TriGranit Hands Over 1st Phase of Millennium Gardens
Millennium Gardens by TriGranit.
TriGranit has completed the first phase of its Millenium Gardens office project overlooking the Danube on the Pest bank of the river. The office development is the final phase of a 25-year mixed-use office, cultural, entertainment, and retail project on a brownfield site in District XI.
The latest office complex at the site is being developed by TriGranit and funded by Revetas Capital, with OTP Bank and the European Bank for Reconstruction and Development providing finance. The 21,600 sqm north tower is more than 90% let with the local unit of Henkel, the Germany-based maker of Adhesive Technologies, Beauty Care, and Laundry and Home Care products, already occupying space in the building.
Tom Lisiecki, CEO of TriGranit, emphasized what he regards as the outstanding achievement of completing and leasing an office project developed during the COVID pandemic.
“It is always a pleasure to open a new office building, but Millennium Gardens is unparalleled for us, as the building is the final element of Millennium City Center. The opening of Millennium Gardens, especially in these turbulent times, is an outstanding accomplishment from the TriGranit team,” Lisiecki said.
“I would like to thank Revetas Capital, [the] pan-European real estate investment advisor, for their trust and support. As the next step, we are working intensively to continue phase two of Millennium Gardens,” he added at the official handover reception.
Millennium Gardens is the opening phase of Revetas Capital’s ESG and 2040 carbon neutrality strategy. Steps were taken to reduce emissions and energy use during construction and source environmentally friendly materials. All activities on the building site, including CO2 emissions, were closely monitored. According to the company, the building was planned in accordance with Breeam “Excellent” and Access4You “Gold” accreditations.
The Budapest-based Finta Studios designed the complex, which has a green garden on the ninth floor and a roof terrace, both of which can serve as alternative workspaces and meeting points. A 300-seat restaurant with a terrace on the ground floor will serve employees from the building as well as nearby offices and the National Theater.
The Millennium City Center follows the concept of a “city within a city,” containing cultural institutions, offices, residential buildings, green areas, and a 1.5 km-long promenade surrounding the buildings. The location provides several public transport and road links, deemed essential for any successful office complex.
Such large office deliveries as Millenium Gardens have been rare in recent months. Despite a strong office pipeline, developers are cautious about undertaking new projects in the current challenging economic and political environment.
“Development activity remains strong in Budapest despite elevated inflation pressures and the weak forint,” comments Orsolya Hegedűs, partner and head of research and advisory at Cushman & Wakefield Hungary.
“While some developments are delayed until the third quarter, the new pipeline in the second half of 2022 is estimated to exceed 240,000 sqm, 49% of which is already pre-let. New supply in 2022 is likely to break a record set in 2009,” she adds.
This article was first published in the Budapest Business Journal print issue of October 7, 2022.
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