Budapest Business Journal 2917

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

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BUSINESS JOURNAL BUDAPEST

VOL. 29. NUMBER 17

SEPTEMBER 24 – OCTOBER 7, 2021

SPECIAL REPORT

Green Business

SPECIAL REPORT

Market Talk: Green Building the Only Sustainable Choice

Gary Morrell asked developers, investors, sustainability consultants, and assessors for their thoughts on the future of sustainability and green business in the real estate and property investment markets. 14

SPECIAL REPORT

Diófa Responding to ‘Strong Demand’ for ESG Zsombor Incze, head of the business development department at investment fund manager Diófa Asset Management, talks about the impact of ESG and the fourth COVID wave. 17

SOCIALITE

Big Oil and the Green Transition

Top 100 Wines: Reds and 1 White Join the Aszú Party The results of the 2021 edition of Winelovers “100 legjobb Magyar Bor” (“100 Best Hungarian Wines”) represent something of a sea change from previous editions of a competition that pits medal-winning Hungarian wines against each other.

In the past it has been dominated by Aszú wines. 35

NEWS

Inflation Risks Remain, Tightening Slows Down Rate hikes introduced by the National Bank of Hungary in the summer continued, but surprisingly, the central bank decided on September 21 to tighten by only 15 basis points, less than analysts had expected. 3

IAL S PEC

RT

R E PO

Viktor Sverla, strategy director at energy giant MOL Group, insists ESG represents an opportunity for the oil and gas giant, saying it is “inevitable” if Big Oil wants to “transition towards green business practices” and “transform their business models.”16

BUSINESS

Hungary 32nd on 2021 Digital Quality of Life Index Hungary ranked above average and close to the top on the DQL index compared to 109 countries internationally, but there are still areas for improvement to enhance its digital well-being for both residents and businesses. 8

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Budapest Business Journal | September 24 – October 7, 2021

BBJ

THE EDITOR SAYS

EDITOR-IN-CHIEF: Robin Marshall EDITORIAL CONTRIBUTORS: Kálmán Béres, Zsófia Czifra,

GALA AWARDS AND GOING GREEN

Kester Eddy, Bence Gaál, David Holzer, Christian Keszthelyi, Gary J. Morrell, Nicholas Pongratz, Gergely Sebestyén, Robert Smyth, Bálint Szőnyi, Zsófia Végh.

LISTS: BBJ Research (research@bbj.hu)

Assuming you are reading this on publication day, September 24, we are just hours away from finding out the name of the 2021 BBJ Expat CEO of the Year. The final decision will be taken by our awards jury (on which I do not sit) in the minutes before the start of the invitationonly black-tie event at the Corinthia Hotel Budapest.

I will be hosting that evening, which means I have been juggling my preparations for the gala with editing this issue of the paper. Whoever the jury eventually picks, he will be a worthy winner. (That is not a slip of the fingers on the keyboard, by the way. Although our last two winners have both been women, this year we have an all-male line-up; that’s just the way it sometimes happens.)

The shortlist, which was announced back in January (ironically, on the original date when we had hoped to hold the gala before COVID intervened), is undoubtedly a strong one. Our finalists are Prabal Datta of Tata Consultancy Services, Daniel Korioth of Bosch Group, and Erik Slooten of Deutsche Telekom IT Solutions Hungary.

Although we have had Germans take the top spot on several occasions, and we had a winner from Bosch at our inaugural gala back in 2014, we have never had a Dutch or Indian winner. I can’t wait to discover who our next title holder will be later tonight.

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BBJ-PARTNERS

* * * In the Special Report inside this issue, we take a look at a subject close to the heart of many of our readers, I am sure: Green Business. Following on from our interview with the Budapest Stock Exchange’s green advisor Balázs Bozsik in the last issue, we take a deeper dive into sustainability and ESG (Environment, Social, and Governance) issues.

VISIT US ONLINE: WWW.BBJ.HU

We investigate the threat and opportunities ESG presents energy companies such as Hungarian oil and gas giant MOL. We look at how sustainability accreditation is becoming an inevitable “must-have,” not just for modern offices but increasingly logistics buildings, and with others likely soon to follow.

As one of our interviewees says, there are both “push” and “pull” factors at work here. Green offices are where people want to work, and in a tight labor market, employers have to meet that desire.

If that is what tenants want, then developers must provide it. At the same time, investors increasingly want sustainable buildings because they command higher returns and are easier to fill. And over all of that, increasingly strict regulations are coming into play to meet EU and national commitments to CO2 reduction.

A handful of years ago, few had heard of ESG reporting; today, it is still restricted mainly to the very largest multinationals and group-level enterprises. Still, with the COP26 UN Climate Change Conference in Glasgow just five or so weeks away, it isn’t going to slip off the radar anytime soon. Indeed, it is hard to shift the idea that, increasingly, it will become a matter all companies will have to address.

Channeling my inner David Attenborough, let me put it this way: For the sake of our planet, the future must be green; we have to make it our business, and our businesses must make it so.

Robin Marshall Editor-in-chief

Why Support the BBJ?

• Value Creation. We have a nearly 30-year history of supporting the development of diversity and sustainability in Hungary’s economy. The fact that we have been a trusted business voice for so long, indeed we were the first English-language publication when we launched back on November 9, 1992, itself has value.

• Crisis Management. We have all lived through a once-in-a-century pandemic. But we also face an existential threat through climate change and operate in a period where disruptive technologies offer threats and opportunities.

Now, more than ever, factual business reporting is vital to good decision-making.

For more information visit budapestbusinessjournal.com

Photo by MTI / Tibor Illyés

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

Photo by Fortepan / István Péterffy

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

THEN & NOW

In the color photo, Hungarian national player Anna Csiki (on the right) battles for the ball against her Spanish peer Esther Gonzalez on September 21, during the Hungary-Spain qualifying match at the Új Hidegkuti Nándor Stadion (the MTK stadium) in Budapest. The game was a qualifier for the Women’s World Cup in 2023; Spain won 7:0. In the black and white photo from the Fortepan public archive, the Monor and Maglód women’s teams play a celebration match in 1971 marking the 70th anniversary of the foundation of Monor SE.

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Budapest Business Journal | September 24 – October 7, 2021

News///macroscope

Inflation Risks Remain, Tightening Slows Down

The rate hikes introduced by the Monetary Council of the National Bank of Hungary (MNB) in the summer continued, but surprisingly, the central bank decided on September 21 to tighten by only 15 basis points.

Immediately after the announcement, the forint started to weaken, as the market consensus had been for a rise of 25 basis points.

ZSÓFIA CZIFRA

At its latest rate-setting meeting, the Monetary Council decided to raise the base rate and the interest rate corridor by 15 basis points, further reduce the weekly rate of government securities purchases, and remove the forint liquidity swap facility.

The base rate thus rose to 1.65%, the overnight central bank deposit rate to 0.7%, and the overnight secured loan and one-week secured loan interest rate to 2.6%.

Inflation will remain persistently high, above 5%, and will not return to the range defined by the MNB until next year, said Barnabás Virág, deputy governor of the central bank, at a press conference held after the Monetary Council meeting.

The deputy governor said that MNB would continue the cycle of raising interest rates until inflation

Development of Central Bank Base Rate in Hungary

(March 23, 2004-September 21, 2021)

is sustainably close to the 3% target, possibly by the second half of next year. Previously, the MNB expected inflation to return to the target range by mid-2022; inflation risks are still on the upside.

decrease again, this time from HUF 50 billion to HUF 40 bln.

The council will make decisions on further purchases in December.

Economic Recovery

An important message to the market is that there will be further monthly tightening, based on which we expect an interest rate hike of 15 basis points in the coming months as well.

This could help stabilize the forint exchange rate and reassure the market.

In the meantime, the recovery of the Hungarian economy continues at pace, with gross domestic product having reached its pre-pandemic level. This year’s GDP growth is predicted at 6.5%, and economists say a growth rate of between 5-6% could be realistic in 2022.

However, inflation jumped during the summer, with the current outlook expected to rise again, to more than 5%, and another inflation peak is likely to take place before the end of the year, at around 5.5- to 6%.

Core inflation is also rising: it could be as high as 4% in the coming months. The restart of the economy brought a sudden rise in prices in the service sector. For industrial goods, rising production costs are placing upward pressure on prices, analysts say.

Monetary tightening will continue in the near future. Based on this most recent decision by the Monetary Council, both the base rate and the interest rate corridor will increase in 15 basis point steps, and according to Barnabás Virág, this will continue to prevail in the coming months.

In addition to the interest rate increase, the central bank made two other important announcements.

The swap facility providing forint liquidity will be phased out, and the monthly purchases in the government securities purchase program will

More to Come

The last paragraph of the central bank’s announcement after the ratesetting meeting states that the interest rate hike cycle could continue in smaller increments. That could mean that the base rate would be 2.1% by the end of the year, Equilor’s analysts commented on the decision. According to them, annual average inflation is expected to reach 4.3% this year and fall to 3.3% next year.

Also commenting on the decision, Gábor Regős, head of macroeconomic business at research institute Századvég Zrt, said the central bank’s move was ambivalent: while the rate hike was smaller than many had predicted, the phasing out of the swap facility providing forint liquidity was unexpected.

Overall, the market’s immediate reaction to the decision saw a weakening forint, which is explained by the smaller interest rate hike, as the other two tightening steps were not yet known at that time.

An important message to the market is that there will be further monthly tightening, based on which we expect an interest rate hike of 15 basis points in the coming months as well, Regős said. This could help stabilize the forint exchange rate and reassure the market, he added.

According to Gergely Suppan, senior analyst at Takarékbank, inflation could fall rapidly at the beginning of next year due to base effects. However, a likely significant increase in the minimum wage, the refund of personal income tax, the six-month bonus for law enforcement workers, the pension premium to be paid this year, and the 13th-month pension, will collectively increase household income by about HUF 1 trillion-1.1 tln.

That may give a significant boost to consumption and economic growth, but also inflation, the analyst cautioned.

Numbers to Watch in the Coming Weeks Labor market statistics for August will be released on September 28. The Central Statistical Office (KSH) will publish the general government sector balance, referring to the second quarter of 2021, on October 1. Industry and retail trade figures for August will be out on October 6.

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

the WELL Health & Safety Rating.

In Hungary, the team has designed H2Offices to meet the same criteria.

Waberer’s Announces CEO, Management Structure Changes

Editor-in-chief Named at Betone Studio

Logistics company Waberer’s International has announced the appointment of Zsolt Barna as chief executive officer, effective from September 1, taking the reins from Barna Erdélyi, who was elected to the board of directors. Erdélyi’s main task will be to ensure the firm’s continuous expansion and nursing its customer relations.

Prior to his recent appointment, Barna gathered experience as the managing director of WSZL, Waberer’s Regional Contract Logistics company (also known as Waberer’s-Szemerey Logistics Ltd.).

Zsolt Barna Waberer’s says that the recent management structure changes aim to support the firm in becoming not only one of Europe’s leading transportation companies and Hungary’s marketleading logistics company but the dominant logistics service provider in the whole region.

Skanska Commercial Development: EVP of Operations Hungary, Romania Aurelia Luca became the executive vice president of operations in Hungary and Romania for Skanska’s commercial development business unit.

Aurelia Luca She joined Skanska in 2012 as a leasing manager. The expert has been responsible for the Romanian operations since 2018 and is a member of the senior leadership team in Central and Eastern Europe. In early 2021, she took over the Hungarian operations, becoming EVP operations Hungary and Romania, and is now responsible for Skanska’s commercial development business unit in Bucharest and Budapest.

“I am honored to join such a great team as Skanska Hungary and am keen on supporting my colleagues in developing amazing projects, always having at our heart the care for people and strong business principles. I see great opportunities and synergies between the two countries that I am leading, and there is a lot of inspiration, best practices, and good energy to be shared,” commented Luca.

The company’s Hungarian team has built nine office projects totaling 230,000 sqm in Hungary so far. Despite the pandemic, Skanska delivered the Nordic Light Trio building in Budapest, Skanska’s first WELL-certified building in Hungary. Skanska has also started developing the first phase of its latest office complex, H2Offices in the Váci Corridor. The project will offer about 67,000 sqm of office space with much greenery and many smart solutions.

Under Luca’s leadership, Campus 6.2 and Equilibrium 1 became the first office buildings in Romania to obtain

Podcast production company Betone Studio announced the appointment of Anita Neizer as editor-in-chief; she will take over the leadership of the company’s team this month.

Neizer is not entirely new to podcasts, having already contributed her advice and ideas to Betone Studio, as well as editing the business show “Re-Business” and the management show “Epic Stories.”

Previously, she was deputy editor-inchief of Hírszerző, then editor-in-chief of HVG Online, and later head of content development at PPH Media. For the last two years, she has worked as a freelance editor and communications consultant.

The company will focus more on audio production and the development of premium formats, standalone and brandcast, but will also develop many innovative projects, the company says.

Anita Neizer “I’m very excited about my new role as editor-in-chief, but I’m also nervous because I’ve lived off letters all my life.

I think the podcast format is the future because people have less time but want to spend it doing something interesting.

For example, I think that sports and podcasts go hand in hand because while you’re doing sports, you’re not wasting time; you’re listening to interesting people talking or learning about science,” said Neizer.

She has promised to come up with experiments and innovations such as a storytelling podcast, which is already popular on the international market, and documentary narration.

Martina Cifer Joins Avison Young Hungary

Martina Cifer Brokerage firm Avison Young announced a key change to its directors’ team in Budapest with the arrival of Martina Cifer at the helm of its office leasing department. In her new capacity, she will oversee both the company’s landlord and tenant representation divisions.

“We are very excited Martina will be joining us to head our office leasing team. She is a veteran of the Budapest market who brings with her many years of industry experience and extensive relationships with both occupiers and landlords. Martina will prove to be an invaluable contributor to our organization,” stated Jake Lodge, principal.

Cifer arrives at Avison Young after 14 years in the real estate industry, having gained significant experience at leading advisory firms, most recently within the office leasing department of Knight Frank.

“I’m excited for this opportunity at Avison Young, where the potential to expand my career and actively contribute towards the growth of a key business division is invigorating,” explains Cifer.

“Being involved in both the strategizing and execution of the ambitious growth plans of such an entrepreneurial company is a challenge that I relish.”

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Emergency Powers Extended, but Vaccines for Sale Coronavirus ///roundup The Hungarian government submitted a proposal to Parliament on September 14 to extend the effect of its emergency powers to protect the country against the coronavirus pandemic until January 1, 2022, according to the website of the Government Information Center.

NICHOLAS PONGRATZ

The government argues the extension is necessary because the pandemic is still present, and the number of infections is increasing in Hungary and across Europe due to the spread of the delta variant of the virus.

Although the number of vaccinated persons stood in Hungary as of September 22 at 5.8 million, in a country of 9.7 million, the government continues to encourage those not vaccinated to inoculate themselves against the coronavirus with any available vaccine.

Similarly, the Hungarian Rectors’ Conference (MRK) recently asked university students, lecturers, researchers, and staff to apply for vaccination against the coronavirus if they had not done so already, according to hrportal.hu.

MRK said that students and those in their age group are typically the most mobile and frequently experience personal contact. By increasing the vaccination rate among students, they can attend classes physically and minimize the spread of the virus in their familiar network.

Jabs for Under 12s

In terms of further vaccine development, Gergely Gulyás, the head of the Prime Minister’s Office, announced that Hungary would be joining the European Union’s procurement scheme for Pfizer vaccines for children under the age of 12 on September 15.

While coronavirus-related cases are increasing, the growth in infection numbers is not expected to be followed by a similar increase in hospital admissions and deaths, thanks to the high vaccination rate, Gulyás said.

and Vietnam, Minister of Foreign Affairs and Trade Péter Szijjártó said at the 76th session of the UN General Assembly in New York on September 21.

Both countries approached the government to enquire about buying the vaccine, and each will receive 400,000, Szijjártó said. He added that Hungary has “several million” COVID jabs in storage and can offer assistance to others.

Meanwhile, Hungary has signed a Minister of Foreign Affairs and Trade memorandum of understanding on the Péter Szijjártó (at right) in the UN local production of the COVID vaccine building on September 21. developed by China’s Sinopharm, State At the 76th session of the UN General Secretary Tamás Menczer said in a post Assembly in New York, the foreign on Facebook on September 19. minister said Hungary would sell According to the MoU, signed by 800,000 does of AstraZeneca vaccine Sinopharm-CNBG VP Jiang Xiuchang to Thailand and Vietnam. Photo from and the CEO of Sinopharm-CNBG’s Péter Szijjártó’s Facebook page. joint venture in the UAE Peng Xiao, the capacity and infrastructure to produce the vaccine will be set up In tallying current vaccine figures, in Hungary within 10 months, at the Gulyás said Hungary has 3.3 million latest, Menczer said. doses of Pfizer and Moderna vaccines, He added that partners in China and 1.5 million doses of the AstraZeneca jab, the UAE are continuously examining some 300,000 doses of Jansen, 77,000 new mutations of the coronavirus in doses of Sputnik V, and 2.6 million working to develop the most effective Sinopharm vaccines. vaccines, which could give Hungary Indeed, Hungary is so abundant with the chance to get the latest information vaccines that it is able to sell 800,000 on new variants and adjust local doses of the AstraZeneca to Thailand production rapidly and efficiently.

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If you are a UK National living in Hungary before 1 January 2021, the UK-EU Withdrawal Agreement protects your rights. This means that you need to apply for a new National Permanent Residence Permit in Hungary by the end of 2021 even if you already have a pre-transition period EU residency document. All UK nationals and their family members who want to continue living in Hungary must apply before 31 December 2021. Documents issued under EU rules will lose their validity after 1 January 2022. You can find further information on the scheme at the website of the Hungarian immigration authority: http://www.bmbah.hu/index.php?option=com_k2&view=item&layout=item&id=1314&Itemid=1853&lang=en.

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News///in brief Automotive Sector Output Down 6.7%

Minimum Wage Consultations Begin

The output of Hungary’s automotive sector, which accounts for the most significant share of manufacturing in the country, was down 6.7% year-on-year in July, mainly because of factory shutdowns and a change to single work shifts, according to a detailed reading of data released by the Central Statistical Office (KSH) on September 14.

Output in the automotive sector, which accounted for 23% of total manufacturing output in July, was down following a 13.6% increase in June. The output of the computer, electronics, and optical equipment segment, accounting for 10% of manufacturing, fell 4% in July. Production of the food, drinks, and tobacco segment, which made up 12% of manufacturing sector output, increased 2.6%. The production of electrical equipment manufacturing, which has a moderate contribution to manufacturing, jumped 58%.

In contrast, the output of rubber, plastics, and non-metallic mineral products climbed 15.1%, and the output of basic metals and fabricated metal products rose 19.3%. KSH confirmed that headline industrial output rose 8% year-on-year in July.

Consultations have started on next year’s minimum wage and the minimum wage for skilled laborers at the VKF, a forum of employers, unions, and the government, State Secretary for Employment Policy Sándor Bodó of the Ministry for Innovation and Technology (ITM) said on September 14, writes napi.hu (Daily). Bodó said the government plans to increase the minimum wage to HUF 200,000, in line with the opinion of the Hungarian people expressed in the latest National Consultation. In addition to delegates of employer and employee organizations, László Parragh, head of the Hungarian Chamber of Commerce and Industry, also participated. The consultations will continue within a few weeks, the ITM said.

