays HUF 1,060 per Share Dividend The board of Graphisoft Park, which operates the eponymous business park in the north of Budapest, has decided to pay shareholders a HUF 1,060 per share ADVERTISEMENT

dividend on last year’s earnings, the company said in a disclosure posted on the website of the Budapest Stock Exchange (BSE). The company was empowered to make the decision by a government decree allowing the boards of listed companies to approve AGM proposals because of a ban on gatherings due to the coronavirus pandemic. The board approved the company’s consolidated IFRS annual report showing after-tax profit of EUR 16.3 million. Graphisoft Park earlier converted into the local form of a real estate investment trust (REIT) and is required to pay shareholders 90% of profit as dividend.

Microsoft Hungary Wins Special Award in Office of Year Contest Microsoft Hungary won the “Corporate Community Space of the Year” award at this year’s (online) Office of the Year award, the company tells the Budapest Business Journal. The software provider has created a loft-style community space in its offices, which employees can use for relaxation, informal meetings, recharging, and which provides a suitable environment for creative and efficient work. There is a

Room with a view. The work from home period has sparked a rise in demand for non-city locations, such as this at Tihany, Lake Balaton.

Photo by kardosildistock / Shutterstock.com

Extended Home Office Ignites Rural Rental Demand As a result of the extended home office working, which has become more widespread in the recent period, a new kind of demand has appeared at Lake Balaton and in other rural locations, Magyar Nemzet reports. According to Balaton realtors, more and more people are renting out accommodation near the lake for a few months. And if the opportunity to work from home remains for a

relaxation area, a meeting room, a reading corner, and an eating area suitable for informal conversations, as well as two terraces and plenty of plants to make the floor even more cozy. “We are very proud to be able to call ourselves a future

longer period of time, for many, it may bring a permanent shift to opt for a quieter small settlement instead of the big city. “It seems that home office is functional, many people have equipped it, and they could even imagine this kind of work in the long run,” explained Erika Rajczi, the office manager of the Openhouse intermediary network in Balatonfüred (125 km southwest of Budapest).

workplace at Microsoft today, and while our colleagues can work from home or anywhere at any time, we consider it very important that the office environment is in line with current and future trends,” said HR manager Boglárka Szentpétery.

3

www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

Special Report | 27

Facility Management Companies

13,700

13,700

A

A

A

ConstRuCtion ManageMent

ColleCtion oF publiC utility Fees

taking out insuRanCe poliCies

eneRgy ManageMent, eneRgy audit

✓

–

✓

–

✓

–

–

✓

6

2005 636

WING Zrt. (100) –

lászló vágó Gyula Jászai György Miklósi

1095 Budapest, Máriássyutca 7.

(1) 299-2150 info@ neopropertyservices.hu

1991

(100) –

Ferenc batári, józsef schmidt Zita Surányi –

1148 Budapest, Fogarasi út 5.

(1) 468-4080 bondar.edina@ future-fm.hu

B-SEVEN Befektető Kft. ADrexler & Co Holding Kft. ( A ) –

gábor décsi Erzsébet Kovács Zoltán Tóth

1023 Budapest, Lajos utca 28–32.

(1) 423-0000 info@domefsg.hu

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

2003 475

✓

✓

–

✓

✓

✓

–

✓

–

–

✓

A

doMe FaCility seRviCes gRoup kFt.

5,021

4,140

25

45

25

5

AUDI, Autoliv, Coca Cola, Futureal

kRaFt FM ÜZeMeltetési és sZolgáltató kFt.

4,826

4,449

33

28

5

34

A

✓

–

–

✓

–

✓

–

✓

–

–

✓

2007 232

István Jászberényi (100) –

istván jászberényi István Ádám –

1139 Budapest, Pap Károly utca 4–6.

(1) 465-7050 info@kraft-fm.hu

4,464 (2018)

A

A

A

A

A

A

✓

✓

–

✓

–

✓

✓

✓

–

–

–

2008 447

– Atalian Europe S.A. (100)

levente Mihály velky – –

1116 Budapest, Temesvár utca 20.

(1) 231-4020 info@atalian.hu

9

EPF Terrapark Kft., Dorottya Udvar Holding Kft., Green Urban Elegant Kft., ERSTE IFHM Kft.

