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Property Systems opens latest New Work serviced offices center

The Budapest-based Property Systems is continuing to expand its New Work Office Solutions network in the capital with the delivery of the first 1,800 sqm phase of B52 on Baross utca in the eighth district.

Hubert Abt and Csaba Zeley, head of asset management at ConvergenCE, at the B52 opening ceremony.

Property Systems Group is setting up serviced office centers across Budapest, with the interior design reflecting the different locations and types of buildings, from classical central European to contemporary. All the offices provide 24 hour access, flexible reception, technical support and cleaning and catering services, according to Property Systems.

The B52 Business Center will extend to three levels with so-called five-, four-, and three-star office areas, allowing companies to occupy a whole floor if necessary. “The basic design was something ‘urban’ as we are in the city center. At the same time I wanted to bring out an element of sun and nature,” says András Lesták, interior designer for the project. “With BJ48, another New Work center, I did a more classical design in line with the historical building. Some tenants go for something more historical, while others prefer space with a more mainstream or fashionable design.”

Property Systems opened its first New Work project on two floors at the R70 Business Center in Rákóczi út in 2012, providing 200 workstations. A second complex, the Ankerköz Business Center, was opened in the central sixth district, providing 220 workstations. The complex is being given a “funky style” design concept. Outside of Budapest, the company established the 1,200 sqm Budaörs Business Center Terrapark, consisting of 125 work stations on four levels, last year.

According to Hubert Abt, CEO of Property Systems, the company has invested around EUR 1 million to date in the New Work project. The developments are financed by the 100% family owned company, which calculates development costs as EUR 1,000 per sqm. “The aim is to have 2,000 workstations in Budapest by the end of next year, although this is a moving target, depending on the market. If we attract bigger tenants then we could easily increase our office stock to 30-40,000 sqm. We currently have 10,000 sqm and next year this will be 20,000 sqm in at least ten locations, and then we will see where we go,” he explains. “Every building is different and we know that people spend more time at work than at home and therefore we want to make the offices as comfortable as possible. Each building has a different design concept and this serves the different tastes of the tenants,” Abt adds.

A recent opening was the above-mentioned BJ48, a classical protected building dating back to the end of the 19th century on Bajcsy Zsilinszky út that provides 160 work spaces. “We undertook the interior design to complement the building. This includes the original windows, lamps, balconies and facade,” commented Márk Standavári, operations and sales manager at Property Systems. The European Investment Bank (EIB) has established its Budapest headquarters at the complex.

Property Systems will open a further New Work Center with 200 work stations on Andrássy út by the turn of the year and has signed letters of intent for two locations on the Váci corridor. The aim is to have a total of ten business centers by the end of 2017, the company says.

In terms of occupancy, Abt estimates that in general it takes about nine months to arrive at 80% plus occupancy. “With regard to the extension of the New Work brand beyond Budapest, we will decide next year whether we could role out as a franchise or through our own organization. We would consider Warsaw and possibly Prague, in addition to Milan and Vienna. However, for the moment, we are concerned with increasing our market share in Budapest,” Abt says.