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Nagy: ‘We Must Continue to Stimulate the Economy’ Hungary must continue to stimulate the economy, and ensure that the economic recovery after the restart does not suffocate, Márton Nagy, the Prime Minister’s chief economic adviser, warned on the Inforádió

Gov’t Taking Over Suburban Railway-Metro Link The central government is taking over the project to link the terminus of the capital’s number 2 metro line and the HÉV suburban rail line running towards Gödöllő, Dávid Vitézy, who heads the Budapest Development Center (BFK), said on September 17, according to hvg.hu.

The previously abandoned preparation process was taken over from the capital’s municipal council and the Budapest Public Transport Center (BKK). The contract for the transfer of the design contracts and the permits was signed with Katalin Walter, CEO of BKK. The parties also agreed on further cooperation and

the use of previously prepared design documentation. The next step is to work with the capital, BKK, and Districts X, XIV, and XVI on the detailed technical content of the investment, Vitézy said.

The project aims to create direct, fast, fixed-track access between the center of Budapest, the three outer districts, and surrounding towns. It is also necessary to prepare the related vehicle procurement tender, he added. The central government has previously allocated HUF 4.6 billion of EU funding to BFK and the MÁV-HÉV consortium. The deadline for finalizing the project plans is 2023.

Much of the current HÉV running stock is old.

Photo by Nikoletta Lia Muhari / Shutterstock.com

“Arena” program. According to the former deputy governor of the National Bank of Hungary, the recovery could stall without fiscal stimulus. He sees the structure of the Hungarian economy expanding at a reasonable pace in the second quarter, confirming that the rebound has taken

place. Growth is expected to be above 7% this year and around 5-6% next year. This 5% increase should be maintained in the long run, but it needs to be revitalized, he noted. He also indicated that the recovery in Europe, on the other hand, was protracted, while in China, it had long since taken place.

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Futureal Celebrates Opening of Etele Plaza Futureal has opened the 55,000 sqm Etele Plaza shopping mall after several postponements of the project; the developer acquired the brownfield site at a major railway, metro, tram, and road intersection on the western edge of Budapest 15 years ago.

GARY J. MORRELL

There has not been a new shopping center development undertaken in Budapest for several years. Developers were concerned about the level of consumer spending following the financial crisis, planning regulations concerning shopping center development, and subsequently the impact of COVID and the lockdown and accelerating rise of online retail.

Retail analysts see the arrival of the first mall for several years as a welcome

freshening of the Budapest retail market and a well-located development.

“Etele Plaza is the latest generation, carefully designed shopping center that meets the current needs of shoppers and visitors. Over the last 10 years, our industry has been talking about entertainment, and the whole shopping experience has to be entertaining from the moment you start from home to the moment you arrive back,” says Tibor Tatár, CEO of Futureal.

Shopping Experience

“We did a shopper profile of, for example, a young couple with small children living in a housing block, or a wealthy Buda family with high spending power, to try to understand what is the shopping experience, what entertains them, and what draws their attention from a profile by profile perspective,” he explains.

“All these details were designed into the complex, and this includes several thousand elements from the

News | 7

tenant experience. This is from a visual and digital experience and how users approach the shopping center by public transportation or car,” Tatár says.

“By thinking from a profile by profile and entertainment by entertainment perspective, we have tried to tick as many boxes as possible, and I think that this has been slightly different to the approach of previous shopping center developers. We even sacrificed income on certain tenants as we needed their function, and they could not afford to pay such high rent,” he added.

Etele Plaza was designed by the Hungarian architects Paulinyi & Partners.

It includes around 180 retail outlets, restaurants, cafés, a multiplex cinema, a gym, and 1,300 parking spaces. The complex is Breeam “Very Good” certified; Futureal is also investigating WELL certification, although there is currently no accreditation system for shopping centers.

The development concept is of a South Buda city center with a retail and office function. The project is located at the meeting point of the Kelenföld railway station, Metro line 4, and the M1 and M7 motorway approach section and is being marketed as a brownfield regeneration project.

Tatár sees Etele Plaza as representing significant exposure in one project, even for a large-scale developer such as Futural. He estimates that it is the equivalent of six to eight office projects in terms of cost because of the size of the project. UniCredit and Erste Bank have financed the development.

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Business

Hungary 32nd in World on 2021 Digital Quality of Life Index

Hungary has ranked above the average and close to the top on the Digital Quality of Life (DQL) index compared to 109 countries internationally, but there are still areas of improvement for the country to enhance its digital well-being for both residents and businesses.

CHRISTIAN KESZTHELYI

Hungary ranks 32nd in the world on the 2021 DQL research carried out by global cybersecurity company Sharksurf.

Hungary came 22nd when compared to 38 countries in Europe. The DQL 2021 study covers 90% of the worldwide population and indexes 110 countries by looking at five fundamental pillars of digital life: internet affordability, internet quality, e-infrastructure, e-security, and e-government.

Internationally, the best criteria rankings of Hungary include its broadband speed (8th), broadband internet stability (13th), and mobile internet stability (25th).

The country’s worst criteria rankings are mobile speed growth (75th), online services index (52nd), and broadband speed growth (41st).

Hungary showed a stellar performance in many aspects. Internet quality and e-security place it among the top 30 internationally, ranking 29th and 28th respectively. Both pillars are 20% stronger than the global average.

That said, Hungary has fallen seven places back on the index overall from

The information and communications technology (ICT) infrastructure and possibilities are sufficient to nurture a healthy business environment in the country. Hungary ranks 39th out of 134 economies on the Network Readiness Index (NRI) 2020, which measures the performance of those states across 60 variables. This ranking, too, suggests a high likelihood for the country to exploit ICT opportunities.

“Those are very important for international business, which is deeply related to the ICT sector nowadays. Also, the Internet usage index is high at 0.89, which means that a reasonable amount of people in the country use the internet,” Kaziukonis tells the BBJ. “Finally, the Online Services Index (0.75) is higher than the global average (0.71). The index assesses each country’s national website in the native language, including the national portal, e-services portal, and e-participation portal, as well as the websites of the related ministries of education, labor, social services, health, finance, and environment, as applicable. This aspect is vital for foreign investors when dealing with legal issues,” Kaziukonis adds.

About the Research

Vytautas Kaziukonis 2020, although the country still comes above the global average. The greatest room for improvement comes in internet affordability, which is the main culprit behind the drop.

“Compared to last year, Hungary’s internet affordability index fell by 55%.

Hungarians have to spend almost two hours per month to afford the cheapest broadband internet package, one hour and 33 minutes more than in 2020,” Vytautas Kaziukonis, founder and CEO of Surfshark, tells the Budapest Business Journal.

Kaziukonis lists why internet affordability is an arena worth considering for improvement. Internet connection affordability has a direct impact on the accessibility of the internet. Less affordable internet, therefore, harms the overall digital well-being of a nation, which is a selfgenerating cycle, he says.

Room for Improvement

reduce corruption, and increase the transparency of the public sector. It also enhances the efficiency of public services and helps people save time, influencing the quality of their digital lives,” Kaziukonis says.

The country ranks fourth in Eastern Europe, lagging behind its Visegrád Four peers; Czech Republic, Poland, and Slovakia. Looking at the weighted Digital Quality of Life score, Poland is 25th, Czech Republic 28th, and Slovakia 29th, while Hungary comes 32nd.

Nevertheless, Hungary did manage to beats the V4 members in weighted internet quality, ranking 29th and ahead of Poland (36th), Slovakia (43rd), and the Czech Republic (53rd).

As mentioned above, where Hungary does score heavily, even in global comparison, is in broadband internet speed, which has improved by 51%, reaching 167.815 Mbps, since the beginning of the COVID-19 pandemic. Hungary’s mobile internet speed also became 25% better and now reaches 44.8 Mbps, according to Kaziukonis.

While Hungary does slightly better than the global average in all DQL pillars, placing it in the top 40 globally, there are definite areas that could be improved further.

Effective Mobilization “The country struggles with “Data shows that Hungary managed to e-government most and ranks 45th worldwide. It might be helpful to improve mobilize effectively in the face of COVID19 and was fast to prepare for remote this area because better e-government daily life,” the Surfshark CEO says. helps to minimize the bureaucracy,

The 2021 DQL ranking examined a total population of more than 6.9 billion people in terms of five core pillars and 14 underpinning indicators that provide a comprehensive measure, according to Surfshark. The global cybersecurity company registered in the British Virgin Islands and operating with a globally distributed team based in Cyprus, Germany, Lithuania (where the company’s HQ is based), the Netherlands, the Philippines, Ukraine, the United Kingdom, and the United States.

The study is based on opensource information provided

by Freedom House, the International Communications Union, the United Nations, the World Bank, and other sources.

“Digital opportunities have proved to be more important than ever during the COVID-19 crisis, stressing the importance for every country to ensure fully remote operational capacities for their economies,” Surfshark CEO Vytautas Kaziukonis says. “That is why, for the third year in a row, we continue the Digital Quality of Life research, which provides a robust global outlook into how countries excel digitally.

The index sets the basis for meaningful discussions about how digital advancement impacts a country’s prosperity and where improvements can be made,” the CEO reckons.

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Budapest Business Journal | September 24 – October 7, 2021

Delivering a Charitable, Unique Hungarian Food Portal Solution

S TA R T U P S P O T L I G H T

Since our launch, we’ve had the most detailed rating system. Customers can rate restaurants on aspects such as delivery, food quality, and value for money. These ratings make it easier for those who don’t have an established favorite but want good quality takeaway.

The Budapest Business Journal talks with Gábor Végh, owner and CEO of Hungarian food delivery portal Éhenhalok.hu, about the company’s innovations, unique ordering system, and its journey thus far.

BBJ: What do you consider to be the most important milestone in the company’s history?

BBJ: How does the company’s ordering system work?

BENCE GAÁL

BBJ: Where did the idea for Éhenhalok. hu come from?

Gábor Végh: Before we entered into one of the most important phases of our lives and launched Éhenhalok. hu, we thought a lot about business ideas where we could help others. Our dream was always to have a business where we could not only support our family but the community too. We were doing website development mainly for restaurants, and owners were often complaining about restaurant portals at the time.

They were placing orders for unrealistically high commissions, yet they had to work with them to cover their high expenditures.

The largest portal in Hungary was acquired by a foreign multinational in 2014, doubling commissions almost immediately.

That’s when we decided to try to help. We created a system that could be operated at a lower percentage.

The restaurants get a much better deal and we give part of the commission to organizations and hospitals aiming to help others.

GV: We have hundreds of restaurant partners. To see restaurants relevant to you, you need to enter your address. The system will return a list of restaurants that deliver to that address, and you can browse to your heart’s content. Once you have chosen the restaurant, you just have to add food and drinks to the basket. Browsing and ordering takes no more than a few minutes.

BBJ: How does Éhenhalok.hu try to differentiate itself from the big international companies like Bolt Food, Wolt, and Netpincér (Foodpanda)?

GV: We are the only one in Hungary to have developed a registration-free ordering system. This means that in the ordering process you only have to enter the necessary data and you can order (you don’t have to remember any passwords entered earlier, which one usually fails to remember when suddenly needed).

We also have our own unique support system. At certain intervals, we select a non-profit organization to raise funds for during the campaign period. On other portals, only the support donated by users is passed on, whereas with us, after each order, we donate a part of our

Business | 9

Gábor Végh profit to the organization and there is no extra cost to the customer. If one wishes, there is an option to donate an additional amount when paying by card, but this is by no means obligatory.

Of course, we know that this is not enough. We have introduced a lot of features over the years as a first on the market. For example, a loyalty program, which gives customers points per order.

These points can later be redeemed for discounts, coupons, and valuable gifts.

We were the first in Hungary to have a “Popular Products” category. At the top of every restaurant menu you can see what most people order. The system takes into account product ratings and frequency of orders. This has made life a lot easier for people who don’t know the restaurant and don’t know what to try.

GV: We are incredibly proud that in our first year as a sponsor (2020) we were able to provide nearly half a million forints in financial support to Szent János Hospital, Heim Pál Children’s Hospital and the Magic Lamp Foundation, making dreams come true for ill children. Of course, this is just a beginning. We would like to see this amount reach several million in a few years’ time, helping even more people in need.

BBJ: Are there any concrete expansion plans for the future?

GV: One of our latest developments towards restaurants is the Orsys system, a complex restaurant software, designed to help them in their work. It has been developed in partnership with several restaurants, tailored to their needs and available at a low price that shouldn’t be a burden for a startup, low-income business.

An improvement is also underway to make the customers’ donation “experience” even more complete. We hope that this will further increase our order numbers and, of course, the amount of money we can donate to help. We are also trying to open up in countryside towns. In Pécs, there are already more than 12 restaurants to choose from, but we also managed to attract a few restaurants in Debrecen.

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Budapest Business Journal | September 24 – October 7, 2021

Company ///news Schaeffler Inaugurates HUF 23.5 bln Plant in Szombathely

hu. The plant now employs 1,000 workers and exports its products to 50 countries. Due to start this month, the project is scheduled to be completed by the end of next year.

In addition to the capacity expansion, the investment will also involve a new R&D program. The factory plays a key role within Mars’ global production network, plant manager Gábor Szabó said. It was selected for the development from among several competing locations, which is a recognition and at the same time a confirmation that Mars has confidence in the Hungarian economy and is satisfied with the performance of the Hungarian workers, he added.

Germany automotive industry supplier Schaeffler inaugurated a HUF 23.5 billion factory completed as a greenfield investment in Szombathely (215 km southwest of Budapest) on September 17, creating 200 jobs. The project was supported with a HUF 5 bln government grant, Minister of Foreign Affairs and Trade Péter Szijjártó said at the ceremony.

The facility will make parts for electric vehicles. There is a good chance that trade turnover between Hungary and Germany will exceed EUR 60 bln this Suzuki Restarting year, the minister said, adding that Production in Esztergom 6,000 German-owned businesses Japanese automaker Suzuki is restarting employ around 300,000 people in production at its plant in Esztergom the country. Schaeffler’s Hungarian (85 km northwest of Budapest) on September unit has a headcount of about 3,000.

20 after a two-week shutdown because of supply chain interruptions, Magyar Mars Spending HUF 15 bln Suzuki told business daily Világgazdaság to Expand Pet Food Plant (Global Economy). The local unit said U.S. food company Mars will spend close to earlier production at the plant would stop HUF 15 billion to expand its pet food factory from September 6-18 because of the global in Csongrád-Bokros (120 km southeast of semiconductor shortage. A spokesperson Budapest), creating 120 jobs, the company said developments would be undertaken said on September 14, according to origo. at the plant during the downtime.

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Péter Szijjártó, Minister of Foreign Affairs and Trade, and Min Sung, President and CEO of Hanon System Hungary Kft., at the opening of its HUF 11.5 billion manufacturing facility in Pécs. Photo by Kiss Dániel / MTI

Hanon Inaugurates HUF 11.5 bln Facility South Korean-owned automotive supplier Hanon Systems Hungary inaugurated a HUF 11.5 billion manufacturing facility in Pécs (195 km southwest of Budapest) on September 16, according to autopro. hu. The company received a HUF 2.5 bln government grant for the greenfield investment, Minister of Foreign Affairs and Trade Péter Szijjártó said at the event. The development creates an opportunity for the company to raise headcount from the current 300 in Pécs, as 20,000 sqm of new production space will be added, the minister

said. Hanon Systems added in a separate statement that the new manufacturing facility increases production capacity for fluid transport products and strengthens the company’s manufacturing footprint in Europe. The facility accommodates equipment including forming, brazing, welding and bending, assembly lines, and testing for automotive air conditioning lines. The site offers the opportunity for further expansion to address future business needs. The minister noted that the company has 51 plants in 21 countries.

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Budapest Business Journal | September 24 – October 7, 2021

Beware: Era of Negative Real Interest Rates Likely Ahead With the long-term trend in interest rates down and inflation trending upward (alas, with increasing signs of not being transitory), more and more debt instruments have increasingly negative real interest rates, Les Nemethy and François Lesegretain warn.

The Corporate Finance Column

Federal Reserve’s Balance Sheet as a Percentage of Nominal GDP

36% 34% 32% Third Taper Operation Twist (QE 3)

30% 28% 26% 24%

Second Taper Operation Twist (QE 2)

22% 20%

First Taper (QE 1)

18%

December 2018 Powell says "Automatic Pilot"

16% 14% September 15, 2008 Lehman Files for Bankruptcy

12% 10%

May 2013 Bernanke's unexpected taper announcement sparks a "taper tantrum."

Fed holds off tapering for months.

8%

“Bonds are not the place to be these days [….]. Fixed-income investors worldwide, whether pension funds, insurance companies or retirees, face a bleak future,” according to Warren Buffet. Even nominal yields are increasingly negative.

The first part of this article deals with why this trend is likely to continue or even be accentuated. The second part deals with how to protect yourself in this type of environment.

So, why are negative real interest rates here to stay? In a nutshell, the debt spiral and money printing have already gone beyond control. With total global debt at more than 350% of global GDP, U.S. Government debt at more than 160% of U.S. GDP, and Japanese Government debt at more than 230% of GDP, to name a few, governments find it difficult to escape increasing deficit spending.

Despite record low-interest rates, Japan spends more than 20% of its GDP on servicing interest costs.

The chart shows a pattern of asset increases on the balance sheet of the U.S. Federal Reserve, which has purchased bonds and other assets as a way of lowering yields.

Over the past decade, there have already been four attempts to reverse the trend, each resulting in a “tantrum” (e.g., where markets crash, necessitating massively increased stimulus to resuscitate the economy).

With governments, corporations, and individuals all addicted to debt, the only real option for central banks is to let inflation run at least 3-4% higher than interest rates so that they can inflate their way out of the debt mountain. There is precedent for this: The United States pursued precisely this strategy to handle the debt amassed during World War II.

Fourth Taper announced August 2021

A History of Fed Tapers

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6% 1999

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Helicopter Money

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2005

Given that monetary policy (low-interest rates and buying bonds as controlled by central banks) is reaching its limits, governments are also getting into the act of stimulus via so-called helicopter money and deficit spending.

Governments are also guaranteeing loans given by banks, meaning that there may be a dramatic increase in bank lending, through which new money will be created.

Manufacturers are beginning to feel acute shortages of inputs, from steel to microchips. Container shipping costs are skyrocketing; labor shortages are popping up all over. The velocity of money has fallen so low over the past decade; it has nowhere to go but up, once again fueling inflation.

How can you protect yourself in this environment? The current investing environment has been called many things, from the “everything bubble” to the “Powell Put.” Inflation turns cash into trash: Pensions are likely to be ravaged by inflation. Under these circumstances, where does one park one’s wealth? This is perhaps the most pressing issue facing investors in an inflationary environment. There is a hunger for yield, which is what drives most valuations to the stratosphere.

We see three outlets for cash in this environment: 1. Physical assets, including real estate, farmland, etc.

2. Company shares.

3. Commodities, and within that, bullion.

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2009

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Notice that bonds are not on my list.

Someone who buys bonds with ultralow yields collects puny interest in exchange for taking substantial risk that higher inflation or a surge in rates could more than wipe out gains.

Knowledge and Quality

But it is important to note that there is a search for quality within each of the above three asset classes, and knowledge of each market becomes essential; it is all-too-easy to find real estate, publicly listed shares, or commodities that will perform poorly in the coming years.

But if you have the time and knowledge to search out quality shares or real estate that produces cash flow, is well managed, and is likely to produce ever-increasing cash flows, there is a good chance that value will improve with the value of inflation or at least to produce better results than holding cash.

