Váci188 Office Building reopened, mostly with local IT companies

Váci188 Office Building reopened in Budapest, Hungary, with dynamically growing ICT companies, as well as financial services and consulting firms. 1,700 square meters have been leased in Váci188– owned by developer, ORCO Property Group – to companies that achieved favorable terms through collective negotiations, currently characterizing the office market.

Hungarian-owned and dynamically growing IT development, financial services and consulting firms were the first to move into the Váci188 Office Building, which reopened on September 2, 2013. The companies carrying out their activities in a long-term strategic collaboration were previously scattered in different parts of Budapest. They choose Vaci188 due to the large and more flexible space for growth, the easily accessible location overlooking the Danube, and as an aim to improve the overall quality of services – said the operation manager for Drávanet Zrt. and its partners, acting as representative of the tenants. Gergely Olajos said that the parties had entered into a long-term contract, and the lessor supported the transition with a flexible and cooperative approach.

Gergely Olajos said that, in September, a total of 110 persons started to work at the new location, and this figure would grow by 10-20 percent within a year, according to the plans of the companies currently settling in, therefore, the companies have started preparing the infrastructure as early as now for the new workplaces to come.

188. Váci út, Budapest (the former Budapest Bank headquarters) is an A-class office building, but in line with the owner’s strategy, currently non A-class office tenants are strongly considered and targeted as potential tenants, offering them the opportunity to upgrade under favorable conditions – explained Zinaida Vojnár, ORCO’s local leasing and marketing manager. Following the opening, Váci188 can offer adequate space for both large companies seeking space of thousands of square meters, and for smaller businesses looking for 100-200 square meters.

It is difficult to find the first tenant for reopening an office building – especially in today’s market – the real estate professional added. The average office size rented along the Váci út office corridor is 6-800 square meters; therefore, it is a great achievement that Váci188 could be reopened with a floor area of 1,700 square meters. According to the head of operations, this is also due to the fact that a more flexible approach could be taken in the negotiations as the property is financed exclusively from equity, and is not backed by a bank loan.

Euronet expands by international orders

Euronet Zrt., one of the largest companies moving into Váci188, with a revenue of HUF 1.3 billion and a staff of 44, expects stagnation in the Hungarian market in CRM systems, however, due to international projects and the introduction of new products, there are prospects for growth – said the company’s CEO. Levente Balogh added that there was a significant increase in the number of international contact center orders, which required a 10 percent increase in staff. He said that around Váci út, the market had a low supply of office space of 1,000-1,500 square meters in size with favorable conditions; amongst other considerations, this is also why they welcomed the reopening opportunity of Váci188 at ORCO, not far from their previous location.

Drávanet focuses on business customers

Another company moving into is Drávanet Zrt. which provides leased line internet connection in more than 60 office buildings. Now the company wants to expand in sales – said the commercial director of the company. Csaba Csizmadia pointed out that the company that started its operations in Pécs provides leased line internet, phone and server hosting services to business customers operating in office buildings and commercial and service centers. In the capital, the length of the optical path is nearly 100 km, while in Pécs, the 35 km optical network covers nearly the entire city. Good transportation, the possibility of improving the quality of reception and service to business customers, as well as proximity, were all important considerations in the company’s decision, as the internet head end and server center remain in the company’s former site which is also located in Váci út. Last year’s sales of the 100 percent Hungarian-owned alternative internet service provider, becoming the largest by 2011, exceeded HUF 557 million.

LMGL offers state subsidized loans to small and medium businesses

In addition to ICT companies, LMGL Invest Pénzügyi Zrt. also moves into the office building with its financial services; the company is planning a 20 percent increase in mediating state subsidized loans mainly to small and medium-sized enterprises – said the head of the company. The firm was founded two years ago. Miklós Attila Szalay pointed out that the Hungarian-owned company with a balance sheet total of more than HUF 2.7 billion wants to boost innovative small and medium-sized enterprises, including companies moving into Váci188.