The building, which has been modernized to serve as RTL’s newsroom and studios, was originally the congress block of the former National Federation of Hungarian Construction Workers (Mémosz) headquarters and has been a protected building since 1999.
“The renovation focused on preserving the historic character of the building, the special technological needs of RTL Hungary, along with ESG considerations. Liget Center Auditorium, a 70-year-old facility, has been transformed into a near-zero energy building with an ‘A’ energy efficiency and an ‘A+’ CO2 emission efficiency rating,” Wing comments.
“We are delighted that RTL Hungary has chosen Liget Center as its new downtown base. The Liget Center fits perfectly with our office development goals of building state-of-the-art, high-quality, sustainably operated headquarters that meet the needs and vision of renowned domestic and multinational tenants in good locations,” adds Noah Steinberg, chairman and CEO of the developer.
“Our group has delivered a number of major headquarters projects over the past 25 years, tailored to the specific needs of large corporations. However, a commercial media company has specific technological needs, which also presented us with a significant professional challenge, but I believe our team successfully met these challenges,” he adds.
The designer of the renovation was the Tiba Architects Studio, general construction was carried out by Workup, the specialized division of Fitout Zrt., and the interior design was by Lab5 Architects.
The Liget Center project will be completed this fall when the 2,200 sqm Liget Center Vitrum, a new boutique office building, will be delivered.
The Hungarian Faedra Group is set to develop the eponymous Faedra Business Park and Faedra City, two new logistics warehouses in Budapest totaling more than 21,000 sqm, with delivery expected in the second and third quarters of 2025.
Due to their proximity to the city center, the buildings are ideal for “last-mile” logistics operations, according to the developers. The value of the two investments is more than EUR 23 million.
“The recent economic challenges and high vacancy rates have made many developers hesitant to invest. However, Faedra Group’s successful projects and leasing results, achieved with the exclusive assistance of 108 Real Estate, have encouraged the company to pursue new investments,” says Máté Szoboszlay, business development and investment director at Faedra Group.
He believes the South Buda location is ideal for urban and suburban logistics operations, supported as it is by convenient public transport access.
“Sustainability and low operational costs are important for both tenants and developers. By installing green solutions such as solar panels, electric chargers, and smart metering systems, Faedra Group not only ensures sustainable operations but also creates real opportunities to reduce operating costs, which is particularly important in the current economic climate,” the developer adds.
Panattoni has announced the launch of a pan-European fund that will invest in modern, sustainable, income-producing logistics properties. The Panattoni Income Fund, with an open-ended, evergreen structure, aims to raise EUR 300 million of equity by 2026 and acquire EUR 600 mln of assets developed and managed by Panattoni.
The fund hopes to generate sustainable income with a good capital appreciation for its investors. It will acquire stabilized assets and forward-purchase pre-let developments with the highest sustainability ratings in countries where Panattoni operates, including CEE (and Poland in particular), Austria, Germany, Italy, the Netherlands, Scandinavia, Spain, and the United Kingdom.
The fund’s advisory team is based in Poland with its managing director, Krzysztof Dudek, who will manage the operations, investment activity, portfolio and asset management, as well as fundraising and capital flows.
“This is an opportune time to be creating Panattoni’s first income fund. The post-COVID market correction has resulted in yields for industrial and logistics properties becoming more attractive. There has been a significant amount of capital waiting on the sidelines for repricing to settle and for more favorable financing conditions,” Dudek says.
“Investing in industrial and logistics properties offers a compelling opportunity and attractive long-term returns, bolstered by structural drivers. The market is currently experiencing a shortage of supply, coupled with a growing emphasis on ESG-compliant assets, which gives the fund a competitive edge through access to premium projects,” concludes Daniel Raemy, a member of the advisory board at Panattoni Income Fund.
Panattoni is one of the largest industrial developers in the world, operating from 26 branches across North America, as well as in Europe and India. The company has been present in Europe since 2005. It has offices in Austria, the Czech Republic, Denmark, France, Germany, Hungary, Italy, Slovakia, the Netherlands, Poland, Portugal, Spain, Sweden and the United Kingdom.
New industrial supply in the CEE-5 (the Czech Republic, Hungary, Poland, Romania and Slovakia) for the first half amounted to about three million sqm, representing a 26% year-on-year annual fall for the region. Unsurprisingly, 1.6 million sqm was delivered in Poland, accounting for 55% of the CEE volume, followed by the Czech Republic with 260,000 sqm and Romania with 250,000 sqm.
Total stock in Hungary has surpassed 5.1 million sqm while the pipeline has reached 503,000 sqm with 200,000 sqm under construction.
Consultancy CBRE has traced more than 70 million sqm of space in the CEE region, with a further 4.5 million sqm under construction, representing a 10% year-on-year decrease. The overall pipeline is expected to remain on a similar level. Overall, Poland has by far the most significant pipeline, followed by the Czech Republic and Romania. The Czech market has the lowest vacancy rate at less than 2%, while Poland and Hungary have the highest at more than 8%.
This article was first published in the Budapest Business Journal print issue of October 4, 2024.
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