Of course, if you believe that markets may crash in the near future, it may make sense to hold some cash to have the liquidity to take advantage of bargains.

Bullion is a bit of a different situation.

It is perhaps the only primary asset class that, in our opinion, is undervalued in this environment, possibly the only asset class which the “everything bubble” has bypassed.

That is an interesting phenomenon, given that bullion tends to perform very well in an inflationary, negative

2015

September 2019 Repo crisis ends taper and begins "Not QE" T-Bill purchases

2017

2019

2021

real interest rate environment. It makes sense to hold at least a small percentage of one’s portfolio in bullion.

• For central banks, this means an increase in the concentration of gold reserves. In 1980, banks used to hold more than 70% of their reserves in gold; by 2005, this had decreased to less than 5%. It is now on the rise again.

• For individuals and corporations, rather than having negative interest rate instruments, bullion becomes more attractive.

We live in interesting times, as the saying has it. Investment strategies that worked over the past low inflation, declining interest environment are unlikely to work in an inflationary, negative real interest rate environment.

Disclaimer: This article is not intended to advise any investment decision, and no person shall assume any liability for the information herein.

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

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Business

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

Photo courtesy of Satoshi statue team.

1st Statue to Bitcoin Creator Unveiled in Budapest What is described as the world’s first statue of Satoshi Nakamoto, the mysterious figure behind the creation of Bitcoin, has been unveiled in Graphisoft Park, Budapest.

NICHOLAS PONGRATZ

The unveiling at 6 p.m. on September 16 was preceded by a few words from András Györfi, an editor at Hungarian cryptocurrency web portal Kripto Akadémia, who had the original idea and led the project.

He spoke first about the significance of the statue being located in Graphisoft Park, which hosts several tech-inspired sculptures, including a piece by Ernő Rubik, famed for his cube, and a statue of Apple co-founder Steve Jobs.

But the park also includes memorials to other figures some would think are unrelated, although Györfi sees a relation between them all, as those who strove to improve the world through developing unconventional ideas.

“The creator of Bitcoin, Satoshi Nakamoto fits in the group of people perfectly,” he said. János Kocsány, CEO of Graphisoft Park, highlighted that this had been the largest gathering for a statue unveiling in the park’s history.

Although no one knows who Satoshi Nakamoto actually is, since that person has never revealed themselves in public, what is known is that a person using that pseudonym published a whitepaper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System” on October 31, 2008. Nakamoto proceeded to implement the bitcoin software as open-source

code in January 2009, establishing what became known as the first blockchain.

It is for the latter achievement of creating the blockchain technology, perhaps even more so than inventing the world’s most valuable cryptocurrency, that Györfi decided to create a statue of Nakamoto.

“Blockchain technology is a better solution in so many areas of life, from healthcare to logistics to the delivery of relief supplies. It's a database that offers an incomparably higher level of security and protection than ever before. It's much harder to manipulate; it is even almost impossible,” Györfi said, speaking on the merits of blockchain technology.

“Blockchain technology is a better solution in so many areas of life, from healthcare to logistics to the delivery of relief supplies.

It's a database that offers an incomparably higher level of security and protection than ever before. It's much harder to manipulate; it is even almost impossible.”

“And all this is the merit of the founder of Bitcoin. He brought a lot of value to the world, so I thought he deserved a statue.”

The Blockchain Ledger

Blockchain is the system behind Bitcoin, the world’s first and still most valuable cryptocurrency. One could think of it as a ledger distributed between computers worldwide, with each transaction secured through the cracking of a cryptographic equation, which creates a block. Subsequent transactions create new blocks, which include information about each previous block, forming an immutable chain.

Additionally, altering these records is nearly infeasible, as it would require control over a majority of a network spread out across the globe. The efficiency and security of distributed ledger technology (DLT) is what gives cryptocurrencies their appeal, and also has implications, as Györfi mentioned.

Although the fledgling asset class has amassed nearly USD 2 trillion in total market capitalization, its volatility,

complexity, and lack of any apparent inherent value keep institutional investors wary of cryptocurrencies.

Despite this, there are thriving communities devoted to them developing all over the world, including Budapest.

After being inspired to create the statue, Györfi reached out to that community to pursue the idea.

Eventually, this led him to collaborate with Imre Szilágyi, the founder of Blockchain Budapest, a leading blockchain conference in Hungary; Gabriella Debreczeni-Rasko at Mr. Coin, a market leading crypto exchange in Hungary; and Kornél Kalocsai, president of Blockchain Hungary, an association for crypto projects in Hungary.

Once the initial idea was agreed, the collaborators raised money via a crowdsourcing campaign, through which the statue was funded exclusively with Bitcoin and additional cryptocurrency Binance Coin. Through a former colleague, Györfi was connected with Hungarian sculptors Réka Gergely and Tamás Gilly, who designed the bust based on some of the team’s concepts and created it over the summer.

Although Györfi initially thought that the bust should sport a fedora with a card bearing the bitcoin logo, collaborator Debreczeni-Rasko suggested a different approach, given the subject’s mysterious, technological background. “He has to wear a hoodie,” Györfi recalled her saying.

Despite no one knowing what Nakamoto looks like, the team took this opportunity to symbolize that Nakamoto could be anyone. To reflect the anonymous nature of Bitcoin’s creator, the bronze bust features an aluminum composite on its face, giving it a mirror-sheen. By seeing their own face reflected in the statue, Györfi hopes that onlookers will be inspired by the idea that “we are all Satoshi.”

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Executives

• Provides an essential overview of Hungary’s key economic sectors. • Get an insight into the executives’ mindset regarding business in the country. • Get to know the personalities behind the business. • Read personal accounts from the country’s leading executives, including why they chose their profession, experiences of doing business in Hungary, what they enjoy about life here, and which achievements they are proudest of.

PUBLICATIONS

The “Top Executives” brand is a new suite of Budapest Business Journal publications that aim to put a human face to the facts and figures behind some of Hungary’s key business sectors.

The publication gives an economic overview of its individual sector, with each issue presents some of the country’s leading executives. As such, they are an essential aid to getting to know the personalities behind the business.

The “Top Executives” publications present a subjective listing (not a ranking) of the key players. Selection is based on the influence

we believe these executives have on the Hungarian economy. Usually, this is down to the size of their business here, but it may also be due to the international footprint of their parent company, where applicable, or their involvement in areas of business identified as a priority by Hungary, and the likelihood that they therefore have the ear of government.

The readership of “Top Executives” mirrors much of that for the BBJ, including many of the country’s leading business executives, diplomats, and decision-makers.

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Budapest Business Journal | September 24 – October 7, 2021

Special Report Green Business

Market Talk: Green Building the Only Sustainable Choice

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ESG: a Risk or an Opportunity for Big Oil?

16

Diófa Responding to ‘Strong Demand’ for ESG

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Architecture, Urban Planning Must Adapt to Sustainability Expectations

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Sustainability Coming to the Fore in Real Estate Investment

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Call for all Stakeholders to be Involved in Design From the Start

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ESG has well and truly entered the business lexicon, but is it a threat or an opportunity?

How are sustainability issues affecting the structures developers build, and are investors looking for a “green premium?”

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Special Report

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

Market Talk: Green Building the Only Sustainable Choice Sustainability or green issues are increasingly impacting building design and property management in response to tenant and staff demands, and ultimately the commercial success of a project. Further, international regulations on CO2 emission reduction and energy use must be integrated.

Access to public transport and the provision of cycle facilities and electric vehicle charging are all central priorities. A successful complex now needs to have a reciprocal benefit to its immediate environment in terms of development of the area and provision of infrastructure. With regard to an exit strategy, a project invariably needs to have third sustainability accreditation to attract investors who have a longer-term view of development. Investors are increasingly adopting ESG criteria in their investment strategies. Gary Morrell asked developers, investors, sustainability consultants, and assessors for their thoughts on the future of sustainability and green business in the real estate and property investment markets.

By acting for the city of tomorrow, Atenor is strengthening its commitment to more sustainable, dynamic, safe, united, and pleasant cities to live in, cities where the well-being of citizens is the main priority. Atenor is playing its role in reducing emissions, finding solutions to tackle climate change, reducing pollution and damage to the natural environment, and increasing the use of renewable resources. To achieve this, Atenor can draw on its expertise while investing heavily in innovation and new technologies.

One of the closest the industry has to a solution to minimize carbon emissions is to avoid over-burdening polluted areas (typically residential, office, and industrial) and relocate resource generators to places that face less of the by-products of energy generation (i.e., using district heating in office

Máté Galambos buildings, etc.) However, with emerging technologies and new sustainability practices, market players are willing to change, which gives us hope for a more carbon-neutral future.

Máté Galambos Leasing Manager Atenor Hungary

naturally coming along as time goes by.

Having sustainability accreditation is undoubtedly the investors’ expectation, but it is becoming increasingly important for tenants as well. Value-add investors are also prioritizing the incorporation of sustainability elements.

I like to think about sustainability as acting in a responsible manner to do our part to achieve a healthy future. I guess most of us would agree with the UN’s way of saying this: Sustainability means meeting our own needs without compromising the ability of future generations to meet theirs.

Norbert Szircsák According to the Cambridge Dictionary, the definition of sustainability is the quality of causing little or no damage to the environment and, therefore, the ability to continue for a long time. As we work in the real estate sector, we mostly refer to “green buildings,” which in their design, construction, and operational stages reduce or eliminate negative impacts and can have positive effects on our climate and natural environment.

Sustainability should definitely be the norm in all property sectors, and I think it already is in the commercial sector. Offices were the first, but industrial and retail are quickly catching up. Hotels, too, as many chains already have sustainability initiatives. As for the residential sector, it may take more time, but we see more interest there too. New buildings must anyway comply with strict energy efficiency measures, which is a good direction.

Norbert Szircsák Head of Green Building Agency Colliers International Hungary The importance of sustainability as an expectation will grow further. Therefore, it will incorporate more factors such as technology, material use, planning, and carbon footprint, with new aspects

Csaba Zeley Since experts say the construction and operation of buildings account for almost 40% of energy-related carbon emissions and more than one-third of energy consumption worldwide, sustainability should be the norm in all property sectors, without a doubt.

Csaba Zeley Managing director ConvergenCE It is of the utmost importance for CPI Hungary to maximize the use of renewable energy in our property portfolio, thus significantly reducing the ecological footprint of our buildings. In addition, we are pleased

to see that more of our tenants are specifically requesting that we provide them with green electricity.

Our company’s conscious building concept, which encourages tenants to act responsibly and environmentally consciously, has been taken to a new level.

CPI Hungary has switched to green energy and, therefore, from 2022, CPI Hungary will supply the electricity needed to run its property portfolio exclusively from renewable sources, taking a major step towards sustainable building operations and enabling tenants to reduce their ecological footprint significantly.

Mátyás Gereben Further, CPI Property Group has strengthened its environmental commitments in line with the objectives of sustainable development and the Paris Climate Agreement. Among other things, it will only purchase electricity from renewable sources from 2024 and aims to reduce greenhouse gas emissions by 30% by 2030. Renewable electricity will be provided through a so-called “Guarantees of Origin” (GoO) from 2022. A GoO renewable energy certificate (REC) is a tradable electronic document that certifies to the user that a certain amount of electricity comes from a renewable energy source or highefficiency co-generation.

Mátyás Gereben Country manager CPI Hungary In the case of commercial real estate, the green ratings are basically the starting point, which have existed on the Hungarian market for a relatively long time. In the case of new buildings, their acquisition is practically natural.

In terms of operation, the most significant aspects are energy efficiency and the development of mechanical systems that can minimize the greenhouse gas emissions of a given building in the long run.

Carbon-zero footprint reduction is basically both a technical and material issue; in any case, the intention is increasingly present on behalf of the owners. Most importantly, there is a significant change in attitude on

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life-cycle assessment that has become part of the sustainability evaluation is a much better way of showing how a building can contribute to a more sustainable economy.

Our professional obligation is to drive the real-estate development processes and construction activities towards a more sustainable path. Urbanization will continue, which requires strong zoning regulations that enable diversity and social inclusion, as well as bio-diversity, which are the key aspects of resilient urban development. IoT [Internet of Things] solutions will enhance the user experience of our built environment too.

Architects and interior designers are critical stakeholders of projects with their comprehensive understanding of the long-term impact of construction.

Ida Kiss Design director DVM group

We are at an inflection point right now as individuals, companies, and an industry, and we are being given an opportunity to do something different. We should be addressing not only the issue of sustainability, but all of those things that we know are not working in the office right now and are important.

for many years; our clear goal is to make our portfolio net emissions zero over the long term, and we are currently working on a detailed strategy for reaching it.

With regards to sustainability, there is a trend towards natural materials like wood, and a minimalistic clean and modern touch in retail premises. Our myhive offices in Haller Gardens are an excellent example of how office interiors will look and where the trend in the office field is going. Nowadays, offices need to be a “home away from home” experience for people to feel comfortable at work.

Therefore, we have a hotel-inspired interior design with a low welcome desk, signaling a welcoming atmosphere when entering the building.

Viktor Nagy Country manager operations Immofinanz Hungary

Third-party sustainability assessments should always be independent and transparent benchmarking tools, although these base principles are not always present in all the systems. Further, the adaptation and mitigation of climate change, which is a huge risk, is also something that should be considered if we talk about sustainability. The social element of sustainability accreditation is something that is not always included in the current tools.

H2Offices is Skanska’s latest investment in Hungary and our 10th project so far. We have implemented the newest Regina Kurucz health measurements and are also helping our tenants to provide secure office space to their workers. The The era of low ventilated, dark, low“Care for Life” office concept includes hygiene offices is over. This means recommendations and advice to assist that new offices have to be green and our tenants on new hygiene and safety wellbeing-orientated at the same measures. It discusses four main areas: time. We have to find solutions to have space planning, air quality, facility sufficient light and fresh air where management, and sanitizing plan and people work, without using more energy touch-free solutions. than necessary. In the new era of hybrid work hubs, office interiors have to be amazing, so people really want to be there. Lobbies will transform into inviting gathering spaces, and office gardens will flourish with inviting natural scenes. The much hated huge open office spaces will be divided into smaller “neighborhoods” with optical and physical shielding providing a friendlier atmosphere. Places matter for mental health, and the office of the future will provide spaces and policies to help people reduce stress and help them thrive.

Regina Kurucz Head of WELL Working Group Hungarian Green Building Aurelia Luca Council (HuGBC)

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

Roland Bogár this topic, with market participants taking ESG aspects more seriously.

This primarily requires technical implementation and investment on the part of the owners; on the other hand, by purchasing carbon dioxide quotas, they can contribute to reaching climate protection goals.

Like most organizations, Diófa Asset Management is currently working to find its place in this changing environment and to set standards for sustainable operations. The goal is simple and clear: We want to operate responsibly at the corporate level, to offer our clients sustainable investment products, which we can achieve by investing in longterm sustainable assets, either in real estate or securities.

Roland Bogár Head of Real Estate Front Office Diófa Asset Management As long as construction and a new physical footprint are generated, there is no such thing as a carbon-zero footprint.

Developments should be driven towards the re-use of our current building stock, and initiatives should encourage brownfield development primarily. Also, the construction industry must become an integral part of the circular economy.

Thus, debris from demolition can have a second life as building material.

Zsombor Barta I think sustainability will be the most important factor for all of our activities; therefore, designers, architects, builders, etc., are already – and will be even more – impacted by sustainability principles. If somebody nowadays designs a building without implementing sustainability principles, the building or project is already outdated, without any real chance for a successful future.

If our species would like to survive in a healthy environment, we need to take action now. Therefore, sustainability will be the dominant element of all of our activities.

Ida Kiss We are talking a lot about sustainability. We have had plenty of studies and discussions about its importance; now is the time Energy use obviously can be reduced, for action: there is no longer time for and we already have rather good any further discussions. practices for the extensive integration Zsombor Barta of renewable energy resources. The President harm that construction activities do to Hungarian Green Building our environment can be mitigated. The Council (HuGBC)

Of course, the real estate industry has a responsibility and can contribute to climate protection in many different ways. We have been addressing sustainability trends in our portfolio

Viktor Nagy

As a developer, we aim to reduce CO2 emissions in our developments by 75% by 2030 and achieve net-zero emissions by 2045, and we are constantly working in this direction. Concerning sustainability, we need to cross the bar compared to previous projects due to COVID and our CO2 aims.

We have achieved WELL “Platinum” precertification for H2Offices. These focus on the wellbeing of buildings’ users; in this way, the workplace is not just a place of work, and therefore there are more and enhanced requirements from employees. For example, the project includes green terraces and a large multifunctional garden, which is also accessible to the public.

Aurelia Luca Executive vice president of operations Hungary & Romania Skanska Commercial Development Business Unit

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Budapest Business Journal | September 24 – October 7, 2021

ESG: a Risk or an Opportunity for Big Oil? The increasing popularity of sustainable investing comes with a rise in greenwashing concerns.

To avoid allegations and mitigate risks, the so-called Big Oil companies must add action to the words of their environmental, social, and corporate governance (ESG) strategies. Rapid changes in the regulatory environment and investor sentiment could yet pose a threat to their business model in the mid-term. ÉVA KASZAP

“Empirical evidence shows that ’sustainable’ companies with good ESG ratings enjoy better financial performance and stability,” Gergő Wieder, a senior manager of Big 4 consultancy KPMG in Hungary, tells the Budapest Business Journal.

“According to American financial services firm Morningstar, total assets in sustainable or ESG-related funds totaled USD 0.5 trillion-0.6 tln in 20172018, grew to USD 1 tln by March 2020, and more than doubled by June 2021, reaching USD 2.3 tln,” Wieder explains.

“Green debt represents another important and growing segment of green finance products, and we expect global sustainable debt issuance to surpass USD 1 tln in 2021,” he adds.

But when it comes to transparency about climate change risks, the energy and oil industry seems divided. While some trade groups seek to downplay their industry’s impact on global warming, other Big Oil companies are willing to provide detailed information on how the energy transition and climate change affect their bottom line.

It is difficult to determine if ESG represents an opportunity or a risk for oil companies. Viktor Sverla, strategy director at energy giant MOL Group, is convinced it is very much the latter.

“Following ESG trends, or even leading the way, is inevitable for all in oil and gas to transition towards green business practices and to transform their business models completely. This is increasingly required both by the legislators and the markets,” Sverla tells the BBJ. “MOL started transitioning in 2016 when we published our long-term strategy MOL 2030: Enter Tomorrow,

which defined two main directions: consumer services and petrochemicals.

Since 2016, these have proven to be very profitable businesses; Consumer Services, for example, has recently reached its highest ever quarterly EBITDA, USD 164 million,” she notes.

Wieder agrees that many oil companies take a proactive approach to ESG and sustainability. “They invest billions into projects related to low-carbon energy, CO2 emissions reduction, electric vehicle charging, hydrogen, water management, renewables, and biofuels. In this sense, ESG is a great opportunity for them to diversify their business. The oil and gas industry has the greatest opportunity to influence future efforts regarding climate change,” he says, “However, oil companies will still generate most of their revenue from oil extraction and refining; thus, a rapid change in the regulatory environment and investor sentiment could pose a threat to their business model in the mid-term,” Wieder warns.

Greenwashing

With the rising popularity of sustainable investing, concerns around “greenwashing,” where companies convey false or misleading impressions about the environmental practices of their business, have also grown.

