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State sells property worth Ft 35 bln in 2006

Contracts to sell state-owned real estate worth Ft 35 billion were signed in 2006, Ft 5 billion more than in 2005 excluding the sale of Budapest Airport Zrt, CEO of the Treasury Asset Management Agency (KVI) Sándor Zelles said.

Ft 15 billion of the Ft 35 billion worth of contracts signed in 2006 has already been paid, Zelles said. Last year's biggest sales were that of Millenium Média Kft, a company set up to build and operate the headquarters of public broadcaster MTV Zrt for Ft 7.4 billion and the sale of Club Aliga, a resort on Lake Balaton, for Ft 5.5 billion. KVI expects to take payment for the two properties this year, Zelles said.
The state's decision to build a new government headquarters and sell some of its big properties in the center of the capital could generate revenue of €1 billion over the next three years, he said. Tenders for the sale of property owned by Hungary's Defense Ministry are expected to be called later in January, Zelles said. Proceeds from the sales will be used to pay for the renovation of Budapest's Veterans' Hospital.