Kopaszi gát investment to receive ‘elevated significance’
Property Market Real Estate Development, a subsidiary of construction company Market Group is finalizing permits for the development of the phased BudaPart office and residential development in south Buda, in the green space of Kopaszi gát on the Danube bank. The construction is supported by the Hungarian Eximbank and could be given “elevated significance” by the Hungarian government, according to reports published on Wednesday.
Property Market, which purchased the site last year, described the project as a “new city quarter” on a 55 hectare development site with office, residential, retail and leisure components in addition to the possibility of a hotel development.
Under a bill proposal submitted to Parliament on Monday, the investment would be given “elevated significance”, which means related licenses for the construction could be acquired faster and easier, Hungarian index.hu reported on Wednesday. The explanation of the proposal says that new jobs would be created in the area and the development would be a good source of taxes, as such it is in the governmentʼs interest to have the investment realized as quickly as possible, according to the portal. The portal added that Hungarian state-owned Eximbank provided a HUF 16.5 billion loan for the investment.
The first phase is expected 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 circa 5% vacancy compared to an average 11% across the city, and is the most favored office location much like with the Váci Corridor. “The first office phase is planned to deliver in 2018 and with the low vacancy rate I see no problem in leasing such well located quality office space. We are looking for preleases and will soon announce a leasing agent,” said Gergely Árendás, managing director of Property Market.
The phased project has the potential to deliver over 200,000 sqm of phased office and residential space over a ten-year period in addition to a large residential component. There is also the possibility of developing a hotel.
Anders Lonka, founding partner at Adept architects defines the master plan as creating a mixed-use neighborhood with large public spaces and a diversity of streets in a city-style gradient. “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 many as 10,000 visitors on a good weekend.
The Katar Constellation Holdings, an experienced hotel investor is the financing partner in the approximately HUF 200 billion project and additional debt financing can be made available. Property Market will soon announce a letting consultant for the residential properties through which buyers can register for apartments.
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