András Sólyom (50) Gergely Lacsny (50) –

andrás sólyom Péter Farkasházi –

1143 Budapest, Gizella út 51-57.

(1) 471-2020 noemi.makkai@ smartfm.hu

–

GalCap, Cloudera, UNICEF, Solinfo

✓

2001 35

AddVal Kft. (100) –

Hubert Mühringer Ágnes Horváth Rita Szabó

1077 Budapest, Wesselényi utca 16.

(1) 479-6020 rita.szabo@ addvalgroup.com

–

–

–

✓

✓

✓

✓

✓

–

–

✓

2004 37

Stelius Zrt. (75) Inforg Zrt. (25) –

istván szabó – –

1027 Budapest, Csalogány utca 23–33.

(1) 325-2640 arexfm@arexfm.hu

✓

✓

✓

✓

–

✓

–

–

✓

–

✓

2008 50

– Rustler Gruppe GmbH (100)

tibor karsai Edina Szántó –

1016 Budapest, Hegyalja út 7–13.

(1) 434-2690 budapest@rustler.eu

www.kraft-fm.hu

5

addRess pHone eMail

A

www.domefsg.com

4

–

top loCal exeCutive CFo MaRketing diReCtoR

Budapest Airport Zrt., Szombathelyi Országos Büntetésvégrehajtási Intézet, Vodafone Magyarország Zrt.

www.future-fm.hu

3

✓

yeaR establisHed no. oF Full-tiMe eMployees on apRil 1, 2020

2

✓

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RustleR kFt. www.rustler.hu 9

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Budapest Business Journal | May 8 – May 21, 2020

Socialite Playing on: Producing Music Under Lockdown For the past few weeks, the Budapest Festival Orchestra (BFO) has been presenting what it calls “Quarantine Soirées” live from its rehearsal room in Budapest.

DAVID HOLZER

I’m writing this on April 22. Tonight’s performance starts at 7:45 and consists of music by Gyula Fekete, Schumann, Piazzolla and Debussy.

The BFO is rated among the top 10 orchestras globally. It performs regularly at venues of the stature of Carnegie Hall and the Lincoln Center in New York and London’s Royal Albert Hall, as well as at prestigious international festivals such as the Mostly Mozart Festival, Salzburg Festival and Edinburgh International Festivals.

In 2013, the BFO was awarded a Grammy for its recording of Mahler’s Symphony No. 1. It has won the Diapason d’Or and the Italian Toblacher Komponierhäuschen prize for its recording of Mahler’s Symphony No. 5 in 2014. The BFO received the Association of Music Critics of Argentina’s award for Best Foreign Symphony Orchestra in 2016.

I share the BFO’s accolades with you so you’ll appreciate that being able to enjoy the orchestra online free – or for the price of a donation if you wish – is a rare privilege. Especially if, like me, you’ve been meaning to see them perform for years and never got round to it.

I haven’t scampered to see the BFO for another reason that I’m somewhat embarrassed to admit. Live classical music often sends me to sleep, despite auditorium seats usually being rather hard. If I’m listening to the BFO on my favorite Lazy Boy Recliner chair and I fall asleep after five minutes, no-one’s going to nudge me in the ribs and hiss in my ear.

Ahead of the Curve

I’m not quite sure why this is surprising to me, but it seems that the BFO was ahead of the curve when it began live streaming its performances online.

Perhaps this is down to the fact that the BFO was only founded in 1983. The vision of its founders, conductor Iván Fischer and Zoltán Kocsis was “to share music of the highest quality and to serve the community in the most diverse ways.”

They’re certainly doing that now.

The BFO also has a reputation for innovation, which might explain the

The Budapest Festival Orchestra in happier times, under the baton of co-founder Iván Fischer. Photo: Budapest Festival Orchestra website.

Acts of God speed with which it began streaming. Its The Rolling Stones 2020 tour has been Autism-friendly Cocoa Concerts, Surprise canceled, as have all the big events in the Concerts and musical marathons are rock and roll calendar, including Hungary’s apparently internationally known.

Sziget Festival.