According to a recent study compiled

by U.K.-based wealth management service Quilter, greenwashed investments were the biggest concern for some 44% of investors regarding ESG investing. This was followed by worries about fees and costs (42%) and ESG investment performance (38%).

ESG incentives. Furthermore, different regulators or ESG rating agencies use disparate definitions for ESG, which can create further confusion in investors about what ESG entails,” he adds.

Viktor Sverla “According to KPMG’s CR Reporting survey 2020, assurance of sustainability information has now become standard practice for large- and mid-cap companies worldwide. Among the world’s 250 largest companies, the underlying trend for thirdparty assurance of sustainability data is 71%, while in the case of the national top 100 companies, it is only 51% (in Hungary, 42% of the top 100 have their sustainability report assured),” he explains.

The biggest hurdle for ESG transparency today is the lack of standardization and the one-size-fits-all perspective of regulators.

According to Wieder, the credibility of ESG incentives is highly dependent on the regulators’ need to create a framework for data quality in reporting.

The KPMG manager also draws attention to the latest report of Swiss ESG data science company RepRisk on the lobbying activity of energy companies. Although the study found that ‘E’ (environment) issues sometimes intersect with lobbying, Wieder says they do not see credible evidence for direct lobbying from energy companies. That would only create negative publicity for an already heavily scrutinized sector.

Shape the Standards

“The real danger is that energy companies will try to shape ESG standards and the metrics used to their Gergő Wieder benefit, which could prevent meaningful activity in this sphere. However, at the moment, energy companies seem to be receptive to the need for standardized “Greenwashing is a relevant issue, as ESG reporting, which is the backbone of evidenced by a recent scandal involving any further regulation,” he says. a German asset management company, Sverla insists that is a concept which is now under investigation by U.S. MOL is onboard with. “Standardized and German regulators for misleading ESG reporting requirements help us investors and misrepresenting its ESG to measure and mitigate risks and investments,” Wieder says. improve our performance. It also helps “Such cases can undermine trust in us to demonstrate our results to our ESG efforts and cause skepticism in stakeholders, showing them how we investors. Most of the issues can be are doing compared to others in the attributed to collecting low-quality data industry,” she says. or using available data to misrepresent

Communication experts stress the importance of diversification and greater transparency around emissions in the oil industry, saying that oil companies must attach actions to their ESG strategies to prevent greenwashing allegations and to humanize energy transition.

“MOL Group updated its long-term 2030 strategy at the beginning of 2021,” Sverla explains. “The renewed 2030+: Shape Tomorrow strategy was fully integrated with a new sustainability strategy (as the last one ended in 2020). MOL Group has been focusing on programs aligned with the actions planned in this strategy,” she says.

“Low carbon products and sustainable solutions became a key focus area of our corporate strategy: for example, we started to build our renewable electricity portfolio, entered plastic recycling, deployed almost 200 fast and ultra-fast electric chargers at our filling stations, launched our car-sharing service, MOL Limo, and recently started the production of biofuels in the Danube refinery,” she lists.

“Our future plans target being in line with the European Union’s Green Deal ambitions to become a net-zero CO2 emitter by 2050; by 2030, the aim is to reduce the group’s CO2 emissions by 30%. To achieve this, we plan several energy efficiency projects, to increase the share of low carbon energy in our supply and also see significant potential in Carbon Capture, Utilization, and Storage (CCUS) technologies,” Sverla says.

“Following ESG trends, or even leading the way is inevitable for all in oil and gas to transition towards green business practices and to transform their business models completely.

This is increasingly required both by the legislators and the markets.”

“We consider CCUS as an important transitionary carbon abatement solution, and our company already has significant experience in handling and injecting CO2 underground. We must also reshape our product portfolio to reach our 2050 ambition: we will need to further increase the share of petrochemical products (and reduce the share of fossil fuels at the same time) and make the fuels and energy we provide to our customers more sustainable,” she says.

“For this, we will need to adopt new technologies and integrate new activities into our operations. Therefore, we are continuously exploring new business areas in the region; we see waste management and the circular economy, for example, as one very promising business area, and we are planning to develop new waste utilization and integration as well as water preservation strategies for the group,” she concludes.

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Budapest Business Journal | September 24 – October 7, 2021

PRESENTED CONTENT

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Special Report | 17

Diófa Responding to ‘Strong Demand’ for ESG The Budapest Business Journal talks with Zsombor Incze, head of the business development department at investment fund manager Diófa Asset Management about the impact of environmental, social, and corporate governance (ESG) and the fourth COVID wave.

ROBIN MARSHALL

BBJ: ESG is developing an ever-higher profile for businesses across the board. Why does it matter for Diófa Asset Management?

Zsombor Incze: There are quite a few aspects. We have EUR 1.5 billion in assets under management. We must consider what is best for the individual and institutional investors we serve when investing their money into businesses. There is strong business demand for ESG. Last year we launched one of the first ESG funds, accredited by BAMOSZ, the Association of Hungarian Investment Fund and Asset Management Companies. The fund turned one year old on Saturday [September 11] and is leading its peer group in terms of returns. For our flagship open-ended closed real estate fund, established in 2013, ESG was less directly important back then. Still, all of our buildings in that fund have at least the minimum green accreditation, and the portfolio includes the first LEED “Platinum” [top tier] certified building in Hungary, Greenhouse in District XIII. We have just moved into this building, which is also used for trips for university students as an example of what you can do. So, overall, I would say ESG is very important. We feel responsible for the environment and the future generations, but it is also a good topic when selling the funds. There is both a “push” and a “pull” effect.

but most have stayed with us. It also helps that our buildings have gained in value, especially in the logistics sector.

Our real estate funds performed really well last year; as I said, our ESG fund is best in class. The way we look at it, if our investors are happy, then we will also be happy in terms of results.

Zsombor Incze BBJ: Does Diófa provide ESG reporting? score well environmentally. That is the ZsI: When talking about Diófa Asset “E” of ESG, where we concentrate most Management, it is important to distinguish of our attention. The social factors under between the company itself and the funds “S” include things like bike storage, we manage. We are an SME with about which many stakeholders, especially 60 employees, and we are certainly open tenants, want. This is a trend; more to those factors that give you a good ESG people travel to work by bike. The “G” score. As I said, we have moved into one for governance is more about regulated of the most sustainable buildings in the internal decision-making to make sure Budapest office scene, we do selective that, for example, if I say I invest my recycling, have digitalized most of our clients money into green assets, I will act paper based processes, we even buy accordingly, otherwise I would suffer a our honey from local producers to lower quite big reputational loss. our carbon footprint. But we have never decided to start ESG reporting. That tends BBJ: Is ESG adherence market-driven? to work for much bigger companies or ZsI: Many things you would put under at the corporate group level, where they the “social” section, like that example have more resources to deal with it. That of cycle storage, are definitely marketdoes not mean there is no internal debate driven. Tenants want it because their about corporate ESG reporting, but until employees want it. The same applies now we have preferred to just do it; now to many elements of being a “green” we might need to consider showing others building, though certainly not all of how we do it. On the other hand, since I them. If you are deciding between joined Diófa in June, the main direction investing in an older, cheaper builder of product development is aimed at ESG and renovating it or a brand new, ultrafunds. We have a good track record there expensive office block, it is a balancing and we also see a strong market demand. act where you have to use your best judgement. Ask a tenant whether they BBJ: How do you think ESG will grow want the most expensive state-of-thein significance in the coming years? art environmental option or something ZsI: Green financing is the most still green but cheaper, and they will important direction in Europe. We in probably opt for the latter. But don’t do Hungary are slightly lagging here, but the enough, and you risk losing tenants. In National Bank of Hungary has launched some cases, perhaps most, it is marketa rather promising green program. ESG driven, but others require a more is the new market standard, although comprehensive answer. it is rather underregulated. We like to regulate things in Europe, even more so BBJ: How has the 2021 business year in Eastern Europe, so we will definitely been? Do you expect to reach presee more regulation. That is probably an pandemic levels any time soon? opportunity for those who got involved ZsI: The exact numbers won’t be known early because they have had more until next year, of course, but it has been freedom in setting up. a good year for Diófa. The pandemic has ESG can be also be used as a risk hit every business to some extent, I guess, management tool against vulnerabilities and we are no different. We have had to climate change. A new build must to renegotiate some tenant agreements,

BBJ: And how do you see the market right now? Is money finding investment targets, or are we in a holding position?

ZsI: There is always room for more money in the securities market: new money coming into the funds is never a problem. Price levels are quite high, and the market seems to be expecting some pullback, but the prices keep rising, so while you have to maintain some liquidity you should also be fully invested. It is all about selecting the right assets with the right return, and our managers have a good track record in that. The ESG fund has shown it can make a nice return. The real estate funds are a little different. They always have to maintain the right liquidity profile as either buying or selling real estate takes more time than just pressing a button.

We see no problems; clients like our real estate funds because of their great riskreturn characteristics, but we still have to be careful, of course.

“We are an SME with about 60 employees, and we are certainly open to those factors that give you a good ESG score. We have moved into one of the most sustainable office buildings in Budapest, digitalized most of our paper-based processes, we even buy our honey from local producers to lower our carbon footprint.”

BBJ: Are you concerned about the possible effects of the fourth wave on business?

ZsI: To be honest, in the real estate market, the pandemic is already priced in. Everyone has a more favorable view of logistics now compared to, for example, shopping malls, but that will not change in the short term if we have a fourth wave, or a fifth, and so on. Real estate funds attract long-term investors with a long-term mindset and what was to be learnt from the pandemic has already learned. The securities markets, however, always react faster. There it is more the mood of the traders that determines the current pricing reaction. These decisions, though, are all balancing acts, and I think our portfolio managers are doing a great job in that respect. In these complex market scenarios, expertise matters a lot. We are prepared.

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Architecture, Urban Planning Must Adapt to Sustainability Expectations Budapest’s sustainable development encapsulates environmental issues relating to the capital as a business hub, a cultural and historical center, and a livable city that benefits inhabitants and visitors. located within urban areas and with proximity to residential areas and direct public transport, road, and These, at times conflicting, demands cycle links. take in development and redevelopment “In our view, a sustainable issues, the architectural look and feel environment can be created in of the city, public and private transport a large city as well as in rural access, and development of the areas, and it is the developers’ infrastructure in a business area. responsibility to provide spaces and These criteria encompass some of building solutions that keep their the most significant concerns of thirdusers healthy and the surrounding party sustainability accreditation nature damage-free,” says Máté organizations and determine which Galambos, leasing director at level of certification is awarded.

Atenor Hungary.

From an architectural perspective, “It is our commitment to do so by developers are considering the rationalizing the way we build our wider use of international architects projects for the cities, for people, and a alongside their Hungarian counterparts greener future,” he adds. in recognition of developing market The spread of business districts and sustainability needs. across Budapest has become “Our professional obligation is to drive increasingly diversified. New the real estate development processes office areas have emerged as and construction activities towards a developers look to source suitably more sustainable way. Urbanization will sized, well-located plots with continue, which requires strong zoning the requisite transportation links regulations that enable diversity and to provide good visibility. social inclusion as well as biodiversity, Competition for such sites is which are the key aspect for the resilient becoming more intense and urban development,” comments Ida Kiss, consequently more expensive. design director at DVM group.

Large-scale developments in The market and sustainability the historical center of Budapest expectations for office developments are far from common. The mixedare that they should be in an urban or use Szervita Square Building is a suburban area with immediate access rare new-built office, residential, to amenities and public transfer links. and retail scheme by Horizon It is therefore essential to evaluate a Development in District V. Here, project on the community level and not developments are expected to just as a stand-alone commercial project. preserve the historic fin de siècle Sustainable buildings need to respond to feel of the center. The LEED the needs of the immediate building users “Platinum” certified project has and interconnect with their environment. consequently been designed to fit At the same time, city authorities into its setting of Hungarian Art are looking to attract development that Nouveau buildings in what is improves the economic environment, a protected heritage area. provides employment opportunities, One primary concern has been and upgrades an area through preserving the city’s classic Central development or redevelopment.

European look even as it develops as a business center. Hungarian oil and gas giant MOL is developing its 120 meter-high, 28-floor MOL Campus in south Buda overlooking the Danube.

The complex, visible from Improved Design many parts of the city, is now Developers are reacting to these the tallest building in Budapest, demands by improving the reaching 165 meters at its highest architectural design of projects point. The 86,000 sqm Neo-modern GARY J. MORRELL

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Budapest Business Journal | September 24 – October 7, 2021

structure has been designed

by London-based Foster + Partners and Hungary’s Finta Studio.

The complex essentially consists of a tower and a “podium” and will house around 2,500 staff. The project has achieved BREEAM “Excellent” and LEED “Platinum,” the highest possible sustainability accreditations. The designers have emphasized open space and natural light in the complex, located in 20 hectares of green space.

Controversy

Due to the planning regulations for the center of Budapest that aim to protect the skyline and the look and feel of the city, developers have been unable to construct high-rise buildings as has been the case in, for example, Warsaw, Bratislava, and Belgrade.

Given its height, the project has not been without controversy.

“The MOL Group needed and deserved such a high-quality landmark HQ building. Therefore, I understand and see the importance of such a project,” says Zsombor Barta, president of the Hungarian Green Business MOL Campus topping out. Council (HuGBC).

Special Report | 19 “I am not against high-rise buildings, and I can see why the MOL Group and the architects have chosen such a shape for their new landmark project. However, its location and integration into the existing city structure are more questionable for me. Budapest does not traditionally have high-rise buildings or districts; it differs from, for example, Warsaw a lot,” he says.

Barta questions the tower’s location, saying it “does not necessarily integrate into the existing urban structures and shapes,” and warns it will disturb many people. “The high rise concept is for sure something new in Budapest’s architectural environment.”

Although the MOL project has set a theoretical precedent, he does not think we will see many more high-rise projects popping up. “As I understand it, the regulatory body stated that the MOL project was a one-off; no further should follow,” Barta adds.

Whether high-rise or low, Csaba Zeley, managing director of developer ConvergenCE, believes one old piece of wisdom will remain firmly in focus.

“Location has always played a central part in property, but it will become even more important. Easily accessible office buildings with good public transportation will keep or increase their value regardless of the market cycle,” he concludes.

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Sustainability Coming to the Fore in Real Estate Investment

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Budapest Business Journal | September 24 – October 7, 2021

sustainability certified. I think we are at the beginning of a process whereby societal issues and regulations are a part of the influence on financers and investors along with market forces, but this process may accelerate quicker than one would expect,” he says.

The question remains whether sustainability accreditation is a prerequisite for investors in making an acquisition or those investment-grade assets are usually accredited in any case, and therefore it is an academic argument.

“I would say the latter is definitely true, at least in the case of offices. Overall, a sustainability certificate is rarely a decision-making factor yet, but there are ESG funds and investors buying from green bonds where it is a must,” comments Norbert Szircsák, head of green building agency at Colliers International Hungary.

“I think value-add investing is already a sustainable thing; they usually refurbish and reposition buildings, which is way more sustainable than building one from the ground. As they also want to create marketable Ericsson headquarters by Wing, purchased by GTC. products, that requires the incorporation of sustainability and third-party verification,” Szircsák adds. of a healthy and well-being working the market: ESG considerations are It would seem that sustainability is a environment,” says the U.K.-based Royal becoming increasingly important for central element and arguably a necessity Institution of Chartered Surveyors (RICS). investors, which leads us to believe throughout the development process, from “Guiding market decisions towards that in a few years, sustainability planning, permitting, and financing to sustainability and climate-friendly accreditations will become a ‘must’ rather construction, leasing, and the exit strategy. solutions will generate financial and than a ‘nice to have,’” Galambos adds. economic payoffs for investors in the Atenor has a policy of developing medium to long term,” the society adds. phased office projects and selling to an GARY J. MORRELL investor after completion. The BREEAM “Furthermore, a more Prerequisite “Excellent“ accredited Váci Greens complex assessment Commercially successful investment Máté Galambos, leasing director at Building D, for example, has been criterion is emerging on the standard buildings invariably have Atenor Hungary, believes sustainability acquired by GTC. sustainability accreditation due to accreditation is becoming a prerequisite The OTP Prime Real Estate Investment market: ESG considerations market pressure from tenants and the for investors.

Fund has bought the phased Corvin are becoming increasingly increasingly stringent international “Grade ‘A’ stock is more sought after Technolgy Park – the first WELL environmental regulations. than lower grade buildings, and Grade accredited office building in Budapest, important for investors, Further, investors need to look to a ‘A’ quality cannot be achieved presently designed by the 3h architects studio – which leads us to believe longer-term rise in the value of an asset without sustainability considerations,” from Futureal for a reported EUR 100 and the prospect of new national and Galambos says. million. Futureal says it is committed to that in a few years, international sustainability regulations “Developers have been building developing WELL accreditation in all of sustainability accreditations in the near future for a project to be environmentally conscious buildings its office developments. viable in the long run. with various certifications for years In a recent deal, GTC invested EUR will become a ‘must’ rather Sustainable investments could be now. Value-add investors that seek 160 million -170 mln in acquiring than a ‘nice to have.’” defined as the practice of making capital lower class assets tend to opt for ‘in use’ the LEED “Gold” accredited 20,000 allocations based on socially responsible sustainability certifications as well, to be sqm Ericsson Headquarters and LEED ethical strategies. able to achieve a higher return on their “Gold” 21,500 sqm Siemens Evosoft “Key areas of focus are the reduction investments,” he explains.

Headquarters in South Buda from Wing.

With sustainability benchmarking of energy consumption, the protection of “Furthermore, a more complex Both buildings are highly specified and accountability, it would be difficult natural resources, as well as the provision assessment criterion is emerging on built-to-suit headquarters and R&D for building owners to be accused of centers in green locations overlooking “greenwashing” (providing misleading the Danube, leased on long-term information about how a company’s contracts, so detailed consultations products are verified) as it is relatively between the tenants, developers, and straightforward to verify the claims designers were undertaken from the made by a building owner or developer. planning stage.

“International green building assessment systems provide a good High Priority basis for a comparable and consistent Asked to what extent sustainability issues stock in a real-estate portfolio across influence investment and financing countries,” notes Ida Kiss, design decisions, Péter Számely, executive director at DVM group. director of real estate finance at Hypo “Corporations with a global presence Noe Landesbank, argues that there is no are also seeking this assurance as straightforward answer to this question. potential tenants, so these are the Still, sustainability is becoming more aspects behind the tendency of important and comes high in the priority green ratings becoming a minimum cost of both financers and investors. requirement for developers. ESG “There seems to be added value reporting obligations of businesses and if a property is officially declared the EU taxonomy will further drive the green or sustainable. Further, there spread of ratings and will increase the Váci Greens, the final phase sold by Atenor to GTC. may be a discount if a building is not benchmarks higher,” she concludes.

As the concept of ESG (environmental, social, and governance) investing becomes a practice increasingly utilized by investors, the extent to which sustainability accreditation is a priority when making an acquisition or concluding other property-related decisions is open to debate.

SUSTAINABILITY CONSULTANCY LEED, BREEAM and WELL assessment Sustainability strategies Energy efficiency studies General sustainability consultancy World Green Building Council affiliation HuGBC board membership

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Our main profile is BREEAM, LEED and WELL assessment of buildings and interiors.

Developing dynamic building energy simulations, conducting energy efficiency studies, life-cycle assessments and preparing research-based sustainability strategies on building and urban scales are also part of the services delivered by our internationally trained, licensed in-house assessors.

