GTC launches construction of White House

Office Market

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Real estate developer GTC Hungary confirmed it has started construction on its latest office development project, the 21,500 square-meter GTC White House, according to a press release issued late last week.

GTC has selected Swietelsky as contractor for the basement works, while international property consulting firms Cushman & Wakefield and CBRE have been appointed joint exclusive letting agents, the press release noted.  

Planned for completion by the end of 2017, the GTC White House is "a new office development that embodies the spirit of the post-crisis revival and helps solve the pressing problem of Budapestʼs aging office market supply," the real estate firm said.

Concurrently, GTC Hungary will also carry out a full interior refurbishment and technical reconstruction at the Duna Tower office building.

"We are proud that GTC have mandated C&W to lease GTC White House, which, given the location and quality, will undoubtedly prove popular to occupiers looking for Grade A offices in the active Váci út office submarket," said David M. Johnston, Partner and Head of Office at Cushman & Wakefield’s Budapest office.

The entire CBRE Advisory & Transaction Services office team will manage leasable areas at GTC White House. Over the past eight years, they have helped let 282,000 sqm of retail space, generating €39 million in rent, according to the press release.

“It is part of our philosophy to provide tailored solutions to future tenants, and this is also the case for GTC White House. This is why our entire team is working shoulder to shoulder on this project," said Judit Varga, Head of Advisory & Transaction Services/ Investor Leasing/ Offices at CBRE.

“The purchase last year of Duna Tower was a milestone in the history of GTC. Now we are fortifying our position with GTC White House, which will set the highest standards in the Budapest office market,” said GTC Commercial Director Bori Gedai.

The GTC White House design incorporates and renovates the 100-year-old building of a former elevator factory (Schlick Felvonógyár) to create a modern office space of approximately 2,000 sqm in an exceptional and unique working environment, according to the press release. The preserved historic building will be integrated into the whole of the new 21,500-sqm class A office complex, which will be built to a LEED Gold environmental standard. GTC White House will have underground parking for 299 vehicles, over 150 bicycle stands, and shower suites.

Emphasizing that the Budapest office market is reviving after the downturn in 2008, the overall market vacancy rate currently stands at 10.3% from a low point of 22% in 2012, GTC noted.

The Duna Tower, which was purchased by GTC in one of the biggest single-asset office building acquisitions in 2015, will also be renewed. The interior refurbishing of 3,000 sqm of community areas and the full technical reconstruction of Budapest’s highest office building started in July. The remodeling of the 16-storey building, which offers a total of 31,500 sqm of gross leasable area, is scheduled to finish in mid-October.

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