Perhaps the motivation was also Is Sziget’s cancelation as a result of financial. Right now, governments the COVID-19 an Act of God for insurance world over are diverting all available purposes, I wonder? If it is, the resources into funding health services and organizers presumably wouldn’t have equipping key workers – in theory. to pay performers the rest of their fee or, But this shouldn’t be used as an excuse to stop funding the providers of the culture that indeed, reimburse people who’ve already purchased their tickets. helps hold society together and to which we An Act of God is generally defined as all turn for escape, consolation and – in the not too distant future, let’s hope – celebration. “an act occasioned exclusive of violence by nature without the interference of any Not all musicians can afford to give of human agency.” their time with such gay abandon as the In some insurance contracts, multitude of icons, from the fresh-faced a pandemic is regarded as an Act of God. to the high risk, who took part in the On March 11, the WHO officially declared marathon “One World: Together at Home” COVID-19 a pandemic. live streamed concert organized by Global So, if a festival organizer has a Citizen and the World Health Organization contract that specifies a pandemic (WHO) on Saturday April 18. to be an Act of God, presumably they’re It would be nice to know that these under no obligation to go ahead or performers, whose combined wealth reimburse ticket holders. may well be more than that of Hungary, I’ve no idea what kind of insurance also donated substantial amounts Sziget’s organizers have and, at the time of to fund PPE and development of writing, they’ve yet to issue a statement as the vaccine we desperately need. to what they propose to do about refunding Charlie Watts of the Rolling Stones ticket holders. at least donated his drum kit. Isn’t The organizers of Glastonbury it ironic that the highlight of such a 2020, for example, have given people momentous music event is a 78-year-old who’ve paid a deposit on a ticket the dude who made a virtue out of not option to ask for a refund or let their playing? But he did it with such good deposit roll over to 2021. humor and consummate cool.

Whatever the organizers of Sziget 2020 and the big name acts to whom they may well have advanced serious amount of money decide to do, we can only hope 2021 happens, even if it’s with band-branded face masks and social distancing.

As for the future of live music in general, one ingenious solution has been tried out in Denmark.

In late April, singer-songwriter Mads Langer performed at what may well be the first drive-in concert ever. He did his stuff on stage to an audience listening in their cars via a designated radio station.

Pictures of the event show Langer in front of a sea of vehicles carefully positioned two meters apart from each other.

According to the Consequence of Sound website, Langer was delighted to “reunite” with his audience, “although they were sitting in their cars.”

I don’t know about you, but the thought of a drive-in concert makes me yearn for being center-stage at Sziget in the crush of a heaving ocean of perspiring music fans and being deafened even more.

Find out more about the Budapest Festival Orchestra’s live streamed concerts and how to donate to support them at bfz.hu or via its Facebook page facebook.com/bfo.en.

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www.bbj.hu

Budapest Business Journal | May 8 – May 21, 2020

Photo by blphoto1/Shutterstock

Tokaj Tuning Into the Modern World The next stop on our lockdown virtual tour around Hungary, as guided

by Budapest Business Journal wine columnist Robert Smyth, finds us in the home region of the “king of wines”: Tokaj-Hegyalja.

ROBERT SMYTH

The word “legendary” is often used to describe Tokaj, and this is for good reason, given that so many wondrous vinous things have dramatically come together in the wine region known locally as TokajHegyalja to command respect and inspire awe across the centuries.

A prestigious history is one thing, but Tokaj, known for making some of the best sweet wines in the world, if not the best sweet wines period, has had to reinvent itself more than most wine regions and today is a hotbed of winemaking innovation.

Changing fashion in taste has dictated that Tokaj has had to transition much of its grape growing and winemaking from sweet to dry wine, but the region is starting to succeed in doing it in such a way that it is keeping its wines relevant and engaging, gaining international acclaim in the process, and is now also getting to grips with making traditional method sparkling wines.

This hilly region, located in the northeast of Hungary, is buzzing with vinous action; state-of-the-art wineries contrast with atmospheric and ever so slightly spooky cellars that have stood proud for centuries.

Some are a combination of both.

Under the village of Tolcsva, the cellars of Tokaj Oremus run for a whopping 3.5 km; descending the steps into the cellar is like entering another, much older world.

Yet, up top, the winery is immaculately clean and modern.

Oremus is owned by Pablo Álvarez, who also owns Vega Sicilia, the ultra-premium Spanish producer. The fact that an investor as serious as Álvarez, and there are other big foreign names involved in Tokaj, should choose this Hungarian region to set up his only foreign winery speaks volumes about how hallowed Tokaj terroir is.

World First The UNESCO-listed Tokaj may be steeped in a history based on sublime sweet wines but time does not stand still, even for a region that was the first in the world to have its vineyards officially classified (starting in 1730).

