State-owned Eximbank is loaning HUF 16.5 billion for the residential and office development in a cove along the Danube in south Buda. Parliament may also approve a fast-track designation for the project.
Property Market Real Estate Development Kft., a subsidiary of builder Market Group, announced on May 24 that is finalizing permits for development of the phased BudaPart office and residential development in south Buda, located in a park environment at Kopaszi-gát, a green, underused cove on the bank of the Danube.
The project has strong government backing. Property Market Kft. received a loan of HUF 16.5 billion from Hungarian state-owned Eximbank to fund the development, according to reports published on May 25. Furthermore, under a bill proposal submitted to Parliament on May 22, the investment would be given “elevated significance”, which means related licenses for the construction could be acquired faster and easier,
index.hu reported. The justification of the government proposal to “fast-track” the project says it is in Hungary’s interests because new jobs would be created in the area and the development would be a good source of taxes.
Property Market, who purchased the disused site last year, describe the project as a “new city quarter” on a 55-hectare site with office, residential, retail and leisure components in addition to the possibility of a hotel. The Danish architectural and urban planning studio Adept has been employed to develop the master plan for the development. It has worked on the planning of several large-scale residential and mixed-use schemes in northern Europe including the Royal Seaport project in Sweden.
The first phase is planned to deliver 16,000 sqm of speculative office space in addition to a possible second building. This could include a 120-meter tower to be designed by Hungarian architects. The south Buda office sub-market currently has a vacancy rate of around 5% compared to the average of 11% across the city, and is the most favored office location, along with the so-called Váci corridor. “The first phase is planned to be delivered in 2018 and with the low vacancy rate I see no problem in leasing such well located quality office space. We are looking for pre-leases and will soon announce a leasing agent,” said Gergely Árendás, managing director of Property Market.
The phased project has the potential to deliver more than 200,000 sqm of office and residential space phased over a ten-year period in addition to a large residential component.
Anders Lonka, a founding partner at Adept says the idea is to create a mixed-use neighborhood with large public spaces. “We have created diversified streets with open ground floors and a diversity in the height and look of the different apartment blocks. The site provides access to the waterfront with views of the river.”
The complex has direct road links and tram connections, although no direct metro connection. The development provides direct access to a 15-hectare park, the area contains eight restaurants and can attract as many as 10,000 visitors on a good weekend.
Quatar-based Constellation Hotels Holdings, an experienced hotel investor, is the financing partner in the approximately HUF 200 bln project and additional debt financing is available if necessary.