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Call for all Stakeholders to be Involved in Design From the Start Office interiors have become integrated into the concept, design, leasing strategy, and project and facility management of office projects. This is in reaction to tenant and staff demands, increasingly stringent environmental regulations, and health and safety issues related to COVID.

GARY J. MORRELL

Indeed, as developers strive to deliver ever more highly specified and sustainable office complexes, interior and exterior design have essentially become part of the same process.

Accreditation from an independent, third-party sustainability organization

ai163212662810_We care about you image_fekvŒ_BBJ_252x158.pdf

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Many projects choose the WELL Certification as a second commitment next to either BREEAM or LEED. There are already 28 projects registered for WELL in Hungary, according to Regina Kurucz, head of the WELL working group at the Hungarian Green Building Council (HuGBC).

“Sustainability is expected to play a more dominant role also in the interior sector: A healthier environment, more plants and more green, re-used, and upcycled materials and a human focus,” says Zsombor Barta, president of HuGBC. “All of the internationally wellestablished green building certification schemes have incorporated holistic ideas of sustainability; therefore, they are a great tool to follow. Further, all of these schemes already have a “Health and Wellbeing” section included within their requirements,” he points out.

“All of the scheme operators quickly reacted to the pandemic situation and H2Offices by Skanska. highlighted their health and safety requirements. As the WELL system is the one that is providing a framework such as the U.K.-based BREEAM, the especially for the interior environment, U.S.-based LEED, and increasingly this scheme has probably become the most WELL is now the norm for office market relevant requirement related to a healthy developments and increasingly in logistics. and safe internal environment,” Barta adds.

All these third-party accreditation systems feature interior issues as a central component Communal Spaces and award points on this basis. In an attempt With hybrid office use, emphasis is placed by developers to achieve market leadership, on communal areas, collaborative spaces, and meeting rooms. All these processes double certifications are becoming have changed the look and style of offices. increasingly common in Hungary.

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COUNTRY

BREEAM

WELL (Certified)

WELL (Pre-certified)

60

3

0

LEED

Czech

429

Hungary

189

65

1

8

Romania

324

69

0

3

1,168

223

6

8

103

23

2

1

Poland Slovakia

Source: HuGBC

“The trend had already started before the pandemic to develop or restyle the office to create more interactive and flexible places, where creative ideas can be grown, human interactions are possible, and diverse working places are integrated,” Barta explains.

“This trend is becoming even more important for the future. Also, the time has passed for over-crowded and fully packed offices places, mainly because of hygiene and pandemic issues,” he says.

Skanska has undertaken the development of the first phase of the 67,000 sqm H2Offices on the site of the former Budapest Waterworks, with the architectural design concept created by Arrow Architects of Denmark.

According to Skanska the new building complex will focus on the needs of users.

The developers aim to obtain LEED and WELL “Platinum” certifications and a WELL Health & Safety Rating with a wide range of amenities and recreational opportunities for staff, such as a rooftop running track.

“We adapted very quickly to the new regulations and implemented the newest health measurements; we are also helping our tenants to be able to provide secure office space to their workers,” comments Aurelia Luca, executive vice president of operations for Hungary and Romania at Skanska’s commercial development business unit.

“We’ve seen that the WELL Health & Safety certifications that nine of our projects have already received have been very successful and the feedback very positive because people feel safer in the environment that we created,” she adds.

Catering Options

The complex will include a 1,200 sqm Kantin brand restaurant in addition to a traditional Greek taverna. “The quality of offices and the wide range of services available in a building became very important tools in both recruitment and retention,” says György Losonci, retail expert at VLK Cresa, who advised Skanska on the deal with Kantin.

“A new generation of employees are consciously considering, among other factors, what kind of dining options are available in the building and the surroundings.”

Norbert Szircsák, head of green building agency at Colliers International Hungary, argues that as most developments and even some fit-out is being certified, architects and interior designers meet green building standards during their everyday work.

“What is still missing, I believe, is the early involvement of every stakeholder during the design process. Especially those who will operate (and use if known) the building or space, as sustainable operation is only possible in a building designed accordingly. The more the architect and interior designers know about sustainability and green building certifications, the better,” he concludes.

Architecture and interior design can greatly contribute to energy efficiency and thoughtful use of resources, but also ongoing energy management to reduce consumption and emissions, argues Viktor Nagy, county manager of operations at Immofinanz Hungary. He says, “myhive Haller Gardens office in Budapest will be completely renovated soon, not only the interiors but also the facade and the exterior gardens. In addition to the high-level ergonomic solutions, we are maximizing natural light.”

Industrial developers and park operators are now developing sustainability accredited and more highly specified projects in reaction to changing tenant demands.

As with the office sector, developers are under commercial pressure to recognize the importance of staff wellbeing, , observe coronavirus precautions, and reduce the carbon footprint of their projects. For example, Prologis has five BREEAM accredited buildings in Hungary, while the CTP portfolio has received BREEAM “In-Use” certification.

myhive space by Immofinanz.

INSIDE VIEW

Energy Efficiency: End-users, Energy Traders and Other Stakeholders Should be Prepared László Kenyeres

Ádám Lukonits

Partner

Associate

WOLF THEISS BUDAPEST

WOLF THEISS BUDAPEST

Beginning this year, a so-called energy efficiency obligation system (EKR) was introduced in Hungary. It provides excellent opportunities for customers, energy traders, and other stakeholders. However, they should also be aware of some pitfalls that could impact their capacities, plans, and relations with each other.

The EKR system aims to unfold Directive 2012/27/EU on energy efficiency (EED), part of the EU’s Clean Energy Package.

The EKR’s core idea is to achieve a certain increase in energy efficiency by natural gas and power traders, universal service providers, and fuel distributors on the side of their end-users. The amount is 0.05% (2021), 0.1% (2022), 0.3% (2023), 0.5% (2024-2027), 0.35% (2028), 0.15% (2029) and 0.05% (2030) of the energy sold to their end-users (in other words, those who purchase energy for final consumption, and not, for example, energy conversion) in the second year before the reference period, respectively.

The affected stakeholders can fulfill their obligations through different ways: (i) they can implement energy efficiency investments at the level of the end-users (e.g., lightning modernization, thermal insulation, modernization of heating systems, the use of renewable energy sources, installation of solar panels, or carsharing services); (ii) they can decide not to make any investments but to pay a contribution of HUF 50,000/GJ of the energy sold to their end-users; or (iii) they can buy already implemented investments (white certificates) on the secondary market.

For a while it has been clear that the system will pose significant obligations and onerous sanctions on the affected companies. Calculations predicted an aggregate cost of HUF 10 billion for 2021 that will rise to HUF 90 billion by 2024 for the entire market. Therefore, it is important to be familiar with the system, most importantly because it is already in force since the beginning of this year and sets target values for 2021.

The EKR impacts the client-supplier relations, their contracts, and the contract negotiations between them.

For example, it is recommended to declare in the energy supply contracts that the investments implemented by the end-user can be used by the supplier to fulfill its obligations under the system. International practices show that the investment costs, the anticipated level of efficiency, the measurement and recording of results, and the settlement between the parties should also be included in the contracts.

The stakeholders and their potential lenders, contractors, and auditors shall also anticipate complex legal structures, including, among other things, the refinement of ESCO contracts, contracts for finance, and contracts for trading with white certificates. (These will be bilateral for a while, given that the centralized market is yet to be established for these certificates.)

However, essential elements are missing from the regulation: the standard catalog of investments is yet to be adopted; the basis of calculating the specific target values for each year is vague; the HEPURA’s platform to keep track of the implemented investments has not yet been established; it is not clear how the complex and/or long-term investments can be documented, audited, and reported; the incentive schemes of the government are yet to be constructed; the detailed rules of reporting, paying, and recording the energy efficiency contribution are still not known; there is no clear concept and regulation for the secondary market of white certificates.

The legislator follows the principle of “learning by doing”; therefore, the experiences of the forthcoming months, and the involvement of up-todate legal and other professionals providing first-hand information and interpretation, will have great significance. That is especially so given that the Hungarian parliament has the amendment of the EKR system on its agenda for the fall period; the revision of the EED directive is also on the table.

www.wolftheiss.com

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

Sustainability Registered Office Buildings in CEE

Special Report | 23

24 | 3

Special Report

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

developers for delivering facilities that will provide environmentally friendly energy products into the future. Hydrogen Utopia International is actively working with the European Union to gain funding and subsidies, for the first waste-to-energy Powerhouse plant in Konin, central Poland. The plant will have the ability to receive all un-recyclable plastic from Poland and neighboring EU countries to then distribute low-cost hydrogen and electricity to power the continent.

Hungary Hungary to Offer HUF 200 bln in Grants for Solar Panel, Heating upgrades

Photo by anatoliy _gleb / Shutterstock.com

Hungary plans to a call a tender for more than HUF 200 billion (EUR 573 million) in grants to support the installation of home solar panels and energy-efficient heating systems, State Secretary Attila Steiner, responsible for developing the circular economy and for energy and climate policy, said on August 30. The grants target some 35,000 households, mostly with below-average income, Steiner told state news agency MTI. He added that HUF 158.8 bln of the funding would come from Hungary’s Recovery and Resilience Facility (RRF) plan and HUF 42.9 bln from the central budget. The grants are expected to add 175 MW (megawatt) to Hungary’s solar panel capacity and boost households’ solar capacity by one-quarter, reducing emissions by 50,000 tonnes. The tender will be open to households with combined annual net income per capita of HUF 4.85 mln (EUR 13,885), about level with the annual net income per

capita of a three-member household in 2019. Applicants may apply for up to HUF 2.8 mln to install just solar panels, HUF 9.3 mln to install solar panels and a heating system, and HUF 11.6 mln to add solar panels and a heating system that uses a heat pump.

Powerhouse Energy Signs Sustainable Hydrogen Deal Covering Hungary, Greece, Poland U.K. technology company Powerhouse Energy Group Plc, has announced that it has signed a binding exclusivity agreement for its sustainable hydrogen energy technology in Hungary, Greece, and Poland. Powerhouse has signed an agreement with Hydrogen Utopia International Plc, giving the latter an exclusive non-transferable license for its technology application in the three countries. Powerhouse uses nonrecyclable waste that would otherwise end up in landfills and converts it into sustainable hydrogen fuel, primarily intended for transport fuel, according to energy portal Hydrogen Fuel News. Powerhouse intends to license

Pécs Brewery Installs HUF 100 mln Solar Park Pécsi Sörfőzde (Pécs Brewery) has installed a HUF 100 million (EUR 285,000) solar park with the help of a HUF 54 mln government grant, Minister of Finance Mihály Varga said on September 16, state news agency MTI reports. The facility will reduce the company’s electricity costs by 20%. The beer maker is of the four big breweries in Hungary. As the name suggests, it is located in Pécs (238 km southwest of Budapest), the capital of Baranya County.

Region Czech Nuclear Tender Could be Launched by Yearend A tender for a new bloc at state-owned utility ČEZ’s Dukovany nuclear power plant could be launched by the end of this year, Czech Industry Minister Karel Havlíček said on August 22. ČEZ should be able to launch the tender, the Czech Republic’s largest single investment estimated to be worth at least EUR 6

billion (USD 7 bln), once bidders have responded to a security questionnaire.

Havlíček said on a Czech Television talk-show, “I can imagine (the tender being launched in December), maybe already in November, if the responses come sooner, because all signaled they have no problem with the questionnaire,” the international newswire Reuters reported. U.S.-based Westinghouse, France’s EDF, and South Korea’s KHNP are seen as potential bidders to expand the nuclear plant after companies from China and Russia were excluded. Czech authorities excluded China from the tender in January and dropped Russia in April amid a security row with Moscow over a deadly blast at an arms depot.

Poland’s Solar Capacity Doubles in 1 Year Poland’s installed solar generation capacity doubled year on year to reach 5.5 GW (gigawatt) at the end of July, but its strong growth has raised challenges for the stability of the Polish power system, which continues to depend on less flexible coal and lignite-fired plants, Argusmedia. com reports. Solar capacity rose by 300 MW (megawatt) in July and is set to reach 6 GW by the end of this year, according to Polish grid operator PSE. The strong growth was fueled by household solar installations, which account for about 80% of total solar capacity, although the development of large-scale commercial solar farms has also gathered pace.

Installed solar capacity has already exceeded the target of 5.1 GW for 2025 set out in Poland’s energy policy, which was adopted earlier this year. PSE now estimates that in 2025, Poland will have at least 10 GW and potentially as much as 15 GW of solar installed capacity.

E.ON Hungária Sets up Battery Energy Storage System E.ON Hungária, the local unit of Germany’s E.ON, has installed a battery energy storage system that can store solar power in Zánka, on the northern shore of Lake Balaton, in centralwest Hungary, chairman-CEO Attila Kiss said on September 1.

The solar battery in Zánka has capacity of 1,200 KWh (kilowatthour) and can turn out 500 KW, Kiss said. E.ON Hungária has also set up a battery energy storage system in Dúzs, southwest Hungary. The combined cost of the two facilities, at HUF 1.3 billion (USD 4.42 million), is part of E.ON’s HUF 3.8 billion IElectrix program, which, it says, is laying a foundation for a pan-European market for mobile battery energy storage systems.

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

Romania’s Hidroelectrica to Build 45 MWp Solar Plant Romanian hydropower producer Hidroelectrica plans to build a 45-MWp (megawatt-peak) solar plant in the eastern county of Brăila (216 km northeast of Bucharest), and install 20 photovoltaic (PV) panels on the roofs of 20 of its hydropower plants (HPP), news portal SeeNews reported, citing data published in Romania’s electronic system for public procurement, SEAP. Hidroelectrica is inviting companies to submit offers for feasibility studies for the two projects, two tender notices published on SEAP showed. The feasibility study contract is worth RON 356,700 (EUR 72,085) and the deadline for submitting offers is October 21. The PV plant, which is estimated to generate 56 GWh (gigawatt-hour) annually, will be located on a 55 hectares land plot in Tudor Vladimirescu commune.

Green Technology First Invests EUR 12 mln in 4 Biogas Power Plants in Serbia Green Technology First plans to build four biogas power plants in Šabac, in western Serbia, with a capacity of 1 MW (megawatts) each, reported news portal eKapija.com. To total cost will be EUR 12 million, Miloš Srećković, director of

Green Technology First, told the news portal. The new power plants will use agrobiomass as the basic raw material for energy production, which the company will buy from agricultural producers, meaning that a huge amount of unnecessary waste finds its new purpose.

Poland Signs Offshore Wind Sector Deal The Polish government has signed an offshore wind sector deal for the country, vowing to maximize local content in the nascent industry, according to an article

by Windpowermonthly.com. Government ministers, industry representatives from the Polish Wind Energy Association (PSEW), the Polish Society of Maritime Wind Energy, project developers, and supply-chain companies signed the agreement. Similar to a pact in place in the United Kingdom, it will create a permanent platform for cooperation between government and investors and operators of Polish offshore wind farms, the Climate and Environment Ministry explained. Under the terms of the agreement, the country’s climate minister will coordinate regular meetings where signatories will exchange information on the progress and experience of developing offshore wind power. Poland aims to award contracts for 10.9 GW (gigawatt) of offshore wind capacity by 2027. It has awarded contracts for just over 5.9 GW

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150 TONNA / ÉV Ennyi Óceánból gyűjtött műanyag hulladékot használ a Herman Miller az Aeron székhez

3 so far, with the first projects expected to be commissioned in the middle of this decade. Prime minister Mateusz Morawiecki said offshore wind would create tens of thousands of new jobs in Poland. It offers Poland an opportunity to rebuild its economy amid the coronavirus pandemic, according to Climate Minister Michał Kurtyka, with the agreement boosting the participation of Polish companies in the sector.

Slovenia’s DEM to Build EUR 2 mln Solar Plant Slovenian hydropower producer Dravske Elektrarne Maribor (DEM), a unit of state-owned electricity producer and trader Holding Slovenske Elektrarne (HSE), is to start building a solar power plant worth more than EUR 2 million.

Some 6,000 PV (photovoltaic) modules are to be installed for a total rated output of some 2.7 MWp (megawattpeak) and expected annual electricity production of 3,000 MWh (megawatthour), DEM said. The solar power plant will be located on the left bank of a discharge water canal at Slovenia’s largest hydropower plant, Zlatoličje, 130 km northeast of the capital, Ljubljana. The solar plant is part of a project for a power plant with total rated output of some 30 MWp and expected annual electricity production of 37,000 MWh that will be built at Zlatoličje in the next few years, SeeNews says.

Special Report | 25 Naftogaz Ukrayiny, RWE to Explore Ukraine Hydrogen Project Naftogaz Ukrayiny and Germany’s RWE Supply & Trading are to study joint hydrogen production and storage projects in Ukraine, the companies said on August 22.

The projects could form part of Germany’s H2Global initiative to support imports of renewable hydrogen from outside the EU, according to S&P Global Platts.

Naftogaz and RWE have also agreed to focus on jointly selling hydrogen to other markets in the EU. The agreement was signed during German Chancellor Angela Merkel’s visit to Kyiv for talks over energy and security issues with Ukrainian President Volodymyr Zelensky.

“In addition, Naftogaz and RWE agreed to cooperate in exploring commercial opportunities for the sale of Ukrainian green hydrogen in European markets, focusing on the main markets of RWE,” it said. Ukraine has been exploring the use of nuclear power in electrolysis, as well as the use of its existing natural gas pipeline network for hydrogen transportation.

Energy ministry officials discussed potential hydrogen projects with Thyssenkrupp and Siemens in 2019 as part of the EU’s Hydrogen Strategy for a Climate-Neutral Europe.