It is only in this century that this indigenous grape has been making dry wines of serious breeding. The dry movement has been led by the likes of

István Szepsy, the doyen of winemaking in the region, and indeed in all Hungary, and Oremus, the former pursuing more of a single-vineyard approach when the vintage allows, and the latter going for a blend (Mandolás), although it is also now looking to add a single-vineyard bottling.

The last 20 years have been about developing high quality dry wine, and now it appears in the dry category that Furmint can do both lighter reductive wines that are vinified only in stainless-steel tanks, as well as fuller bodied oaked wines (though a common problem has been overoaking, which can block out Furmint’s fairly restrained but often elegant aromas).

The aforementioned Mandolás from Oremus is more elegant with each passing year and the oak, only 10% of which was new in 2018, is now so expertly and subtly integrated that it can barely be felt, yet it brings texture and depth to the wine. It is always great value, with the 2018 vintage costing HUF 4,950 from Bortársaság.

Good dry Furmint is taut and linear, with racy acidity and quince, citrus fruit and hazelnut notes, although it is also an excellent articulator of terroir and does capture the nuances of different places of growth.

For example, a zesty Furmint with angular acidity from the cooler climes of Olaszliszka’s Rány vineyard, with its rhyolite-tuff soils, sees the place of growth firmly override the characteristics of the grape variety, no matter who the producer is.

Overall, a broad distinction can be drawn between the loess soils around the town of Tokaj that produce softer, rounder and fruitier wines, and the tenser and edgier wines from the cocktail of volcanic soils around the town of Mád where the soil composition can change every few meters.

Hárslevelű, the second most widely planted grape in Tokaj after Furmint, is also native and it, too, appears to be a good articulator of terroir. Although a mouthful to pronounce, Hárslevelű can have more generous aromas and flavors than Furmint, which deliciously merge fruit with florality, and it can also age very well.

French Connection Stéphanie Berecz of Tokaj Kikelet may hail from the Loire in France but has lived and worked in Tokaj since the early ’90s, and has shown that the Hárslevelű grape

Socialite | 29

can make dry wine to rival, if not surpass, dry Furmint, with her Váti and Lónyai single vineyards.

Furthermore, she has done this from the supposedly inferior loess soil around the town of Tarcal, smashing the assumption that Tokaj’s best wines come only from the purely volcanic soils around the town of Mád. Gizella Pince’s old-vine Barát Hárslevelű 2018 (HUF 4,850 from Bortársaság) is another fine specimen from the same area.

Some of the best dry wines are actually starting to be blends of Furmint and Hárslevelű – which makes total sense as these two grapes have always worked so well together in sweet wines. Gizella’s László Szilágyi is a deft exponent of the blending art and his totally tank-made Cuvée Furmint/Hárslevelű 2019 (65% Furmint, 35% Hárslevelű) is delightfully fresh, floral and fruity, and a real bargain at HUF 2,850 from Bortársaság.

Despite all the excitement around dry wine (although even the dry wine often has a few grams of residual sugar to counterbalance the typically high acidity of the region), the botrytized sweet Tokaji Aszú still remains the icing on the very layered Tokaj cake.

With a little help from modern technology aside, Tokaji Aszú is largely made in the same way as it has been made for centuries, whereby botrytized grapes that were painstakingly picked berry by berry in several sweeps of the vineyard during a prolonged harvest season are added to a base wine.

The grapes are afflicted by “noble rot” that envelops the vineyards in the fall, helped by the proximity of the Bodrog and Tisza rivers which actually meet in the town of Tokaj. This fungus shrivels the berries and intensifies the flavors, acidity and sugars.

However, thanks to the Furmint grape’s pronounced acidity, a good Aszú is never flabby or cloying, but rather unbelievably complex, layered and incredibly long. A wonderful finishing local touch is that the wines age for years in small, 136-liter gönci barrels that come from oak growing in the nearby Zemplén hills.

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Budapest Business Journal | May 8 – May 21, 2020

30 YEARS OF FREEDOM Third Time’s a Charm: The Hungarian Republic Reborn In 1989, Hungary completed its peaceful transition from a one-party communist system to a multi-party democracy. The Third Hungarian Republic was proclaimed on October 23, 1989, by interim president Mátyás Szűrös who performed the duties of Head of State until May 2, 1990.

