Financing, pre-lease deals concluded for Szervita Square Building

Office Market

The end of 2018 brought two major developments for the Szervita Square Building, a LEED Platinum-certified, sustainable multi-purpose commercial and luxury residential property by Budapest-based Horizon Development, with expected delivery in 2020.

The Szervita Square Building as it will appear on completion

The propertyʼs owner, SZ8 Real Estate Development Investment Fund, signed a financing agreement with UniCredit Bank Hungary for the realization of the project. It has also concluded an 8,500 square-meter pre-lease deal with Spaces, IWGʼs premium co-working and serviced office brand, for all four floors dedicated to office use in the mixed-use building, according to a press release sent to the Budapest Business Journal.

With a total area of 14,900 sqm, the Szervita Square Building will feature retail spaces on the ground floor, mezzanine and floor minus one; office premises on floors one, two, three and four; and luxury residential units on floors five and six. The seven-story property, with a unique shape, lightweight and ethereal structure, soft facade contours and reflecting surfaces, is expected to fit organically in its historic setting of Hungarian Art Nouveau buildings, the press release claims.

Underground levels minus two, three, four, and five will feature both private and public parking. The park in front of the building will serve as a social space for the general public, contributing to Szervita Square becoming a downtown meeting point and community hub, the press release adds.

"This project, which received numerous architectural and development awards already in the concept phase, will be the crown jewel of our portfolio, and we have absolute trust in its commercial viability and ultimate financial success," said Attila Kovács, managing partner of Horizon Development. "With all four office floors already dedicated to accommodating the space requirement of our exclusive tenant, Spaces, as well as the currently experienced strong demand for the retail and luxury residential units of the property, we have no doubt that the final numbers will confirm our development ambitions."

Kovács added that the structural works of the building are expected to be completed in the first quarter of 2020, with the aim of concluding the entire fit-out period by Q4 2020.

Spaces was introduced as IWGʼs premium co-working and serviced office brand 11 years ago, with the first office opening in Amsterdam in 2008, explained Nikoletta Ispánki, country manager at IWG Hungary (concept owner of Spaces and Regus).

"Within the last decade, we set up over 240 offices across the globe with the aim to provide the perfectly sized, flexible and tailored work environment for our customers, where inspiration, creativity, comfort and community are at the forefront of considerations," she said. "As the exclusive office tenant of the Szervita Square Building, we are absolutely convinced that our brand will greatly benefit from the best downtown location of the Hungarian capital, as well as the top technical and aesthetic quality of this prime building."

"After two previous successful cooperations, the Szervita Square Building is our third project with Horizon Development," said Gábor Pető, real estate financing director at UniCredit Bank Hungary. "The financing of such top-quality projects contributed to UniCredit being honored as ‘Financer of the Year 2018’ in Hungary at the Portfolio Property Awards."

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