26 | 3

Special Report

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

Green Office Buildings Result Of validatiOn (BReeam)

Real estate aGenCy(ies) OR aGent(s)

OWneRship (%) hunGaRian nOn-hunGaRian

Stage of green certification ClassifiCatiOn Of existinG BuildinG rating

D

BREEAM Excellent, Access4you Gold

Cushman & Wakefield, CBRE

Hungária Greens Kft. (100) –

1087 Budapest, Hungária körút 30.

(1) 785-5208 info@atenor.hu

–

Futureal (100) –

1112 Budapest, Boldizsár utca 1–3.

(1) 266-2181 info@ futurealgroup.com

–

– HB Reavis Ingatlanfejlesztési Alap (100)

1133 Budapest, Árbóc utca 1–3.

(70) 638-3500 zsolt.berenyi@ hbreavis.com

LEED Gold

D

(100) –

2051 Biatorbágy, Sasbérc út 1.

(1) 382-7560 (70) 370-6666 meszarosg@topark.hu

BREEAM Excellent

JLL, hungary@ eu.jll.com, Cushman & Wakefield, liberty@ cushwake. com

Gladiátor VII. Ingatlan Befektetési Alap (100) –

1097 Budapest, Könyves Kálmán körút 34.

(1) 451-4760 sales@wing.hu

–

BREEAM Very Good

D

– Revetas Capital (100)

1095 Budapest, Lechner Ödön fasor 10/B (1) 456-6200 leasing@trigranit.com

–

– ✓

LEED Gold

Cushman & Wakefield, CBRE

D D

1139 Budapest, Váci út 81.

(1) 412-3680 leasing@gtc.hu

–

– ✓

BREEAM Very Good

–

– CPI Property Group (100)

1138 Budapest, Dunavirág utca 2–6.

(1) 225-6600 hungary@cpipg.com

final phase

4 Max 48

addRess phOne email

planninG phase

55,000 220,000

GReen ROOf

tópaRk Be my City 4 www.topark.hu

inteRnal yaRd With paRk

5

eleCtRiC/hyBRid CaR ChaRGeRs

D

D D

GRey WateR Reuse

D

lOCal ReCyClinG

17

dayliGht and mOtiOn sensORs

58,000 126,000

natuRal ventilatiOn

aGORa Budapest 3 www.agorabudapest.com

eneRGy effiCienCy pROGRam

D D

independent pOWeR supply

D D

OWn seWaGe manaGement

8 7,300

puBliC tRanspORtatiOn

66,299 107,424

BiCyCle stORaGe

Budapest One 2 www.futurealgroup.com/hu

sOlaR COlleCtOR

9 2,600

CuRRent majOR tenants

66,946 71,860

COmpany WeBsite

GReen seRviCes

yeaR estaBlished

aveRaGe mOnthly Rent On auGust 1, 2021 (euR/sqm) aveRaGe mOnthly seRviCe ChaRGe On auG. 1, 2021 (euR/sqm)

nO. Of levels aveRaGe level size (sqm)

1

Rank

net OffiCe spaCe (sqm) tOtal GROss BuildinG aRea (sqm)

CuRRently leasaBle OffiCe spaCe (sqm) minimum lease teRms (yeaRs)

Ranked by net office space

aRéna Business Campus www.arenabusinesscampus.hu 14,524 15-16 Cargill 2020 – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ – 5 HUF 1,000 Magyarország

5

D D

–

D

–

BP; B+N; Huawei; Nowy Styl; Raiffeisen; Stada

D

D

liBeRty iROdaház 5 www.libertyirodahaz.hu

38,316 67,827

9 4,800

40,361 5

15–16 3.90

millennium GaRdens 6 www.millenniumgardens.hu

37,000 74,844

11 3,650

D

5

D D

2018

D

36,900 40,900

9 5,600

19,000 5

14.50 4

–

Finance Ministry, Honewell, Ecolab

7

CenteR pOint www.gtc.hu

GateWay OffiCe paRk www.gatewaybc.hu www.cpipgroup.hu 8

35,900 50,800

9 1,500

360 5

Capital squaRe 9 www.caimmo.com www.capitalsquare.hu

32,000 38,000

9

D

D

3

31,200 38,669

9 4,500

3,048 5

30,315 50,026

8

D

10

myhive átRium paRk www.myhive-offices.com/hu

mill paRk 11 www.millpark.hu

D

5

–

D

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

✓ ✓ ✓ –

– ✓ ✓ ✓ ✓ – ✓ ✓ ✓ ✓ –

–

13–17 2009 HUF 1,300

D D

2018

–

✓ ✓ ✓ – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ D D D

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

– ✓ ✓ ✓ ✓ ✓ – ✓ ✓ – ✓ – ✓ ✓ –

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

Samsung, Magyar Posta, Atmedia, KRKA, Mortoff, 12.50– Opten, Ranstad, 13.50 2008 Techwave, – ✓ ✓ – ✓ – ✓ ✓ ✓ – HUF 1,290 La Vida Event, Orbico, AmRest, Sonova, Prémium Pénztárak, CPI Hungary 14.50– 15.50 HUF 1,650

–

–

–

–

Albemarle, House of Business, D D D D D D D D D D D D D D D D Ferrero

D

D

– ✓ ✓ –

✓ ✓ ✓ –

– ✓ ✓ – ✓ – ✓ – ✓ –

– ✓

– ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ –

–

BREEAM Very Good

BREEAM Outstanding

BREEAM in use Excellent

BREEAM Very Good

–

Cushman & – Wakefield CA IMMO (100)

1133 Budapest, Váci út 76.

(1) 501-2800 office@caimmo.hu

JLL, Robertson

– Immofinanz AG (100)

1134 Budapest, Váci út 45.

(1) 236-0435 mail@immofinanz.com

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1095 Budapest, Soroksári út 44.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

3

www.bbj.hu

sCienCe paRk 18 www.sciencepark.hu

26,102 29,498

7 1,910

– 5

D D

19

népliGet CenteR www.nepligetcenter.com

26,000 28,800

8 900

D

5

4

D D

dOROttya udvaR 20 www.dorottya.net

25,977 29,073

4 6,250

1,475 5

12.50 4.20

váCi GReens B épület 21 www.vacigreens.hu

24,770 25,303

6

D

D

5

D D

22

24,260 25,793

8 3,500

24,260 5

City Gate 23 www.caimmo.com www.citygate.hu

24,000 26,000

8

D

–

2002

OWneRship (%) hunGaRian nOn-hunGaRian

D

Real estate aGenCy(ies) OR aGent(s)

315 3

Result Of validatiOn (BReeam)

7 4,200

Stage of green certification ClassifiCatiOn Of existinG BuildinG rating

26,300 29,000

British Telecom, Transcom

JLL, Cushman & Wakefield

– IMMOFINANZ AG (100)

1095 Budapest, Soroksári út 30–34.

(1) 236-0435 mail@immofinanz.com

– ✓

BREEAM Very Good

–

Infogroup (100) –

1115 Budapest, Bartók Béla út 105–113.

(1) 481-4530 info@infogroup.hu

BREEAM in use very good

–

– CA IMMO (100)

1117 Budapest, Budafoki út 91–93.

(1) 501-2800 office@caimmo.hu

–

LEED Gold

–

D D

1134 Budapest, Dózsa György út 61–63.

(1) 412-3680 leasing@gtc.hu

– ✓

BREEAM Very Good in Use

CBRE

– Woodpecker Acquisitions (100)

1117 Budapest, Irinyi József utca 4–20.

(1) 374-3040 office.hungary@ cbre.com 1097 Budapest, Könyves Kálmán körút 11.

– balazs.szecsy@ cbre.com

–

–

– ✓ – ✓ – ✓ ✓ ✓ –

– ✓ ✓ ✓ ✓ ✓ ✓ – ✓ – ✓ ✓ –

D D D D D D D D D

–

–

final phase

pillaR www.pillar.gtc.hu

17

14.50–15 2009 HUF 1,870

BREEAM Very Good; Access4you

– ✓ ✓ –

–

planninG phase

3

D

– ✓

✓ ✓ ✓ – ✓ ✓ – ✓ ✓ – ✓ –

GReen ROOf

D

8

2019

1138 Budapest, Népfürdő utca 22.

(1) 412-3680 leasing@gtc.hu

inteRnal yaRd With paRk

26,500 30,100

5

D D

eleCtRiC/hyBRid CaR ChaRGeRs

ip West 16 www.caimmo.com www.ipwest.hu

D

NAK, Multisoft, Innobyte, MindentMent, MCBauchemie

14.50– 15.95 3.30

Cushman & Wakefield

GRey WateR Reuse

27,000 37,300

D

BREEAM Very Good

lOCal ReCyClinG

BaRtók udvaR ii.

15 www.bartokudvar.hu

9 2,500– 4000

14.50–17 2009 HUF 1,350

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ ✓ ✓ ✓ – ✓

dayliGht and mOtiOn sensORs

9,809 5

IBM, Metlife, TMF Group

natuRal ventilatiOn

8 4,000

4

2006

1054 Budapest, Szabadság tér 7.

(1) 302-9010 anett.eles@ bankcenter.hu

eneRGy effiCienCy pROGRam

28,520 34,217

14

myhive halleR GaRdens www.myhive-offices.com/hu

D

– ✓

– (100)

independent pOWeR supply

1,700 3

D

Avestus Real Estate

OWn seWaGe manaGement

16 850

1996

BREEAM Very Good

puBliC tRanspORtatiOn

29,800 31,500

5

D D

BiCyCle stORaGe

duna tOWeR www.dunatower.hu

13

D

D D D D D D

EXXON Mobil – ✓ ✓ – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ –

D

2010

D

2002

Viacom CBS, KUKA Hungary, Shell,Reckitt Benckiser, LeasePlan, Grand Vision

Special Report | 27

addRess phOne email

sOlaR COlleCtOR

11 700– 1400

CuRRent majOR tenants

30,041 52,180

COmpany WeBsite

GReen seRviCes

yeaR estaBlished

aveRaGe mOnthly Rent On auGust 1, 2021 (euR/sqm) aveRaGe mOnthly seRviCe ChaRGe On auG. 1, 2021 (euR/sqm)

nO. Of levels aveRaGe level size (sqm)

Bank CenteR 12 www.bankcenter.hu

Rank

net OffiCe spaCe (sqm) tOtal GROss BuildinG aRea (sqm)

CuRRently leasaBle OffiCe spaCe (sqm) minimum lease teRms (yeaRs)

Budapest Business Journal | September 24 – October 7, 2021

– ✓ ✓ – ✓ ✓ – ✓ ✓ –

✓ ✓ ✓ –

– ✓ ✓ –

–

D D

– ✓ ✓ ✓ ✓ – ✓ ✓ –

–

– ✓ – ✓ –

– ✓ –

–

–

–

–

– ✓

BREEAM Very Good

Cushman & Wakefield

– MCAP Global Finance (100)

– ✓

BREEAM Excelllent

Cushman & Wakefield

– (100)

1113 Budapest, Bocskai út 134–146.

(1) 888-0395 gabor.kertesz@ cbre.com

– ✓

BREEAM Excellent

–

OTP Prime Ingatlanbefektetési Alap (100) –

1138 Budapest, Bence utca 1.

(1) 336-0900 alapkezelo@ otpingatlanalap.hu

–

Property Market

Kopaszi Gát Kft. (100) –

1117 Budapest, Budafoki út (1) 241 0100 sales@budapart.hu

2016

D

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ –

16.50– – 18.50 2024 HUF 1,600

D

– ✓ ✓ – ✓ ✓ ✓ – ✓ – ✓ ✓ ✓ ✓ –

15.50– 16.50 1999 HUF 1,850

TresorIT, Continental

BudapaRt CentRal www.budapart.hu/hu/irodak

CORvin teChnOlOGy 24 paRk 1-2 www.futurealgroup.com

23,749 27,390

D

8 D

5

D D

D D

–

D

–

D D D D D D D D D D D D D D D D

✓ ✓ ✓ –

– ✓ ✓ ✓ ✓ – ✓ ✓ ✓ ✓ –

–

BREEAM in use very good

BREEAM Very Good

Cushman & – Wakefield CA IMMO (100)

–

(100) –

1092 Budapest, Köztelek utca 6.

(1) 501-2800 office@caimmo.hu 1082 Budapest, Bókay utca (1) 266-2181 office@futureal.hu, farkas.hajnalka@ otpingatlanalap.hu

Special Report

www.bbj.hu

aveRaGe mOnthly Rent On auGust 1, 2021 (euR/sqm) aveRaGe mOnthly seRviCe ChaRGe On auG. 1, 2021 (euR/sqm)

6

D

D

D D

D D

23,305 25,053

8 3,100

6,754 5

22,500 42,000

8 3,400

D D

28

21,525 23,445

8 2,900

eRiCssOn hOuse 29 www.gtc.hu

21,100 21,100

8 3,500

– 5

14 4.50

váCi CORneR OffiCes 30 www.vacicorneroffices.hu

21,047 33,000

8 2,882

D D

D D

univeRzum 31 www.gtc.hu

20,700 20,700

6

– 5

D D

2020

260 5

D D

Bayer, Eclipse, Euronet, Hold 2002 Alapkezelő, – ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – Medicover, NuSkin, Signal

D D

D D

D D

–

D

D D D D D D D D D D D D D D D D

váCi GReens f épület www.vacigreens.hu 26

27

paRk atRium www.parkatrium.hu

váCi GReens e épület www.vacigreens.hu

D

17-18 2020 HUF 1,067

D D

32

7 D

ASSET MANAGEMENT

33

White hOuse www.whitehousebudapest.hu

20,404 21,574

9 D

2014

–

Ericsson

1138 Budapest, Váci út 144–150.

(1) 580-2280 info@ vacicorneroffices.hu

D

LEED Gold

–

D D

1117 Budapest, Magyar Tudósok körútja 11.

(1) 412-3680 leasing@gtc.hu

evosoft

– ✓ D D ✓ ✓

BREEAM Very Good, A4Y

InManagement Kft.

Torony Ingatlan Befektetési Alap (100) –

1123 Budapest, Alkotás utca 50.

(1) 920-2060 sales@ inmanagement.hu

D

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ D D D

LEED Gold

CBRE

D D

1134 Budapest, Váci út 47.

(1) 374-3040 –

D

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1134 Budapest, Váci út 29–31.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

BREEAM Very Good

–

– S IMMO AG (100)

1134 Budapest, Váci út 35.

(1) 429-5050 office@simmoag.hu

D

–

D D

1134 Budapest, Váci út 23-27.

(1) 382-9100 property@skanska.hu

final phase

–

Váci Corner Offices Kft. (100) –

–

BREEAM Very Good, LEED Gold

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

BREEAM Excellent, Access4you

– ✓ ✓ ✓ ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ –

ING, Deloitte, 2004 – ✓ ✓ – ✓ ✓ ✓ – ✓ – ✓ ✓ – Egon Zehnder

2017

planninG phase

1117 Budapest, Magyar Tudósok körútja 11.

(1) 412-3680 leasing@gtc.hu

GReen ROOf

–

D D

inteRnal yaRd With paRk

1138 Budapest, Váci út 129–133.

(1) 785-5208 info@atenor.hu

eleCtRiC/hyBRid CaR ChaRGeRs

(100) –

GRey WateR Reuse

Cushman & Wakefield, CBRE

lOCal ReCyClinG

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

dayliGht and mOtiOn sensORs

– (100)

natuRal ventilatiOn

1139 Budapest, Fiastyúk utca 4–8.

(1) 785-5208 info@atenor.hu

eneRGy effiCienCy pROGRam

(100) –

independent pOWeR supply

Cushman & Wakefield, CBRE

OWn seWaGe manaGement

1133 Budapest, Váci út 80.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

puBliC tRanspORtatiOn

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

BiCyCle stORaGe

addRess phOne email

sOlaR COlleCtOR

CuRRent majOR tenants Bonduelle, Intrum, Mazars, Mott Macdonald, NN, Sanofi

ChemAxon, Cosco, 14,212 17-18 2020 Kwizda Agro, 5 HUF 1,067 Manna ABC, Rossmann

alkOtás pOint www.alkotaspoint.hu 20,539 25,100

D

OWneRship (%) hunGaRian nOn-hunGaRian

2017

Real estate aGenCy(ies) OR aGent(s)

pROmenade GaRdens 25 www.promenadegardens.hu

yeaR estaBlished

COmpany WeBsite

GReen seRviCes

–

LEED Gold for Horizon – ✓ Commercial Development Interiors

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ ✓ ✓ – ✓ ✓

– ✓ ✓ –

–

–

–

– ✓ ✓ ✓ D D

–

– ✓

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ ✓ ✓ – ✓ –

visiOn tOWeRs 34 –

20,312 25,178

D

D D

35

RiveR estates www.simmoag.hu

20,245 30,141

10 2,700

D D

D D

1998

D

– ✓ ✓ –

–

36

h2OffiCes - i. fázis https://www.skanska.hu

20,114 26,820

9 2,500

D

16–18 4.50

–

D

– ✓ ✓ –

– ✓ ✓ ✓ ✓ – ✓ ✓ ✓ ✓ –

8

5

Result Of validatiOn (BReeam)

CuRRently leasaBle OffiCe spaCe (sqm) minimum lease teRms (yeaRs)

23,311

Rank

nO. Of levels aveRaGe level size (sqm)

Stage of green certification ClassifiCatiOn Of existinG BuildinG rating

Budapest Business Journal | September 24 – October 7, 2021

net OffiCe spaCe (sqm) tOtal GROss BuildinG aRea (sqm)

28 | 3

– ✓ ✓ ✓ –

– ✓ –

–

– ✓

–

BREEAM Excellent, Access4you

LEED Gold

BREEAM Excellent

D D

nORdiC liGht 39 –

19,629 19,668

8

D D

D D

advanCe tOWeR i-ii 40 www.erstealapkezelo.hu

18,920 19,981

D D

D D

–

D

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ ✓ ✓ –

D

D D

D D

2015

D

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

D

12.50–13 2002 HUF 1,750

D

D D D D D D D D D D D D D D D D

40

váCi GReens C épület www.vacigreens.hu

18,920 20,035

D

8 D

6

2018

2016

D

D

lOCal ReCyClinG –

GReen ROOf

dayliGht and mOtiOn sensORs –

inteRnal yaRd With paRk

natuRal ventilatiOn –

eleCtRiC/hyBRid CaR ChaRGeRs

eneRGy effiCienCy pROGRam –

GRey WateR Reuse

independent pOWeR supply

OWn seWaGe manaGement

puBliC tRanspORtatiOn

BiCyCle stORaGe

sOlaR COlleCtOR

–

– ✓ – ✓ ✓ –

– ✓ ✓ – ✓ – ✓ ✓ ✓ – ✓ – ✓ –

✓ ✓ ✓ –

– ✓ ✓ ✓ ✓ ✓ ✓ D D

–

– ✓

OWneRship (%) hunGaRian nOn-hunGaRian

D D

– ✓ ✓ –

Real estate aGenCy(ies) OR aGent(s)

CuRRent majOR tenants

Stage of green certification ClassifiCatiOn Of existinG BuildinG rating

yeaR estaBlished

8 2,740

7

final phase

aveRaGe mOnthly Rent On auGust 1, 2021 (euR/sqm) aveRaGe mOnthly seRviCe ChaRGe On auG. 1, 2021 (euR/sqm)

38

19,656 21,923

hillside OffiCes www.hillsideoffices.hu

19,663 21,200

planninG phase

CuRRently leasaBle OffiCe spaCe (sqm) minimum lease teRms (yeaRs)

D

OffiCe GaRden iv www.officegarden.hu

nO. Of levels aveRaGe level size (sqm)

2019

37

net OffiCe spaCe (sqm) tOtal GROss BuildinG aRea (sqm)

D D

Rank

D

D D

COmpany WeBsite

GReen seRviCes

addRess phOne email

LEED Gold

–

(100) –

1117 Budapest, Alíz utca 3.

(1) 327-2050 office@robertson.hu

LEED Gold

W-Facility Kft.

D D

1123 Budapest, Alkotás utca 55–61.

(70) 451-2589 szajlai.ipacs.andrea@ wfacility.hu

–

Erste Nyíltvégű Ingatlan Befektetési Alap (100) –

1133 Budapest, Váci út 96–98.

(1) 920-2161 erstealapkezelo@ erstealapkezelo.hu

BREEAM Very Good, WELL Előmínősítés

Eston Zrt.

Erste Nyíltvégű Euró Ingatlan Befektetési Alap (100) –

1134 Budapest, Váci út 43.

(1) 920 2161 erstealapkezelo@ erstealapkezelo.hu

BREEAM Excellent

–

– ZFP Realitní Fond (100)

1138 Budapest, Bence utca 3.

– info@zfpinvest.com

– ✓ – Pre-LEED Gold

–

–

– ✓

Special Report | 29

Result Of validatiOn (BReeam)

3

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

1074 Budapest, Rákóczi út 70–72.

(1) 501-2800 office@caimmo.hu

R70 OffiCe COmplex 42 www.r70.hu www.caimmo.com

18,700 19,000

10 D

3

43

eiffel téR iROdaház www.eiffelter.hu

18,500 23,500

7 3,200

D D

D D

2008

D

– ✓ ✓ –

– ✓ ✓ ✓ ✓ – ✓ ✓ –

–

– ✓

BREEAM Excellent

–

D D

1062 Budapest, Teréz körút 55–57.

(1) 785-4985 info@celand.hu

43

infOpaRk d épület www.wing.hu

18,500

7

D

D

D D

D D

2007

D

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ D D D D

–

– ✓

LEED Silver

D

– (100)

1117 Budapest, Gábor Dénes utca 2.

(30) 822-5466 info@wing.hu

millennium tOWeR iii 45 www.millennium-towers.hu www.caimmo.com

18,000 21,000

8

D

15.50–17

2008

D

D D D D D D D D D D D D D D D D

kRisztina palaCe www.ersteingatlanalap.