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The national flag flies outside the Hungarian Parliament, from the balcony of which the Third Republic of Hungary was declared on October 23, 1989, by then Acting President Mátyás Szűrös. Photo by Mirko Kuzmanovic / Shutterstock.com

As covered in depth in this series in proceeding issues of the Budapest Business Journal, several events had lead up to the proclamation of the Third Republic: the strengthening of new opposition political parties, the establishment of the Opposition Roundtable (Ellenzéki Kerekasztal or EKA), the national roundtable talks between the Hungarian Socialist Workers’ Party (MSZMP), the EKA and social organizations, and the disintegration of the ruling party, the MSZMP and the formation of the Hungarian Socialist Party (MSZP).

On September 18, after several months of negotiations, the parties of the national roundtable talks reached an agreement on the so-called cardinal public law issues.

One of the cornerstones of the agreement was the amendment of the constitution.

During the negotiations, MSZMP accepted the proposal of the EKA that the party’s Presidential Council would resign with the entry into force of the constitutional amendment, after which time the Speaker of the National Assembly, Mátyás Szűrös, would perform the duties of the Head of State until the election of the President of the Republic.

The agreement was signed by all participating parties with the exception of the Free Democrats (SZDSZ) and Fidesz,

4

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Budapest Business Journal | May 8 – May 21, 2020

The First and Second Republics Hungary become a republic for the first time on November 16, 1918. The First Hungarian Republic (or Hungarian People’s Republic) replaced the former Kingdom and was established after the Aster Revolution (started in Budapest on October 31, 1918) lead by Count Mihály Károlyi, who had been appointed by King Charles IV as Hungarian Prime Minister.

Károlyi’s short-lived governance coincided with the division and surrender of much of Hungary’s territory to neighboring countries by the Entent forces. The Károlyi era ended with the resignation of the prime minister and the seizure of control by the communists who,

both then liberal parties, who refused to sign up because the agreement allowed for the Head of State to be elected before the parliamentary elections.

On September 21, the government adopted the cardinal laws in line with the agreement signed during the negotiations, and submitted it to the National Assembly in an urgent motion.

On October 18, one month after the agreement was reached, Parliament amended the Constitution so that it now stated that the Republic of Hungary was an independent, democratic state governed by the rule of law, in which the principles of both civil democracy and democratic socialism prevail.

Abolished

The legislature abolished the MSZMP institution of the Presidential Council, and stated that the President of the Republic would lead the country instead: until such time as that person could be elected, the Speaker of Parliament would temporarily be the Head of State of Hungary. Two days later, Parliament adopted the Electoral Act and the law on the election of the President of the Republic.

On October 21, Parliament announced that the Republic would be proclaimed on

The Basic Law From a legal-formal point of view, the amended Basic Law was not a new draft so much as a modified version of the 1949 Constitution (1949: Act XX). Yet in terms of content, it was almost completely (nearly 80%) renewed.

The political actors of the change of the regime considered the reformed constitution to be temporary; the creation of a completely new statute was on the agenda until the end of the 1990s, but in the absence of consensus, it failed to progress and was shelved.

That was until Fidesz was returned to power in 2010 with a two-thirds majority, which enabled it to frame a new constitution as it wanted, a move that was highly controversial for some.

led by Béla Kun, announced the establishment of the Hungarian Soviet Republic on March 21, 1919.

On March 18, 1920, a government decree repealed the measures of the revolutions.

Between the two world wars, during the reign of Regent Miklós Horthy, the country was effectively a “kingdom without a king”.

On January 31, 1946, the National Assembly abolished the kingdom and declared Hungary a republic, the law on which was promulgated on February 1. The state form of Hungary became a people’s republic on August 20, 1949, after the communist constitution entered into force.

“We are committed that, in accordance with the will of our people, which may soon be expressed in free, democratic elections, we will walk the path we have begun. The Hungarian republic is going to be an independent, democratic and legal state in which the values of bourgeois democracy and democratic socialism are expressed equally.”

October 23 (the date had previously been proposed by Prime Minister Miklós Németh as a national holiday), from the balcony of the Parliament building, by Szűrös.

The day the Third Republic was proclaimed is described by almost all news sources in the same way.

The celebration began with a changing of the ceremonial guards at 11:30 a.m. At quarter to noon, members of the National Guard lined up in front of the State Flag with Hungary’s historical flags, from the Hungarian conquest (honfoglalás), to the flag of St. Stephen, the flags of the Houses of Arpad, Anjou, and so on up to the revolution of 1948/49 and the Second World War. All the important international news outlets were present: the world was watching Hungary.

