Wing has completed the 58,000 sqm Magyar Telekom Group headquarters, located in District IX, adjacent to the Groupama Ferencváros Stadium. A daily average of around 1,000 builders and 150 sub-contractors worked to complete the built-to-suit project over the course of the 28 months.
The Hungarian developer has acquired a niche role of developing tailored, research and development buildings for high-tech companies. This latest BREEAM pre-accredited building, designed by TIBA Architectural Studio and constructed by Market Építő, will include a 300 person capacity conference center, two restaurants, fitness and wellness center on the top floor with a running track, 2,000 sqm internal garden, 1,350 parking spaces, 350 bicycle parking places with changing facilities and 50 electric vehicle charging places.
The building is located at the intersection of Könyves Kálmán körút and Üllői út, providing direct metro and road access to the city center and the airport. Wing acquired the three hectare development site from the state after a public auction.
The complex will provide a working environment for more than 4,000 Telekom and T-Systems employees as the company recognized the need to establish a single headquarters that provides for the needs of a workforce previously spread over six different locations across the city.
The circa HUF 50 bln project is being financed by Wing’s own equity and a consortium of banks consisting of UniCredit Bank Hungary and K&H Bank. The HQ is the largest single office building in Budapest, according to Wing, and represents 2% of the total modern Budapest office stock. A long-term, 15-year letting agreement was concluded between Wing and Magyar Telekom after the project was put out to open tender by the telecom.
Despite the current low vacancy and strong demand, Wing has been pursuing a conservative office development strategy by only going ahead with projects once a built-to-suit agreement or a significant prelease has been agreed.
In another recent built-to-suit development, Wing have completed the Ericsson research and design HQ at the Nobel Prize Winners Research & Development Park located on the Buda side of the Rákóczi híd. Wing will start construction of a second, 20,000 sqm phase of the project next year as the Hungarian developer is building a 22,000 sqm Budapest headquarters for evosoft Hungary, 100% owned by Siemens.
“With built-suit projects, we are able to agree a long-term lease with a major tenant and this puts us in a position to tailor the building to the specific needs of that tenant. At the same time, the tenant needs to commit to a long-term lease of more than ten years,” comments Noah Steinberg, chairman & CEO of Wing, on the development strategy of the company.
“In contrast, those buildings that are not developed on a built-to-suit basis are designed to a more flexible specification to meet the needs of multi-tenants. Wing has developed major headquarters facilities for international and local corporations, and our track record of success speaks for itself. With this project, we can demonstrate to potential tenants that we are able to complete large-scale built-to-suit projects on time,” he adds.
Wing has the opportunity to develop a further project on an adjacent one hectare site in an area that is developing into a business district with its excellent road, metro, and tram transportation links. Such well located, three hectare sites are becoming increasingly difficult to source in the booming Budapest office market.