46 hu/hu/erste-ingatlan-alap/ irodahazaink/krisztina-palace

17,856 30,001

D

5

6

D D

D

D

D D

– ✓ ✓ ✓ ✓ –

–

–

1095 Budapest, BREEAM in Cushman & – Lechner Ödön fasor 8.

Use Very Good Wakefield CA IMMO (100) (1) 501-2800 office@caimmo.hu

BREEAM in – ✓ Use Very Good

1999

D

– ✓ ✓ –

690 5

16.50– 201817.50 2020 HUF 1,500

D

– ✓ ✓ – ✓ ✓ ✓ – ✓ –

8,197 5

16.50– 201918.50 2021 HUF 1,600

D

– ✓ ✓ – ✓ ✓ ✓ – ✓ – ✓ ✓ ✓ – ✓ –

D D

BREEAM in Cushman & – use Very Good Wakefield CA IMMO (100)

–

Erste Nyíltvégű 1123 Budapest, Ingatlan Nagyenyed utca 8–14.

Befektetési (1) 920-2161 Alap (100) erstealapkezelo@ – erstealapkezelo.hu

BudapaRt Gate www.budapartgate.hu 47

17,638 20,092

12

17,577 20,125

7

D

– ✓ ✓ – ✓ ✓

LEED GOLD

Cushman & Wakefield, ESTON International

BudaPart Auratus Kft. (100) –

1117 Budapest, Buda-part tér 2.

(1) 241-0100 sales@budapart.hu

–

Cushman & Wakefield, ESTON International

Bpart Aspius Kft. (100) –

1117 Budapest, Dombóvári út 26.

(1) 241-0100 sales@budapart.hu

BudapaRt City www.budapartcity.hu 48

CIT Y

D

54

55

OffiCe GaRden iii www.officegarden.hu

paRkside OffiCes www.parksideoffices.hu

kRisztina plaza 56 www.krisztinaplaza.hu

15.50–17

5

6

D D

D

16,500 28,000

5 4,000

16,500 5

18–20

16,497 17,742

7 2,000

569 5

13.75–14 HUF 1,450

16,300 18,800

D

D

D D

D D

7

D

15.50–17

D

5

D

2008

Nestlé, KLM

2017

D

2024

D

–

DM, MNB, Imperial Dental, MAB, Electron Holding

–

D

2006

Cognizant, Vodafone

16,100 17,300

7 2,500

1,100 5

D D

–

Lufthansa Systems, EIT, National Instruments, 3M

15,693 24,803

6 D

D D

D D

2013

D

15,610 16,576

9 1,840

ASSET MANAGEMENT

60

váCi GReens a épület www.vacigreens.hu

– ✓ ✓ ✓ ✓ – ✓ –

–

–

final phase

planninG phase

GReen ROOf

inteRnal yaRd With paRk

–

eleCtRiC/hyBRid CaR ChaRGeRs

14–14.50 BREEAM in 2003 DXC, Novartis D D D D D D D D D D D D D D D D HUF 1,480 use very good

GRey WateR Reuse

1027 Budapest, Henger utca 2.

(1) 266-9441 info@adventum.hu

lOCal ReCyClinG

– (100)

dayliGht and mOtiOn sensORs

D

natuRal ventilatiOn

BREEAM Very good

D

7

Stage of green certification ClassifiCatiOn Of existinG BuildinG rating

– ✓ ✓ ✓ ✓ –

1134 Budapest, Dózsa György út 144–148.

(1) 266-6000 info.hungary@codic.eu

D

millennium tOWeR i 58 www.millennium-towers.hu www.caimmo.com

59

– ✓ ✓ –

–

Codic Hungary (100) –

D D

16,352 17,867

infOpaRk e épület www.diofaalapkezelo.hu

D

D

BREEAM Excellent, Access4you

16,922 18,500

CORvin One www.futurealgroup.com

57

8

2005

OWneRship (%) hunGaRian nOn-hunGaRian

17,000 18,600

3

D D

Real estate aGenCy(ies) OR aGent(s)

millennium tOWeR ii 52 www.millennium-towers.hu www.caimmo.com

D

–

1036 Budapest, Lajos utca 48–66.

(1) 266-9441 info@adventum.hu

eneRGy effiCienCy pROGRam

D

17,000 30,000

– ✓ ✓ –

– (100)

– ✓ ✓ –

independent pOWeR supply

9

BaRtók ház 52 www.caimmo.com www.bartok-haz.hu

D

Diageo, Randstad, Vagheggi

D

OWn seWaGe manaGement

D

D D

17 3.80

BREEAM Very good

puBliC tRanspORtatiOn

6

D

BiCyCle stORaGe

17,047 19,227

–

addRess phOne email

sOlaR COlleCtOR

4,443 5

D D

Result Of validatiOn (BReeam)

maRGit palaCe www.margitpalace.com

8 1,267

CuRRent majOR tenants

51

17,249 18,490

6

GReen seRviCes

yeaR estaBlished

GReen COuRt OffiCe 50 www.greencourtoffice.hu

D

D D

17,400 18,400

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

aveRaGe mOnthly Rent On auGust 1, 2021 (euR/sqm) aveRaGe mOnthly seRviCe ChaRGe On auG. 1, 2021 (euR/sqm)

Buda squaRe –

CuRRently leasaBle OffiCe spaCe (sqm) minimum lease teRms (yeaRs)

49

nO. Of levels aveRaGe level size (sqm)

COmpany WeBsite

Special Report

net OffiCe spaCe (sqm) tOtal GROss BuildinG aRea (sqm)

Rank

30 | 3

– ✓

– ✓ – ✓ ✓ ✓ ✓ – ✓ –

– ✓ –

–

–

– ✓

D D D D D D D D D D D D D D D D

– ✓ ✓ –

–

–

–

–

–

– ✓ – ✓ ✓ –

–

✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ D D

– ✓ ✓ –

✓ ✓ ✓ –

–

– ✓ – ✓ –

– ✓ –

–

– ✓ ✓ ✓ ✓ – ✓ ✓ ✓ –

– ✓

– ✓

D D D D D D D D D D D D D D D D

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ –

– ✓ –

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

– ✓ ✓

–

– ✓

BakeRstReet www.atenor.eu/en/projects/ bakery-3/ 61

16,576 16–18 5 HUF 1,000

–

D

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ –

–

1114 Budapest, – Bartók Béla út 43–47.

CA IMMO (100) (1) 501-2800 office@caimmo.hu

1093 Budapest, BREEAM in Cushman & – Lechner Ödön fasor 6.

Use Very Good Wakefield CA IMMO (100) (1) 501-2800 office@caimmo.hu

LEED Gold

–

GRT Group (100) –

1117 Budapest, Alíz utca 4.

(1) 382-7020 grtgroup@grtgroup.hu

BREEAM, WELL, Access4You

Horizon Development

(100) –

1113 Budapest, Diószegi út 37.

(1) 473-1209 leasing@ horizondevelopment.hu

BREEAM Very Good

White Star Real Estate Kft.

– (100)

1013 Budapest, Krisztina körút 39.

(1) 382-5100 info@krisztinaplaza.hu

(100) –

1082 Budapest, Futó utca 47–53.

(1) 266-2181 office@futureal.hu, farkas.hajnalka@ otpingatlanalap.hu

BREEAM Very Good

–

1095 Budapest, BREEAM in Cushman & – Lechner Ödön fasor 6.

Use Very Good Wakefield CA IMMO (100) (1) 501-2800 office@caimmo.com

LEED Silver, A4Y

InManagement Kft.

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Neumann János utca 1/E (1) 920-2060 sales@ inmanagement.hu

BREEAM Excellent

–

VG 117 Ingatlankezelő Kft. (100) –

1138 Budapest, Váci út 117–119.

– –

BREEAM Excellent, Access4you Gold

CBRE, Colliers

Szerémi Greens Kft. (100) –

1117 Budapest, Hengermalom út 18–20.

(1) 785-5208 info@atenor.hu

GReen hOuse www.diofaalapkezelo.hu 63

–

Unilever, Ford, AON, Atos

15,500 18,300

10 2,500

14,521 15,538

4 3,600

– 5

D D

GReen ROOf

inteRnal yaRd With paRk

eleCtRiC/hyBRid CaR ChaRGeRs

GRey WateR Reuse

lOCal ReCyClinG

dayliGht and mOtiOn sensORs

natuRal ventilatiOn

eneRGy effiCienCy pROGRam

independent pOWeR supply

OWn seWaGe manaGement

puBliC tRanspORtatiOn

BiCyCle stORaGe

sOlaR COlleCtOR

addRess phOne email

BREEAM Excellent

–

D D

1138 Budapest, Váci út 121–127.

(1) 412-3680 leasing@gtc.hu

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ –

2012

Avis Budget Group, MSCI, IsysOn, ABRS Holding, Deichmann

InLEED Management ✓ ✓ ✓ – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ ✓ Platinum, A4Y Kft.

–

D

ASSET MANAGEMENT

–

OWneRship (%) hunGaRian nOn-hunGaRian

15 4

Real estate aGenCy(ies) OR aGent(s)

CuRRent majOR tenants

1,200 3

Stage of green certification ClassifiCatiOn Of existinG BuildinG rating

yeaR estaBlished

6 2,400

final phase

aveRaGe mOnthly Rent On auGust 1, 2021 (euR/sqm) aveRaGe mOnthly seRviCe ChaRGe On auG. 1, 2021 (euR/sqm)

15,600 17,700

planninG phase

CuRRently leasaBle OffiCe spaCe (sqm) minimum lease teRms (yeaRs)

váCi GReens d épület www.gtc.hu

nO. Of levels aveRaGe level size (sqm)

62

net OffiCe spaCe (sqm) tOtal GROss BuildinG aRea (sqm)

Rank

COmpany WeBsite

GReen seRviCes

Special Report | 31

Result Of validatiOn (BReeam)

3

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

Torony Ingatlan Befektetési Alap (100) –

1134 Budapest, Kassák Lajos utca 19.

(1) 920-2060 sales@ inmanagement.hu

Bécsi Greens Kft. (100) –

1034 Budapest, Bécsi út 68-84.

(1) 785-5208 info@atenor.hu

– (100)

1055 Budapest, Bajcsy-Zsilinszky út 78.

(1) 473-1209 leasing@ horizondevelopment.hu

1134 Budapest, Róbert Károly körút 54–58.

(1) 451-4280 –

ROseville www.roseville.hu 64

eiffel palaCe www.eiffelpalace.hu

15,538 20 5 HUF 1,000

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – ✓ –

Apple, PwC, CBRE, British Chamber of Commerce, St. Andrea Restaurant, Wax 2013 in the City, Eiffel ✓ ✓ ✓ – ✓ ✓ ✓ ✓ ✓ ✓ ✓ D D Bistro, Eiffel, Esthetics, Eiffel, Conference Center, Hungarian National Bank

–

8 1,600

D D

D D

14,459 20,305

8 D

D D

D D

–

D

– ✓ ✓ – ✓ – ✓ – ✓ – ✓ ✓ –

D D D

13,858 27,000

6–7 1,150

60 5

11.50– 12.50 3.50

2011

D

– ✓ ✓ –

– ✓ ✓ ✓ ✓ –

– ✓ –

–

13,600 15,402

8 2,000

– 5

16 2003 HUF 1,300

D

– ✓ ✓ –

–

–

–

13,300 13,700

5 4,000

euROpOlis paRk 70 Budapest aeROzOne –

13,000 65,000

4

víziváROs OffiCe CenteR 71 www.vizivaros.eu www.caimmo.com

13,000 14,600

skyliGht City 66 www.skylightcity.hu

67

68

lauRus iROdaházak www.laurusoffices.hu myhive GReenpOint 7 www.myhive-offices.com/hu

infOpaRk a épület www.diofaalapkezelo.hu 69

– ✓ – ✓ –

IBM, ATOS Magyarország – ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – Kft., Invitech

250 5

D D

–

D

D D

D D

2004

D

7

D

14.50–15

2004

Bird&Bird, Hiventures

–

–

– ✓ –

–

Cushman & Wakefield, Eston

BREEAM Very Horizon – ✓ Good, LEED Development Gold

14,500 32,000

65

BREEAM Excellent, Access4you

D

–

Gladiátor I. Ingatlan Befektetési Alap (100) –

– ✓

BREEAM in Use Very Good

–

Erste Ingatlan Kft. (100) –

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

– ✓

–

CBRE

– IMMOFINANZ AG (100)

1075 Budapest, Kéthly Anna tér 1.

(1) 236-0435 mail@immofinanz.com

LEED Gold

InManagement Kft.

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1117 Budapest, Neumann János utca 1.

(1) 920-2060 sales@ inmanagement.hu

–

D

D D

2220 Vecsés, Lőrinci út 59–61.

– –

BREEAM in Use Very Good

–

– CA IMMO (100)

1027 Budapest, Kapás utca 6–12.

(1) 501-2800 office@caimmo.hu

– ✓

BREEAM Very Good

CBRE

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

– ✓

BREEAM Excellent

–

(100) –

1118 Budapest, Rétköz utca 5.

(1) 309-0909 info@budawest.net

– ✓ –

ASSET MANAGEMENT

D

5

BalanCe hall www.balancehall.hu 72

73

BudaWest iROdaház www.budawest.net

12,997 27,500

8 2,300

– 5

12,680 27,000

8

D D

D

D

– ✓ ✓ –

2010

D

– ✓ – ✓ –

–

D D D D D

D D D D D D D D D D D D D D D D

ABB Kft., ABB Power Grids Hungary Kft., AMWAY Hungaria Kft., CIELO TALENT Kft., GastroManager 14.80–16 2019 Kft., Kofax– ✓ – HUF 1,480 Recognita Zrt., Mercarius Kft., Opus Multiservice Kft., Park and Wash Kft., Pioneer TFI Kft., RSM HUNGARY Zrt. D D

–

–

– ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ –

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

–

Special Report

D

12,432 13,178

6 D

D D

D D

11,840 18,000

11 1,638

– 5

D D

–

D

D

E.ON

GReen ROOf

inteRnal yaRd With paRk

eleCtRiC/hyBRid CaR ChaRGeRs

–

GRey WateR Reuse

–

lOCal ReCyClinG

natuRal ventilatiOn

–

dayliGht and mOtiOn sensORs

eneRGy effiCienCy pROGRam

– ✓ –

independent pOWeR supply

OWn seWaGe manaGement

puBliC tRanspORtatiOn

BiCyCle stORaGe

sOlaR COlleCtOR –

OWneRship (%) hunGaRian nOn-hunGaRian

2005

Real estate aGenCy(ies) OR aGent(s)

14.5016.50 4.30

Stage of green certification ClassifiCatiOn Of existinG BuildinG rating

1,427 5

BREEAM in use Very good

–

– (100)

1117 Budapest, Gábor Dénes utca 4.

(1) 451-4760 info@wing.hu

–

BREEAM Very Good

–

D D

1132 Budapest, Váci út 48.

(1) 266-6000 info.hungary@ codic.eu

– ✓ –

BREEAM Very Good

InManagement Kft.

Torony Ingatlan Befektetési Alap (100) –

1134 Budapest, Váci út 17.

(1) 920-2060 sales@ inmanagement.hu

–

BREEAM Very Good

ConvergenCE

– KGAL (100)

1134 Budapest, Váci út 37.

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

D

D

D D

1133 Budapest, Véső utca 7.

– –

– ✓ – ✓ ✓ ✓ –

final phase

7 1,930

addRess phOne email

planninG phase

12,478 13,250

GReen seRviCes

Result Of validatiOn (BReeam)

76

CuRRent majOR tenants

v17 www.v17.hu

yeaR estaBlished

mOdianO 75 www.codic.eu

aveRaGe mOnthly Rent On auGust 1, 2021 (euR/sqm) aveRaGe mOnthly seRviCe ChaRGe On auG. 1, 2021 (euR/sqm)

infOpaRk C épület www.wing.hu

CuRRently leasaBle OffiCe spaCe (sqm) minimum lease teRms (yeaRs)

74

nO. Of levels aveRaGe level size (sqm)

COmpany WeBsite

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

net OffiCe spaCe (sqm) tOtal GROss BuildinG aRea (sqm)

Rank

32 | 3

– ✓

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ D D D D ✓ –

✓ ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

ASSET MANAGEMENT

Cityzen OffiCes www.cityzenirodahaz.hu 77

11,474 12,338

9 1,450

– 5

D D

1996

DKÜ, Doktor24, Friesland Campina, Invitel, ODD, OTIS, Tech Mahindra

D

D

2011

K&H

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ –

–

– ✓

78

nORdiC liGht tRiO –

10,300 24,870

7 2,200

D D

D D

79

millennium tOWeR "h" épület www.millennium-towers.hu www.caimmo.com

10,000 12,300

7

D

D

5

15.50–17

9,965

8

D

D

D D

D D

–

D

– ✓ ✓ –

–

– ✓ ✓ ✓ D ✓ ✓ D D D D

9,469 15,290

5 2,290

D D

D D

2002

D

– ✓ ✓ –

–

– ✓ ✓ ✓ –

– ✓ –

–

Brendon, Euler Hermes, Starschema, Interticket, – ✓ ✓ – ✓ – ✓ ✓ ✓ – Advisesoft.