At noon, after the ringing of church bells, Szűrös appeared at the balcony of his chambers in Parliament. After greeting his fellow Hungarian citizens at home (some 100,000-150,000 were gathered in Kossuth Square to witness the event in person) and abroad, as well as foreigners watching the event on television, Szűrös proclaimed the establishment of the Third Hungarian Republic.

“With the promulgation of the constitution amended by the National

Assembly, [as of] today, October 23, 1989, the state form and name of our country is HUNGARIAN REPUBLIC.” Once the ovation had subsided, Szűrös continued his speech. “This is the prelude to a new historical stage, and through the democratic transformation of our state, as we explore and confess the past, we must turn our gaze firmly to the future,” the L.A. Times quoted him as saying.

“We are committed that, in accordance with the will of our people, which may soon be expressed in free, democratic elections, we will walk the path we have begun. The Hungarian republic is going to be an independent, democratic and legal state in which the values of bourgeois democracy and democratic socialism are expressed equally.”

Szűrös also talked about Hungarians living outside the borders, redrawn after the end of World War I, saying the state felt responsible for them and aimed at nurturing their relations with Hungary.

Catching Up

He spoke about the intention to accelerate the process of Hungary catching up with more developed countries and improving its ties with both East and the West, contributing to the creation of the safety and the union of Europe and the solution of global problems.

He said the country continued to consider the smooth and balanced development of Hungary’s ties with the Soviet Union to be a national interest, adding that Hungary was aiming to have good relationship with the Unites States as well.

(Though Szűrös’s speech was well received, overall, there were parts where those present expressed dissatisfaction, for example, when he talked about the country’s relationship with the USSR. The very fact that he was the interim president was also received unfavorably by some, due to his ties with the ruling party and thus being a member of the former regime.)

Though Szűrös’s speech was well received, overall, there were parts where those present expressed dissatisfaction, for example, when he talked about the country’s relationship with the USSR. The very fact that he was the interim president was also received unfavorably by some, due to his ties with the ruling party and thus being a member of the former regime.

The interim president also touched on relations with those countries with which it was linked by the Danube glowing through their borders. Hungary would continue its foreign policy of opening up, and wanted to be an active participant in international exchanges and cooperation in the fields

Socialite | 31

Mátyás Szűrös in 2012. Photo by Erdélyi Magyar Néppárt / CC BY (https://creativecommons.org/ licenses/by/4.0)

Mátyás Szűrös Szűrös was born to a poor farming family. He studied in Moscow and obtained a degree in diplomacy in the Moscow Institute of International Relations. He started working at the Ministry of Foreign Affairs in 1960. Two years later he joined the Hungarian Embassy in East Berlin, where he stayed for three years.

When he returned to Hungary, he earned his doctorate at the Károly Marx University in Budapest (today the Corvinus University of Budapest).

From 1965, he worked for the Department of Foreign Affairs of Hungarian Socialist Workers Party’s Central Committee, in 1974 becoming its deputy head.

He returned to East Berlin in 1975 as ambassador, then he moved on to Moscow as Ambassador extraordinary and plenipotentiary. Upon returning to Hungary, he continued to work for the Central Committee as head (1982-1983), then as Secretary for six years. Szűrös served as Speaker of the National Assembly of Hungary from March 1989 to May 1990.

Due to his position, on October 23, 1989 it was he who proclaimed the republic, which he served as interim president until May 1990. He remained in parliament until 2002 as a member of the Hungarian Socialist Party.

of economy, science, culture and the promotion of human rights, he said.

He asked everyone to take consistent action and persistent work for a better future for the country, to further national cohesion, democracy, and humanism and ended his speech by calling for global peace.

The first law passed by the freely elected parliament, which met on May 2, 1990, declared October 23 a national holiday to commemorate the beginning of the 1956 Uprising and the proclamation of the republic in 1989.

6 my heart rate,

since I’ve been feeling so relaxed at my office.

L o o k s l i ke a v a c a t i o n? B u t i t ‘ s j u s t a n o r m a l w o r k d ay : B e fo r e t h e n e x t m e e t i n g I ’l l q u i c k l y ge t t h e n e w s p a p e r f r o m n e x t d o o r. W i t h t h e m y h i ve a p p I ’l l c h e c k w h o ‘ s a t t e n d i n g to m o r r o w ‘ s n e t w o r k i n g e v e n t a n d a l s o a r r a n ge t h e n e x t r u n w i t h m y co l l e a g u e s . T h a t ’s w h a t I c a l l w o r k- l i f e b a l a n ce .

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