AMEX, Mall. hu, BPION, Carrier

– ✓ –

– ✓ –

RiveRpaRk iROdák 80 ww.riverpark.hu www.gamma-am.hu

81

Blue CuBe www.simmoag.hu

D

BalanCe BuildinG www.balancebuilding.hu 82

83

szépvölGyi Business paRk www.immofinanz.com

kálvin squaRe www.kalvinsquare.hu 84

9,400 14,450

10 999

510 5

8,900 10,351

5 2,000

– 5

8,850 93,682

9 1,100

555 5

13.5014.50 HUF 1,490

12.5013.50 2004 HUF 1,700

86

infOpaRk B épület www.wing.hu

kinnaRps hOuse 87 www.kinnarpshouse.hu

D

– ✓ ✓ –

–

– ✓ ✓ ✓ –

D D

Adria Port, Bázis Office Center, BFK, BuildEXT, NN Biztosító, 1996 – ✓ ✓ ✓ – ✓ ✓ ✓ ✓ – ✓ ✓ – Salzgitter Mannesmann, HumanField, MádiLáncos Studio

8,793 9,538

8 1,300

– 5

D D

8,100 9,500

7 1,100

503 5

15.50 4.30

7,947 9,018

8 1,127

D D

D D

2002

2006

D

D

– ✓ –

D D D D D D D D D D D D D D D D

AEGON Mo., Alpiq Csepeli, Alpiq Energy, DBK, GEOX, 2004 – ✓ ✓ – Philip Morris, Safeguard, Wolf Theiss Faludi

zenGaRden www.zengardenoffices.hu 85

–

D ✓ ✓ D D ✓ D D ✓ D ✓ ✓ D

– ✓ ✓ –

– ✓ ✓ –

– ✓ ✓ ✓ ✓ – ✓ –

–

–

–

–

–

1095 Budapest, – Lechner Ödön fasor 9.

Cushman & (1) 501-2800 Wakefield CA IMMO (100) office@caimmo.hu

D

GAMMA Properties Kft., gammaam.hu

– (100)

1093 Budapest, Közraktár utca 30–32.

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

– ✓

BREEAM Very Good

–

– S IMMO AG (100)

1138 Budapest, Váci út 182.

(1) 429-5050 office@simmoag.hu

–

– ✓

BREEAM Very Good

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

–

– ✓

BREEAM Very Good

–

– IMMOFINANZ AG (100)

1037 Budapest, Szépvölgyi út 35–37.

(1) 236-0435 mail@immofinanz.com

–

– ✓

BREEAM Very good

ConvergenCE

– KGAL (100)

1085 Budapest, Kálvin tér 12.

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

–

BREEAM Very – ✓ ConvergenCE Good

CBC Ingatlanfejlesztő Kft. (100) –

1027 Budapest, Horvát utca 12–24.

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

–

– (100)

1117 Budapest, Neumann János utca 1.

(1) 451-4760 info@wing.hu

–

– Kinnarps I Falköping AB (100)

1133 Budapest, Váci út 92.

(1) 237-1251 recepcio@ kinnarps.hu

– ✓ – ✓ – ✓ –

– ✓ ✓ ✓ ✓ –

LEED Gold

– ✓

– ✓ D D D

BREEAM in use Very good - minősítés alatt

D

7,627 8,167

7 1,000

1,055 5

5

91

liGet CenteR www.ligetcenter.hu

7,170 11,200

D

D D

92

infOpaRk i épület www.wing.hu

7,116 7,500

7 1,200

1,877 3

6,500 7,325

4 1,530

340 5

94

the quadRum 95 www.erstealapkezelo.hu

5,390 13,226

96

CORvin CORneR www.futurealgroup.com

5,364 6,122

6

98

Canada squaRe www.caimmo.com taBán www.diofaalapkezelo.hu

99 ASSET MANAGEMENT

A = would not disclose,

NR = not ranked, NA = not appliacable

GReen ROOf

inteRnal yaRd With paRk

eleCtRiC/hyBRid CaR ChaRGeRs

GRey WateR Reuse

lOCal ReCyClinG

dayliGht and mOtiOn sensORs

natuRal ventilatiOn

eneRGy effiCienCy pROGRam

independent pOWeR supply

OWn seWaGe manaGement

puBliC tRanspORtatiOn

BiCyCle stORaGe

sOlaR COlleCtOR

CuRRent majOR tenants

yeaR estaBlished

12.90 3.50

–

TÜV Rheinland

– ✓ ✓ –

–

– ✓ – ✓ – ✓ ✓ –

D D D

D D

2002

D

– ✓ ✓ –

–

–

–

– ✓ – ✓ –

–

14.5017.50 5.30

2002

D

–

–

–

–

– ✓ – ✓ – ✓ –

–

Colonnade, BV Technology, Starschema, Megadrive, USN, Magic Tools, Homemedical

–

Cushman &, Wakefield, DVM group, H&M, Horizon, Development, – ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ – Mastercard, Ostermann, OTP, Play’n GO, St. Andrea Wine & Skybar

13.50 HUF 1,390

5 900

372 3

12–15 4.20

– ✓ –

KEF, Secops, 2008 Somfy, TRIUMPF, – ✓ ✓ – Robert Bosch Kft.

–

– ✓ ✓ ✓ –

2014

AG Mamas, Aurum, Billingo, CCE Hungary, 1994 – ✓ ✓ ✓ – ✓ ✓ – ✓ – DWP, Eurorisk, Fürgefutár. hu, VS-Faktor

5,271 5,517

6 900

560 5

D D

4,800 5,000

6

D

D

5

14.50–15

1,634 1,982

8 402

D D

D

D D

2004

2001

D

–

– ✓ ✓ – ✓ – ✓ ✓ ✓ – ✓ ✓ –

D D

áRpád CenteR www.arpadcenter.hu 97

1117 Budapest, Dombóvári út 25.

(1) 241 0100 sales@budapart.hu

D

D

D D

BudaPart Silurus Kft. (100) –

2020

D D

6

Property Market

Horizon ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ D D LEED Platinum Development

D D

D

–

– ✓ ✓ – ✓ ✓ ✓ – ✓ – ✓ ✓ ✓ ✓ –

váCi 1 www.vaci1.hu 5,700 13,800

addRess phOne email

D

BalanCe lOft www.balanceloft.hu 93

OWneRship (%) hunGaRian nOn-hunGaRian

Gizella lOft 90 www.gizellaloft.hu

– ✓ ✓ –

–

–

–

–

(100) –

1052 Budapest, Szervita tér 8.

(1) 473-1209 leasing@ horizondevelopment.hu

D

Eston International

Gladiátor III Ingatlan Befektetési Alap (100) –

1143 Budapest, Gizella út 51–57.

(1) 451-4760 info@wing.hu

– ✓

BREEAM in Use

–

Propwin Kft. (100) –

1068 Budapest, Dózsa György út 84/A (1) 451-4760 info@wing.hu

– ✓

BREEAM in use Very good - minősítés alatt

–

– (100)

1117 Budapest, Infopark sétány 1.

(1) 451-4760 info@wing.hu

– ✓

BREEAM Very Good

–

– CPI Property Group (100)

1139 Budapest, Váci út 99.

(1) 225-6600 hungary@cpipg.com

– ✓

BREEAM in Use, LEED Gold for commercial interiors

Horizon Development

– (100)

1052 Budapest, Deák Ferenc utca 5.

(1) 473-1209 leasing@ horizondevelopment.hu

BREEAM Very good

White Star Real Estate Kft.

Erste Ingatlan Alap (100) –

2220 Vecsés, Lincoln út 1.

(1) 920-2193 erstealapkezelo@ erstealapkezelo.hu

–

(100) –

1082 Budapest, Futó utca 31–33.

(1) 266-2181 office@futureal.hu, farkas.hajnalka@ otpingatlanalap.hu

ConvergenCE

– (100)

1133 Budapest, Árbóc utca 6.

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

–

– CA IMMO (100)

1027 Budapest, Ganz utca 16.

(1) 501-2800 office@caimmo.hu

InManagement Kft.

Magyar Posta Takarék Ingatlan Befektetési Alap (100) –

1013 Budapest, Krisztina tér 1.

(1) 920-2060 sales@ inmanagement.hu

– ✓ – ✓ –

– ✓ ✓ ✓ ✓ – ✓ ✓ ✓ ✓ –

– ✓ –

–

–

Real estate aGenCy(ies) OR aGent(s)

D D

szeRvita squaRe BuildinG www.szervita.com

7

Stage of green certification ClassifiCatiOn Of existinG BuildinG rating

D D

88

final phase

aveRaGe mOnthly Rent On auGust 1, 2021 (euR/sqm) aveRaGe mOnthly seRviCe ChaRGe On auG. 1, 2021 (euR/sqm)

7 1,850

BudapaRt dOWntOWn www.budapart.hu/hu/irodak

planninG phase

CuRRently leasaBle OffiCe spaCe (sqm) minimum lease teRms (yeaRs)

89

7,800 25,000

nO. Of levels aveRaGe level size (sqm)

17.50– 202119.50 2023 HUF 1,600

net OffiCe spaCe (sqm) tOtal GROss BuildinG aRea (sqm)

D

7,820 5

Rank

7,820 8,600

COmpany WeBsite

GReen seRviCes

Special Report | 33

Result Of validatiOn (BReeam)

3

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

–

–

– ✓

BREEAM Very Good

–

BREEAM in Kanadai D D D D D D D D D D D D D D D D Use Very Good nagykövetség

D

– ✓ ✓ – ✓ ✓ ✓ ✓ ✓ – ✓ ✓ –

– ✓ –

D

This list was compiled from responses to questionnaires received by September 22, 2021 and publicly available data. To the best of the Budapest Business Journal’s knowledge, the information is accurate as of press time.

The list is based on companies’ voluntary data submissions. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest Business Journal, 1075 Budapest, Madách Imre út 13–14, or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

4

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

Socialite Movie Marathon, Major Exhibition Honor Hungarian Cinema Watching a scene between Jack Nicholson and Harvey Keitel in “The Two Jakes,” the 1990 follow-up to Roman Polanski’s classic 1974 movie “Chinatown,” I was momentarily distracted by the cinematography.

DAVID HOLZER

The two actors were bathed in the sumptuous golden light of a California sunset. When the credits rolled at the end, I wasn’t surprised to see that the cinematographer was the great Hungarian Vilmos Zsigmond.

Zsigmond, born in Szeged in the south of Hungary in 1930, escaped the country in 1956 after filming the events of the Hungarian Revolution with his friend, fellow film student László Kovács. The two men arrived in the United States as political refugees in 1958 and sold the footage to CBS for a documentary.

After working as the cinematographer on Robert Altman’s 1971 western “McCabe & Mrs. Miller,” Zsigmond’s career took off. He went on to work with some of America’s greatest directors on movies that include “Close Encounters of the Third Kind” (1977). A newly restored print of this Spielberg classic is being shown on Saturday (September 25) in the square in front of Saint Stephen’s Basilica as part of the National Film Institute of Hungary’s splendid Budapest Classics Film Marathon.

Sadly, the marathon is almost at an end, but on September 26, you can watch a handful of classic films with a Hungarian connection. Among these is the intriguing “A Motorcycle Trip Among the Clouds,” made in 1926 and showing in the morning and afternoon at the French Institute not far from the Batthyány tér metro station.

Directed by Austrian photojournalist and sports photographer Lothar Rübelt, the movie follows a group of young motorcyclists as they ride from Vienna to the Dolomites in the Italian Alps. The marathon’s programmers describe the riders as exuding a “genuine Easy Rider Lifestyle.”

The 1969 movie “Easy Rider” was shot by the aforementioned László Kovács. Its theme of the impossibility

The stunning interior of Urania Film Theater, built in the 1890s. Apart from film screenings, the building, a nationally protected monument, also hosts many other cultural events. Photo by Andocs / Shutterstock.com of freedom is often seen as a coded commentary on the Russians’ brutal crushing of the Hungarian Revolution.

Hungarian Encounters

Interestingly, the marathon organizers offer an interpretation of “Close Encounters,” which also alludes to the Hungarian Revolution. They suggest it is as though the movie “expresses the hope that humanity (and not the individual) is not foolish and will not destroy itself and the planet on which it lives, it will not go up against an opponent whose power cannot be calculated. This naïve belief was at least as important during the Cold War as it may now be, during the ongoing climate crisis.”

Of course, Hungary did go up against an opponent whose power couldn’t be calculated in 1956, with disastrous consequences for the country.

Although it’s a little too late to enjoy everything the film marathon has to offer, the excellent “Wide Angle” exhibition at Budapest’s Ludwig Museum runs until November 14.

Hungarian theatrical film is regarded as beginning with the screening of “The Dance,” the first film made in the country to include staged scenes. It was screened at what was then the Urania Scientific Theater in Budapest on April 30, 1901.

The cinema is still there on Rákóczi út, is still open and is a beautifully atmospheric place to watch movies, though its name now is the Urania National Film Theater.

Incidentally, one of the stars of “The Dance” was Lujza Blaha, the hugely popular Hungarian actress and singer (known as “the nation’s nightingale”) after whom a square and metro stop is named.

And the connections continue to come: Blaha starred in only one other movie, “A nagymama” (“The Grandmother,” 1916) which was made by Alexander Korda.

Korda was to become part of the diaspora of Hungarian movie talent. He worked in the Austrian and German film industries as well as in Hollywood before settling in the United Kingdom before WWII. Here, he produced many great movies, including 1949’s “The Third Man,” set in the underworld of post-war Vienna and starring Orson Welles and Joseph Cotten. Korda was knighted in 1942, the first film director so honored.

Cinematic Dawn

Apart from “The Dance,” this year also marks 125 years since it’s generally agreed Hungarian cinema (note the distinction) began with a screening of films by the Lumiere Brothers at the Grand Hotel Royal (now the Corinthia Hotel Budapest), and the opening of the Okonograph cinema at 41 Andrássy utca.

As you might hope from the name, “Wide Angle” offers a suitably wideranging overview of the history of Hungarian cinema over the past 120 years, from “The Dance” onwards. As the organizers say, “It invites the visitor on a special journey that leads from the birth

of the film, through the silent film era and the invention of sound to the present day.”

You can learn more about the great Hungarian filmmakers and their work in a series of themed rooms with names like “The Art of Silent Film,” “Hungarian Hollywood,” and “Escape to the Cinema.”

You are also introduced to works that are important in the light of the film industry but which have been overlooked.

Today, Hungarian cinema continues to impact international cinema with movies such as “Son of Saul,” which has a room devoted to it at the exhibition.

But Hungarian movies that succeed internationally are sadly few and far between. Hungary’s influence on the modern global movie scene is pretty much limited to the technicians who work on international blockbusters, online streaming series, commercials, and pop videos at the Korda Studios, named for Sir Anthony Korda, just outside Budapest at Etyek.

While the existence of the Korda Studios is something to be celebrated, it would be fantastic if there was a new generation of Hungarian creatives making its mark here and internationally.

I can’t think of a single well-known current movie actor, for instance, who was actually born here. Can you?

Wide Angle is at the Ludwig Museum until November 14. Go to www.filmarchiv.hu to find out about the remaining screenings in the Budapest Film Classics Marathon.

4

www.bbj.hu

Budapest Business Journal | September 24 – October 7, 2021

The results of the 2021 edition of Winelovers “100 legjobb Magyar Bor” (“100 Best Hungarian Wines”) represent something of a sea change compared to previous editions of the competition that pits medal-winning Hungarian wines against each other.

ROBERT SMYTH

The “100 legjobb Magyar Bor,” which features Hungarian wines that have reached the podium in leading foreign and domestic wine competitions, is usually dominated by Tokaj’s botrytized wines towards its top end. Indeed, the 2020 ranking saw a clean sweep, with positions 1-15 taken by such wines.

However, 2021 saw several reds and a solitary dry white crack the top 15.

Nevertheless, the top two spots were taken by Tokaji Aszú 6 puttonyos offerings from the 2017 vintage, with the number one being from Szarka Pince and the runner-up from Bognár Pincészet.

The latter, a relative newcomer to the upper echelons of Hungarian winemaking despite actually dating back to 1973, makes wine in both Tokaj and Villány, like Sauska. Bognár also claimed the fifth spot on the hitlist with its Kopár Villányi Franc 2018.

This big red comes from a sun-kissed, rocky, arid-looking, limestone vineyard that lies close to the Croatian border in the southern Hungarian region of Villány, which bottles the produce of its Cabernet Franc grapes under the Villányi Franc label.

While the Cabernet Franc grape has been “claimed” by Villány under its Villányi Franc moniker, the region certainly doesn’t have a monopoly on good Cabernet Franc.

The fact is that this Bordeaux grape, which has often played second fiddle to the more illustrious Cabernet Sauvignon on the broader world scheme of things, makes superb wines up and down

Photo by Foxys Forest Manufacture / Shutterstock.com

Top 100 Wine Ranking: Reds and 1 White Join the Aszú Party

Hungary. Indeed, this year’s thirdplaced wine comes from Vesztergombi Pince, in Szekszárd, with its Kerékhegy Cabernet Franc 2017.

Vesztergombi was a pioneer in the early days of the development of Szekszárd in the 1990s. It fell back somewhat a decade ago with unappealing and unclean aromas emerging in some of the wines but has been back at the forefront of this exciting region for several years.

The one dry white to break into the Top 10 of the Winelover’s chart is from Tokaj’s Barta Pinczészet.

Its KVG Furmint-Hárslevelű 2019, which took fourth place, overall, adds fuel to the fire that the two grapes that work so well together in Tokaj Aszúi can also make top dry wines.

Consistently Excellent

All of the top 20 reds hailed from the southern regions of Szekszárd and Villány, except for the 2018 version of Infusio, the consistently excellent northern blend of Merlot and Cabernet Franc from Pannonhalma’s Arch Abbey winery that has a cooling herbal edge.

From Eger, St. Andrea’s Nagy-Eged dűlő Egri Bikavér Grand Superior 2017, which won a “Best in Show” at the 2021 edition of the Decanter World Wine Awards, took 21st spot here.

The one dry white to break into the Top 10 of the Winelover’s chart is from

Tokaj’s Barta Pinczészet. Its KVG Furmint-Hárslevelű 2019, which took fourth place overall, adds fuel to the fire that the two grapes that work so well together in Tokaj Aszúi can also make top dry wines.

Just as Hárslevelű adds more opulent aromas and flesh to Furmint’s steely backbone to make the botrytized wines considered by many critics to be the best sweet wines in the world, in a subtler way, Hárslevelű can add that extra layer to linear Furmint in a dry wine.

Hárslevelű has long lurked in the shadow cast by Furmint, widely considered Hungary’s flagship white, although some of us Hárs fanatics have long campaigned for the grapes to be put on equal footing. Interestingly, the next highest placed dry white is a single varietal Hárslevelű: Gróf Degenfeld Szőlőbirtok’s Terézia Hárslevelű 2018.

The estate recently celebrated its 25th anniversary, and the wines are in fabulous form under the current team, whose labor is now bearing fruit. For years, I felt that the organic wines of this estate lacked something in terms of character, but the wines are now fresh, focussed, and elegant.

This particular wine comes from the vineyard above the winery, where you can find the Terézia chapel. It has the generous tropical and floral aromas and flavors that the grape can achieve, but it also has a lean structure and tense acidity that gives direction, with a nice touch of oak.

Ever-popular

A Chardonnay puts in an appearance at number 20: Battonage 2017 from the Nimród Kovács winery. This everpopular wine, made by stirring the lees as it ages to add creamy complexity, nicely sits between the New and Old World in style and has been getting less oaky in recent years.

Socialite | 35

Furmint also pops up as one of the components in the next most highly rated dry white wine: Kreinbacher’s Öreg Tőkék (Old vines) Bora 2018, which also includes Hárslevelű and Olaszrizling. Somló, from where this wine hails, is one of the few places you can find these three grapes growing side by side.

Kreinbacher has become better known for its world-class sparkling wines made in the traditional method, which now make up some two-thirds of its production, but this complex dry white shows that the winery is also a significant player when it comes to still wines.

Unsurprisingly, Kreinbacher claimed the top sparkling wine in the Winelovers 100, with its Extra Dry Magnum 2017, in 77th place overall.

Magnums have a smaller amount of oxygen between the cap and the top of the sparkling wine, and it typically ages more slowly and elegantly.

Sauska’s Rosé Brut was second on the 20 Best Sparkling Wines list but didn’t make the overall Winelovers 100.

The next dry whites on the ranking are both from Olaszrizling, the often overlooked one-time workhorse of a grape that has long been considered far inferior to Furmint: Dobosi Pincészet’s Bio Háromszög 2019 and Molnár és Fiai Abasári 2018.

Olaszrizling certainly appears to be an articulator of terroir and able to capture the nuances of different places of growth, something for which Furmint itself has long been commended.

The judges, myself among them, tasted the wines blind using a 100point system and then ranked the best from 1-100. For a complete list of the results, as well as other listings in subcategories and related content (sadly, all in Hungarian only), check out the justpublished Winelovers magazine, which is devoted to its Top 100.

A HOLNAP TECHNOLÓGIÁJÁVAL A JÖVŐÉRT.